HDB Downpayments for First Time Owners

Credit Counselling Service Singapore

Buying your own house can be such a fulfilling feeling because it feels that you have achieved something and that you have fulfilled a dream. Well, buying a house is truly a great start of having your dreams come true but there are some consequences that go with it. You will also have full responsibility when you own a house. It also impacts a lot on your financial status.

It is very imperative that you have all the right reasons when you decide to buy your own house. Whether you are married or not. You should definitely need to think about the decision several times before finalizing it. 

Reasons why you should buy your own house

  • You are ready – buying a house is not mainly a financial decision but also an emotional one. You should be ready with the responsibilities that come when you buy your own house. You should also be ready with the financial aspect that comes with it. If you are single and is ready to stay alone in the house, you can do so. You have to be responsible enough to take care of the things that come along with it. If you are married, you should be ready with the expenses to keep the house as well as keeping the family happy in your home.


  • Building an investment – probably, buying a house is a lot better than renting your own place because if you are renting, the place will never be yours no matter how long you have been there while in buying your own house, you can say that you own the house and it is under your name. You spend money on something that you own instead of spending money on rents that will never be yours. If ever there will come a time when you want to sell the house, you will have your money back or even more than that because the value of a property is always increasing. You can use the money from the sold house to purchase another house that you prefer, probably larger or better than the one you sold or maybe in another location which is even better than the old one.

  • You have a nice and secure job – make sure that you have a secure job and that you intend to keep your job for a long time to keep up with the payment of your new house. Ensure that you will be up to date with the bills that you need to pay for the new house, the bills and the daily expenses that you will incur. This will enable you to have good financial status over the next few years.

  • You will have a tax break on the interest of mortgage – you can deduct a certain percentage of your interest rate from your taxes because for the first years of paying for the house, more of your payment will be allotted to the interest rate. This will enable you to reduce the amount of your taxes every year, another good news when you buy a house. 

  • Stability – Owning your own house, whether you are single or married will give you stability in the future instead of renting a house or apartment. Having your own house that you can call your own will give you a fulfilling feeling that you do not have to worry about.

You should also consider the type of house that you want to purchase. In Singapore, the
Housing and Development Board or HDB handles most of the residential housing projects as well as public housing. 


How much HDB Downpayment should a first time buyer pay?

You can use your CPF OA savings for your down payment in purchasing a house. However, most cases will require you to top up with some cash for down payments.

If you are an HDB flat buyer that will take an HDB Concessionary Loan, you will need a 10% down payment of the purchase price that can be paid off completely with CPF OA savings.

If you are a, HDB flat buyer who will take out a bank loan, you will be needing to pay 25% down payment of the purchase price wherein you can pay 20% from the CPF OA savings and 5% will require you to be paid in cash.

If you are a private property buyer who will take a bank loan, you will need to pay 25% down payment of the purchase price wherein you can also pay 20% of it with the CPF OA savings and cash for the remaining 5%.

Deposits should always be paid in cash and not the CPF savings.

What should be the remaining cost?

If you have CPF housing grants, the further part of your HDB flat can be covered up to $160,000. You can just check if you are eligible. The remaining amount of the house will be paid off through HDB or bank loan that will be subject to interest.

You can also opt for a Home Loan

You can also secure a home loan if you want to and 365 Credit will be able to help you with this. You can be offered a loan which is favorable to you based on your records. You will be assessed for eligibility and capacity to be granted a loan.

There will be requirements to avail of a home loan and you should be ready for this. Getting a house should always be an exciting thing that you can experience in your life and one of the achievements. You should always be ready and you should also have a well planned way of how you can purchase and maintain the house that you will buy. 

Give yourself the gift that you can always be proud of by purchasing a house that you and your family will cherish all your lives as well as build precious memories.

About 365 Credit Solutions

365 Credit Solutions Pte Ltd is an established licensed moneylender since 2010 (formerly known as FLS Credit and Fu Lu Shou Credit), accredited by the Registry of Moneylenders in Singapore. We specialize in providing personal, payday, bridging, foreigner, business loans to Singaporeans & Foreigners working in Singapore.


Our mission is to help make taking a loan a simpler, more understandable process, and to educate our customers about their loan options in the event of an urgent need.

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