1. It is possible to use your CPF to pay the downpayment in full
While bank loans require you to pay a certain percentage of the downpayment in cash, the downpayment for your HDB flat can be paid fully using your CPF Ordinary Account (OA) savings if you take the HDB Housing Loan. If the amount in your CPF OA is insufficient, you will need to pay the balance in cash. This allows you to decide whether to use your CPF OA savings and if so, how much to use.
2. You can loan up to 90% of the purchase price or market valuation of the flat
For new flats, the loan ceiling is 90% of the purchase price. For resale flats, it is 90% of the resale price or market valuation, whichever is lower.
3. You can apply to change the repayment period of the loan
You can apply to change the repayment period of your HDB housing loan. Upon the extension or shortening of your repayment period, the mortgage instalment amount will be revised downwards or upwards accordingly. This gives you greater control of your finances over the entire duration of repayment.
4. You can make partial or full capital repayments without any early redemption penalty
To reduce your financial commitments, you can make partial or full capital repayments in addition to your monthly loan instalment without incurring any penalty for early redemption. However, the CPF Housing Withdrawal Limits may apply if you are using your CPF OA savings for these repayments.
5. The interest rate for the loan is pegged at 0.1% above the CPF OA interest rate
When you take a housing loan from HDB, you will enjoy a concessionary interest rate. This interest rate is pegged at 0.1% above the prevailing CPF OA interest rate, and may be adjusted in January, April, July and October, in line with CPF interest rate revisions.
For information on eligibility conditions to take the HDB housing, you may refer to HDB's website.