HDB Affordability Calculator Singapore
Estimate how much HDB flat you can afford in Singapore. Enter your gross monthly income, CPF Ordinary Account balance, loan type, and flat type to see your MSR cap, applicable grants (EHG, Family Grant, Singles Grant), maximum loan quantum, and total buying power.
How Much HDB Can You Afford in Singapore?
Buying an HDB flat in Singapore involves three funding buckets that must be added together to arrive at your maximum purchase price: your mortgage loan, your CPF Ordinary Account (OA) savings, and any housing grants you qualify for. The hard constraint on the loan side is the Mortgage Servicing Ratio (MSR), which caps your monthly instalment at 30% of your gross household income for HDB flat purchases. This is a stricter test than the broader 55% TDSR cap that applies to all debt combined.
The formula is straightforward: your maximum monthly payment is income multiplied by 0.30. Reverse-amortising that figure at the loan's interest rate over the chosen tenure gives your maximum loan quantum. Add your CPF OA balance (which can cover the down payment and reduce borrowing) and any grants you receive, and you arrive at the total flat price you can target.
HDB loans require a 20% down payment (all of which can come from CPF OA). Bank loans require at least 25% down, with a minimum 5% in cash. This means your CPF OA balance matters differently depending on which loan route you take.
Key Formulas Used
Max Monthly Payment = Gross Income x 30% (MSR cap)
Monthly Instalment = P x [r(1+r)^n] / [(1+r)^n – 1]
Max Loan = Reverse amortise Max Monthly Payment at chosen rate and tenure
Total Buying Power = Max Loan + CPF OA + All Applicable Grants
HDB Grants Explained: EHG, Family Grant, and CPF Single Grant
Singapore offers multiple housing grants that can significantly boost your buying power. The most valuable is the Enhanced CPF Housing Grant (EHG), which is available to first-timer families and singles buying any HDB flat — new BTO or resale. The EHG is income-tested: households earning up to SGD 1,500 per month receive the maximum SGD 80,000, and the amount scales down by SGD 5,000 for every SGD 500 increase in income, reaching SGD 5,000 for income up to SGD 9,000 and zero above that threshold.
For first-timer couples buying a resale flat, the Family Grant adds a further SGD 50,000 for 2- to 4-room flats or SGD 40,000 for 5-room and larger. If one partner is a second-timer, the Half-Housing Grant applies at SGD 25,000 or SGD 20,000 respectively (not modelled in this simplified version — the calculator assumes a pure first-timer couple).
Singles buying a resale 2- to 4-room flat with a monthly income at or below SGD 7,000 can claim the CPF Housing Grant for Singles of SGD 40,000. Note that singles are not eligible for EHG on a BTO purchase unless buying a 2-room Flexi flat; this calculator applies EHG for singles on resale transactions only.
Example: Couple earning SGD 6,000/month, CPF OA SGD 40,000, HDB loan, 25 years, 4-room resale
- MSR cap: SGD 1,800/month
- Max loan at 2.6% p.a., 25 yrs: approx. SGD 387,000
- EHG (income SGD 6,000 → bracket ≤6,000): SGD 35,000
- Family Grant (4-room resale, first-timer couple): SGD 50,000
- Total grants: SGD 85,000
- Total buying power: SGD 387,000 + 40,000 + 85,000 = SGD 512,000
HDB Loan vs Bank Loan: Which Is Right for You?
The HDB concessionary loan at 2.6% per annum (pegged at 0.1% above the CPF OA interest rate) offers stability and simplicity. The rate does not change with market conditions, which makes financial planning predictable. It allows up to 80% Loan-to-Value (LTV), and the entire 20% down payment can come from CPF OA — meaning no cash out of pocket if your CPF balance is sufficient.
Bank loans can offer lower rates during low-rate environments, but they are typically variable or fixed only for an initial 2- to 5-year period. After the lock-in, rates can increase substantially. Bank loans cap LTV at 75%, requiring a 25% down payment, of which at least 5% must be in cash. The lower LTV means you borrow less, but the cash requirement is a real constraint for first-time buyers.
For most first-time HDB buyers, particularly those with limited cash savings, the HDB loan offers better downside protection. Consider a bank loan only if you have the cash buffer to cover the extra down payment and the discipline to refinance before the initial fixed period ends.