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Can EC Take HDB Loan?


Understanding EC Financing Rules

An Executive Condominium (EC) is a unique type of housing that starts as public but is developed and sold by private developers. Because of its hybrid nature, many buyers wonder if they can use an HDB loan to finance their EC purchase.

The short answer is no — buyers cannot take an HDB loan to buy an Executive Condominium. ECs are considered semi-private properties, and therefore must be financed through bank loans only.



Why EC Buyers Cannot Take an HDB Loan

HDB loans are strictly for HDB flats — either Build-To-Order (BTO) or resale flats. Once a property falls under private or semi-private housing, it does not qualify for HDB financing.

ECs, even though they are subsidised and subject to HDB eligibility rules, are built and sold by private developers. Hence, they fall under the private housing loan structure.

Buyers must therefore obtain a bank loan that complies with Monetary Authority of Singapore (MAS) guidelines, including the Total Debt Servicing Ratio (TDSR).



Key Loan Rules for EC Buyers

1. Minimum Cash Downpayment

If you are taking a bank loan, the minimum cash downpayment is 5% of the purchase price. This must be paid in cash and cannot be covered by CPF.

2. CPF Usage

After the 5% cash downpayment, the remaining 20% can be paid using CPF Ordinary Account (OA) savings or additional cash.

3. Bank Loan Limit (LTV)

For most EC buyers, the Loan-to-Value (LTV) limit is up to 75% of the purchase price, depending on your credit assessment and financial standing.

4. TDSR and Income Criteria

Your monthly debt obligations (including car loans, credit cards, and other property loans) must stay within 55% of your gross monthly income under the TDSR framework.



Comparison: HDB Loan vs EC Bank Loan



Can You Use CPF to Buy an EC?

Yes, buyers can use their CPF Ordinary Account (OA) funds to pay for part of the EC purchase — such as the 15–20% downpayment (after cash portion) and subsequent monthly instalments.

However, CPF cannot be used for the 5% cash portion required upfront.



Steps to Finance an EC Purchase

  1. Obtain a bank loan pre-approval (In-Principle Approval or IPA) before booking your EC unit.

  2. Pay the 5% booking fee in cash upon unit selection.

  3. Once the bank loan is approved, sign the Sales & Purchase Agreement and make the remaining 15% downpayment.

  4. Use your CPF and bank disbursements for subsequent progressive payments according to construction milestones.



Final Thoughts

So, can you take an HDB loan for an EC? No — EC buyers must use a bank loan. The EC scheme is designed as a step-up from HDB to private housing, and financing rules reflect this transition.

If you’re upgrading from HDB to EC, plan your loan application early, check your TDSR limit, and compare bank packages to get the most competitive rate.



Disclaimer

Every buyer’s situation is unique. Speak to our EC loan specialists — we can recommend the most suitable bank packages and help you plan your transition from HDB to EC smoothly.