|HDB Housing Loan|
Under the mortgage financing policy, HDB provides concessionary interest rate housing loans to eligible flat buyers, subject to credit assessment and housing loan criteria. For replacement flats selected before 19 Jul 2005, the loan ceiling is capped at 80% of the flat's purchase price. For replacement flats selected on or after 19 Jul 2005, the loan ceiling is capped at 90% of the flat's purchase price. The maximum loan quantum, subject to the prevailing loan ceiling, is to be determined from:
Please also see Other Information
The maximum loan repayment period is 65 years less the applicant's age, or 30 years, whichever is shorter. If there is more than one applicant for the flat, the age of the youngest applicant will be used to determine the maximum loan repayment period.
The maximum loan quantum is capped at 40% of the gross monthly household income. The gross monthly household income is the combined income of all applicants and all occupiers who opt to be included in the credit assessment
Prevailing Interest Rate
The concessionary interest rate is pegged at 0.1% point above the CPF Ordinary Account interest rate. The rate is revised quarterly, in January, April, July and October each year, in line with the revision in the CPF interest rate.
Flat buyers may use their CPF savings and/ or cash to service the monthly instalment of the housing loan. the monthly instalment is payable in advance on the first day of each month. Interest will be charged on late payment.