HDB Loan Eligibility 2026: Who Can Apply & How Much to Borrow

Executive Summary: Understanding HDB loan eligibility is the critical first step in your home-buying journey. Whether you're a first-time buyer purchasing a BTO flat or upgrading to a resale property, your eligibility determines how much you can borrow, what grants you qualify for, and which financing options are available to you. This comprehensive guide covers citizenship requirements, income ceilings, TDSR calculations, and practical steps to maximize your borrowing capacity. At Homejourney, we prioritize your financial safety by providing transparent, verified information to help you make confident decisions about HDB financing.

Table of Contents

• Understanding HDB Loan Eligibility Basics
• Core Eligibility Requirements
• Income Ceilings and TDSR Explained
• Calculating Your Maximum Loan Amount
• HDB vs Bank Loans: Key Differences
• Special Schemes and Priority Categories
• Improving Your Eligibility
• The HDB Flat Eligibility Letter Process
• Frequently Asked Questions
• Next Steps with Homejourney

Understanding HDB Loan Eligibility Basics

An HDB loan is a housing loan offered by the Housing and Development Board to help Singapore citizens and permanent residents purchase public housing flats. Your eligibility for an HDB loan determines not only whether you can borrow, but also the maximum amount you can borrow, the interest rate you'll receive, and the grants you may qualify for. This eligibility assessment is one of the most important financial evaluations you'll undergo as a property buyer.

The HDB loan eligibility framework exists to ensure responsible lending practices and protect both borrowers and the public housing system. Unlike private bank loans which vary significantly by institution, HDB loans follow standardized criteria set by the Housing and Development Board. These criteria evaluate your financial stability, citizenship status, family composition, and property ownership history.

At Homejourney, we understand that navigating these requirements can feel overwhelming. That's why we've created this definitive guide to demystify HDB loan eligibility. We prioritize your safety by ensuring you have accurate, current information before making one of the largest financial decisions of your life. Our commitment to transparency means you'll understand not just the "what" but the "why" behind each requirement.

The eligibility assessment process typically begins when you apply for an HDB Flat Eligibility (HFE) letter. This letter confirms your eligibility to purchase an HDB flat and specifies the maximum loan amount you can borrow, the CPF housing grants you qualify for, and your monthly loan repayment obligations. Without this letter, you cannot proceed with purchasing a resale flat or securing an Option to Purchase (OTP).

Core Eligibility Requirements

Citizenship and Residency Status

The foundation of HDB loan eligibility begins with citizenship. At least one applicant must be a Singapore Citizen. The second applicant can be either a Singapore Citizen or a Permanent Resident (PR). This requirement ensures that HDB housing remains primarily for Singapore citizens while allowing PRs to participate in the housing market through joint applications.

If you're a PR applying for an HDB loan, you must have held PR status for at least 3 years before you can purchase a resale flat. However, this 3-year requirement does not apply to BTO (Build-to-Order) flat applications. This distinction is important for your planning timeline if you're a newer PR considering your housing options.

For non-citizen spouses, HDB offers the Non-Citizen Spouse Scheme, which allows you to apply jointly if your non-citizen spouse meets specific requirements. You'll need to provide proof of a Long-Term Visit Pass or Work Pass for your spouse under this scheme.

Age Requirements

Age requirements vary depending on your application type. For joint applications (married couples or family groups), at least one applicant must be at least 21 years old. For single applicants, the minimum age is 35 years old, with certain exceptions for orphans (who can apply from age 21 under the Orphans Scheme).

These age requirements reflect HDB's policy of prioritizing family housing while also providing pathways for older singles. The 35-year-old minimum for singles recognizes that single applicants typically have different housing needs and financial profiles compared to family groups.

Family Nucleus and Approved Schemes

HDB recognizes several approved family nucleus configurations and schemes. The most common is the Public Scheme, designed for families forming a valid family nucleus. A valid family nucleus can include spouses and children, parents and siblings, or children in legal custody. You must be able to demonstrate your family relationship through official documentation such as marriage certificates, birth certificates, or custody orders.

Other approved schemes include the Fiancé/Fiancée Scheme for engaged couples, the Single Singapore Citizen Scheme for eligible singles, the Joint Singles Scheme for two unrelated singles, and the Orphans Scheme for orphaned siblings. Each scheme has specific requirements and documentation needs.

