HDB Resale Flat Financing: Complete 2026 Homejourney Guide
This definitive guide covers everything about HDB resale flat financing, from eligibility and down payments to HDB loans vs bank loans, CPF usage, and current rates. Homejourney prioritizes your safety with verified data and tools like our bank rates page for instant comparisons from DBS, OCBC, UOB, and more.
Whether you're a first-time buyer eyeing a resale 4-room flat in Tampines or upgrading from a BTO, understand HDB resale financing to make confident decisions in Singapore's competitive market.
Table of Contents
- Executive Summary
- HDB Resale Flat Basics
- Financing Options: HDB Loan vs Bank Loan
- Eligibility Criteria for Resale Flat Loans
- Downpayment Requirements and CPF Usage
- LTV, TDSR, and MSR Limits Explained
- Interest Rates and SORA in 2026
- Stamp Duties, Fees, and Other Costs
- Step-by-Step Application Process
- Real-World Examples and Calculations
- Refinancing Your Resale HDB Loan
- How Homejourney Simplifies Resale Financing
- FAQ: HDB Resale Financing Questions
- Next Steps with Homejourney
Executive Summary
Buying a resale HDB flat requires mastering resale flat loan options, where you can choose between stable HDB loans at 2.6% p.a. (pegged to CPF OA rates) or competitive bank loans tracking SORA. In 2026, with property prices averaging $500,000-$800,000 for 4-5 room resale flats, downpayments range from 20-25% using CPF and cash.[1]
Key insights: Bank loans often offer lower initial rates but higher LTV limits for second-timers; always check TDSR (60% debt servicing) via Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator. This guide equips you with data-driven advice for safe, transparent transactions—Homejourney's core promise.
HDB Resale Flat Basics
Resale HDB flats offer immediate occupancy, bypassing BTO waits of 3-5 years. In mature estates like Bedok or Jurong East, 4-room resale flats transact at $550,000-$700,000, per recent HDB data. Minimum Occupation Period (MOP) is 5 years from completion date.
Eligibility: Singapore Citizens/PRs aged 21+; first-timers need HDB Flat Eligibility (HFE) letter. Singles can buy with grants up to $80,000 + EHG. Use Homejourney's property search to filter resale flats within your budget.
Why Choose Resale Over BTO?
- Move in within 8-12 weeks after resale completion.
- Larger selection: 99-year or 99-year lease remaining.
- Family-friendly locations near MRTs like Tampines (5-min walk from MRT Exit A).
- Higher budgets qualify for premium resale in Punggol or Sengkang.
Insider tip: Check for resale flats with recent renovations to save $20,000-$30,000 on upgrades—verified via HDB transactions.
Financing Options: HDB Loan vs Bank Loan
HDB loans cap at 75% LTV for resale flats (lower of purchase price or valuation), with 2.6% interest (as of 2026). Bank loans also 75% LTV but start at 3M SORA + 0.5%-1.0% (around 3.2%-3.8%).[1][2]
| Aspect | HDB Loan | Bank Loan |
|---|---|---|
| Max LTV | 75% | 75% |
| Interest Rate | 2.6% p.a. (CPF OA peg) | SORA + 0.5-1.5% |
| Downpayment | 25% (CPF/cash) | 25% (5% cash min + CPF) |
| Lock-in | None | 2-3 years |
For details, see our cluster HDB Loan vs Bank Loan 2026: Which Financing Option Saves You More? ">HDB Loan vs Bank Loan 2026. Compare live rates on Homejourney's bank rates page.
Eligibility Criteria for Resale Flat Loans
Obtain HFE letter via HDB portal. Income ceiling: None for resale, but MSR/TDSR apply. First-timers: No prior HDB ownership. Second-timers: 5-year wait post-sale, max one prior loan.
Singles: $80,000 Proximity Housing Grant (PHG) for living near parents. Families: Up to $120,000 CPF Housing Grant (CHG). Verify via Homejourney tools for instant pre-approval.
Key Checks Before Applying
- CPF OA balance & accrued interest.
- Monthly income (TDSR: 60% max debt).
- HDB ownership history via Singpass.
- Age factor: Loan tenure max 30 years or age 65.[1]
Downpayment Requirements and CPF Usage
For resale flat payment, HDB loan requires 25% downpayment (CPF OA or cash), paid via HDB Resale Portal for CPF and cashier's order at completion.[1] Bank loans: 25% total (min 5% cash + 20% CPF).
