Condo Downpayment in Singapore: Cash and CPF Needed

A condo downpayment in Singapore starts at 25% when a bank grants the maximum 75% loan. At least 5% of the lower of price or valuation needs cash. Eligible CPF Ordinary Account (OA) savings or cash can cover the remaining 20%.

That is the clean first-property example. An existing housing loan, low valuation or smaller bank approval raises the money you need before completion.

Calculate the downpayment from the approved loan

Use this formula:

Downpayment = purchase price − approved housing loan

The loan-to-value (LTV) limit caps the percentage a bank may lend. It does not promise that amount. The bank still checks income, debt, age, tenure and credit history.

Assume one buyer purchases a $1.8 million condo, the valuation matches the price, and the bank approves a 75% loan:

Item	Calculation	Amount
Purchase price		$1,800,000
75% bank loan	$1,800,000 × 75%	$1,350,000
Minimum 5% cash	$1,800,000 × 5%	$90,000
Remaining 20%, cash or eligible CPF	$1,800,000 × 20%	$360,000
Total downpayment		$450,000

The buyer needs at least $90,000 cash and another $360,000 from cash or usable CPF. Buyer’s Stamp Duty (BSD), Additional Buyer’s Stamp Duty (ABSD), legal fees and renovation sit outside the $450,000.

Our condo affordability guide combines these upfront funds with the monthly mortgage.

A low valuation increases the cash requirement

Banks and CPF Board use the lower of the purchase price or valuation for key limits. The amount above valuation needs cash.

Suppose the buyer agrees to $1.8 million but the bank values the condo at $1.7 million. A 75% loan ceiling on the valuation gives $1.275 million, before the bank’s credit assessment.

Item	Amount
Purchase price	$1,800,000
Valuation	$1,700,000
75% of valuation	$1,275,000
Price above valuation	$100,000 cash
Total price less loan	$525,000

The $525,000 consists of the 25% equity on the valuation plus the $100,000 price gap. CPF cannot fund the price above valuation.

A buyer who prices the offer from the maximum LTV but leaves no valuation buffer risks finding the extra cash after entering the contract. For a resale condo, settle the valuation and loan position before exercising the Option to Purchase (OTP).

A smaller bank loan raises the downpayment

Total Debt Servicing Ratio (TDSR) limits total monthly debt commitments to 55% of gross monthly income. Banks assess residential property loans using the higher of the prevailing regulatory floor or the applicable package rate after any promotional period.

A buyer can meet the LTV rules and still receive less than 75%. In the $1.8 million example, a $1.2 million approval changes the calculation:

Item	Amount
Purchase price	$1,800,000
Approved loan	$1,200,000
Required downpayment	$600,000
Minimum cash under the 5% rule	At least $90,000
Balance from cash or eligible CPF	$510,000

Get an In-Principle Approval before paying a booking fee or exercising an OTP. Our TDSR and MSR guide explains how monthly debt changes the approved loan.

An outstanding housing loan can also lower the applicable LTV ceiling and increase the minimum cash contribution. Ask the bank to confirm the limit for your number of outstanding loans, age and tenure. Do not reuse a first-property 25% calculation for a second purchase.

New launch payments arrive in stages

A new launch buyer commonly pays 5% in cash as the booking fee, then brings the total paid to 20% within eight weeks of the option date. Another 5% of the price comes from the buyer when the foundation-stage payment begins under a 75% loan illustration.

For the $1.8 million example:

Stage	Buyer funds	Amount
Booking fee	5% cash	$90,000
Balance to 20%	15% cash or eligible CPF	$270,000
Buyer’s part of foundation payment	5% cash or eligible CPF	$90,000
Total downpayment	25%	$450,000

The bank then disburses the loan as construction reaches the prescribed milestones. This schedule delays parts of the mortgage, but it does not reduce the downpayment.

Read the new launch payment schedule for each construction stage. The new launch buying process covers the legal deadlines after booking.

A resale condo uses a shorter payment window

The resale OTP sets the option fee, exercise amount and completion date. A common commercial structure uses 1% for the option and another 4% on exercise, with the remaining purchase money due on completion. The signed contract controls the actual amounts and dates.

Using the same $1.8 million purchase and a 75% loan:

Point in transaction	Common illustration
Option fee	$18,000 cash
Exercise payment	$72,000 cash
Balance of 25% downpayment by completion	$360,000 cash or eligible CPF
Bank loan by completion	$1,350,000

Do not assume every OTP uses this structure. Your lawyer should review the contract before you exercise it. The completion window also needs enough time for valuation, the formal loan offer, CPF work and title checks.

Our resale condo payment timeline maps the money from option to handover.

Add BSD and ABSD outside the downpayment

BSD applies to the higher of price or market value. On a $1.8 million residential purchase under the current bands, BSD is $59,600.

Upfront item	$1.8m first-property illustration
Downpayment	$450,000
BSD	$59,600
ABSD	$0 for a Singapore Citizen’s first residential property
Legal, valuation and other fees	Obtain quotes
Funds before renovation	More than $509,600

A Singapore Citizen buying a second residential property pays 20% ABSD under the rates applying from 27 April 2023. On $1.8 million, that adds $360,000. Treat a possible married-couple refund as money that arrives after the purchase, subject to every remission condition.

Use our Buyer’s Stamp Duty guide for worked calculations and our ABSD remission guide for sale deadlines.

CPF covers eligible amounts after the cash minimum

CPF OA savings can fund eligible parts of a private property purchase, including:

• part of the downpayment after the mandatory cash amount
• eligible BSD and ABSD
• eligible legal fees
• mortgage instalments

CPF usage remains subject to the lower of price or valuation, remaining lease and housing usage limits. The 5% cash rule and amount above valuation stay in cash.

Timing can require more cash than the final CPF allocation suggests. For a completed property, CPF Board states that buyers may need to pay stamp duty in cash and receive reimbursement when the CPF charge can be lodged at legal completion.

CPF used for the purchase, duties and legal fees returns to your OA with accrued interest when you sell, subject to CPF rules. Read our CPF property guide before using the full OA balance.

Set the cash target before choosing a unit

Build the downpayment in this order:

1. Get a current In-Principle Approval.
2. Use the lower of price or likely valuation for the LTV calculation.
3. Add cash for any price above valuation.
4. Separate mandatory cash from CPF-eligible amounts.
5. Add BSD, ABSD, legal fees and a timing buffer.
6. Keep renovation and emergency reserves outside completion funds.

A 25% downpayment can understate the cash needed when the valuation is low, CPF arrives at completion or an existing loan reduces LTV. Ask the bank and lawyer for amounts tied to the exact unit before you sign.

Sources: CPF Board, private-property downpayment, CPF Board, property-related fees, IRAS, Buyer’s Stamp Duty, Ministry of Finance, property loan limits.