HDB Loan in Singapore: 5 Mistakes to Avoid
Calculates monthly repayments on an HDB concessionary loan, which is pegged at 0.1% above the CPF Ordinary Account rate (2.6% a year). The maths is not complicated, but a handful of errors come up again and again in this and related property & hdb calculations. Here is what to watch for.
CPF Ordinary Account savings can pay for the downpayment, stamp duties and monthly instalments, but using CPF reduces the money compounding for retirement, and the amount withdrawn plus accrued interest must be refunded to your CPF account when you sell.
Most Singaporeans live in HDB flats, which can be financed with an HDB concessionary loan at 0.1% above the CPF Ordinary Account rate or with a bank loan. Private property must be financed with a bank loan, and banks offer fixed, floating and SORA-pegged packages.
1. Ignoring SSD when selling early
Selling within four years of buying (for purchases from 4 July 2025) attracts Seller's Stamp Duty.
2. Assuming the bank will lend 75%
LTV falls to 45% for a second loan and is reduced further for long tenures or older borrowers.
3. Using the price instead of the higher valuation
Stamp duty is charged on the higher of price or market value.
4. Using the advertised interest rate for affordability
Banks apply a stress-test rate to TDSR and MSR calculations.
5. Forgetting the cash portion
Part of the downpayment must be in cash, and CPF cannot be used for it.
The correct method
Monthly instalment = P × r ÷ (1 − (1 + r)^−n), where r is the monthly rate and n the number of months.
For example, with these inputs:
- Loan amount (S$): 400,000
- Interest rate (% a year): 2.6
- Loan tenure (years, max 25): 25
the calculator returns:
- Monthly instalment: S$1,814.68
- Total interest: S$144,403.41
- Total repaid: S$544,403.41
Related calculations
- Buyer's Stamp Duty (BSD) Calculator: Calculates Buyer's Stamp Duty on a Singapore residential property using the tiered rates from 1% to 6%.
- Additional Buyer's Stamp Duty (ABSD) Calculator: Calculates ABSD by buyer profile and the number of residential properties owned, using the rates in force since 27 April 2023.
- Total Property Stamp Duty Calculator: Adds BSD and ABSD together so you know the full stamp duty bill before you sign an option to purchase.
- Seller's Stamp Duty (SSD) Calculator: Calculates SSD for residential property bought on or after 4 July 2025 and sold within four years.
The HDB Loan Calculator applies the formula consistently, so it is a quick way to double-check your own working.
Run your own numbers: HDB Loan Calculator