Understanding HDB Eligibility Schemes and Grants: Financing and Loan Options is critical if you want to buy an HDB flat safely, maximise your CPF housing grants, and choose the right loan without over‑stretching your finances.
This cluster article builds on the main Homejourney pillar guide on HDB Eligibility Schemes & Grants and zooms in on one thing: how your HDB eligibility CPF housing grants, and loan choices work together in real‑life 2025–2026 scenarios so you can plan your budget confidently.
HDB eligibility, grants and loans: how they fit together
In simple terms, you must clear three layers before buying an HDB flat:
- Eligibility schemes – whether you are allowed to buy (Public Scheme, Fiancé/Fiancée Scheme, Single Singapore Citizen Scheme, etc.)[1][4]
- CPF housing grants – how much support (EHG, PHG and others) you can get based on income, flat type and location[1][5]
- Financing & loan options – how you pay for the flat (HDB concessionary loan vs bank loan, CPF usage, cash, LTV, MSR, TDSR)[1][4]
Homejourney’s approach is to treat these three as one integrated decision, so you don’t end up with surprises at completion or after you move in.
Step 1 – Confirm your HDB eligibility scheme and family profile
Before thinking about money, you must know under which HDB scheme you qualify, because that affects both the flat types you can buy and the CPF housing grants you can receive.[1][4]
Core HDB schemes in Singapore (2025–2026)
The main schemes you will likely fall under are:[1][2][4]
- Public Scheme – Married couples or families (at least 1 Singapore Citizen and 1 Citizen/PR). Income ceiling typically $14,000 for families and $21,000 for multi‑generation households for new flats and Plus/Prime categories.[1][2]
- Fiancé/Fiancée Scheme – Engaged couples who must register their marriage within 3 months after key collection.[1][2]
- Single Singapore Citizen Scheme – Singles aged 35+ buying alone. Typically 2‑room Flexi BTO or any resale flat, with income ceiling around $7,000 for new 2‑room Flexi.[1][2]
- Joint Singles Scheme – Up to 4 singles (35+) buying together, commonly used for resale flats.[1][3]
- Non‑Citizen Spouse Scheme – Singapore Citizen with a non‑resident spouse holding a valid Long‑Term Visit Pass or equivalent.[3][4]
On top of the scheme, you must also meet core conditions such as not owning private property in the 30 months before applying for a BTO, and not having taken more than the allowed number of HDB loans.[1][2]
Insider tip from the ground: many first‑time couples in estates like Punggol or Sengkang only realise late that their parents’ condo ownership can affect certain grant combinations. Always list all owners/occupiers clearly when you do your HDB Flat Eligibility (HFE) application.
Your HFE letter – the non‑negotiable first step
From 2023 onwards, HDB requires an HDB Flat Eligibility (HFE) letter before you can apply for a BTO or issue Option to Purchase (OTP) for a resale flat.[1][4]
The HFE letter confirms, in one document:
- Your eligibility to buy an HDB flat and under which scheme
- Whether you can take an HDB loan and the maximum loan amount
- Which CPF housing grants you qualify for (and indicative amounts)[4]
You apply for the HFE letter via the official HDB Flat Portal.[4] In practice, most buyers I’ve worked with receive the HFE outcome within a few working days if they submit all income and CPF documents correctly.
Step 2 – Understand CPF housing grants (EHG, PHG and others)
Once your eligibility scheme is clear, the next layer is CPF housing grants. Grants are credited into your CPF Ordinary Account and reduce the amount you need to borrow or pay in cash.
Key CPF housing grants in 2025–2026
According to HDB and Made For Families resources, the main grants for HDB buyers are:[1][3][5]
- Enhanced CPF Housing Grant (EHG)
– For first‑timer households buying new or resale flats.
– Income ceiling typically $9,000 for families; there is a separate tier for singles.[1][3]
– Grant amount scales with income and remaining lease, up to around $80,000–$120,000 for eligible families.[1][3][5] - Proximity Housing Grant (PHG)
– For resale HDB buyers who live with or near their parents/children.
– Typical maximum: about $30,000 for families living with parents/children; lower amounts if just nearby (within 4 km).[1][3] - Step‑Up / other family‑centred grants
– Various schemes under the Made For Families framework support upgraders from smaller flats (e.g. 2‑ or 3‑room) to larger ones, and first‑time parents.[1][5]
Exact grant amounts change over time, so always cross‑check with the latest HDB tables and Homejourney’s updated pillar guide on 2026 rules HDB Eligibility Schemes & Grants: 2026 Rules Explained by Homejourney .
Real‑life grant example: 4‑room resale in Ang Mo Kio
Imagine a young couple buying a 4‑room resale flat in Ang Mo Kio near AMK Hub. A typical 4‑room resale in a mid‑range block there might transact around $650,000–$700,000 depending on level, age and MRT proximity, based on recent public transaction data.[1]
If their average household income is about $6,000, they may qualify for:
- EHG – mid‑tier grant (because income is below the $9,000 ceiling but above the lowest bracket)[1][3]
- PHG – if they choose a block within 4 km of their parents, possibly up to $20,000–$30,000[3]
Combined, their grants could realistically cover more than 10–20% of the price, significantly reducing their loan requirement. Homejourney’s verified project and transaction data Projects Directory helps you benchmark prices safely before you rely on any assumed grant‑to‑price ratio.
Step 3 – Choose between HDB loan and bank loan
After grants, the biggest decision is how to finance the remaining amount. Your HFE letter will show your HDB loan eligibility; you can also explore bank loan options using Homejourney’s bank rate tools Bank Rates for safer, side‑by‑side comparisons.
Loan‑to‑Value (LTV) limits and upfront cash/CPF
For HDB flats, key Monetary Authority of Singapore (MAS) rules apply:[1]
- HDB concessionary loan – LTV can be up to 80% of the purchase price or valuation (lower if you have existing housing loans), subject to credit assessment.[1]
- Bank loan – LTV capped at 75% for buyers without existing housing loans, lower if you already have a home loan.[1]
The remaining amount must be covered by your CPF OA savings and/or cash. There is usually a minimum cash downpayment for bank loans, while HDB loans allow more CPF usage subject to CPF rules.[1]
MSR and TDSR: how much can you safely borrow?
Two important ratios protect buyers from over‑borrowing:[1]
- Mortgage Servicing Ratio (MSR) – For HDB flats, your monthly mortgage (for all property loans) cannot exceed 30% of your gross monthly income.
- Total Debt Servicing Ratio (TDSR) – For all property loans in Singapore, total monthly debt (including car loans, credit cards, and other instalments) generally cannot exceed 55% of your gross monthly income under MAS rules.
