The Staggered Downpayment Scheme for HDB flats was recently enhanced in 2024. The change came about to make forking out the HDB flat downpayment more doable for young couples who have bought a BTO flat, Sale of Balance Flats (SBF) flat, or Open Booking of Flats (OBF) unit.
We know paying a downpayment for HDB flats can be a pain in the butt (it’s 20% if you’re taking an HDB loan and 25% if it’s a bank loan). Understandably, this can be quite a big sum, especially if you and your partner haven’t been in the workforce long enough.
If you’re wondering “When to pay downpayment for BTO?” or looking at the Staggered Downpayment Scheme, we’ll cover what you need to know in this article. Are you on the hunt for your first home but want an HDB resale flat instead? Let us help.
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How to Qualify for an HDB Flat (Video)
Wondering if you’re eligible to buy a BTO flat or even a resale flat? Watch our video on HDB flat eligibility for an introduction to the topic.
How Much Is HDB Downpayment?
Before we get into HDB’s Staggered Downpayment Scheme, you’ll need to understand what downpayment for an HDB flat is.
As the word suggests, the HDB downpayment is the initial minimum sum that needs to be paid when you purchase a new HDB flat. For BTO flats, you’ll need to pay the BTO downpayment for the flat during the signing of the Agreement for Lease, which usually takes place about six months after you’ve booked the flat.
Your total HDB downpayment might differ depending on whether you have applied for an HDB housing loan or a bank loan. Assuming you get the maximum loan amount for an HDB-granted loan and bank loan, here’s how much downpayment you’ll have to pay.
BTO Downpayment for HDB Flats: HDB Loans
| Price of HDB flat | $450,000 |
| Loan-to-Value (LTV) limit for HDB loan | 80% |
| Terms of HDB loan | Loan tenure must be less than or equal to 30 years, with a 5% minimum cash downpayment |
| HDB loan amount | $360,000 |
| Downpayment | $90,000 |
| What can you use to make the downpayment? | It can be paid in cash, entirely with your CPF Ordinary Account (OA) savings, or a mix of both |
If your CPF OA savings are insufficient to cover the downpayment, you’ll need to pay the balance in cash.
BTO Downpayment for HDB Flats: Bank Loans
| Price of HDB flat | $450,000 | $450,000 |
| LTV limit | 75% | 55% |
| Terms of the loan | Loan tenure must be less than or equal to 30 years, with a 5% minimum cash downpayment | Loan tenure of more than 30 years, or if the loan extends after the borrower is 65 years old, with a 10% minimum cash downpayment |
| Bank loan amount | $337,500 | $247,500 |
| Downpayment | $112,500 | $202,500 |
| What can you use to make the downpayment? | At least 5% must be paid in cash, and up to 20% can be paid using CPF OA savings | At least 10% must be paid in cash, and up to 35% can be paid using CPF OA savings |
For bank loans, you’ll also need to obtain an In-Principle Approval (IPA) from your bank. Need help? Reach out to our team of PropertyGuru Finance Mortgage Experts for unbiased advice and guidance on how to apply, at no cost at all! If you’re curious about what bank loans are available, you can check out the PropertyGuru Finance home loan comparison tool to find the latest bank rates from all major banks in Singapore.
How Does the Staggered Downpayment Scheme Work?
If you need financial assistance to make the downpayment for your HDB flat, the HDB Staggered Downpayment Scheme is your saving grace as it allows you to pay your HDB downpayment in two instalments. The first instalment will be paid when you sign the Agreement for Lease, which is usually nine months after booking a new HDB flat.
The second instalment will be paid once you collect the keys to your new flat, typically about two and a half to four years later when the flat is completed. This way, the HDB Staggered Downpayment Scheme provides you more time to accumulate money and pay off the remainder of the HDB downpayment.
Phased Downpayment Before June 2024 Sales Exercise
| When to pay the downpayment for BTO, SBF, or OBF flat | HDB loan/not taking a loan | Bank loan with 75% LTV | Bank loan with 55% LTV |
| At the time of signing the Agreement for Lease | 5% in cash or using CPF OA | 10% in cash or using CPF OA (of which 5% must be in cash) | 10% in cash only |
| During key collection | 15% in cash or using CPF OA | 15% in cash or using CPF OA | 35% in cash or using CPF OA |
For flat applications received on or after 30 September 2022 (excluding young couples eligible for deferred income assessment from the June 2024 BTO sales exercise), the above is the required downpayment amounts at the various stages.
Phased Downpayment From June 2024 Sales Exercise Onwards
| When to pay the downpayment for BTO, SBF, or OBF flat | HDB loan/not taking a loan | Bank loan with 75% LTV | Bank loan with 55% LTV |
| At the time of signing the Agreement for Lease | 2.5% in cash or using CPF OA | 2.5% in cash only | 2.5% in cash only |
| During key collection | 17.5% in cash or using CPF OA | 22.5% in cash or using CPF OA (of which 2.5% must be in cash) | 42.5% in cash or using CPF OA (of which 7.5% must be in cash) |
The above is relevant for those who bought an HDB flat from the June 2024 BTO sales exercise onwards. If you took a bank loan to finance your home purchase, you have to pay at least 5% (for a loan with a 75% LTV limit) of the purchase price or value of your HDB flat (whichever is lower) in cash before your bank loan is disbursed; for a loan with a 55% LTV limit, the amount is 10%.
HDB Staggered Downpayment Scheme Eligibility
If you’re applying for the HDB flat with your partner/spouse under the Fiancé/Fiancée Scheme, you’ll need to meet these conditions to be eligible for the scheme:
- Both of you must be first-timer applicants or a couple comprising a first-timer and a second-timer applicant
- You’ve booked a new 2-room, 3-room, 4-room, or 5-room uncompleted HDB flat through any of HDB’s sales exercises
- You must have obtained a valid HDB Flat Eligibility letter on or before the younger applicant’s 30th birthday
You’ll also qualify for the HDB Staggered Downpayment Scheme if you’re an HDB flat owner ‘right-sizing’ to a 2-room or 3-room flat in non-mature estates and meet the following criteria:
- You’ve bought an uncompleted 2-room or 3-room HDB flat in a non-mature estate through one of HDB’s sales launches
- You have not sold your existing HDB flat, or the sale has not yet been legally completed at the point of your HFE letter application
Other HDB Downpayment Schemes
If you’re 55 years old and above, you may be eligible for the Deferred Downpayment Scheme (DDS) instead. Essentially, the DDS allows you to defer your downpayment until key collection if you are right-sizing. This helps to smoothen the right-sizing process, especially if your funds are tied to your existing HDB flat.
Apart from the age criterion, you’ll need to fulfil the following conditions to be eligible for the scheme:
- You are at least 55 years old at the time of your HFE letter application
- You have booked a 2-room Flexi or 3-room uncompleted HDB flat in a mature or non-mature estate in any HDB sales exercises
- Have not sold or completed the sale of your existing HDB flat at the point of your HFE letter application
If you meet these conditions, you can defer your downpayment until key collection. If you are eligible to defer your downpayment, you will be informed during your flat booking appointment.
This means that when you sign the Agreement for Lease, you’ll only have to pay the stamp duty and legal fees within nine months after booking your flat. Once the HDB flat is ready, they will pay the purchase price.
On the other hand, if you cancel the HDB flat application, you’ll still be liable to pay the usual forfeiture fee of 5% of the HDB flat price.
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