Buying your first HDB flat is exciting but also stressful.

I know this because this happen to me back in 2018 when I secured my current flat.

Beyond choosing the estate or flat type, the bigger question is: How do I pay for it in a way that doesn’t crush me for decades?

That’s where a proper HDB financing guide comes in handy. In Singapore, most first-time homeowners face three big questions:

  1. Should I choose an HDB loan or a bank loan?

  2. Should I take a bigger loan or a smaller one?

  3. Should I stretch the loan for longer, or keep it short?

In this article, I’ll walk you through each of these dilemmas, sharing both the numbers and my personal experience.

We covered this in this YouTube video. Watch the full breakdown here:

1. HDB Loan vs Bank Loan in Singapore

This is the first and most important decision.

Quick overview:

  • HDB loans are fixed at 2.6% (0.1% above CPF OA interest). Stable and predictable.

  • Bank loans can start cheaper (1–2%) but are tied to SORA or other benchmarks. Historically they average ~3% or more.

If you want peace of mind, HDB loans are safer. If you’re confident with refinancing and want to chase lower rates, bank loans may work better.

👉 For a full breakdown, read my in-depth guide here: HDB Loan vs Bank Loan Singapore.

2. Bigger Loan vs Smaller Loan

Once you know your loan type, the next question is:

Should you wipe your CPF OA for a smaller loan, or keep it and take a bigger one?

Quick overview:

  • Smaller loan: less interest paid, smaller monthly mortgage, but wipes out your CPF savings.

  • Bigger loan: more interest, but lets you keep CPF OA invested (earning ~4–5%) and gives you years of buffer in case of job loss.

👉 For a full breakdown of how I approached this decision, check out: Should You Take a Bigger or Smaller HDB Loan?.

3. Longer vs Shorter Loan Tenure

Finally, the tenure question: do you stretch your loan to 25–30 years, or aim for 15–20?

Quick overview:

  • Shorter tenure: less total interest, faster debt-free living.

  • Longer tenure: lower monthly payments, better flexibility, especially for younger buyers with low CPF OA balances.

Personally, I went with 25 years — it gave me breathing space, and I can always prepay later if income allows.

👉 For a step-by-step guide on how tenure affects monthly payments and affordability, read: HDB Loan Tenure: Longer vs Shorter.

4. How Much Salary Do You Need?

A quick way to check affordability is to back-calculate from your CPF OA contributions.

For example, if your share of the mortgage is $500/month and at age 30 about 62% of CPF contributions go into OA, you’d need at least $2,176 salary to cover it comfortably.

This back-solving method keeps you grounded and avoids overstretching.

5. Lessons From My Property Journey

When I almost bought a $600K flat in Queenstown as a student, reality set in: without income, the math didn’t work. Pulling out was one of the best financial decisions I’ve made.

Later, we bought a $400K flat. Less glamorous, but much safer for our finances. Looking back, stability mattered more than location hype.

Explore More on HDB Financing

This article is the overview. If you want to dive deeper, check out these guides:

GoodWhale’s Take

Your HDB financing decision isn’t just about numbers, it’s about peace of mind.

  • HDB loan = predictability.

  • Bank loan = flexibility, but more risk.

  • Bigger loan = more interest, but keeps CPF OA growing.

  • Smaller loan = less interest, but wipes out savings.

  • Longer tenure = lower monthly payments, more flexibility.

  • Shorter tenure = faster freedom, but heavier commitments.

The best choice is the one that helps you sleep at night, knowing you can handle the payments even if life throws surprises.

Final Thoughts

Buying an HDB flat is a milestone. The key is not just affordability, but resilience. How much buffer you have if income changes or the economy shifts.

For a deeper walkthrough with examples, watch the full video here: