A down payment is the part of a home’s price the buyer pays upfront rather than borrows. In Singapore its minimum size follows from the loan-to-value limit: at 75% LTV it is 25% of the price. With a bank loan at least 5% of the price must be cash; for a new flat with an HDB loan the whole down payment can come from CPF Ordinary Account savings and grants.
Key takeaways
- Under MAS Notice 632 a bank may not pay out a housing loan until the buyer has paid at least the price minus the maximum loan. That money cannot be borrowed from any MAS-regulated financial institution, a moneylender or the seller, and it must include a minimum cash amount.
- With no outstanding housing loan a bank can lend up to 75%, with at least 5% of the price paid in cash. With one outstanding loan the limit is 45%, with two or more 35%, and the minimum cash rises to 25%.
- For a buyer with no outstanding housing loan, the limit drops to 55% — with at least 10% in cash — when the loan tenure is over 30 years (over 25 years for an HDB flat), or the loan runs past the borrower’s age of 65. With one or more outstanding loans the lower limits are 25% and 15%.
- An HDB loan is capped at 75% of the price, down from 80% for resale applications from 20 August 2024 and new flats from the October 2024 sales exercise. For a new flat, 10% is paid at the Agreement for Lease and 15% at key collection, in cash or CPF Ordinary Account savings including grants.
- For a resale flat the payment is worked on the lower of the price and the flat’s value, so any price above value — cash over valuation — is paid in cash on top. The deposit to the seller is at most SGD 5,000, option fee and exercise fee together.
The loan limit decides the down payment
The down payment is whatever the loan does not cover, so it moves with the loan-to-value limit — and the limit depends on who lends and how many housing loans the buyer already has.
A CPF housing grant counts towards the down payment, but where a grant would cover more than 95% of the price, at least 5% is still paid from CPF savings or cash.
When the down payment falls due on a new HDB flat
A new flat’s down payment is split between signing the Agreement for Lease and collecting the keys. Shares of the purchase price, for applications from the October 2024 sales exercise onwards; buyers on the Staggered Downpayment Scheme pay a smaller share at signing.
| Loan | At signing | At key collection | Minimum cash |
|---|---|---|---|
| HDB loan | 10% | 15% | none — CPF can pay |
| Bank loan at 75% LTV | 20% | 5% | 5% at signing |
| Bank loan at 55% LTV | 20% | 25% | 10% at signing |
HDB’s example: a 4-room flat at SGD 345,000
HDB’s own worked example uses this flat with an HDB loan. At signing it adds stamp duty and legal fees and deducts the SGD 2,000 option fee already paid; the key-collection and loan figures are the same shares applied to the price. The actual loan is usually lower: CPF savings above SGD 20,000 each and any grant go into the purchase first, and HDB assesses loan eligibility on income.
What shapes the cash needed
Five things people get wrong
- MAS — New Housing Loans: Loan Tenure and Loan-to-Value Limits — the LTV tiers, minimum cash and the tenure and age triggers
- MAS — Notice 632 Residential Property Loans — what must be paid before a bank loan is released
- HDB — Sign Agreement for Lease — the new-flat payment schedule and the worked example
- HDB — Mode of Financing for a Resale Flat — the resale initial payment and cash rules
- HDB — Option to Purchase — the resale option and exercise fees
Official MAS and HDB rules, for general information only. Not financial advice.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to MAS, HDB and the CPF Board and seek independent professional advice before making any financial decisions.