How Much HDB Loan Can I Get in 2026? Complete Eligibility Guide
Discover exactly how much HDB loan you qualify for in 2026. Learn about the 75% LTV limit, MSR calculations, interest rates, and practical strategies to maximize your loan amount with real examples.
If you're planning to buy an HDB flat in Singapore, one of the first questions on your mind is: "How much can I borrow?" The answer depends on several factors including the property value, your income, and recent policy changes that took effect in August 2024.
Quick Answer: In 2026, you can borrow up to 75% of your HDB flat's purchase price or valuation (whichever is lower), subject to a monthly repayment cap of 30% of your gross monthly income. The current HDB concessionary interest rate is 2.6% per annum for Q1 2026.
This comprehensive guide breaks down everything you need to know about HDB loan eligibility, calculation methods, and strategies to maximize your borrowing capacity.
Understanding HDB Loans: The Basics
An HDB housing loan is a concessionary loan offered by the Housing & Development Board to help Singapore Citizens and Permanent Residents finance their HDB flat purchase. Unlike bank loans, HDB loans offer more flexibility and are designed specifically for public housing.
Current HDB Loan Interest Rate (2026)
The HDB concessionary interest rate for January to March 2026 is 2.6% per annum. This rate is pegged at 0.1% above the CPF Ordinary Account (OA) interest rate, which currently stands at 2.5%.
Interest Rate Reviews
HDB loan rates are reviewed quarterly in January, April, July, and October, in line with CPF interest rate revisions. The next review will be in April 2026.
HDB Loan vs Bank Loan: Quick Comparison
| Feature | HDB Loan | Bank Loan |
|---|---|---|
| Interest Rate | 2.6% (fixed quarterly) | Variable (typically higher) |
| LTV Limit | 75% | 75% |
| Downpayment (CPF) | 100% CPF allowed | Minimum 5% cash required |
| Lock-in Period | None | Usually 2-3 years |
| Eligibility | Citizens & PRs only | All residents |
| Processing Time | Longer | Faster |
HDB Loan Eligibility Criteria: Are You Qualified?
Before calculating how much you can borrow, you must first meet the basic eligibility requirements. Here's a comprehensive checklist:
- At least one buyer must be a Singapore Citizen
- You do not own or have an interest in any local or overseas private residential property
- You have not previously taken 2 or more housing loans from HDB
- You have obtained an HDB Flat Eligibility (HFE) letter
- You meet HDB's credit assessment criteria
No Income Ceiling for Resale Flats
Unlike BTO flats, there is no income ceiling for purchasing resale HDB flats. However, your income affects your loan quantum through the MSR calculation and your eligibility for CPF Housing Grants.
Second HDB Loan Restrictions
If you're applying for your second HDB loan, you must first use the full CPF refund and part of the cash proceeds from the disposal of your previous property before HDB grants the second loan. This applies to properties disposed of at least 30 months before your application.
How Your HDB Loan Amount is Calculated
Your maximum HDB loan amount is determined by two key factors, and HDB will approve the lower of the two:
- Loan-to-Value (LTV) Limit: Maximum 75% of the property's purchase price or valuation (whichever is lower)
- Mortgage Servicing Ratio (MSR): Your monthly installment cannot exceed 30% of your gross monthly income
Loan-to-Value (LTV) Limit Explained
As of August 2024, the LTV limit for HDB loans was reduced from 80% to 75%, aligning with bank loan limits. This means you can borrow up to 75% of your flat's value, and you'll need to pay the remaining 25% as a downpayment.
The LTV limit for HDB loans was lowered to 75% with effect from 20 August 2024 as part of property cooling measures.
— HDB Official Announcement
Important: The 75% LTV applies when your loan tenure is 25 years or less and does not extend beyond age 65. If you opt for longer tenures, the LTV limit is reduced.
LTV Limits Based on Loan Tenure
| Loan Tenure | Age Extension | Maximum LTV |
|---|---|---|
| ≤ 25 years | Up to age 65 | 75% |
| 26-30 years | Up to age 75 | 55% |
| > 30 years | Beyond age 75 | 55% |
LTV Calculation Example
Let's say you're buying a resale flat:
- Purchase Price: $500,000
- Valuation: $480,000
- Lower value: $480,000
- Maximum loan (75% LTV): $360,000
- Downpayment required (25%): $120,000
100% CPF for Downpayment
Unlike bank loans which require a minimum 5% cash downpayment, HDB loans allow you to use 100% CPF for your downpayment (if you have sufficient CPF OA balance).
Mortgage Servicing Ratio (MSR): The 30% Rule
The MSR caps your monthly housing loan repayment at 30% of your gross monthly income. This ensures you don't overextend yourself financially and have enough for other living expenses.
How MSR is Calculated
The calculation considers your gross monthly income (before CPF deductions) and any existing housing loans. Here's the formula:
Maximum Monthly Installment = Gross Monthly Income × 30%
MSR Calculation Example
Single Applicant Example:
- Gross Monthly Income: $5,000
- MSR Limit (30%): $1,500
- Loan Tenure: 25 years
- Interest Rate: 2.6% p.a.
