HDB loan limits tightened in new property cooling measure; eligible first-time buyers to get higher grants of up to S$120,000

SINGAPORE: In a move to cool Singapore’s public housing resale market, the maximum loan that home buyers can take from the Housing and Development Board (HDB) will be tightened from Tuesday (Aug 20).

This was announced late on Monday by HDB and the Ministry of National Development (MND) in a joint media release, which also provided details of the increase in the Enhanced CPF Housing Grant. Eligible first-time home buyers can get up to S$120,000 in support.  

To cool the resale market, the loan-to-value (LTV) limit for HDB loans will be lowered from 80 per cent to 75 per cent, reducing the maximum amount that home buyers can borrow from HDB.

“This brings the LTV limit for HDB loans in line with loans granted by financial institutions, which remains at 75 per cent,” MND and HDB said.

This is the fourth set of property cooling measures since December 2021 when the LTV for HDB loans was lowered from 90 per cent to 85 per cent.

It was further cut to 80 per cent in September 2022.

The authorities said first-time home buyers, especially lower-income households, will be less affected by the lower LTV limit as they receive significant housing grants.

These include the Enhanced CPF Housing Grant, which helps first-time flat applicants buy a new or resale flat. Prime Minister Lawrence Wong announced in his National Day Rally speech on Sunday that the grant will be increased to help lower-income families.

ENHANCED CPF HOUSING GRANT

Currently, eligible first-timer families can receive up to S$80,000 under the Enhanced CPF Housing Grant.

This will increase by S$40,000 to a maximum of S$120,000.