Many condo owners we speak to have reached the same point: the children have moved out, retirement is approaching, or the maintenance fees no longer make sense. Until recently, moving to an HDB resale flat meant selling first and then waiting 15 months. That wait-out period was removed on 28 July 2026.
What has not changed is how the new flat must be financed. If you are downgrading from condo to HDB and have owned private property recently, an HDB concessionary loan is off the table, so a bank home loan in Singapore becomes your main option. This guide covers what the change means in practice, how much you can borrow, whether to sell or buy first, and the mistakes we see downgraders make.
Key Takeaways
- Since 28 July 2026, private property owners and former owners can buy a non-subsidised HDB resale flat without the 15-month wait-out period, as long as they do not take an HDB housing loan.
- An HDB loan still requires a 30-month wait after you dispose of your private property, so most downgraders will need a bank loan. A bank loan cannot later be switched to an HDB loan.
- If you still own your condo when you buy, you must sell it within six months of completing the resale flat purchase.
- Buying before selling is harder to finance: an outstanding condo loan lowers your loan-to-value (LTV) limit from 75% to 45% and raises the cash downpayment to 25%.
- The Mortgage Servicing Ratio (MSR) of 30% applies to bank loans for HDB flats, on top of the 55% Total Debt Servicing Ratio (TDSR).
What Changed on 28 July 2026?
The 15-month wait-out period was introduced in September 2022 as a temporary cooling measure. According to the Ministry of National Development’s announcement, it was removed with immediate effect on 28 July 2026, after resale prices had stabilised and more flats were reaching their Minimum Occupation Period.
Three conditions still apply:
- Non-subsidised resale flats only. You buy without CPF housing grants.
- No HDB housing loan. Buying a BTO flat, a resale flat with grants, a new Executive Condominium from a developer, or taking an HDB loan still requires you to wait 30 months after selling your private property.
- Disposal within six months. If you still own private property (in Singapore or overseas), it must be sold within six months of completing your resale flat purchase.
The market impact so far has been modest. HDB’s third-quarter 2026 data, released on 23 October, showed resale prices down 0.1% and transactions up 19.5% quarter-on-quarter to 7,645. HDB said it had not seen a significant increase in prices or purchases by private property owners.
HDB Loan vs Bank Loan: What Are Your Options as a Downgrader?
For most downgraders, the HDB loan vs bank loan decision is made for you by the 30-month rule. Here is how the two compare. (For a fuller comparison, see our guide to choosing between an HDB loan and a bank loan.)
| HDB concessionary loan | Bank loan | |
|---|---|---|
| Available to recent private property owners? | Only 30 months after disposal | Yes |
| Interest rate | 2.6% p.a. (pegged to the CPF OA rate) | Fixed or floating; changes with market rates |
| Maximum LTV (no other housing loan) | 75% | 75% (lower for longer tenures or older borrowers) |
| Minimum cash downpayment | None (the 25% downpayment can be paid fully with CPF) | 5% (more in some cases) |
| Lock-in period | None | Usually 1–3 years |
| Switch later? | Can refinance to a bank | Cannot switch to an HDB loan |
That last row matters. As CPF Board explains, refinancing a bank loan to an HDB loan is not possible, so waiting 30 months does not open a back door to HDB financing once you have already taken a bank loan.
How Much Can You Borrow From a Bank for an HDB Resale Flat?
Loan-to-value limits and tenure
Under MAS’s loan tenure and LTV rules, bank loans for HDB flats are capped at a 30-year tenure. Your LTV limit depends on how many housing loans you already have outstanding:
| Outstanding housing loans | Maximum LTV | Minimum cash downpayment |
|---|---|---|
| None | 75% (or 55%) | 5% (or 10%) |
| One | 45% (or 25%) | 25% |
| Two or more | 35% (or 15%) | 25% |
The lower figure in brackets applies if the tenure exceeds 25 years for an HDB flat or runs beyond the borrower’s age 65 (joint borrowers use an income-weighted average age). For downgraders in their 50s or 60s, the age 65 limit often matters more than the 30-year cap.
Servicing ratios: MSR and TDSR
Two income tests apply. The Mortgage Servicing Ratio limits all your property loan instalments to 30% of gross monthly income when buying an HDB flat. TDSR caps all debt repayments, including car loans and credit card debt, at 55%.
Banks do not assess you at today’s rate. For TDSR, MAS requires a medium-term interest rate of at least 4% for residential property loans, which is why the approved amount can be lower than expected.
Sell First or Buy First?
This is the decision that shapes your financing.
| Sell condo first | Buy HDB flat first | |
|---|---|---|
| LTV limit | 75% (55% for longer tenures or past age 65) | 45% (25% for longer tenures or past age 65) while the condo loan is outstanding |
| Cash downpayment | From 5% | At least 25% |
| Servicing ratios | Only the new loan counts | Condo instalment counts towards MSR until the loan is discharged |
| Main risk | Need temporary accommodation | Must sell condo within six months; double instalments |
| Funding the purchase | Sale proceeds available | Must fund before condo proceeds arrive |
Selling first usually gives the cleanest loan assessment. Buying first offers continuity, but needs substantial cash and income headroom, and a slow condo sale adds pressure as the six-month deadline approaches.
Illustrative Scenario: Right-Sizing to a Five-Room Flat
This example is for illustration only. Figures are rounded, and actual loan offers depend on each bank’s assessment.
