The Fifth C

What HDB Flat Can I Actually Afford?

Find out how much HDB flat you can afford. Uses the official MSR (30%) and TDSR (55%) rules to calculate your maximum loan, then compares HDB loan vs bank loan scenarios side-by-side.

HDB Affordability Calculator

MSR · TDSR · HDB vs Bank Loan comparison

MSR Limit (30% income)

$1,800/mo

Max monthly mortgage

TDSR Available (55% − debts)

$3,300/mo

After existing commitments

HDB Loan

Affordable
Interest Rate
2.6% p.a. (fixed)
Max LTV
80%
Loan Amount
$396,765
Monthly Payment
$1,800/mo
Total Interest
$143,235

over 25 years

Bank Loan

Affordable
Interest Rate
3.5% p.a.
Max LTV
75%
Loan Amount
$359,552
Monthly Payment
$1,800/mo
Total Interest
$180,448

over 25 years

Downpayment (Bank Loan)

Total Downpayment Required
$140,448
Minimum Cash (5%)
$25,000
CPF OA Can Cover (up to 20%)
$30,000
Cash You Need
$110,448

⚠ Insufficient cash savings

MSR = 30% of gross income for HDB/EC. TDSR = 55% of gross income for all property loans. HDB loans: up to 80% LTV, entire 20% downpayment can be paid from CPF OA (no minimum cash). Bank loans: 75% LTV, minimum 5% cash + remaining from CPF/cash. All figures are estimates — consult HDB / your bank for exact calculations.

MSR/TDSR rules as of Jan 2025 · Source: HDB

MSR vs TDSR — Which Applies to You?

MSR (30%)

Applies to HDB flats and ECs. Your monthly mortgage repayment cannot exceed 30% of gross income. This is a property-type-specific rule.

TDSR (55%)

Applies to all property loans. All monthly debt obligations combined cannot exceed 55% of gross income. TDSR takes into account car loans, personal loans, student loans, etc.

The binding constraint is whichever is lower. For most HDB buyers with no other debts, MSR is typically the binding rule.

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HDB Affordability — Frequently Asked Questions

What is the Mortgage Servicing Ratio (MSR) rule for HDB?
The Mortgage Servicing Ratio (MSR) caps your monthly mortgage repayment at 30% of your gross monthly income. This rule applies specifically to HDB flats and Executive Condominiums (ECs). For example, if your income is $6,000/month, your maximum monthly mortgage payment is $1,800.
What is the Total Debt Servicing Ratio (TDSR) rule?
The TDSR limits your total monthly debt obligations — including all loans, not just the mortgage — to 55% of your gross monthly income. If you already have a car loan of $500/month and earn $6,000, your available TDSR headroom for a mortgage is $6,000 × 55% − $500 = $2,800/month.
What is the difference between an HDB loan and a bank loan for HDB flats?
An HDB loan has a fixed interest rate of 2.6% p.a. (pegged at 0.1% above OA interest) and allows up to 80% LTV with 20% downpayment (which can be fully from CPF OA). Bank loans typically offer lower initial rates (1.5–2.5% fixed for 2–3 years) but have floating rates after the fixed period, and require at least 5% cash downpayment.
How much cash do I need to buy an HDB flat with a bank loan?
For a bank loan, the minimum downpayment is 25% (LTV max 75%). At least 5% must be paid in cash — you cannot use CPF for this portion. The remaining 20% can be paid from CPF OA. The loan amount is also subject to TDSR limits. For an HDB loan, 20% downpayment is required and can be fully funded by CPF OA.
Can I use CPF to pay for my HDB flat?
Yes. CPF Ordinary Account (OA) savings can be used to pay for the downpayment on an HDB flat (except the mandatory 5% cash for bank loans), monthly mortgage instalments, and Buyer's Stamp Duty. However, there are accrued interest rules — if you sell the flat, you must refund the CPF used plus accrued interest at 2.5% p.a.