HDB Downpayment: How Much Cash You Actually Need

The question behind the question

Most people asking what the HDB downpayment percentage is are really asking something more specific: how much of it has to be cash, and when do I need it by.

The percentage on its own settles very little, because the downpayment can be paid from your CPF Ordinary Account, from cash, or from a combination, and which applies depends on whether you take an HDB loan or a bank loan. That single choice changes the cash requirement more than anything else in the process.

How the percentage is set

The downpayment is whatever is left after your loan. Your loan is limited by the loan to value ratio, which is set by the regulator and differs between an HDB loan and a bank loan.

These figures have been revised several times in recent years, so treat any number you find in an older article as out of date until you have checked it against HDB or MAS directly.

The one rule that survives every revision

Take an HDB loan and more of the downpayment can usually come from CPF. Take a bank loan and a cash component is usually required. If your CPF Ordinary Account is healthy and your cash savings are not, that difference is worth more to you than a small gap in interest rate.

When each payment is actually due

The percentage matters less than the calendar, and this is the part that catches first time buyers.

For a BTO flat, the money is not needed all at once. Payments fall at defined points across a build that runs for years, which gives you time to accumulate. For a resale flat, the timeline is compressed into weeks and the cash requirement arrives quickly.

Buying a BTO, in order:

1. Option fee, paid when you book. Cash. The amount depends on flat type and is 4-room and bigger: $2,000; 3-room: $1,000; 2-room Flexi: $500.
2. Downpayment, paid when you sign the lease agreement. CPF, cash or both, depending on your loan.
3. Stamp duty and legal fees, due around the same point. Can often be paid from CPF, subject to conditions.
4. Remaining balance, at key collection, generally covered by the loan.

Buying a resale flat, in order:

1. Option fee to the seller, cash, on granting the Option to Purchase.
2. Option exercise fee, cash, when you exercise. The two together are capped at $5,000 — the Option Fee plus Option Exercise Fee together cannot exceed $5,000. The Option Fee itself cannot exceed $1,000.
3. Downpayment, at completion.
4. Cash over valuation, if any. This one is entirely cash and cannot come from CPF or a loan. It is the single largest source of unplanned cash requirement in a resale purchase.
5. Stamp duty, legal fees, agent commission around completion.

The costs that are not the downpayment

Buyers budget for the downpayment and are caught by everything sitting next to it. Add these to your plan from the start.

• Buyer’s stamp duty. Calculated on the purchase price on a tiered basis. Additional buyer’s stamp duty applies to some buyers.
• Legal fees. Conveyancing, whether through HDB or a private solicitor.
• Valuation fee, for a resale purchase.
• Agent commission, if you are using an agent.
• Cash over valuation, for a resale flat where the agreed price exceeds the valuation. Cash only, no exceptions.
• Renovation, which for most households is the second largest number after the flat itself. Our guide to HDB BTO renovation costs sets out what the works themselves run to.
• Moving and setting up. Appliances, curtains, lighting, a bed. Modest individually, substantial together.

Building the cash portion

Work with the calendar rather than a single target figure.

1. Establish which loan you are taking, because it determines the cash component more than any other decision.
2. Check your CPF Ordinary Account balance today, and project what it will be at each payment date. Your monthly contributions keep accumulating while you wait for a BTO.
3. List the cash-only items from the section above. These cannot be met from CPF at all, so they set your true cash target.
4. Divide that target by the number of months until the payment date. That monthly figure is your actual savings requirement, and it is usually more achievable than the headline number suggests.
5. Keep the renovation budget separate from the purchase budget. Combining them is how people end up short at the point they need to start work.

Common questions

Can I pay the entire downpayment from CPF?

It depends on your loan type and your CPF balance. CPF OA savings can be used for the downpayment and eligible purchase payments, subject to CPF usage limits. For an HDB loan, there is no minimum cash downpayment if sufficient CPF OA savings and the housing loan cover the payments; CPF OA savings above $20,000 generally have to be used for the purchase, subject to the applicable CPF rules. For a bank loan, at least 5% of the lower of the purchase price or value must be paid in cash before CPF OA savings can be used for the remaining eligible amount.

What is cash over valuation and can I finance it?

It is the amount by which an agreed resale price exceeds the flat’s valuation. It cannot be paid from CPF or covered by a loan. It must be cash.

Do I get the option fee back if I do not proceed?

Generally not. Treat it as committed once paid.

Is the downpayment different for an EC or a condominium?

Yes, the rules differ. This article covers HDB flats.

If a gap remains once the purchase costs and the renovation are both on the table, our personal loan page sets out what a licensed moneylender can and cannot do, and the limits that apply.