HDB Loan in Singapore: Your Questions Answered
These are the questions people ask most often about hdb loan. Each answer is short; follow the links for the full detail.
What does a hdb loan calculation tell me?
Calculates monthly repayments on an HDB concessionary loan, which is pegged at 0.1% above the CPF Ordinary Account rate (2.6% a year).
What is the formula?
Monthly instalment = P × r ÷ (1 − (1 + r)^−n), where r is the monthly rate and n the number of months.
What do I need to enter?
Loan amount (S$), Interest rate (% a year), Loan tenure (years, max 25).
Should I rely on this before signing?
Use it to plan, then confirm the figures with your banker, lawyer or the IRAS stamp duty calculator before you exercise an option to purchase.
Can you show an example?
For example, with these inputs:
- Loan amount (S$): 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
Any tips?
- Using CPF for housing reduces what is left for retirement, and you must refund the amount used plus accrued interest when you sell.
- Seller's Stamp Duty can wipe out the gains on a quick resale, so check your holding period before selling.
- Budget for legal fees, valuation, renovation and moving costs on top of the downpayment and stamp duties.
Background
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.
Beyond the price, buyers should budget for legal fees, valuation, home insurance, renovation and furnishing. Running the figures in advance helps you decide how much cash to hold back and whether a smaller loan or longer tenure makes more sense.
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stamp duties and monthly instalments, but using CPF reduces the money compounding for retirement, and the amount withdrawn plus accrued interest must be refunded to your CPF account when you sell.
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.
Try it yourself with the HDB Loan Calculator.
Run your own numbers: HDB Loan Calculator