Property Ownership Restrictions

One of the most critical eligibility requirements is your private property ownership history. You and all co-applicants must not currently own any private residential property, whether in Singapore or overseas. Additionally, you must not have sold any private property within the last 30 months before your HDB Flat Eligibility letter application.

This restriction is fundamental to HDB's mission of providing affordable housing to those who need it most. If you own a private property and wish to purchase an HDB flat, you must dispose of the private property within 6 months of taking possession of your HDB flat. This requirement protects the integrity of the public housing system and ensures resources go to genuine first-time or upgrading buyers.

The 30-month restriction on recent property sales is particularly important for those who recently sold a private property. You must wait until 30 months have passed since your sale completion date before applying for HDB eligibility. This waiting period is strictly enforced and cannot be waived.

Previous HDB Housing Loans

You must not have taken two or more HDB housing loans in your lifetime. This means you can typically take one HDB loan for your first purchase and potentially one additional loan if you upgrade. However, there are specific conditions and exceptions that may apply depending on your circumstances and the type of property you're purchasing.

Similarly, you must not have previously purchased multiple new HDB or DBSS flats, or received multiple CPF Housing Grants, unless permitted under specific conditions. These restrictions ensure equitable access to HDB housing and prevent individuals from accumulating multiple subsidized properties.

Income Ceilings and TDSR Explained

Income Ceiling Limits by Flat Type

Income ceilings are maximum average gross monthly household income thresholds. If your household income exceeds the ceiling, you're ineligible for that particular flat type or scheme, regardless of your other qualifications. These ceilings ensure that HDB housing remains affordable and accessible to the target income groups.

It's important to note that income ceilings apply primarily to BTO flats and affect eligibility for CPF Housing Grants. For resale flats, there is no income ceiling for the purchase itself, but income still affects your eligibility for grants and HDB loans. This distinction is crucial: you can purchase a resale flat even if your income exceeds the ceiling, but you may not qualify for certain grants.

Understanding TDSR (Total Debt Service Ratio)

The Total Debt Service Ratio (TDSR) is one of the most important factors determining your maximum loan amount. TDSR is a measure of your total monthly debt obligations as a percentage of your gross monthly income. The MAS (Monetary Authority of Singapore) has set a maximum TDSR of 55% for most borrowers, meaning your total monthly debt payments cannot exceed 55% of your gross monthly income.

To calculate your TDSR, you add up all your monthly debt obligations: your proposed HDB or bank loan repayment, car loans, credit card debts, personal loans, and any other liabilities. Then you divide this total by your gross monthly income and multiply by 100 to get a percentage. For example, if your gross monthly income is $6,000 and your total monthly debt obligations (including your proposed mortgage) would be $2,700, your TDSR would be 45% ($2,700 ÷ $6,000 × 100).

The TDSR framework exists to protect you from over-borrowing. By capping debt service at 55% of income, regulators ensure that you maintain sufficient income for living expenses, savings, and unexpected emergencies. This is a critical safety mechanism that Homejourney strongly supports as part of our commitment to user financial safety.

MSR (Monthly Servicing Ratio) for HDB and EC Loans

For HDB and Executive Condominium (EC) loans specifically, there's an additional constraint called the Monthly Servicing Ratio (MSR). The MSR limit is 30% of your gross monthly income. This means your monthly HDB or EC loan repayment alone cannot exceed 30% of your gross monthly income, regardless of your other debts.

The MSR is more restrictive than TDSR for HDB/EC loans. While TDSR allows up to 55% total debt, MSR restricts your HDB/EC payment to just 30%. This dual constraint means that for HDB loans, the MSR typically becomes the limiting factor in determining your maximum loan amount. Using our previous example, if your gross monthly income is $6,000, your maximum monthly HDB loan payment would be $1,800 (30% of $6,000).

Understanding both TDSR and MSR is essential because they work together to determine your borrowing capacity. The MSR is generally the more restrictive limit for HDB purchases, but your total debt obligations (measured by TDSR) can also limit your borrowing if you have significant other debts.

