Downpayment for HDB Flats: 4 Things To Do if You Need HDB Staggered Downpayment

PropertyGuru Editorial Team
Downpayment for HDB Flats: 4 Things To Do if You Need HDB Staggered Downpayment
Downpayment for HDB flats can be a pain in the butt (it’s 20% if you’re taking an HDB loan and 25% if it’s a bank loan). Understandably, this can be quite a big sum, especially if you and your partner haven’t been in the workforce long enough.

Downpayment for HDB Flats: An Overview

Before we get into HDB’s Staggered Downpayment Scheme, you’ll need to first understand what the downpayment for an HDB flat is.
As the word suggests, the HDB downpayment is the initial minimum sum that needs to be paid when you purchase a new HDB flat. You’ll need to pay the downpayment for the flat during the signing of the Agreement for Lease, which usually takes place about six months after you’ve booked the flat.

Downpayment for HDB Flats: How Much is HDB Downpayment?

Your total HDB downpayment might differ, depending on whether you have applied for an HDB housing loan or a bank loan.

Downpayment for HDB Flats: HDB Loans

With an HDB housing loan, you’ll need to pay 20% of the purchase price as the HDB downpayment. This can be paid in cash, entirely with your CPF Ordinary Account (OA) savings, or a mix of both.
Let’s say the HDB flat that you’re buying costs $450,000. If you’re taking a housing loan from HDB, the HDB downpayment that you’ll need to pay is $90,000.
If your CPF OA savings is not enough to cover the downpayment, you’ll need to pay the balance in cash.

Downpayment for HDB Flats: Bank Loans

Loan-to-Value (LTV) limit
Terms of the loan
Loan tenure must be less than or equal to 30 years, with a 5% minimum cash downpayment
Loan tenure of more than 30 years, or if the loan extends after the borrower is 65 years old; with a 10% minimum cash downpayment
Bank loan amount
What can you use to make the downpayment?
At least 5% must be paid in cash and up to 20% can be paid using CPF OA savings
At least 10% must be paid in cash and up to 35% can be paid using CPF OA savings
If you need financial assistance to make the downpayment for your HDB flat, the HDB Staggered Downpayment Scheme is your saving grace as it allows you to pay your BTO flat downpayment in two instalments. Here’s what you need to know about the HDB Staggered Downpayment Scheme.

Downpayment for HDB Flats: 4 Things to Know About the HDB Staggered Downpayment Scheme

HDB’s Staggered Downpayment scheme essentially allows you to pay your HDB downpayment in two instalments. The first instalment will be paid when you sign the Agreement for Lease, which is usually nine months after booking a new HDB flat via a Build-to-Order (BTO) or Sale of Balance Flats (SBF) launch.
The second instalment will be paid once you collect the keys to your new flat, typically about two and a half to four years later when the flat is completed. This way, the HDB Staggered Downpayment Scheme provides you more time to accumulate money and pay off the remainder of the downpayment.

1. Downpayment Amount Via the HDB Staggered Downpayment Scheme

At the time of signing the Agreement for Lease
10% in cash or using CPF OA
5% in cash, 15% in cash or using CPF OA
10% in cash, 10% in cash or using CPF OA
During key collection
10% in cash or using CPF OA
5% in cash or using CPF OA
25% in cash or using CPF OA
Source: HDB
The above is relevant for those who bought an HDB flat after 30 September 2022. Prior to the announcement of the September 2022 property cooling measures, the Loan-to-Value (LTV) limit for HDB loans was 85% for flat applications received from 16 December 2021 to 29 September 2022.

2. HDB Staggered Downpayment Scheme Eligibility

If you’re applying for the HDB flat with your partner/spouse under the Fiancé/Fiancée Scheme, you’ll need to meet these conditions to be eligible for the scheme:
  • Both of you must be first-timer applicants, or a couple comprising a first-timer and a second-timer applicant
  • You’ve booked a new 2-room, 3-room, 4-room, or 5-room uncompleted HDB flat through any of HDB’s sales exercises
  • The application must be submitted on or before the younger applicant’s 30th birthday
You’ll also qualify for the HDB Staggered Downpayment Scheme if you’re an HDB flat owner ‘right-sizing’ to a 2-room or 3-room flat in non-mature estates, and meet the following criteria:
  • You’ve bought an uncompleted 2-room or 3-room HDB flat in a non-mature estate through one of HDB’s sales launches
  • You have not sold your existing HDB flat, or the sale has not yet been legally completed at the point of flat application

3. Apply for the HDB Staggered Downpayment Scheme

Once you’ve successfully booked an HDB flat, you’ll need to decide the type of housing loan you wish to apply for. You can assess your HDB loan eligibility, among other HDB criteria (i.e. HDB flat eligibility and CPF Housing Grant eligibility) by applying for the HDB Flat Eligibility (HFE) letter.
And if you’re curious about what bank loans are available, you can check out the PropertyGuru Finance home loan comparison tool to find the latest bank rates from all major banks in Singapore.
For bank loans, you’ll also need to obtain an In-Principle Approval (IPA) from your bank. Need help? Reach out to our team of PropertyGuru Finance Mortgage Experts for unbiased advice and guidance to apply, at no cost at all!
Whether you choose an HDB or bank loan, your credit eligibility will be assessed before you can be approved for the HDB Staggered Downpayment Scheme.
Afterwards, you can then proceed to make the payment for your first instalment when you sign an Agreement of Lease for your new home.

4. Other HDB Downpayment Schemes

If you’re 55 years old and above, you may be eligible for HDB’s Deferred Downpayment Scheme (DDS).
Essentially, the DDS allows you to defer your downpayment until key collection if you are right-sizing. This helps to smoothen the right-sizing process, especially if your funds are tied to your existing HDB flat.
Apart from the age criterion, you’ll need to fulfil the following conditions in order to be eligible for the scheme:
  • Have booked a 2-room Flexi or 3-room uncompleted HDB flat in a mature or non-mature estate in any HDB sales exercises
  • Have not sold or completed the sale of your existing HDB flat at the point of the new HDB flat application
As long as you meet these conditions, you’ll automatically be allowed to defer your downpayment until key collection. This means that when you sign the Agreement for Lease, you’ll only have to pay the stamp duty and legal fees.
Once the HDB flat is ready, you’ll then pay the downpayment during the key collection. On the other hand, if you cancel the HDB flat application, you’ll still be liable to pay the usual forfeiture fee of 5% of the HDB flat price.
For more property news, content and resources, check out PropertyGuru’s guides section.
Need help financing your latest property purchase? Let the mortgage experts at PropertyGuru Finance help you find the best deals.
Disclaimer: The information is provided for general information only. PropertyGuru Pte Ltd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

More FAQs About Downpayment for HDB Flats

You can choose to finance your HDB flat using an HDB or bank loan. For HDB loans, the downpayment is 20% in cash or CPF. For bank loans, the downpayment is 25%, of which 5% needs to be made in cash.

Unless you're an oprhan with no siblings, singles in Singapore must be 35 years old before they can buy an HDB flat.

If you're on an HDB loan, you can make the full 20% downpayment with your CPF.