How the HDB affordability calculator works
Two rules cap how much you can borrow for an HDB flat:
- MSR?Mortgage Servicing Ratio — your monthly home loan repayment cannot exceed 30% of gross monthly income (Mortgage Servicing Ratio): your monthly home loan repayment can’t exceed 30% of gross monthly income.
- TDSR?Total Debt Servicing Ratio — all your monthly debt repayments combined cannot exceed 55% of gross monthly income (Total Debt Servicing Ratio): all your monthly debt repayments combined can’t exceed 55% of gross monthly income.
Your maximum monthly instalment is the lower of these two limits. We then work backwards from that instalment — using the HDB loan rate of 2.6% (or a 4% stress-test for bank loans) and your maximum loan tenure under the age-65 rule — to find your maximum loan and the flat price you can target.
2026 HDB & CPF rules at a glance
| Rule | HDB loan | Bank loan |
|---|---|---|
| Interest rate (2026) | 2.6% fixed | ~2.5–4.0% (stress test at 4%) |
| Max LTV | 80% | 75% |
| Max tenure | 25 years | 30 years |
| Age-65 cap | ✓ | ✓ |
| MSR cap (30%) | ✓ | ✓ |
| TDSR cap (55%) | ✓ | ✓ |
| Min cash downpayment | $0 (all CPF) | 5% of price (cash) |
| Eligibility | SC households | SC, PR, foreigners |
Frequently asked questions
Is the HDB loan or a bank loan cheaper?
The HDB loan is a fixed 2.6% with no lock-in and no minimum cash downpayment, It has been at 2.6% since 1999. Bank loans can be lower (often ~2.5–3.5%) but float and can rise — MAS requires lenders to stress-test you at a 4% floor. Use the comparison table in your results to see both side by side.
Can PRs and foreigners use this calculator?
Foreigners cannot buy HDB flats. PRs can buy resale HDB flats (after 3 years of PR, with an eligible SPR household) using a bank loan, and are generally not eligible for the HDB concessionary loan or the EHG.
Does this include CPF grants?
Yes — we show an EHG estimate based on your income and household type. For your full grant picture (EHG, CPF Housing Grant, Proximity Grant, Step-Up), use the CPF Grant Checker →
Why does my self-employed income reduce my loan?
HDB and banks assess variable income (self-employed, commissions, bonuses) more conservatively, applying a 30% haircut and averaging over 1–2 years. Your approved loan may be lower than a salaried buyer with the same headline income.
How does the age-65 rule affect my loan?
Your loan tenure cannot extend beyond age 65. So if the youngest buyer is 40, the maximum tenure is 25 years for an HDB loan (capped at 25) and 25 years for a bank loan (capped at 30). The shorter the tenure, the higher your monthly instalment — and the lower your maximum loan.