HDB Upgrader Complete Mortgage Guide Singapore | Homejourney
This is the definitive HDB upgrader mortgage guide for Singapore homeowners ready to upgrade from HDB to private property. Whether you're eyeing a condo in prime districts or calculating your HDB to condo financing options, Homejourney provides verified insights, real examples, and tools to ensure safe, transparent decisions.[1][2]
As Singapore's trusted property platform, Homejourney prioritizes your security with Singpass integration, multi-bank comparisons, and expert guidance. Discover how to navigate HDB upgrade guide financing, from LTV limits to SORA rates, all while building long-term wealth securely.
Table of Contents
- Executive Summary
- HDB Upgrading Basics
- HDB Loan vs Bank Loan for Upgraders
- LTV, TDSR & MSR Explained
- Interest Rates & SORA for Upgraders
- Sell HDB First vs Buy First: Financing Scenarios
- CPF Usage & Downpayment Strategies
- Stamp Duties & ABSD for Upgraders
- Calculating Your Upgrade Affordability
- Homejourney Tools for Safe Upgrading
- Refinancing During Upgrade
- FAQ: HDB Upgrader Mortgage Questions
- Next Steps with Homejourney
Executive Summary: Your HDB Upgrader Mortgage Roadmap
Upgrading from HDB requires mastering HDB upgrader mortgage rules set by MAS and HDB. Key factors include 75% LTV for first loans (lower if HDB loan outstanding), TDSR capping debt at 55% of income, and ABSD rates up to 17% for second properties.[1][2]
Homejourney simplifies this with real-time bank rates from DBS, OCBC, UOB, and more at https://www.homejourney.sg/bank-rates. Use our calculator to assess upgrade property loan eligibility instantly via Singpass.
This 2026 guide covers scenarios, costs, and insider tips—like timing your sale around MOP to maximize proceeds—drawing from official HDB data and market trends for trustworthy advice.
HDB Upgrading Basics: Eligibility & Timeline
To upgrade from HDB, meet the Minimum Occupation Period (MOP)—5 years for most flats built after 2010. Singles need 35% ownership; families can sell freely post-MOP.[1]
Insider tip: Check your flat's resale value on Homejourney's property search to gauge equity. For example, a 4-room Punggol HDB sold for S$550,000 in 2026 yields S$400,000+ proceeds after loan payoff.
Key Upgrade Milestones
- Sell HDB Post-MOP: Maximizes LTV at 75% for condo.
- Buy First: Triggers 45% LTV if HDB loan active, plus ABSD.[1][2]
- EC/Condo Target: No HDB loans for private properties; bank financing only.
Reference Selling HDB & Buying Private Property: Complete Financing Guide 2025 for timelines.
HDB Loan vs Bank Loan for Upgraders
HDB loans (2.6% p.a. pegged) are unavailable for condos/ECs—only banks offer HDB to condo financing. Banks provide flexibility but higher rates (SORA + 0.5-1%).[2]
| Feature | HDB Loan | Bank Loan (Upgrade) |
|---|---|---|
| LTV Max | 80% (HDB only) | 75% first loan / 45% second[1][3] |
| Interest | 2.6% fixed | SORA-based (~3.5% 2026)[8] |
| Tenure | 25/30 years | Up to 65/70 years old |
| Eligibility | HDB flats | Private properties |
See detailed comparison in HDB Loan vs Bank Loan 2026 Comparison | Homejourney.
LTV, TDSR & MSR: Core Limits for HDB Upgraders
Loan-to-Value (LTV) caps borrowing: 75% if no prior loan outstanding post-HDB sale; drops to 45-55% otherwise.[1][2][3]
TDSR (Total Debt Servicing Ratio) limits total debt (including loans) to 55% of gross income. MSR (Mortgage Servicing Ratio) for HDB is 30%, but TDSR governs upgrades.
2026 LTV Table for Upgraders
| Scenario | Max LTV | Example (S$1M Condo) |
|---|---|---|
| Sell HDB First (No Loan) | 75% | S$750,000 loan |
| Buy First (HDB Loan Active) | 45% | S$450,000 loan[1] |
| Age >55 | 55% | Reduced tenure |
Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator to test scenarios.
