How to Calculate Your HDB Loan Eligibility and Monthly Repayments

What Is the HDB Concessionary Loan?

The HDB concessionary loan is a subsidised home loan available to eligible Singapore citizens buying HDB flats. It offers a stable interest rate currently at 2.6% per annum and requires a lower down payment than bank loans.

Am I Eligible for an HDB Loan?

To qualify, you must meet these criteria:

Citizenship: At least one buyer must be a Singapore Citizen.

Income Ceiling:

Singles applying under the Single Singapore Citizen scheme: gross monthly income ≤ S$7,000
Families: gross monthly household income ≤ S$14,000
Extended families: ≤ S$21,000

Property Ownership: You must not currently own or have recently disposed of private property. If you've owned a HDB flat before, you can apply for a second loan but may face restrictions.

No Outstanding HDB Loan: You should not currently have an outstanding HDB loan. If you do, approval is subject to HDB's assessment.

How Much Can You Borrow? (LTV Ratio)

The Loan-to-Value (LTV) limit for HDB loans is 80% of the flat's purchase price or value (whichever is lower). This means:

You borrow up to 80% → minimum 20% comes from you
Of that 20%, at least 10% must be in cash or CPF

Example: Buying a S$500,000 flat:

Maximum loan: S$400,000
Down payment: S$100,000 (can use CPF OA)
Minimum cash: S$0 (for HDB loan, full down payment can be CPF)

Calculating Your Monthly Repayment

Monthly repayment depends on loan amount, interest rate, and tenure. Use this formula or our calculator:

Monthly Repayment = [P × r(1+r)^n] / [(1+r)^n – 1]

Where:

P = loan principal
r = monthly interest rate (annual rate ÷ 12)
n = number of months

Example: S$400,000 loan at 2.6% over 25 years

r = 2.6% ÷ 12 = 0.2167% per month
n = 300 months
Monthly repayment ≈ S$1,810

Mortgage Servicing Ratio (MSR) — The 30% Rule

For HDB flats, monthly repayment cannot exceed 30% of your gross monthly income. This is known as the Mortgage Servicing Ratio (MSR).

Example: Household income of S$6,000/month:

Maximum monthly repayment = S$6,000 × 30% = S$1,800

This caps the loan you can take. You may need to make a larger down payment if the MSR limit is hit before the 80% LTV limit.

Total Debt Servicing Ratio (TDSR) — The 55% Rule

The TDSR limits total monthly debt obligations (including car loans, credit cards, personal loans) to 55% of gross income. This applies on top of MSR.

Example: If you already pay S$800/month in other loans and earn S$6,000/month:

TDSR cap: S$6,000 × 55% = S$3,300
Available for mortgage: S$3,300 – S$800 = S$2,500/month

Getting an HDB Loan Eligibility Letter (HLE)

Before making an offer, apply for an HLE letter from HDB. It confirms:

How much you can borrow
Your estimated monthly repayment
Your eligibility status

The HLE is valid for 6 months and is required before you can exercise an Option to Purchase.

Use Our Calculator

Enter your income, existing debts, and desired flat price into our HDB Affordability Calculator to instantly see your borrowable amount and down payment required. Also try the Mortgage Calculator for monthly repayment estimates, and the TDSR Calculator to check your debt limits.