The headline number for a resale HDB downpayment in 2026 is 25% of the purchase price, because the loan-to-value cap for both HDB and bank loans now sits at 75%. The 5-percentage-point cut that took effect on 20 August 2024 means a $600,000 flat needs $150,000 down, not the $120,000 it would have needed before. What actually trips buyers up is not that figure but how it splits: an HDB loan lets you fund the entire 25% from CPF with zero cash, while a bank loan locks in at least 5% of the price as cash that no CPF dollar can replace. On top of that sit the option fee, any cash-over-valuation, stamp duty and legal costs. This guide puts every number in one place.
Your loan covers at most 75% of the price or HDB's valuation, whichever is lower. The remaining 25% is your downpayment. This applies whether you borrow from HDB or a bank, because the cooling measures announced on 19 August 2024 lowered the HDB Concessionary Loan loan-to-value cap from 80% to 75%, matching the bank cap. The change hit every complete resale application received by HDB from 20 August 2024 onwards.
So a buyer who locked in a price before that date paid 20% down; everyone since pays 25%. On a $550,000 four-room flat that gap is $27,500 in extra upfront equity. The loan you can actually take is also capped by the lower of price and valuation, so an over-valuation purchase quietly raises your cash burden, which the next section covers.
First-timers feel the cut less than it sounds, because resale grants land in your CPF and can be applied to the downpayment. A first-timer family on a modest income can draw up to $120,000 in Enhanced CPF Housing Grant alone, before the Family Grant and Proximity Housing Grant. Run your own price through the HDB loan calculator to see the split before you commit.
The 25% is one number with two very different cash demands depending on who lends to you. This is the single most consequential decision in financing a resale flat, and it is worth more attention than the interest rate alone.
With an HDB loan, there is no minimum cash component. If your CPF Ordinary Account holds enough, the full 25% downpayment can be paid from CPF and you bring nothing in cash to the table for that portion. With a bank loan at 75% LTV, at least 5% of the purchase price must be paid in hard cash. The other 20% can come from CPF OA. There is no waiver for this 5% cash floor, no matter how much sits in your CPF.
| Item | HDB loan (75% LTV) | Bank loan (75% LTV) |
|---|---|---|
| Maximum loan | $450,000 | $450,000 |
| Total downpayment (25%) | $150,000 | $150,000 |
| Minimum cash portion | $0 | $30,000 (5%) |
| Payable from CPF OA | Up to $150,000 | Up to $120,000 (20%) |
| Interest rate | 2.6% p.a. (pegged to CPF OA + 0.1%) | From around 2.3% to 3.5% p.a. (varies by package) |
Your loan is sized against the lower of price and HDB valuation. When the price you agree exceeds the official valuation, the gap is cash over valuation, and it has to be paid entirely in cash. Not CPF, not loan. COV is the most common reason a buyer who budgeted for 25% suddenly needs far more liquidity.
Worked through: if you agree $620,000 on a flat HDB values at $600,000, the $20,000 COV is cash on top of your $150,000 downpayment (still calculated on the $600,000 valuation-capped loan base). For popular four-room flats in mature estates, COV has run anywhere from roughly $10,000 to $50,000 in early 2026, and million-dollar transactions have seen six-figure COV. You only learn the valuation after paying the option fee and requesting it through HDB, so there is real risk in a hot estate.
The defence is order of operations. Negotiate, secure the Option to Purchase, then request the valuation before exercising the option, so you know your COV exposure before you are legally committed. See how valuation is set in the HDB resale valuation guide.
Before any valuation, you pay the seller an Option Fee to secure the Option to Purchase. For resale flats this is negotiable between $1 and $1,000. When you later exercise the option, you pay the Option Exercise Fee, and the two together cannot exceed $5,000 in cash.
Both fees are paid in cash and cannot use CPF, but they are not extra money lost. They count toward the purchase price, so they reduce what is left to settle at completion. Think of the option fee as the first slice of your downpayment that happens to leave your bank account early.
Beyond the downpayment sit fixed transaction costs. Buyer's Stamp Duty (BSD) is tiered: 1% on the first $180,000, 2% on the next $180,000, 3% on the next $640,000, then 4% above $1,000,000 and higher tiers beyond. On a $600,000 flat that works out to $12,600. BSD can be paid from CPF OA but must be settled within 14 days, so timing matters. Estimate yours with the stamp duty calculator.