Interest Rates & SORA for HDB Upgraders
Most bank loans peg to SORA (Singapore Overnight Rate Average), replacing fixed rates. 3M SORA averaged 3.2% in late 2025; expect 3.0-3.5% in 2026 amid global easing.
The chart below shows recent interest rate trends in Singapore:
As seen, SORA dipped post-2025 peak—ideal for locking rates. Compare live rates from DBS (SORA+0.6%), OCBC (SORA+0.5%), UOB on Homejourney's bank-rates page.
Track trends via HDB Loan Interest Rate Trends Analysis 2026 | Homejourney.
Sell HDB First vs Buy First: Detailed Scenarios
Selling first unlocks higher LTV but incurs rental (~S$3,000/month).[1] Buying first saves rental but hikes costs (ABSD, 55% downpayment).
Scenario 1: Sell S$600k HDB First, Buy S$1M Condo
| Cost | Amount |
|---|---|
| Loan (75% LTV) | S$750,000 |
| Cash/CPF Down (25%) | S$250,000 |
| BSD | S$31,600 |
| Rental (24m) | S$72,000[1] |
| Total Upfront | S$353,600 |
Scenario 2: Buy First
| Cost | Amount |
|---|---|
| Loan (45% LTV) | S$450,000 |
| Downpayment (55%) | S$550,000 |
| ABSD (17% PR/SG) | S$170,000[1][2] |
| Total Upfront | S$751,600 |
Pro tip: Sell first if equity >S$300k; use proceeds for downpayment.
CPF Usage & Downpayment Strategies
Use CPF Ordinary Account (OA) for downpayment post-Basic Retirement Sum (BRS S$106,500 in 2026). Reset OA after HDB sale.[2]
Example: S$200k CPF OA covers 20% down; cash minimum 5%. See How to Use CPF for HDB Down Payment | Homejourney Guide.
Downpayment Breakdown
- 5% Cash mandatory.
- 20% CPF/cash.
- Total 25% (sell first).[1]
Stamp Duties & ABSD for Upgraders
BSD: Progressive up to 6% (S$31,600 on S$1M). ABSD: 17% for second property if not selling HDB within 6 months (SG citizens).[2]
Pay within 14 days of signing; remission if selling HDB timely.
Calculating Your Upgrade Affordability
Formula: Max Loan = Min(75% Price, TDSR Income Limit). E.g., S$10k monthly income: S$5,500 debt cap yields S$600k loan (30yr, 3.5%).[2]
Test on Homejourney: Input income, debts at mortgage calculator.
Homejourney Tools for Safe HDB Upgrading
Homejourney verifies data for trust: Compare DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank rates instantly.
- Singpass auto-fill for applications.
- Multi-bank submissions—one form, multiple offers.
- Live SORA tracker.[8]
Start at https://www.homejourney.sg/bank-rates.
Refinancing During Your Upgrade Journey
Refinance HDB pre-sale if rates drop (e.g., SORA <3%). Post-upgrade, cash-out up to new LTV. Homejourney streamlines with broker connections.
Documents needed: See HDB Loan Documents Checklist 2026.
FAQ: Common HDB Upgrader Mortgage Questions
Q: Can I get 90% LTV as HDB upgrader?
A: No, max 75% for bank loans on condos. HDB loans cap at 80% but unavailable.[3]
Q: What's better for HDB upgrader mortgage—fixed or SORA?
A: SORA for flexibility; fixed for 2-3yr stability. Check Homejourney rates.
Q: How much ABSD for upgrading to condo?
A: 17% if buying first; 0% if selling HDB first and it's your only property.[1][2]
Q: Use CPF for condo downpayment?
A: Yes, after BRS set-aside. Full guide: CPF for Down Payment.
Q: Best banks for HDB to condo financing?
A: Compare DBS, OCBC, UOB on Homejourney bank-rates.
Q: TDSR impact on upgraders?
A: 55% income cap includes all debts. E.g., S$8k income limits housing to ~S$2,900/month.[2]
Disclaimer: This is general advice. Consult Homejourney brokers or financial advisors for personalized plans. Rates as of 2026; subject to change.
Next Steps: Upgrade Safely with Homejourney
1. Calculate eligibility at Homejourney calculator.
2. Compare rates: bank-rates