Calculating Your Maximum Loan Amount

The Three-Factor Formula

Your maximum HDB loan amount is determined by three factors, and the lowest amount becomes your limit:

1. Loan-to-Value (LTV) Limit: You can borrow up to 75% of the flat's purchase price or valuation, whichever is lower. If you're buying a flat for $400,000 with a valuation of $390,000, you can borrow up to 75% of $390,000 = $292,500.
2. MSR Constraint: Your monthly loan payment cannot exceed 30% of your gross monthly income. If your income is $6,000, your maximum monthly payment is $1,800. Using a 25-year loan tenure, this translates to a maximum loan of approximately $450,000 (depending on interest rates).
3. TDSR Constraint: Your total monthly debt cannot exceed 55% of gross income. If you have $500 in other monthly debts and $6,000 income, you can allocate $2,800 to your HDB loan ($6,000 × 55% - $500), which at 25 years translates to approximately $700,000 (depending on rates).

Your actual maximum loan amount is the lowest of these three figures. Let's work through a practical example to illustrate how this works in reality.

Real-World Calculation Example

Scenario: Married couple purchasing a resale HDB flat

• Combined gross monthly household income: $8,000
• Flat purchase price: $550,000
• HDB valuation: $520,000
• Existing monthly debts: $400 (car loan)
• Desired loan tenure: 25 years
• Current HDB interest rate: 2.6% per annum

Step 1: Calculate LTV Limit

Maximum based on LTV = 75% × $520,000 = $390,000

Step 2: Calculate MSR Constraint

Maximum monthly payment = 30% × $8,000 = $2,400

Using a mortgage calculator with 2.6% interest over 25 years, a $2,400 monthly payment supports a loan of approximately $710,000. However, this is constrained by the LTV limit.

Step 3: Calculate TDSR Constraint

Maximum total monthly debt = 55% × $8,000 = $4,400

Available for HDB loan = $4,400 - $400 (existing car loan) = $4,000

A $4,000 monthly payment at 2.6% over 25 years supports a loan of approximately $1,185,000, but again constrained by LTV.

Final Result: Maximum Loan = $390,000

In this scenario, the LTV limit is the constraining factor. The couple can borrow a maximum of $390,000, requiring a down payment of $160,000 ($550,000 - $390,000). Their monthly payment would be approximately $1,560, which is well within both the MSR (30% of income = $2,400) and TDSR limits.

Using Homejourney's Eligibility Calculator

Rather than doing these calculations manually, Homejourney provides an eligibility calculator that instantly computes your maximum borrowing capacity based on your specific financial situation. Simply input your income, existing debts, desired property price, and loan tenure, and the calculator shows you exactly how much you can borrow and what your monthly payment would be.

The calculator also shows you the impact of TDSR and MSR on your borrowing power, helping you understand which constraint is limiting your loan amount. This transparency is part of Homejourney's commitment to helping you make informed financial decisions. You can access the calculator at Bank Rates along with current rates from all major banks.

HDB vs Bank Loans: Key Differences

When You Can Choose

When purchasing an HDB resale flat, you have the flexibility to choose between an HDB loan or a bank loan from participating financial institutions. This choice doesn't apply to BTO flats—for new HDB flats, you must use an HDB loan. However, for resale purchases, understanding the differences between these two options is crucial to selecting the best financing for your situation.

HDB Loan Characteristics

Interest Rate: HDB loan interest rates are typically pegged at 0.1% above the prevailing CPF Ordinary Account (OA) interest rate. As of early 2026, this means HDB rates are generally lower than market rates offered by banks. For example, if CPF OA rate is 2.5%, the HDB rate would be 2.6%.

Loan Tenure: HDB loans have a maximum tenure of 25 years or until you turn 65 years old, whichever is earlier. This tenure limit is important for older buyers—if you're 50 years old, you can only borrow for 15 years maximum.

LTV Limit: HDB loans allow up to 75% LTV for both new and resale flats. For resale flats, the 75% is calculated on the lower of purchase price or market valuation.

Eligibility Requirements: HDB loans have specific eligibility criteria including income ceilings, citizenship requirements, and property ownership restrictions. You must meet all HDB requirements to qualify.

Advantages: Lower interest rates (typically 0.1% above CPF OA rate), simpler approval process, no credit scoring concerns, and rates are fixed relative to CPF OA movements.

Bank Loan Characteristics

Interest Rate: Bank loans typically offer rates based on SORA (Singapore Overnight Rate Average) or fixed rates, which are usually higher than HDB rates. Banks may offer promotional rates for the first few years, but rates typically adjust after the promotional period.

Loan Tenure: Bank loans can extend up to 30 years, providing more flexibility for monthly payment planning compared to HDB's 25-year maximum.

