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Cash Downpayment
For HDB Flats In Singapore

From 19th Jul 2005 onwards,  HDB Flats buyers, who are taking bank loans, will be required to pay 10% downpayment instead of 20% of the property value. They can obtain a mortgage loan up to the 90% financing limit from the banks or financial instituations.

HDB Flats buyers are required to pay only 4% cash component and 6% CPF, ( making up a total of 10%) as deposit for the purchase of their HDB Flats. Of course, those who have insufficient CPF will have to make up the difference in cash. The loan of 90% from the bank based on the bank valuation or purchase price, whichever is lower, remains unchanged.

The cash component will be increased by 1% effective 1st Jan 2006 to 5%, which will be in line with private properties i.e 5% cash and 5% CPF as deposit and the balance 90% to be arranged in mortgage loan. The increased cash components required for the respective years are shown in the following table.

Date	Cash portion	CPF portion	Deposit for Flat
19th Jul 05 to 31st Dec 05	4%	6%	10%
From 1st Jan 06 onwards	5%	5%	10%

For more information, Click here to visit HDB Website.

Simple Illustration :
How much CASH Component is required if you purchase a HDB Flat from 1st Jan 2006 onwards ?

Assuming you are making a comparison of buying a 4A HDB Flat costing $280,000 or a new 99 years leasehold Private Apartment costing $550,000, both near Lakeside MRT.