Mortgage
First-Time Buyer's Guide to Home Loans in Singapore
Everything a first-time property buyer in Singapore needs to know about choosing between HDB loans, bank loans, and CPF usage.
Lendela Team ·
HDB loan vs bank loan
First-time buyers have two main home loan options in Singapore:
| HDB Loan | Bank Loan | |
|---|---|---|
| Interest rate | 2.6% p.a. (pegged to CPF OA + 0.1%) | From ~3.5% (may vary) |
| LTV | Up to 80% | Up to 75% |
| Flexibility | Less | More (can refinance) |
CPF usage
You can use your CPF Ordinary Account (OA) to service loan instalments and pay the down payment. Note that CPF usage is subject to the Valuation Limit and accrued interest rules.
ABSD considerations
First-time citizen buyers are exempt from Additional Buyer’s Stamp Duty (ABSD) on their first property.
Steps to apply
- Check your HLE (HDB Loan Eligibility) letter if using an HDB loan.
- Engage a mortgage broker to compare bank rates.
- Secure an In-Principle Approval (IPA) before making an offer.