Buying a property in Singapore requires a large down payment. The amount depends on factors like property type, loan eligibility, and how you finance it. Understanding the different downpayment structures can help homebuyers plan their finances effectively.
1. Property Downpayment (HDB Flats)
(a) New HDB BTO or SBF Flats
When you buy a Build-to-Order (BTO) or Sale of Balance Flats (SBF) from the Housing & Development Board (HDB), the downpayment varies. It depends on whether you choose an HDB loan or a bank loan.
| Loan Type | Maximum Loan-to-Value (LTV) Ratio | Downpayment Requirement | Mode of Payment |
| HDB Loan | Up to 80% financing | 20% of Purchase price | Fully payable using CPF OA (Cash optional) |
| Bank Loan | Up to 75% financing | 5% in cash + 20% in CPF OA or cash | Cash & CPF OA |
- HDB loans require a lower cash outlay, making them more accessible to first-time buyers.
- Bank loans require at least 5% cash, which may be challenging for buyers with limited liquidity.
(b) Resale HDB Flats
For resale HDB flats, the same LTV rules apply:
- HDB Loan: 20% downpayment (fully from CPF).
- Bank Loan: 5% cash + 20% CPF/cash.
Additionally, buyers must pay the Option Fee (between $1,000 – $5,000), which is part of the downpayment.
2. Property Downpayment (Private Properties – Condo & Landed Homes)
Unlike HDB flats, private properties cannot be financed with an HDB loan, so all buyers must use bank loans.
| Maximum LTV (Bank Loan) | Downpayment Requirement | Mode of Payment |
| Up to 75% financing | 5% in cash + 20% in CPF OA/Cash | Cash & CPF OA |
| Up 45% financing for 2nd housing loan | 25% in cash + 30% in CPF/Cash | Cash & CPF OA |
| Up to 35% financing for 3rd housing loan or more | 25% in cash + 40% in CPF/Cash | Cash & CPF OA |
- If you’re buying a second or third property, the down payment is much higher due to regulatory requirements.
- CPF OA can be used however, If you have already used CPF OA funds for your first property, you must set aside the Basic Retirement Sum (BRS) in your CPF before using additional OA funds for the second property.
Minimum CPF Retirement Sum Requirement
- If you are under 55 years old, you need to save a minimum amount. This amount is called the Basic Retirement Sum (BRS). You must save this in your CPF Special Account (SA) and Ordinary Account (OA) combined. You can only use extra CPF funds for your second property after that.
- If you are 55 years old or older, make sure your Full Retirement Sum (FRS) or Basic Retirement Sum (BRS) is in your CPF. You need this before using any OA funds for a second property.
3. Property Downpayment (Executive Condominiums)
(a) New Executive Condominiums (ECs) (Direct from Developer)
ECs are a hybrid between HDB and private condos, with downpayment rules similar to private properties:
- Bank Loan (Up to 75% LTV): 5% cash + 20% CPF OA/cash.
- No HDB Loan Option Available.
Note: ECs have a five-year Minimum Occupation Period (MOP) before they can be sold.
(b) Resale ECs (More than 5 years old)
- Same downpayment structure as private properties.
Advantage: After the MOP, ECs become private properties, making them attractive long-term investments.
4. Downpayment for Properties Under Construction (Progressive Payment Scheme)
If you buy a new condo or EC that is being built, you will make progressive payments. This means you pay in stages as the project is completed.
| Construction Stage | Payment (%) |
| Booking Fee (upon signing OTP) | 5% Cash |
| Signing of Sale & Purchase Agreement (within 8 weeks) | 15% CPF/cash |
| Completion of the ceiling & roof | 10% CPF/cash |
| Completion of reinforced concrete framework | 10% CPF/cash |
| Completion of brick walls | 5% CPF/cash |
| Completion of ceiling & roof | 5% CPF/cash |
| Completion of carpark, roads & drains | 5% CPF/cash |
| Temporary Occupation Permit (TOP) | 25% CPF/cash |
| Handover of keys | Completion of the foundation |
Advantage: The gradual payments ease financial pressure, allowing buyers to manage their cash flow better.
5. Additional Costs to Consider Alongside Property Downpayment
Besides property downpayment, homebuyers should also factor in other upfront costs, including:
- Buyer’s Stamp Duty (BSD) – Applies to all property purchases.
- Additional Buyer’s Stamp Duty (ABSD) – For second and subsequent property purchases.
- Legal fees, valuation fees etc.
Conclusion
The downpayment required for a property in Singapore varies significantly based on the type of property, loan eligibility, and existing mortgage commitments.
- First-time HDB buyers – Can benefit from HDB loans with lower cash outlay.
- Private property buyers – Require higher cash commitments and need to carefully plan financing.
- EC buyers – Similar financing structure to private condos.
Before purchasing a home, ensure you assess your financial situation, loan eligibility, and repayment capacity. If you are not sure which option is best for you, think about talking to a mortgage expert. They can help you find the lowest home loan rates.
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