HDB Loan Eligibility & Monthly Repayment Calculator 2026

Before you fall in love with a flat, you need a clear picture of how much you can borrow and what the monthly repayment will look like. The HDB concessionary loan rules are detailed but predictable — once you know the eligibility tests, the LTV cap, and the two debt servicing ratios, the maths is straightforward.

This guide walks through the full 2026 eligibility framework and shows you how to calculate your borrowable amount and monthly repayment.

The HDB Concessionary Loan in 2026

The HDB concessionary loan is a subsidised home loan available only for HDB flats. Key terms in 2026:

• Interest rate: 2.6% per annum (CPF Ordinary Account rate + 0.1%)
• Maximum LTV: 75% of the lower of price or valuation (cut from 80% on 20 Aug 2024)
• Down payment: 25% — fully payable from CPF OA (no cash component required for an HDB loan)
• Maximum tenure: 25 years, or 65 minus your age — whichever is shorter
• Refinancing: allowed to a bank loan, not back to HDB

The loan is only available to households with at least one Singapore Citizen and is gated by an income ceiling.

Eligibility — The Six Tests

You must pass all six.

1. Citizenship

At least one buyer (or essential occupier) must be a Singapore Citizen. Permanent Residents on their own do not qualify for an HDB loan.

2. Income Ceiling

The ceiling is assessed on the average gross monthly income over the 12 months preceding the HFE application. Bonuses, commissions, and rental income are included.

3. Property Ownership History

You must:

• Not currently own any private residential property in Singapore or overseas
• Not have disposed of private residential property within the last 30 months
• Not own more than one market-rate HDB flat (with limited exceptions)

4. Lifetime Loan Cap

A maximum of two HDB concessionary loans per citizen, ever. Once you have used both, future flats must be bank-financed.

5. No Outstanding HDB Debt

You must have no overdue HDB rent, conservancy charges, or prior loan arrears. Outstanding bills must be settled before HDB will issue the HFE letter.

6. The HFE Letter

Since May 2023, the HDB Flat Eligibility (HFE) letter has replaced the old HLE letter. The HFE bundles three things into one application:

• Flat purchase eligibility (which flat types and schemes you can buy)
• CPF housing grant eligibility (EHG, family grant, proximity grant)
• Concessionary loan eligibility (loan amount and monthly repayment)

It is mandatory before you can apply for a BTO, exercise an OTP on a resale flat, or book any HDB unit. Validity: 9 months from issue.

How Much Can You Borrow — The LTV Calculation

Maximum loan amount = 75% of the lower of purchase price and HDB valuation. The 80% LTV that older guides still cite was cut to 75% on 20 August 2024 as part of the HDB resale cooling measures.

For a S$500,000 flat valued at exactly S$500,000:

• Maximum loan: S$375,000
• Minimum down payment: S$125,000 — payable in full from CPF OA, no cash required for an HDB loan
• Stamp duty (Buyer's Stamp Duty): S$9,600 — payable from CPF OA after completion

If the valuation comes in below the price (e.g. S$480,000), the loan is capped on the lower figure: 75% of S$480,000 = S$360,000. You make up the gap — known as Cash Over Valuation (COV) — in cash.

The Two Debt Servicing Ratios

Even if the LTV says you can borrow S$400,000, two further tests can cut that figure.

MSR — The 30% Rule (HDB-specific)

Mortgage Servicing Ratio caps your HDB mortgage repayment at 30% of gross monthly income.

• Income S$6,000/month → Maximum repayment S$1,800
• Income S$10,000/month → Maximum repayment S$3,000

MSR is HDB-only. It does not apply to private property purchases.

TDSR — The 55% Rule

Total Debt Servicing Ratio caps total monthly debt obligations at 55% of gross income. This includes:

• Home loan repayment
• Car loan repayment
• Personal loans, renovation loans
• Credit card minimum payments
• Student loan repayments
• Any other recurring credit obligations

If you earn S$6,000/month and pay S$800/month on a car loan plus S$200/month on credit cards:

• TDSR cap: S$3,300
• Existing debt: S$1,000
• Available for mortgage: S$2,300

The binding constraint is whichever is lower — MSR or TDSR.

Calculating Monthly Repayment

The standard amortisation formula:

Monthly repayment = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ – 1]

Where P is principal, r is the monthly rate (annual ÷ 12), n is the number of months.

Worked Example — S$375,000 over 25 years at 2.6%

• r = 2.6% ÷ 12 = 0.002167
• n = 300 months
• Monthly repayment ≈ S$1,700
• Total repaid ≈ S$510,200
• Total interest paid ≈ S$135,200

This same calculation drives the affordability picture. A household earning S$6,000/month has an MSR cap of S$1,800 — comfortably above S$1,700 — so a S$375,000 loan is feasible.

A household earning S$5,000/month has an MSR cap of S$1,500, below S$1,700. The loan is not feasible at this size. Either reduce the loan (by paying more down), extend the tenure, or buy a cheaper flat.

Stress-Testing Your Application

HDB applies the loan calculation at the actual 2.6% rate, but a sensible buyer should also stress-test affordability:

• Future rate scenario: What if you refinance to a bank loan and rates touch 4%?
• Income shock: What if one earner loses their job for 6 months?
• CPF cushion: How many months of mortgage can your OA balance cover if income drops?

A rule of thumb: keep total housing-related outflow (mortgage + maintenance + utilities + insurance) under 35% of gross income, with 6 months of repayments held in CPF OA or cash reserves.

What Happens If You're Denied

If HDB declines your HFE application, your options are:

1. Wait out the 30-month rule if private property ownership is the issue
2. Reduce assessed income — bonuses can sometimes be re-classified or smoothed
3. Apply for a bank loan instead — no income ceiling, but requires 5% cash down payment and clears 75% LTV instead of 80%
4. Consider a smaller flat or different scheme — singles, for example, can move from 2-room Flexi to alternative paths

Bottom line

HDB loan eligibility looks complex on paper but reduces to a clear sequence: pass the citizenship, income, and ownership tests; confirm you have HFE approval; let LTV cap your loan size; then check that MSR and TDSR do not bite. Run the maths before you commit to a flat — not after.

Use the HDB Affordability Calculator to see your borrowable amount, down payment, and stamp duty in one view, and the Mortgage Calculator to model your monthly repayment under different tenures and rates.