HDB Upgrader Mortgage Guide: Complete Singapore Financing
This definitive HDB upgrader mortgage guide equips Singapore homeowners upgrading from HDB to condos or private properties with everything needed for secure financing. Homejourney prioritizes your safety through verified data, transparent comparisons, and tools like our bank rates page to build trust in every step of your upgrade from HDB journey.
Whether selling first or buying first, master HDB to condo financing, LTV limits, TDSR calculations, and bank loan strategies. Use Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator for instant insights[1][2][3].
Table of Contents
- Executive Summary
- Chapter 1: HDB Upgrade Eligibility
- Chapter 2: Mortgage Basics for Upgraders
- Chapter 3: HDB Loans vs Bank Loans
- Chapter 4: LTV, TDSR, and MSR Explained
- Chapter 5: 3 Upgrade Strategies Compared
- Chapter 6: SORA and Interest Rates
- Chapter 7: CPF and Sale Proceeds
- Chapter 8: ABSD, BSD, and Fees
- Chapter 9: Top Bank Options
- Chapter 10: Real Calculations and Examples
- Chapter 11: Homejourney Tools
- FAQ
- Next Steps with Homejourney
Executive Summary
Upgrading from HDB requires navigating strict rules like 5-year MOP, LTV up to 75% if no prior loan, TDSR at 55%, and MSR at 30% for ECs. Sell first for better LTV; buy first risks dual loans and 45% LTV[1][2][3].
Homejourney verifies rates from DBS, OCBC, UOB, and more at https://www.homejourney.sg/bank-rates, ensuring safe decisions. This 2026 guide uses official HDB/MAS data for trustworthy advice.
Chapter 1: HDB Upgrade Eligibility
Minimum Occupation Period (MOP)
Complete 5-year MOP from key collection to sell HDB. Exceptions for divorce or death; check HDB portal for specifics[3].
Income and Citizenship Rules
Singapore Citizens/PRs eligible; families prioritize larger units. No ownership of private property before HDB sale, or face ABSD[3]. Insider tip: Use Homejourney's property search at https://www.homejourney.sg/search to filter MOP-compliant flats.
Chapter 2: Mortgage Basics for Upgraders
Key Terms Defined
- Loan-to-Value (LTV): Max loan as % of property value (75% first loan)[1].
- Total Debt Servicing Ratio (TDSR): Debts ≤55% gross income[2].
- Mortgage Servicing Ratio (MSR): Home loans ≤30% income for HDB/EC[3].
These MAS rules prevent overborrowing. Homejourney's calculator applies them instantly.
Chapter 3: HDB Loans vs Bank Loans
HDB loans offer stability at 2.6% pegged rate but cap at 80% LTV with MSR. Banks provide up to 75% LTV, flexible tenures, lower rates via SORA (currently ~3%), no MSR for condos[1][6].
| Feature | HDB Loan | Bank Loan |
|---|---|---|
| LTV Max | 80% | 75% |
| Interest Rate | 2.6% queue | SORA + margin |
| MSR Applies | Yes | No (condos) |
Choose banks for condos; HDB for simplicity. Compare live rates on Homejourney[6].
Chapter 4: LTV, TDSR, and MSR Explained
LTV Limits for Upgraders
First loan: 75%; second (buy first): 45%. Fully paid HDB allows 75% on condo[1][2]. Example: S$1.5M condo, paid HDB = S$1.125M loan.
TDSR Calculation
TDSR = (All debts / Gross income) ≤55%. S$15K income allows S$8.25K debts. Exclude HDB if sale undertaking provided[3].
MSR for ECs
≤30% income for home loans on new ECs. S$10K income caps at S$3K[3].
Chapter 5: 3 Upgrade Strategies Compared
Sell HDB first maximizes LTV; buy first suits strong cash reserves[2].
| Strategy | LTV | Pros | Cons |
|---|---|---|---|
| Sell First | 75% | Higher loan, no dual mortgage | Temporary housing |
| Buy First (EC) | 45-75% | DPS defers payments | ABSD risk |
| Buy First (Condo) | 45% | Secure dream home | Dual loans, 25% cash down |
Timeline: 2-4 weeks research, 4-6 weeks approval[2]. See Using Sale Proceeds for Down Payment: Homejourney's Complete Guide ">Using Sale Proceeds for Down Payment: Homejourney's Complete Guide for proceeds tips.
