Guide · Singapore
BTO vs resale: which is more affordable?
A BTO flat is cheaper but you wait years for it; a resale flat costs more but you move in now. The price tag is only half the story — the loan type, the cash you need up front, and grants all shift the real affordability. Here's how the two compare. (The calculator estimates the bank-loan and servicing-ratio side for a resale flat; BTO pricing, the HDB loan, and grants aren't modelled — check HDB for those.)
The core trade-off
BTO (Build-To-Order): new flats sold by HDB at subsidised prices, by ballot. Cheaper, but you typically wait around 3–5 years for completion, and you must meet eligibility rules (citizenship, an income ceiling, first-timer priority).
Resale: existing flats bought on the open market. More expensive and you may pay cash-over-valuation, but you can move in straight away and there's no income ceiling to buy (only for grants and the HDB loan).
Loan and cash differences (this is the big one)
HDB concessionary loan: up to 80% LTV at a 2.6% rate, and the 20% downpayment can be paid fully from CPF — no minimum cash. Subject to an income ceiling and other eligibility.
Bank loan: up to 75% LTV, so a 25% downpayment of which at least 5% must be cash (the rest CPF or cash). Available for both BTO and resale.
Either way, MSR (30%) and TDSR (55%) apply, stress-tested at 4%. So the HDB loan's higher LTV and zero-cash downpayment often make a BTO far lighter on upfront cash than a resale bank-loan purchase.
How you pay, and when
BTO (under construction): the price is paid under the Progressive Payment Scheme — staged payments as the flat is built — so your full instalment only kicks in near completion.
Resale: you pay the downpayment, stamp duty and fees up front at completion, plus any cash-over-valuation if the price exceeds the HDB valuation.
Grants change the maths
Both BTO and resale first-timers may qualify for the Enhanced CPF Housing Grant (income-based). Resale buyers can also get the Proximity Housing Grant for living near family.
Grants reduce the effective price and the loan you need — sometimes enough to close much of the BTO-vs-resale price gap. Grant amounts and income ceilings change, so confirm the current figures on the HDB website.
Which is more affordable for you?
If you can wait and meet the eligibility, a BTO is usually the cheaper path — lower price, higher LTV, and a CPF-only downpayment mean less cash out of pocket.
If you need a home now, can't ballot successfully, or exceed the income ceiling, resale is the route — just budget for the larger downpayment, possible COV, and the bank-loan cash minimum.
Whichever you choose, the servicing-ratio checks (MSR/TDSR) and the cash up front are what to test first — the calculator does both for a resale bank-loan purchase.
Frequently asked
Is a BTO cheaper than a resale flat?
Usually yes — BTO flats are sold at subsidised prices and the HDB loan offers 80% LTV with a CPF-payable downpayment, so both the price and the upfront cash tend to be lower. The trade-off is the multi-year wait and eligibility rules.
Do I need cash for a BTO downpayment?
With an HDB concessionary loan (80% LTV), the 20% downpayment can be paid entirely from CPF — no minimum cash. A bank loan (75% LTV) requires at least 5% in cash.
Is there an income ceiling for resale?
There's no income ceiling to buy a resale flat itself, but income ceilings do apply to the HDB housing grants and to HDB loan eligibility.
Do MSR and TDSR apply to both?
Yes — the 30% MSR and 55% TDSR limits apply to HDB flats whether you take an HDB loan or a bank loan, and to both BTO and resale.
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Estimate HDB resale affordability →Estimates only — not financial advice. Final figures depend on the bank’s assessment. Rules current as of 2026-06-10.