About 80% of resident households in Singapore live in an HDB flat, bought new from HDB or resale on the open market. The rest buy private condos or landed property. Whichever route, the money usually comes from a mix of CPF, cash and a home loan. This guide covers the loan choice, how CPF is used, and the taxes and borrowing limits.
For an HDB flat you can take the HDB concessionary loan — a fixed 2.6% (0.1% above the CPF Ordinary Account rate), up to 75% of the value, with the 25% down payment allowed entirely from CPF. Or you can take a bank loan, also up to 75%, at a SORA-pegged or short fixed rate that is sometimes lower than 2.6% but variable, and which requires at least 5% of the price in cash. You can refinance from an HDB loan to a bank loan later, but not the reverse. Private property can only be financed with a bank loan.
Your borrowing is capped two ways: the Total Debt Servicing Ratio (all your monthly debt repayments must be within 55% of gross income) and, for an HDB flat or executive condo, the Mortgage Servicing Ratio (the home loan alone within 30% of gross income).
You can use your CPF Ordinary Account for the down payment, the monthly instalments, the Buyer's Stamp Duty and legal fees. There are limits on how much OA you can use for a bank-financed property beyond the Valuation Limit, and you must keep the Basic Retirement Sum in CPF from age 55 before using more OA for property.
The catch is accrued interest: when you sell, you must return to your CPF the amount you used plus the interest it would have earned (2.5% a year). That is not a penalty — it is your own retirement money being restored — but it means a CPF-funded purchase leaves less cash profit on a sale than it looks.
The buyer pays Buyer's Stamp Duty (BSD) on every purchase: 1% on the first S$180,000, 2% on the next S$180,000, 3% on the next S$640,000, 4% on the next S$500,000, then 5% and 6%. For a S$600,000 flat that is about S$12,600. If you already own residential property, Additional Buyer's Stamp Duty (ABSD) is charged on top — 20% for a citizen's second property, 30% for a third, and 60% for a foreigner. Selling a residential property within three years triggers Seller's Stamp Duty.
On top of BSD, budget for the conveyancing lawyer (about S$2,500–3,000), a valuation, and for an HDB resale the HDB admin fees and any agent commission. Total upfront cash and CPF is roughly the 25% down payment plus 2–3% of the price.
Informational content, not financial, tax or legal advice. Check amounts, limits and current rules directly with the official sources (CPF, the Monetary Authority of Singapore, IRAS, and the SDIC) before making a decision.
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