Becoming a first-time home buyer in Singapore is exciting but the financing side often feels overwhelming. Between choosing a home loan in Singapore, understanding grants, comparing costs, and planning long-term affordability, many new buyers aren’t sure where to begin.
This guide walks you through everything you need to know, whether you’re buying an HDB flat or entering the private property market. It blends practical steps, updated 2026 policies, and essential Singapore mortgage advice for first time home buyers so you can make confident decisions from day one.
Understanding Singapore’s Two Main Home Loan Types
Every buyer whether choosing HDB or private property needs to choose between:
- HDB Loan Singapore
- Bank Home Loan Singapore
This choice affects your downpayment, interest cost, and overall affordability.
HDB Loan Singapore (Concessionary Loan)
HDB loans remain popular among first-time home buyers because of their stability and predictable repayment. As we approach 2026:
- Downpayment: 25% (fully CPF OA or a mix of CPF + cash)
- Interest Rate: 2.6% (pegged to CPF OA rate + 0.1%)
- Eligibility: At least one applicant must be a Singapore Citizen, and household income limits apply.
This option gives buyers flexibility since it does not require a 5% cash outlay, making it accessible to many first time home buyer in Singapore households who want predictable payments.
2) Bank Home Loan Singapore
Bank loans offer competitive rates and are often chosen for long-term savings or private property purchases.
As we approach 2026:
- Downpayment: 25% total (5% cash + 20% CPF or cash)
- Interest Rate: Market-based floating or fixed packages
- Loan Types:
- Fixed home loan in Singapore: predictable payments for 1–5 years
- Floating home loan in Singapore: moves with Singapore mortgage rates, often SORA-linked
Bank loans require more cash upfront, but they can offer lower interest depending on the Singapore mortgage rate forecast for 2026.
Housing Grants Only Apply to HDB Flats (Not Private Property)
One of the biggest misconceptions among new buyers is that housing grants apply to condos. They don’t.
Private condo buyers do not receive grants. Only HDB buyers: BTO, resale, or EC can access HDB grants for first time buyers.
Here are the key ones:
1) Enhanced CPF Housing Grant (EHG)
- Up to $120,000 for families
- Up to $60,000 for singles
- Income-tiered and applicable to both BTO and resale flats
2) CPF Housing Grant (for Resale Flats)
- Up to $80,000 for families buying a resale HDB
- Amount depends on citizenship and flat size
3) Proximity Housing Grant (PHG)
- Up to $30,000 for living with parents/children
- Up to $20,000 for living within 4km
EC buyers may also receive CPF housing grants, but not the full suite given to HDB buyers.
Understanding how these grants for first time home buyers combine can significantly reduce the upfront cost of ownership especially for younger or lower-income households.
Step-by-Step Guide to Purchasing Your First Home in Singapore (HDB or Private)
Here is a simplified step by step guide to buying first home in Singapore, tailored for both public and private markets.
Step 1: Assess Your Budget & Loan Eligibility
Use tools like a home loan comparison in Singapore platform to estimate how much you can borrow.
- For HDB buyers, check income ceilings and grant eligibility.
- For private buyers, use TDSR (55% income cap) to guide affordability.
A mortgage specialist Singapore can help calculate accurate borrowing limits.
Step 2: Secure Your Approval in Principle (AIP)
Especially for private property buyers, an AIP confirms your maximum loan and protects you from over-committing.
Choose between:
- Fixed home loan rates in Singapore
- Floating home loan rates in Singapore
Depending on your stability preference and the Singapore mortgage rate forecast, your decision may differ.
Step 3: Plan Your Downpayment
As a recap of the updated rules:
- HDB Loan → 25% downpayment (CPF/cash)
- Bank loan → 25% (5% cash + 20% CPF)
Avoid committing to a home if you cannot fund the required upfront portions.
Step 4: Factor in Buyer’s Stamp Duty (BSD) & Legal Fees
BSD applies to both HDB and private properties, and legal fees vary depending on whether you use HDB lawyers or private law firms.
Step 5: Select a Home & Make the Purchase
HDB buyers will proceed via the HDB portal, while private buyers issue an Option to Purchase (OTP) and pay the necessary fees.
Step 6: Finalise Your Mortgage Loan in Singapore
This is where many buyers struggle. Before signing your loan contract, compare multiple bank home loan rates Singapore and consider the total long-term cost, not just the first-year rate.
A home loan advisor in Singapore can help you structure the loan properly.
Step 7: Keep an Eye on Future Refinancing Opportunities
After you settle into your new home, always monitor the market. Many buyers save thousands by doing mortgage refinancing in Singapore when interest rates cycle down.
Refinancing is especially important for bank loan users whose promotional rates expire after 2–3 years.
How to Choose the Right Home Loan in Singapore in 2026
With rising competition among banks and a stabilising economy, choosing the right loan depends on your financial priorities.
Here’s how to evaluate your options:
1) If you want stability choose fixed home loan rates Singapore: These offer predictable monthly payments and are ideal if you expect Singapore mortgage rates to rise.
2) If you want short-term savings choose floating home loan rates Singapore: These are pegged to SORA and move based on economic conditions. They can be cheaper in low-rate cycles but may fluctuate.
3) If you want flexibility avoid long lock-in periods: This allows easier refinancing when better bank home loan rates Singapore appear.
4) If you want the lowest long-term cost compare widely: Use independent home loan comparison in Singapore tools instead of relying solely on a single bank.
Final Thoughts
Being a first time home buyer in Singapore can feel daunting, but with the right guidance, it becomes a clear and empowering journey. Whether you’re purchasing an HDB flat or entering the private property market, mastering the basics of mortgage loan in Singapore and long-term financing gives you a strong foundation.
And finally, don’t set your financing on autopilot. A well-timed strategy, especially through mortgage refinancing in Singapore, can save you tens of thousands over the life of your loan.
If you’re uncertain about your options, speak to a mortgage specialist Singapore who understands both the HDB and private markets. Buying your first home is a major milestone and with the right steps, it can be one of the most rewarding experiences of your life.
Author Bio:
Paul Grewal is a seasoned home mortgage consultant based in Singapore, renowned for his strategic finesse and deep market insights. With over a decade of experience, he specialises in helping clients navigate the complexities of property investment and refinancing home loans. Paul’s approach is highly personalised, ensuring that his clients secure the best possible terms and mortgage loan interest rates in Singapore tailored to their unique financial situations. An avid writer, he contributes regularly to leading financial publications, offering advice on smart property investment and financial planning. His workshops on financial literacy are highly sought after, reflecting his commitment to empowering homeowners in Singapore. This blog explains how home loan options in Singapore, grants, and financing rules work, along with simple comparisons and tips to help buyers choose the right mortgage.