Buyers Guide · 2026
How much downpayment to buy a condo in Singapore 2026
By Winfred Quek · 8-minute read · Last reviewed May 2026
Facts verified: May 2026 · Sources linked below
Key Takeaways
- The 5% cash component is non-negotiable and cannot be substituted with CPF or any other non-cash instrument.
- CPF OA usage for housing requires retaining a minimum of $20,000 in your OA at all times.
- Accrued CPF interest (currently 2.5% per annum) must be repaid to your CPF account when the property is sold this is a compounding obligation, not optional.
- Most upgraders underestimate total upfront outlay downpayment + BSD + ABSD (if applicable) + legal fees often sits between $180,000 and $220,000 at a $1.5M purchase.
- HDB loans require a 10% cash downpayment (not 5%) and are only available for HDB flats, not private condos.
The downpayment is usually the first question buyers ask and it's often where the first miscalculation happens. The headline "25%" figure hides important rules about what counts as cash, how CPF can (and cannot) be used, and what happens to your CPF when you eventually sell.
This article breaks down the exact numbers by price point, explains the CPF rules in full, and covers what changes when you buy a second property.
What is the minimum downpayment for a condo in Singapore?
According to MAS regulations, the Loan-to-Value (LTV) limit for a first residential property on a bank loan is 75%. This means you must fund the remaining 25% yourself from a combination of cash and CPF OA savings.
Of that 25%, MAS mandates that at least 5% must be paid in cash. This is the floor. There is no workaround: the 5% cash must be paid directly it cannot come from CPF, it cannot be substituted by a gifted cheque from a relative, and it is not financed by the bank.
| Purchase Price | 5% Min. Cash | 20% CPF/Cash | Total 25% Downpayment | 75% Loan Amount | Est. Monthly Instalment* |
|---|---|---|---|---|---|
| $1,000,000 | $50,000 | $200,000 | $250,000 | $750,000 | ~$3,000/mth |
| $1,500,000 | $75,000 | $300,000 | $375,000 | $1,125,000 | ~$4,500/mth |
| $2,000,000 | $100,000 | $400,000 | $500,000 | $1,500,000 | ~$6,000/mth |
| $2,500,000 | $125,000 | $500,000 | $625,000 | $1,875,000 | ~$7,500/mth |
| $3,000,000 | $150,000 | $600,000 | $750,000 | $2,250,000 | ~$9,000/mth |
*Monthly instalment estimate at 1.5% interest over 25-year loan tenure. Actual rates vary check with your bank. TDSR limits apply.
What counts as "cash" for the downpayment?
This is where buyers frequently get caught out. Cash, in the context of the 5% minimum, means:
- Cash in your personal bank account
- CPF funds transferred to your account (but you must withdraw them first this is different from a direct CPF payment)
- Proceeds from a property you have sold (net after mortgage repayment)
It does NOT include:
- CPF OA or SA funds used directly (these count toward the remaining 20%, not the cash 5%)
- Bank loans of any kind
- Cash gifts from relatives or employers that are structured as loans
- Renovation loan proceeds
CPF OA usage rules the accrued interest obligation
According to CPF Board rules, you can use CPF OA savings to fund up to the 20% balance of your downpayment and ongoing monthly mortgage instalments, subject to two important constraints:
The $20,000 OA retention rule. You must retain a minimum of $20,000 in your CPF OA at all times when using CPF for housing. This is a permanent floor you cannot draw your OA below $20,000 for housing purposes.
Accrued interest. When you use CPF for housing, the CPF Board charges accrued interest at the OA rate (currently 2.5% per annum) on the amount used. This accrued interest is tracked and must be returned to your CPF account when the property is sold along with the original principal drawn. On a $300,000 CPF drawdown held over 10 years at 2.5%, the accrued interest compounds to approximately $84,000 a significant sum that eats into the net sale proceeds you actually walk away with.
What is the downpayment for a second property?
When you already have an outstanding home loan whether for a HDB flat or another private property MAS rules tighten the LTV for any additional purchase. According to MAS property cooling measure guidelines:
- 1 outstanding loan: LTV limit is 45%, meaning you must fund 55% yourself
- 2 or more outstanding loans: LTV limit is 35%, meaning you must fund 65% yourself
For a second property with one outstanding loan, the minimum cash component rises to 25% of the purchase price. The remaining 30% can come from CPF or additional cash.
| Purchase Price | Loan Position | LTV | Min. Cash | Total Downpayment | Loan Amount |
|---|---|---|---|---|---|
| $1,500,000 | First property (no loan) | 75% | $75,000 (5%) | $375,000 (25%) | $1,125,000 |
| $1,500,000 | Second (1 outstanding loan) | 45% | $375,000 (25%) | $825,000 (55%) | $675,000 |
| $1,500,000 | Third (2+ outstanding loans) | 35% | $375,000 (25%) | $975,000 (65%) | $525,000 |
LTV limits per MAS Notice 632 (banks). Cash minimums for second and third property: 25% and 25% respectively of purchase price.
HDB loan vs bank loan how does the downpayment differ?
The 5% cash / 20% CPF rule applies specifically to bank loans for private condos (and HDB flats when using a bank loan). If you are buying an HDB flat and taking an HDB concessionary loan instead, the downpayment structure is different:
- HDB loan: 10% downpayment this can be paid entirely in CPF (no mandatory cash component), though many buyers choose to pay some cash. LTV is 80%.
- Bank loan for HDB: Same 5% cash / 20% CPF rule as for private condo. LTV is 75%.
The HDB loan rate is 2.6% per annum (0.1% above the CPF OA rate of 2.5%, per HDB's published formula). Bank loan rates in 2026 are around 1.5% for both fixed and floating (SORA-based) packages below the HDB rate, but without the same flexibility on repayment.
Winfred's Take
Most upgraders I meet have a number in their head usually just the 25% downpayment. What they haven't factored in is the full transaction cost stack: BSD ($44,600 on a $1.5M purchase), legal fees (~$3,000–$5,000), valuation report (~$500), stamp duty on the mortgage, agent commission on the sale side, and any renovation. At a $1.5M condo purchase for a typical HDB upgrader, the total cash needed before keys downpayment cash component + BSD + other costs often sits between $180,000 and $220,000. Budget conservatively.
What other upfront costs should you budget for?
Beyond the downpayment, a condo purchase in Singapore involves several additional costs that must be paid upfront (not financed):
- Buyer's Stamp Duty (BSD): Payable within 14 days of OTP. On $1.5M: $44,600. On $2M: $69,600. According to IRAS, BSD is calculated on a tiered rate structure: 1% on first $180k, 2% on next $180k, 3% on next $640k, 4% on next $500k, 5% on next $1.5M, 6% above.
- ABSD (if applicable): Singapore Citizens pay 0% on first property, 20% on second. On a $1.5M second property, that is $300,000 in ABSD alone a significant cash outflow due within 14 days of OTP signing.
- Legal / conveyancing fees: Typically $2,500–$5,000 for a resale transaction.
- Valuation report: ~$300–$700, required by the bank before loan approval.
- Option fee: 1% of purchase price payable on signing OTP (part of the downpayment, not an additional cost).
- Exercise of OTP fee: Remaining 4% cash due at exercise of OTP (completing the 5% cash requirement).
FREE · 30 MINUTES · NO COMMITMENT
Work out your exact downpayment and total cash needed
We model your CPF OA balance, BSD, ABSD, accrued interest obligations, and total cash required before you commit to any OTP. One conversation, a clear number.
Winfred Quek · CEA R073319H · Crestbrick
Frequently asked questions
Can I use SRS (Supplementary Retirement Scheme) for the downpayment?
No. SRS funds cannot be used for property downpayment or housing. SRS is used for investments (shares, unit trusts, annuities) and retirement income, not direct property purchases. CPF OA is the relevant CPF account for housing.
Can I borrow money from my parents to cover the cash downpayment?
This is permitted if it is a genuine gift (not a loan). IRAS and the banks look at the true nature of the arrangement. If a formal loan agreement exists or repayment is expected, it may not qualify as "cash" under MAS's intent. Always consult your mortgage lawyer if the source of funds is not straightforward.
Does the 5% cash rule apply if I pay more than 25% as downpayment?
Yes. The 5% minimum cash applies regardless of how large your downpayment is. Even if you pay 50% downpayment, at least 5% of the purchase price must be in cash. The remainder can be CPF.
What if my CPF OA is insufficient to cover the 20% balance?
You pay the shortfall in cash. CPF OA usage is capped at your available balance (after retaining $20,000). If your OA balance is $100,000 and the 20% component requires $200,000, you pay $100,000 from CPF and the remaining $100,000 in cash.
Is there a maximum amount of CPF I can use for my condo?
According to CPF Board, CPF usage for private property is capped at the Valuation Limit (VL) which is the lower of the purchase price or valuation. Once you hit the VL, CPF usage for that property stops (the Withdrawal Limit). For older properties (remaining lease below 60 years), additional CPF withdrawal restrictions may apply.
Sources & References
- MAS Notice 632: Residential Property Loans (LTV Limits)
- CPF Board: Using Your CPF to Buy a Home
- IRAS: Buyer's Stamp Duty (BSD)
- HDB: Housing Loan from HDB
Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA L31010886H), advising Singapore upgraders, investors, and families. CEA R073319H. The information on this page is general in nature and does not constitute financial, mortgage, or investment advice. Always verify with your bank and CPF Board before making any property decision.