In Singapore, employment incomes are rising. According to the latest statistics from the Ministry of Manpower, the median gross monthly income (excluding employer CPF) of full-time employed residents is $5,000. “Residents” refer to Singapore Citizens and Permanent Residents. The data also reveals that the median gross monthly income (excluding employer CPF) is $5,786 if you’re between 30 and 39 years old, and $6,700 if you’re between 40 and 49 years old.
These numbers are important because they mean that the average homebuying couple in Singapore probably has a combined gross monthly income of between $11,572 and $13,400. This is very close to the HDB monthly household income ceiling is $14,000.
The HDB monthly household income ceiling, last reviewed in 2019, is the maximum income eligible for a new BTO flat. HDB’s definition of income includes employees’ CPF deductions and excludes employers’ CPF contributions and bonuses.
Read Also: Is The HDB Monthly Household Income Ceiling Still Relevant Amid Higher Wages & Inflation?
In Singapore, where 77.2% of our resident households live in HDB flats, demand for public housing remains high. According to HDB’s latest data for Financial Year 2024, there were 145,788 applications for HDB Flat Eligibility (HFE) letters. An HFE letter is needed when buying a flat from HDB or buying a resale flat.
What Happens When Monthly Household Income Exceeds $14,000
However, once the combined income of homebuying couples exceeds $14,000, their options narrow significantly, as they are no longer eligible for a new BTO flat. Their remaining options are resale flats, executive condominiums (ECs), private condominiums and landed properties.
Resale Flat or EC
A $14,001 combined income unfortunately excludes the couple from applying for an HDB loan to service the purchase of a resale flat. Based on the mortgage servicing ratio of 30% of gross monthly income, the maximum this couple can borrow from a bank or financial institution is at least $814,584 (based on a floor interest rate of 4.65% over 30 years).
Assuming the bank offers the maximum Loan-to-Value of 75%, this means their affordability is $1,086,113, which also assumes they have at least $54,306 in cash and $217,223 in cash and CPF for the down payment. To buy properties above this amount, they would need to have more cash on hand.
Note that at a combined income of $14,001, the couple is also not eligible for the CPF Housing Grants for Resale Flats, which subsidises the upfront cost by up to $80,000 but has an income ceiling of $14,000. They are naturally also not eligible for the Enhanced CPF Housing Grant, which has an income ceiling of $9,000.
Looking ahead, they will also not be eligible to buy resale flats classified as Prime or Plus, as these can only be sold to buyers who meet the BTO eligibility, i.e. with household incomes below the income ceiling.
Private condominiums and landed properties
For the purchase of private properties, the total debt servicing ratio of 55% of gross monthly income is used to determine the maximum loan. A $14,001 combined income (assuming no other financial commitments) would allow the couple to borrow at least $1,493,405 from the bank or financial institution (again, assuming a floor interest rate of 4.65% over 30 years).
Assuming the bank offers the maximum Loan-to-Value of 75%, this means their affordability for a private property is $1,991,207, assuming they have at least $99,561 in cash and $398,241 in cash and CPF for the down payment. To buy private properties above this amount, they would need to have more cash on hand.
Why This Income Threshold Makes Buying A Home “Inefficient”
When we talk about efficiency when buying a home, we look at several factors which restrict a couple with a combined income of $14,001. Perhaps the best way to illustrate this is to compare them to a couple with a combined income of $13,400, which we mentioned earlier, is around the median household income for a couple in Singapore.
#1 Availability Of Options
As we demonstrated above, a combined income of $14,001 excludes you from buying a new flat from HDB, including Build-To-Order (BTO) and Sale of Balance Flats (SBF) units. It will eventually also exclude you from buying resale flats classified as Prime and Plus, as these can only be sold to those who meet the BTO eligibility conditions.
In comparison, a couple earning $13,400 has no such eligibility restrictions.
#2 Financing And Affordability
While earning a higher income does mean you can afford to pay more for properties, the limitations set by the Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio (TDSR) means that a combined income of $14,001 puts you in an awkward financial position – you are now the lowest earning buyers for the types of properties you are eligible to buy.
Take, for example, Coastal Cabana in Pasir Ris, the first EC launch of 2026. Three-bedroom units at that project were priced from $1.438 million, while four-bedroom units started from $1.623 million.
As we mentioned above, because of the MSR, the maximum EC affordability of a couple earning $14,001 is $1,086,113. The couple would need to fork out an additional $352,000 in cash and CPF just to afford the starting price of a three-bedroom unit. That’s the price of an entire new 3-room BTO unit at next door Costa Riveria, which launched in October 2024.
Not coincidentally, a couple earning $13,400 would be eligible for the Costa Riveria BTO units, where 4-room prices (about the same size as the four-bedroom units at Coastal Cabana EC) were between $481,000 – $595,000, one-third the price of the EC.
Of course, there are many other factors that will influence your decision between choosing between a new BTO and an EC. However, when your combined income is just $1 above $14,000, you won’t be given a choice in the matter.
Couples whose combined incomes are currently close to that income ceiling threshold should probably consider whether they want to buy a home before accepting that well-deserved pay raise.