Example: $600,000 resale flat – HDB: $150,000 down (full CPF possible). Bank: $30,000 cash + $120,000 CPF. Use CPF OA fully, but retain $40,000+ for retirement. See How to Use CPF for HDB Down Payment: Homejourney 2026 Guide ">CPF for Downpayment Guide.
| Flat Price | HDB Downpayment | Bank Downpayment |
|---|---|---|
| $500,000 | $125,000 (CPF/cash) | $25,000 cash + $100,000 CPF |
| $700,000 | $175,000 | $35,000 cash + $140,000 CPF |
LTV, TDSR, and MSR Limits Explained
LTV: 75% max for both loans (Aug 2024 update).[2] MSR: 30% of gross income for HDB loans. TDSR: 60% total debt (MAS rule). Example: $10,000 monthly income – max $6,000 debt servicing.
Insider tip: Factor in car loans or credit cards; banks stress-test at 4% rates. Use Homejourney calculator for accurate buy resale HDB loan estimates.
Interest Rates and SORA in 2026
HDB: Fixed 2.6% (90% CPF OA + 0.1%). Banks: 3M SORA (~3.0% in Jan 2026) + spread. Fixed packages: 1.5-2.5% for 2-3 years, then revert to SORA.
The chart below shows recent interest rate trends in Singapore:
As seen, SORA stabilized post-2025 hikes. Track via Homejourney. Reference HDB Loan Interest Rate Trends 2026: Why Rates Matter for Your Mortgage ">HDB Loan Interest Trends 2026.
Stamp Duties, Fees, and Other Costs
ABSD: 0% first-timers (up to $1M value). Buyer’s Stamp Duty (BSD): Progressive, e.g., $24,600 on $700k flat. Legal fees: $2,000-$3,000. Agent commission: 1-2% if applicable.
- Option fee: $2,000-$5,000 (refundable).
- Valuation fee: $200-$500 via HDB panel.
- Total add-ons: 3-5% of price.
Reimbursable from CPF. Full checklist in HDB Loan Documents Checklist 2026 | Homejourney Guide ">HDB Loan Documents Guide.
Step-by-Step Application Process
1. Get HFE/IPTO via HDB Resale Portal. 2. Select flat, exercise Option to Purchase. 3. Apply for HDB resale mortgage or bank loan (HDB: online; Bank: via Homejourney multi-application). 4. Confirm financial plan. 5. Resale completion: Pay downpayment, collect keys.[1]
Homejourney: One-click apply to DBS, OCBC, UOB, HSBC etc., using Singpass for instant verification.
Real-World Examples and Calculations
Case 1: Family of 4, $8,000 income, buying $650,000 4-room in Yishun.
- Loan: $487,500 (75% LTV).
- Downpayment: $162,500 (5% cash $32,500 + CPF).
- Monthly: $2,300 (25-yr tenure, 3.2% SORA).
- TDSR pass: $4,800 max servicing.
Case 2: Single, $5,000 income, $450,000 3-room Bedok.
HDB loan: Cheaper long-term ($1,900/mth). Simulate on Homejourney calculator.
Refinancing Your Resale HDB Loan
Refinance after 2-3 years if rates drop. Costs: 1.5% fee, legal $2,000. Banks like Maybank offer cashback. Homejourney streamlines with multi-bank quotes.
How Homejourney Simplifies Resale Financing
Trust Homejourney for safety: Compare DBS to Citibank rates live, calculate eligibility, apply via Singpass. Post-purchase, check Aircon Services ">aircon services for maintenance.
- Real-time SORA tracking.
- Personalized broker advice.
- Verified market data from Projects Directory ">projects directory.
FAQ: HDB Resale Financing Questions
Q: What's the max HDB resale loan amount?
A: 75% of lower purchase price/valuation, subject to MSR/TDSR.[1]
Q: Can I use full CPF for resale downpayment?
A: Yes for HDB loan; bank min 5% cash.[1][2]
Q: HDB or bank loan for resale?
A: HDB for stability; bank for lower initial rates. Compare on Homejourney.
Q: TDSR calculation example?
A: $10k income = $6k max debt (incl. all loans).
Q: Grants for resale flats?
A: CHG $80k-$120k for families; apply pre-submission.
Q: Refinance resale HDB possible?
A: Yes, after lock-in; save $200+/mth if rates fall.
Q: Documents needed?
A: See HDB Loan Documents Checklist 2026 | Homejourney Guide ">checklist: Income proof, CPF statements.
Disclaimer: This is general advice; consult HDB/banks for personalized assessment. Rates as of Jan 2026; subject to change.
Next Steps with Homejourney
1. Calculate borrowing power at calculator. 2. Compare resale flat loan rates. 3. Search resale flats at property search. Homejourney ensures transparent, safe journeys—start today.