If HDB acts as your conveyancing lawyer, legal fees run on a per-$1,000 scale from about 13.5 cents down to 9 cents per $100, with a minimum of $21.80 including GST; budget a few hundred dollars for a typical flat. A private lawyer is roughly $2,500 to $3,000. Add smaller statutory items: caveat registration around $64.45, lease in-escrow registration $38.30, a title search about $32, and a survey fee from roughly $163.50. Most of these can draw on CPF OA, with cash reimbursement possible for completed properties.
| Purchase price | Buyer's Stamp Duty | Can use CPF? |
|---|---|---|
| $450,000 | $9,900 | Yes |
| $600,000 | $12,600 | Yes |
| $750,000 | $17,100 | Yes |
| $1,000,000 | $24,600 | Yes |
The 25% assumes you qualify for the full 75% loan. Two limits can shrink that. The Mortgage Servicing Ratio (MSR) caps your monthly HDB repayment at 30% of gross monthly income. A bank loan adds the Total Debt Servicing Ratio (TDSR), which caps all monthly debt at 55% of income and applies a 4% medium-term stress rate to your mortgage.
If your income or existing debt drags the loan below 75% LTV, the shortfall becomes more downpayment, in cash or CPF. Older buyers also face age-and-tenure rules that can trim the loan. Settling outstanding car or personal loans before you apply is often the cheapest way to lift your borrowing ceiling.
Take a first-timer couple buying a $600,000 four-room flat that values at $600,000 (no COV). Here is the cash and CPF picture under each loan, before any grants.
| Cost | HDB loan | Bank loan |
|---|---|---|
| Downpayment (25%) | $150,000 (CPF or cash) | $150,000 (min $30,000 cash + up to $120,000 CPF) |
| Option + exercise fee | Up to $5,000 cash (counts to price) | Up to $5,000 cash (counts to price) |
| Buyer's Stamp Duty | $12,600 (CPF or cash) | $12,600 (CPF or cash) |
| Legal / conveyancing | ~$300 (HDB) or ~$2,800 (private) | ~$2,800 (private, typical) |
| Minimum cash you must have | Around $5,000 (fees) if CPF covers the rest | Around $35,000 (5% + fees) at minimum |
Grants do not reduce the 25% rule, but they top up the CPF you use to pay it. A first-timer family drawing the maximum $120,000 Enhanced CPF Housing Grant could cover most of the $150,000 downpayment from grant money plus existing CPF, leaving only the bank loan's 5% cash floor as a real cash hurdle.
Add the Family Grant and a possible $30,000 Proximity Housing Grant for living near parents, and total grants can reach into the high five figures or more. Grants are credited to CPF OA, so they help the CPF side of the split, never the mandatory cash portion of a bank loan. The full eligibility ladder sits in the HDB housing grants guide.
First-timer couples buying uncompleted BTO flats can split the downpayment in two under the Staggered Downpayment Scheme, but this is a new-flat scheme and does not apply to resale purchases. For resale, the downpayment is due in the run-up to completion, with CPF authorised through the HDB Resale Portal and any cash brought by cashier's order at the completion appointment.
If you are weighing resale against a new flat partly on cash flow, the BTO versus resale comparison lays out the timing and total-cost trade-offs side by side. For resale, plan to have the cash and CPF in place by the completion date rather than counting on a phased split.
It is 25% of the purchase price or HDB valuation, whichever is lower, because both HDB and bank loans are capped at 75% loan-to-value since 20 August 2024. On a $600,000 flat that is $150,000.
Only with an HDB loan, which has no minimum cash requirement, so the full 25% can come from your CPF Ordinary Account. A bank loan forces at least 5% of the price to be paid in cash that CPF cannot replace.
Cash over valuation is the amount your agreed price exceeds HDB's official valuation. It must be paid fully in cash and cannot use CPF or any loan, which is why it can blow a careful downpayment budget in a hot estate.
Grants do not change the 25% rule, but they are credited to your CPF Ordinary Account, so they boost the CPF you can use toward the downpayment. They never cover the mandatory cash portion required on a bank loan.
The downpayment is settled in the lead-up to the completion appointment. CPF is authorised through the HDB Resale Portal and any cash portion is paid by cashier's order at completion, not in phased instalments like a BTO.
This is general financial information for Singapore, not personal financial advice. Figures change — verify current rates against the official sources above before acting. See our full disclaimer.