Chapter 6: SORA and Interest Rates
SORA (Singapore Overnight Rate Average) replaced SOR; banks peg loans to 3M/6M SORA + 0.5-1% margin. Fixed rates for 2-3 years offer certainty.
The chart below shows recent interest rate trends in Singapore:
Rates hovered ~3% in 2026; track on Homejourney for timing[6]. Fixed suits risk-averse upgraders.
Chapter 7: CPF Usage and Sale Proceeds
Use CPF Ordinary Account (OA) for downpayment after OA reset to S$80K (age 55+ higher). Sale proceeds boost approval; see Using Sale Proceeds for Down Payment: Homejourney's Benefits Guide ">Using Sale Proceeds for Down Payment: Homejourney's Benefits Guide [1].
- Min 5% cash downpayment.
- Remainder CPF + cash + loan.
- Proceeds reduce LTV stress.
Chapter 8: ABSD, BSD, and Other Fees
Additional Buyer's Stamp Duty (ABSD)
SC buying second: 20% on residential value. Remissible if HDB sold within 6 months[3]. S$2M condo = S$400K ABSD.
Buyer's Stamp Duty (BSD)
Tiered: 1-6% on price. Legal fees ~0.5%.
Plan via Homejourney calculator. Ref: ABSD Second Property Financing: Homejourney Benefits 2026 ">ABSD Second Property Financing: Homejourney Benefits 2026 .
Chapter 9: Top Bank Options for Upgraders
Homejourney compares DBS (SORA+0.6%), OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank. Apply via Singpass at https://www.homejourney.sg/bank-rates for multi-bank offers[6].
- DBS: Fast approval, cashback.
- OCBC: Flexible tenure.
- UOB: HDB specialist[6].
Chapter 10: Real Calculations and Examples
Case Study: Alex's Upgrade
Alex sells paid HDB, buys S$2M condo. LTV 75% = S$1.5M loan. S$20K income, TDSR allows S$11K repayment. 25-year SORA loan ~S$7.5K/month[1].
Buy First Scenario
S$2M condo, existing HDB loan: 45% LTV = S$900K new loan + 25% cash S$500K. Dual servicing challenges TDSR[3].
Use Homejourney's tool for your numbers.
Chapter 11: Homejourney Tools for Safe Upgrades
- Compare rates: https://www.homejourney.sg/bank-rates.
- Calculator: Affordability/TDSR.
- Multi-bank apply: Singpass auto-fill.
- Property search: Budget-matched listings at https://www.homejourney.sg/search.
- Post-upgrade: Aircon services via Aircon Services ">Aircon Services .
Homejourney verifies data for trust.
FAQ: HDB Upgrader Mortgage Questions
Can I get 75% LTV after selling HDB?
Yes, if fully paid; treated as first loan[1].
What if I buy condo before selling HDB?
45% LTV, potential ABSD, TDSR on both[2][3].
Does MSR apply to condos?
No, only HDB/EC[3].
How to use sale proceeds?
For downpayment; boosts approval. Details: Using Sale Proceeds for Down Payment FAQs | Homejourney ">Using Sale Proceeds for Down Payment FAQs | Homejourney .
Best bank for HDB upgrader?
Compare on Homejourney; UOB strong for HDB[6].
Current SORA rate?
Check live chart; ~3% in 2026.
ABSD remission timeline?
Apply within 6 months of HDB sale[3].
Can PRs upgrade?
Yes, but higher ABSD; citizenship remits.
Next Steps with Homejourney
1. Calculate eligibility at https://www.homejourney.sg/bank-rates#calculator.
2. Compare rates and apply multi-bank.
3. Search properties at https://www.homejourney.sg/search.
Homejourney ensures safe, transparent HDB upgrade guide with verified tools.
Disclaimer: Not financial advice; consult professionals. Rates as of 2026; verify with banks.