Mr and Mrs Lim, both 55, earn a combined S$9,000 a month. They plan to buy a five-room resale flat for S$900,000 (at valuation) and borrow S$400,000, about 44% LTV. As this is under 55%, the loan can run past age 65 (with at least 10% paid in cash), subject to the 30-year cap and bank policy.
Monthly instalments use the standard amortisation formula: M \= P × r(1 + r)ⁿ ÷ [(1 + r)ⁿ − 1], where P is the loan amount, r the monthly interest rate and n the number of months.
| Tenure | Instalment at 1.6% (illustrative rate) | Instalment at 4% (stress rate) | MSR at 4% |
|---|---|---|---|
| 10 years | S$3,609 | S$4,050 | 45% (exceeds 30%) |
| 20 years | S$1,949 | S$2,424 | 26.9% (within 30%) |
The 10-year loan would need about S$13,500 a month in combined income to pass a 30% MSR at 4%. The 20-year tenure passes but costs more: roughly S$67,700 in total interest at 1.6%, against about S$33,100 over 10 years. Partial prepayments can narrow that gap, subject to package terms.
What if they buy first? With their condo loan still outstanding at S$1,800 a month, their LTV limit drops to 45%, and to just 25% (a S$225,000 loan) for a tenure running past age 65 like this one, well short of the S$400,000 they need. At least 25% of the price must also be paid in cash, and their MSR at 4% becomes (S$1,800 + S$2,424) ÷ S$9,000 \= 46.9%. They would realistically need to sell first, or redeem the condo loan, to get the loan they want.
You can test your own numbers with our mortgage repayment calculator, keeping in mind that the bank will apply its own stress-test rate.
CPF, Stamp Duties and Other Costs Downgraders Overlook
- CPF refunds: CPF used for the condo, plus accrued interest, is refunded when you sell. If you are 55 or older, refunds generally go first towards your Full Retirement Sum, so less may return to your Ordinary Account for the next purchase. Our guide to what happens to your mortgage when you sell walks through the sale-proceeds calculation.
- CPF limits on older flats: Full CPF usage (up to the lower of price and valuation) requires the remaining lease to cover the youngest CPF-using buyer to age 95; otherwise it is pro-rated.
- ABSD: For Singapore Citizens, IRAS fully remits ABSD on HDB flat purchases. For Permanent Residents, a reduced ABSD rate of 5% applies. Buyer’s Stamp Duty is still payable.
- SSD on the condo: If you bought your condo on or after 4 July 2025, selling within four years attracts Seller’s Stamp Duty of 16%, 12%, 8% or 4%, depending on how long you have held it.
- Lock-in penalties: Redeeming your condo loan during its lock-in period may trigger a penalty, often around 1.5% of the outstanding amount, plus any clawback of legal subsidies.
Common Mistakes to Avoid
- Signing an Option to Purchase before checking loan eligibility. Get an in-principle approval based on your actual sell-or-buy sequence.
- Treating the HDB loan as a fallback. It is unavailable for 30 months after disposal, and you cannot switch to it later.
- Underestimating Cash Over Valuation (COV). Neither the bank loan nor CPF covers any amount paid above valuation.
- Defaulting to the longest tenure. It eases MSR but increases total interest.
- Leaving the six-month deadline to chance. Build in a buffer for a slow condo sale.
Fixed or Floating: Choosing a Home Loan for Your Next Flat
With the HDB loan out of reach, the useful comparison is fixed versus floating. Three-month compounded SORA has risen from about 1% in the second quarter of 2026 to roughly 1.27% in late October, and several banks raised fixed-rate packages after the US Federal Reserve’s September rate hike. Advertised rates are indicative, not guaranteed offers. A fixed rate gives downgraders on a retirement budget more certainty; a floating SORA home loan for HDB flats may cost less if rates ease but could rise further.
Frequently Asked Questions
Can I buy a BTO flat after selling my condo?
Yes, but only after the 30-month wait-out from the date you disposed of your private property. The same applies if you want CPF housing grants or an EC from a developer.
Does the rule apply if my private property is overseas?
Yes. Overseas private residential property must also be disposed of within six months of completing the resale flat purchase.
Will HDB resale prices rise now that condo owners can buy?
Not noticeably so far. In Parliament on 6 October 2026, the Minister for National Development said there had been no discernible impact on resale prices or COV. Analysts’ forecasts for 2026 range from slight declines to modest gains; these are forecasts, not certainties.
Can I keep my condo and rent it out after buying the HDB flat?
No. Under the current rules, the private property must be sold within six months of completing the resale flat purchase. Keeping it as an investment is not an option once you buy the flat.
Do I need a mortgage broker to downgrade?
No, but a mortgage broker in Singapore can compare packages across banks and check your MSR, LTV and timing before you commit.
Final Thoughts
Removing the wait-out period changed when you can move, not how you pay for the move. For most condo owners, the real decision is the order of sale and purchase, because it determines your LTV, your cash outlay and whether you pass MSR at the bank’s stress-test rate. Settle the sequence first, then choose a package, and set the tenure around your retirement income rather than the maximum a bank will allow.
How IQrate Can Help
Income, age, CPF balances and timing all affect what a bank will offer a downgrader. IQrate’s mortgage specialists can compare bank packages for HDB resale flats, check your MSR and LTV under sell-first and buy-first scenarios, and help you plan around the lock-in on your existing loan.
If you are considering a move from private property to an HDB flat, speak with an IQrate Mortgage Specialist for a complimentary, no-obligation consultation.