There are two key figures to consider when buying an HDB flat: the required down payment and the maximum loan you qualify for. Of the two, the down payment is often the more immediate concern, as it directly affects how much you need to pay upfront using your own savings.
Based on recent Build-To-Order (BTO) launches in 2025 and early 2026, prices for new 4-room flats in non-mature estates typically start from around $300,000 to $400,000, depending on location and project. As HDB loans and bank loans for HDB flats both have a maximum loan-to-value limit of 75%, buyers should generally be prepared to fund at least 25% of the flat purchase price using CPF savings, cash, or a combination of both. For those taking a bank loan, at least 5% must be paid in cash.
This remains a sizeable sum, especially for first-time buyers and younger couples who may not yet have built up sufficient CPF savings.
To ease this upfront financial burden, HDB offers the Staggered Downpayment Scheme (SDS). Under this scheme, eligible buyers can split their down payment into two parts—paying a portion when they sign the Agreement for Lease, and the remainder just before collecting the keys. This helps to reduce the initial cash outlay and gives buyers more time to accumulate savings, making homeownership more accessible.
What Is An HDB Downpayment?
Typically, we need to make an initial down payment when buying an HDB flat. It is dependent on the purchase price of the property and whether we are taking an HDB housing loan, a bank loan, or financing it fully without a loan.
We could choose to pay for the downpayment with either cash, CPF Ordinary Account (OA) savings (including CPF housing grant if eligible), or a mix of both.
Regardless of our financing option, the downpayment is split in two stages. The first half of the amount is due within 9 months after booking a new flat when signing the Agreement for Lease (AFL). The remaining second half is paid during the collection of the keys.
Read Also: Is It More Advantageous To Apply For Your HDB BTO Flat Later In The BTO Application Period?
How Much To Pay In Downpayment?
The down payment required at each stage depends on the financing option you choose.
If you take up an HDB housing loan, the down payment payable is at least 25% of the purchase price, in line with the current loan-to-value (LTV) limit of 75%. For buyers eligible under the Staggered Downpayment Scheme, this amount can be split into two instalments—one paid when signing the Agreement for Lease (AFL), and the remaining amount paid during key collection. Buyers who are not eligible for the scheme will need to pay the full down payment at the point of signing the AFL.
If you take out a bank loan, the down payment must be at least 25% of the purchase price, based on the 75% LTV limit. At least 5% must be paid in cash, while the remaining 20% can be paid in cash or from CPF savings. In general, buyers taking a bank loan are required to pay the full down payment when signing the Agreement for Lease and are not eligible for the Staggered Downpayment Scheme.
| Downpayment Amount and Mode of Payment | Housing Loan from HDB/ Not taking any loan | Housing loan from Financial Institution (FI) | |
| Loan-To-Value (LTV) Limit of 75% | Loan-To-Value (LTV) Limit of 55% | ||
| During signing of Agreement for Lease | 5% of purchase price | 10% of the purchase price: – Minimum 5% cash payment – Remaining 5% using cash and/ or CPF OA savings (including CPF housing grants if eligible) |
– Minimum 10% cash payment |
| During collection of keys | 20% of purchase price | 15% of purchase price | 35% of purchase price |
With 4-room BTO prices in non-mature towns ranging between $300,000 to $400,000, buyers taking up HDB housing loans would be expected to pay between $75,000 and $100,000 in down payment within 9 months of booking the flat.
For certain buyer profiles, such as current or recent full-time students and/or National Servicemen (NSFs), this financial requirement may be overbearing and delay their homeownership plans.
That’s where the HDB Staggered Downpayment Scheme is meant to benefit this group of flat buyers.
What Is HDB Staggered Downpayment Scheme
Under the Staggered Downpayment Scheme (SDS), the initial downpayment requirement for BTO flat buyers when they sign the AFL is just 2.5%. The balance amount is paid when the key to the flat is collected.
| Downpayment Amount and Mode of Payment | Housing loan from HDB/ Not taking any loan | Housing Loan from Financial Institution (FI) | |
| Loan-To-Value (LTV) Limit of 75% | Loan-To-Value (LTV) Limit of 55% | ||
| During signing of Agreement for Lease | 2.5% of purchase price | 2.5% of purchase price (cash payment only) | 2.5% of purchase price (cash payment only) |
| During collection of keys | 22.5% of purchase price |
22.5% of purchase price -Minimum cash payment at 2.5% of purchase price -Remaining 20% using cash and/ or CPF OA savings (including CPF housing grant if eligible) |
42.5% of purchase price -Minimum cash payment at 7.5% of purchase price – Remaining 35% using cash and/ or CPF OA savings (including CPF housing grant if eligible) |
With the SDS, young couples may face fewer financial hurdles in meeting the initial down payment requirements for purchasing a flat. Moreover, given the median waiting time of around 3.5 years for BTO flats, they could by then have saved up more money and earned a higher income, allowing them to reassess their finances before key collection.
Read Also: How Much Down Payment You Have To Pay To Buy An Executive Condominium
Who Is Eligible For This Scheme
The SDS is available to two groups of new HDB flat buyers:
First-timer couples:
- Both are first-timer applicants, or a couple comprising a first-timer applicant and a second-timer applicant;
- Obtained a valid HFE letter on or before the younger applicant’s 30th birthday; and
- Booked an uncompleted 5-room or smaller flat in any of HDB’s sales exercises.
Flat owners who right-size to a 3-room or smaller flat in non-mature estates:
- Have not sold or completed the sale of their existing flat at the time of their HFE letter application;
- Booked an uncompleted 3-room or smaller flat in a non-mature estate in any HDB sales exercises.
How To Apply For HDB’s SDS
Assuming we fulfil the eligibility conditions for the SDS, we will be informed of our eligibility during the flat booking appointment.
Even if we could meet the usual initial downpayment requirements of between 5% and 10%, we could consider taking up the SDS, if we are eligible. It could be a useful way to retain liquidity and earn a higher rate of return on our money until the key collection stage, which could take between 3 and 4 years.
Read Also: What A 1% Increase In Interest Rates Could Mean For Your Home Loan Repayment
