How much HDB flat can you afford?
A loan for an HDB flat is capped at 30% of gross monthly income by the Mortgage Servicing Ratio, which is tighter than the 55% ceiling that applies to private property. For most flat buyers that single rule, not the size of their savings, decides what they can buy.
This HDB affordability calculator applies MSR and TDSR together, works out the cash and CPF you need, and names the limit that is binding. Enter your figures and the results update as you type.
Enter a gross monthly income.
Every limit here is calculated from income, so the figures appear once you fill that in.
How this is calculated
Two income tests govern a loan on a flat and it must clear both. The Mortgage Servicing Ratio caps repayments on property loans at 30% of gross monthly income. The Total Debt Servicing Ratio caps all monthly debt repayments, including car and personal loans, at 55%. MSR is the tighter of the two unless you carry heavy non-property debt.
For either test, banks must compute the instalment using the higher of your package rate after any promotional period and a medium-term interest rate floor of 4% a year. That is why the assessed instalment shown here sits above what a 3% package would cost you.
The tenure rules differ from private property in a way that catches buyers out. Under the MAS limits, a bank loan on a flat can run up to 30 years, but a tenure above 25 years drops the loan-to-value ceiling from 75% to 55% and doubles the minimum cash from 5% to 10%. Stretching the tenure to reduce the monthly payment costs a great deal more equity at completion. The calculator tests both tiers and reports whichever supports the higher price.
Buyer’s Stamp Duty uses the IRAS bands applying from 15 February 2023. Additional Buyer’s Stamp Duty applies if you already own residential property, including when you are buying a flat.
Flat eligibility is a separate question this calculator does not answer. You still need a valid HFE letter before a seller grants you the Option to Purchase, and grants can change your cash position substantially.
Frequently asked questions
- How much HDB flat can I afford with my income?
- The Mortgage Servicing Ratio caps your monthly instalment at 30% of gross monthly income, and banks compute that instalment at a floor of 4% a year rather than your actual package rate. On a $487,500 loan over 25 years the assessed instalment is about $2,573, which needs roughly $8,577 in gross monthly income. Your cash and CPF then set a second limit through the downpayment and stamp duty.
- What is the maximum loan tenure for a bank loan on an HDB flat?
- MAS caps it at 30 years. A tenure above 25 years reduces the loan-to-value limit from 75% to 55% and raises the minimum cash downpayment from 5% to 10%, so the longer tenure lowers your monthly payment but requires far more equity upfront.
- Does MSR or TDSR decide my HDB loan?
- Usually MSR, because 30% of gross monthly income is tighter than the 55% TDSR ceiling. TDSR becomes the binding limit only when you carry substantial non-property debt such as a car or personal loan. The calculator names whichever one is binding for your figures.
- Can I pay the whole HDB downpayment with CPF?
- With a bank loan, at least 5% of the price must be paid in cash and CPF cannot cover it, nor the legal fees. With an HDB housing loan there is no fixed 5% cash requirement and eligible CPF Ordinary Account savings can cover the downpayment, subject to CPF and HDB rules.
- Do I need an HFE letter before using a bank loan?
- Yes. HDB requires a valid HFE letter before a seller grants you the Option to Purchase, whether you intend to borrow from HDB or from a bank. A bank-financed purchase also needs an In-Principle Approval, an acceptable valuation and a signed Letter of Offer inside the 21-day option period.
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