- Maximum Loan Amount: ~$327,000
Joint Applicant Example:
- Combined Gross Monthly Income: $8,000
- MSR Limit (30%): $2,400
- Loan Tenure: 25 years
- Interest Rate: 2.6% p.a.
- Maximum Loan Amount: ~$523,000
Joint Applications Increase Loan Capacity
Applying jointly with a spouse or family member significantly increases your borrowing capacity since the MSR is calculated based on combined income.
Total Debt Servicing Ratio (TDSR) Consideration
While HDB primarily uses MSR, if you have other outstanding debts (car loans, personal loans, credit card debt), the Total Debt Servicing Ratio (TDSR) may also apply. TDSR caps your total monthly debt obligations at 55% of your gross monthly income.
Understanding the Downpayment: 25% You Need to Pay
With the 75% LTV limit, you need to pay a 25% downpayment. Here's what you need to know about funding this downpayment:
Downpayment Payment Options
| Loan Type | CPF OA Usage | Minimum Cash |
|---|---|---|
| HDB Loan | Up to 100% | 0% (all CPF possible) |
| Bank Loan | Up to 20% | 5% minimum cash required |
This is a key advantage of HDB loans – you can use your CPF Ordinary Account (OA) savings to pay the entire downpayment, preserving your cash for renovation, furniture, and emergency funds.
Downpayment Example
For a $500,000 flat (valuation: $480,000):
- Maximum Loan (75%): $360,000
- Downpayment (25%): $120,000
- Option A: Pay $120,000 using CPF OA only
- Option B: Pay $60,000 CPF + $60,000 Cash
- Option C: Pay $120,000 Cash (preserve CPF for retirement)
HDB Loan Interest Rates & Total Cost
Understanding the interest rate and total loan cost helps you make informed decisions about your home financing.
Current Interest Rate (Q1 2026)
The HDB concessionary interest rate is 2.6% per annum for January to March 2026. This rate is calculated as:
HDB Loan Rate = CPF OA Rate + 0.1%
2.6% = 2.5% + 0.1%
Why HDB Loans Are More Stable
HDB loan rates are more predictable than bank rates because they're pegged to CPF OA rates, which have a floor rate of 2.5%. Bank loan rates can fluctuate significantly based on market conditions.
Long-Term Cost Comparison
Let's compare the total cost over 25 years for a $350,000 loan:
| Loan Details | HDB Loan (2.6%) | Bank Loan (3.5%) |
|---|---|---|
| Loan Amount | $350,000 | $350,000 |
| Loan Tenure | 25 years | 25 years |
| Monthly Repayment | $1,581 | $1,753 |
| Total Interest Paid | $124,300 | $175,900 |
| Total Amount Paid | $474,300 | $525,900 |
In this example, the HDB loan saves you $51,600 in interest over 25 years compared to a typical bank loan at 3.5%.
Strategies to Maximize Your HDB Loan Amount
Want to borrow more? Here are proven strategies to increase your loan eligibility:
1. Apply Jointly with a Co-Applicant
Joint applications combine both incomes for MSR calculation, significantly increasing your borrowing capacity. You can apply with:
- Your spouse
- Parents
- Children (above 21)
- Siblings
2. Clear Existing Debts
Pay off outstanding loans before applying for your HDB loan. This improves your TDSR and shows better creditworthiness. Priority clearance:
- Credit card debt (highest interest)
- Personal loans
- Car loans (if possible)
- Other housing loans
3. Extend Your Loan Tenure (With Caution)
A longer loan tenure reduces monthly installments, allowing you to borrow more under MSR. However, be aware:
- ✅ Lower monthly payments
- ✅ Better MSR qualification
- ❌ Higher total interest paid
- ❌ Lower LTV if tenure > 25 years (drops to 55%)
4. Leverage CPF Housing Grants
While grants don't increase your loan amount, they reduce the cash/CPF needed for downpayment. Enhanced CPF Housing Grants in 2026:
| Applicant Type | Maximum Grant | Income Ceiling |
|---|---|---|
| Families | Up to $120,000 | Varies by income |
| Singles | Up to $60,000 | Varies by income |
5. Choose the Right Property Value
Your maximum loan is capped by both LTV and MSR. If your MSR allows a $400,000 loan but you're buying a $450,000 flat (75% = $337,500), your MSR advantage is wasted. Consider:
- Properties where 75% LTV aligns with your MSR capacity
- Avoid over-buying if your income limits monthly payments
- Use our calculator to find your sweet spot
Step-by-Step: How to Apply for an HDB Loan
Follow this process to secure your HDB housing loan:
- Apply for HDB Flat Eligibility (HFE) Letter
Submit your application online through HDB. The HFE letter confirms your eligibility and indicates your maximum loan amount based on MSR. - Find Your Ideal HDB Flat
Use your HFE letter as a guide to search for flats within your budget. The letter is valid for 6 months. - Exercise Option to Purchase
Once you find a flat, grant the Option to Purchase (OTP) and pay the option fee (typically $1,000-$5,000). - Submit HDB Loan Application
Apply for the actual loan within 21 days of exercising the OTP. Required documents include:
• NRIC/passport
• Proof of income (pay slips, tax documents)
• CPF statements
• Existing loan statements - HDB Credit Assessment
HDB evaluates your creditworthiness and confirms the loan amount (typically 2-3 weeks). - Sign Loan Agreement
If approved, sign the loan agreement and complete the conveyancing process. - Loan Disbursement
HDB disburses the loan directly to the seller upon completion of the sale.