LTV Limit: Bank loans also allow up to 75% LTV, calculated on the lower of purchase price or bank valuation.

Eligibility Requirements: Banks have their own credit assessment criteria. They may consider your credit score, employment history, and financial profile more rigorously than HDB.

Advantages: Longer tenure (up to 30 years) for lower monthly payments, more flexibility for those who don't meet HDB income ceilings, and potential for competitive rates during promotional periods.

Comparison Table: HDB vs Bank Loans

For most first-time HDB buyers, the HDB loan is the better choice due to lower interest rates and simpler approval. However, if you exceed the income ceiling or need a longer tenure, a bank loan may be more suitable. Homejourney recommends comparing rates from all major banks—DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and others—before deciding. Visit Bank Rates to compare current rates and apply via Singpass for faster approval.

Special Schemes and Priority Categories

Public Scheme (Most Common)

The Public Scheme is designed for families forming a valid family nucleus. This is the most common application route for married couples and families with children. Under the Public Scheme, you can include spouses, children, parents, siblings, or children in legal custody as part of your family nucleus.

The income ceiling for Public Scheme families is $14,000 average gross monthly household income. For extended or multi-generation families (three generations living together), the ceiling increases to $21,000. This higher ceiling recognizes that multi-generational households often have more complex income structures and caregiving responsibilities.

Single Singapore Citizen Scheme

Unmarried Singapore Citizens aged 35 and above can apply under the Single Singapore Citizen Scheme. This scheme recognizes that single applicants have different housing needs and financial profiles compared to families. Singles applying under this scheme can purchase any flat type in any location, though income ceilings and other requirements still apply.

Joint Singles Scheme

Two unrelated Singapore Citizens or one citizen and one PR can apply jointly as singles. This scheme is useful for friends or colleagues who want to purchase property together. Each applicant must be at least 35 years old, and the income ceiling is $7,000 per person (so combined ceiling would be $14,000 for the household).

Fiancé/Fiancée Scheme

Engaged couples can apply under the Fiancé/Fiancée Scheme. You must provide evidence of your engagement (such as an engagement announcement or invitation) and complete your marriage within a specified timeframe after taking possession of the flat. This scheme allows you to purchase together before marriage, which can be advantageous for timing and financial planning.

Orphans Scheme

Orphaned siblings can apply under the Orphans Scheme starting from age 21 (younger than the typical 35-year-old minimum for singles). This scheme recognizes the unique circumstances of orphaned young adults who need housing support. Applicants under this scheme can typically purchase 2-room Flexi flats with an income ceiling of $7,000.

Non-Citizen Spouse Scheme

If you're a Singapore Citizen married to a non-citizen, you can apply jointly under the Non-Citizen Spouse Scheme. Your non-citizen spouse must have a valid Long-Term Visit Pass or Work Pass. The income ceiling and other requirements apply as for the Public Scheme. This scheme demonstrates HDB's recognition of multicultural Singapore families.

Priority Schemes and Enhanced Grants

Beyond the basic schemes, HDB offers several priority categories that can affect your eligibility and grant amounts. These include the Multi-Generation Priority Scheme (for three generations), Married Child Priority Scheme (for married children buying near parents), and Proximity Housing Grant (for buying near parents or adult children). Each priority scheme has specific requirements and can significantly increase your grant amounts.

Improving Your Eligibility

Strategies to Increase Borrowing Capacity

1. Increase Household Income The most direct way to increase your borrowing capacity is to increase your household income. If you're married and one spouse isn't working, having that spouse secure employment can significantly boost your combined income and therefore your maximum loan amount. Even a part-time or freelance income can be counted if properly documented.

2. Reduce Existing Debts Since TDSR includes all your monthly debt obligations, paying down existing debts before applying for an HDB loan directly increases your available borrowing capacity. If you have credit card balances, personal loans, or car loans, prioritizing these for early repayment can free up debt servicing capacity for your mortgage.

3. Extend Loan Tenure While extending your loan tenure from 25 years to 30 years (if using a bank loan) increases your total interest paid, it does reduce your monthly payment and can help you meet the MSR requirement. For example, a $300,000 loan at 2.6% costs $1,560/month over 25 years but only $1,350/month over 30 years. This 10% reduction in monthly payment can make a significant difference in meeting the 30% MSR threshold.

4. Increase Down Payment