Processing Timeline
The entire HDB loan process typically takes 2-4 months from HFE application to loan disbursement. Plan accordingly when timing your flat purchase.
HDB Loan vs Bank Loan: Detailed Comparison
Should you take an HDB loan or a bank loan? Here's a comprehensive comparison to help you decide:
| Criteria | HDB Loan | Bank Loan |
|---|---|---|
| Eligibility | Citizens & PRs only | All residents, foreigners |
| Interest Rate | 2.6% (Q1 2026) | Variable, typically 2.5-4% |
| Rate Stability | Very stable (pegged to CPF) | Fluctuates with market |
| LTV Limit | 75% | 75% |
| Downpayment (CPF) | 100% CPF allowed | Minimum 5% cash |
| Lock-in Period | None | Usually 2-3 years |
| Prepayment Penalty | None | Yes, during lock-in |
| Processing Time | 2-4 months | 2-4 weeks |
| Age Limit | Loan can extend to age 95 | Varies, typically age 65-75 |
| Refinancing | Cannot refinance to bank | Can refinance |
| Flexibility | Less flexible | More options, packages |
When to Choose an HDB Loan
- ✅ You prefer stable, predictable interest rates
- ✅ You want to use CPF for your entire downpayment
- ✅ You plan to hold the property long-term (no refinancing needed)
- ✅ You value the no lock-in period flexibility
- ✅ You're risk-averse and want to avoid interest rate volatility
When to Consider a Bank Loan
- ✅ Current bank rates are significantly lower than HDB rates
- ✅ You want faster loan approval
- ✅ You may refinance in the future for better rates
- ✅ You have substantial cash and want to preserve CPF for retirement
- ✅ You're financially savvy and can manage rate fluctuations
Common HDB Loan Questions Answered
Is there an income ceiling for HDB loans?
No, there is no income ceiling for purchasing resale HDB flats or taking HDB loans. However, income ceilings apply for BTO flats and CPF Housing Grants. Your income affects your loan quantum through the 30% MSR calculation.
Can I get a second HDB loan?
Yes, but with restrictions. You can take a maximum of 2 HDB housing loans in your lifetime. For your second loan, you must first use the full CPF refund and part of cash proceeds from selling your previous property (if disposed at least 30 months before application).
Why was my HDB loan rejected?
Common reasons for rejection include:
- Poor credit history or defaults on previous loans
- Insufficient income to meet MSR requirements
- Outstanding debts exceeding TDSR limits
- Already taken 2 HDB loans previously
- Ownership of private property
- Incomplete or inaccurate documentation
Can I refinance my HDB loan to a bank loan?
Yes, you can refinance from an HDB loan to a bank loan at any time (no lock-in period). However, you cannot refinance from a bank loan back to an HDB loan. Consider this carefully before switching, as you lose the option to return to HDB's stable rates.
How does CPF usage for HDB loans work?
You can use your CPF Ordinary Account (OA) savings for:
- Downpayment (up to 100%)
- Monthly loan installments
- Stamp duty and legal fees
When you use CPF for housing, you must refund the principal amount plus accrued interest when you sell the property.
What happens if I can't meet my monthly installments?
If you face financial difficulties:
- Contact HDB immediately – don't wait
- Apply for a temporary payment arrangement or loan restructuring
- Consider selling your flat before defaulting
- Explore financial assistance schemes
Defaulting on your HDB loan can lead to legal action and property repossession.
Take Control of Your Home Financing Journey
Understanding how much HDB loan you can get is the first crucial step in your home-buying journey. With the current 75% LTV limit and 30% MSR cap, you now have a clear framework to calculate your maximum loan amount.
Key Takeaways:
- You can borrow up to 75% of your flat's value, subject to MSR
- Your monthly installment is capped at 30% of gross income
- Current HDB interest rate is 2.6% p.a. for Q1 2026
- You can use 100% CPF for downpayment (unlike bank loans)
- Joint applications significantly increase borrowing capacity
- Get your HFE letter first before house hunting
Ready to find out exactly how much you can borrow? Use our comprehensive HDB Loan Calculator to get instant, personalized results based on your income, property value, and loan tenure.
Have specific questions about your unique situation? Ask Rich, our AI financial assistant, for personalized guidance on HDB loans, CPF usage, and home financing strategies.
Disclaimer: The information provided is accurate as of February 2026 and is for educational purposes only. HDB policies and interest rates are subject to change. Always verify current information with HDB or consult a licensed financial advisor for personalized advice.