Having a clear understanding of how to pay housing loan in Singapore can help you to spend less and keep each of your installments affordable.

So if you want to be a homeowner in Singapore and don’t have spare cash lying around that you can use to settle the purchase price and all other related fees, you shouldn’t worry.

This guide provides specifics on how you can access and use funds from your Central Provident Fund (CPF), the basics of what you should pay, and other essential details.

How To Use Your CPF To Pay For Your Housing Loan

Since you would like to be a homeowner without worrying about tight loan repayment schedules, you need to know in great detail how to pay housing loan in Singapore using your CPF savings.

To use your CPF to pay your housing loan, you must have an Ordinary Account (OA). It’s worth noting that the Singapore government has made it easy for its citizens to open and use these accounts to pay for various types of loans.

Here is what you can use your CPF housing loan to fund:

• The purchase of your new Housing & Development Board (HDB) flat, as well as residential and private property
• Home construction loans
• Legal fees and stamp duty
• Downpayments
• Home Protection Scheme (HPS) insurance premiums

So how do you use your CPF OA to pay for your housing loan? The process depends on the type of loan you’ve taken.

HDB Loan

Here are two optional ways to use your CPF OA account to pay for the loan:

1. Submit your application online: Visit HDB’s official website using your Singpass and make the application. After logging in, navigate to ‘Partial Capital Repayment/Redemption of Housing Loan’, provide the required information, and apply. After that, give HDB and CPF about one week to process it.
2. Fill up and sign the CPF Form (PHS9) at a HDB physical office: Make your HDB loan payment using the e-Appointment system to book an appointment.

This option works best when you are ready to spare some time to visit a nearby HDB office.

Upon arrival, the professionals at the HDB office will ask you to fill up and sign the CPF withdrawal form (PHS9).

After HDB has received your application, wait for approximately five working days for your application to be processed.

Should I pay off my HDB loan using CPF? If you are still asking this question, the answer is “yes”.

You can pay your HDB loan using this option if it serves your needs and you’re willing to follow the steps above.

Bank Loan

Getting a bank loan is an excellent way to pay your housing loan in Singapore. Here’s how you can make the payments:

1. Seek approval: First, get approval from your loan financier.
2. Ensure you have adequate CPF OA savings and the maximum amount of savings that can finance your purchase: To check whether you qualify, visit CPF’s website and view your homeownership dashboard.
3. Submit your application online using your Singpass: If you’re applying for full repayment, upload a copy of your lawyer’s legal bill and the bank statement. Wait for your application to be processed within five working days.

How To Pay Your Housing Loan Installments

In this section, you’ll discover how to pay housing loan in Singapore in installments. Depending on your requirements, it might be one of your most convenient and affordable HDB loan repayment solutions.

According to HDB, you start paying your monthly installments on the first day of the second month after the disbursement of your loan.

For payments made by entities other than CPF or GIRO, you pay on the first day of the subsequent months.

Here are some efficient ways to repay your housing loan installments:

CPF

We’ve seen above how you can authorise deductions from your CPF account to repay your housing installments.

The CPF Board must ensure you are under its Home Protection Scheme (HPS) if you use your CPF savings to pay the installments.

It will ask you to submit a HPS application when applying to use the savings for this purpose.

The deductions occur automatically between the 6th and 12th of every month, but you can make ad-hoc payments via MY HDBPage if needed.

GIRO

Like many homeowners who pay their installments promptly, you can learn how to pay housing loan in Singapore by using GIRO to achieve the same results.

To use GIRO, you must fill in and sign an Interbank GIRO (IBG) application and submit it to HDB.

You can visit MY HDBPage for a pre-filled IBG application form if you are a flat owner. You should fill up this application form if you are not a flat owner.

Once GIRO has approved your application, HDB will start deducting installments from your account on the 28th of every month.

If the first GIRO deduction attempt is unsuccessful, it’ll repeat the process on the 6th of the subsequent month.

eNETS Debit

You can use HDB’s eNETS e-Service to pay your housing loan installments if you have an internet banking account.

Banks that support this service include:

• Citibank
• OCBC Bank
• DBS/POSB Bank
• United Overseas Bank Limited
• Standard Chartered Bank

Internet Banking Offered By Select Banks

You can make installment payments using internet banking services that the following banks offer:

• United Overseas Bank Limited
• OCBC Bank
• DBS/POSB Bank

If you can’t use internet banking services to pay the installments, consider taking a personal loan from any licensed money lender that offers affordable and flexible services.

Partial Capital Repayment

This is another excellent way to pay your housing loan in Singapore.

HDB schedules the date for partial capital repayment one month from the day it receives your request. After making the repayment, you should do one of the following:

• Continue paying your usual installment amount
• Revise the installment amount

Once you’ve made a partial capital repayment, you can use any payment mode to continue paying your monthly instalments to settle your outstanding debt.

For partial capital repayments, the minimum amount that you should pay is:

• $500: If the loan commenced before 1 Apr 2012
• $5,000: If the loan was approved on or after 1 Apr 2012. Increments are in multiples of $1,000

You can also use several other payment modes, including CPF, GIRO, and eNETS Debit.

A Cashier’s Order is another popular option. You can make your HDB Cashier’s Order payable to the Housing & Development Board.

On the reverse of the Cashier’s Order, please write:

• The purpose of the payment
• Your HDB reference number
• Your flat address

Paying Off Your HDB Loan Early

Now that you know how to pay housing loan in Singapore, you can pay off your HDB loan early to avoid penalties.

HDB will schedule the redemption one month from the date of receipt of your request. It will also compute the redemption amount and the applicable fees during submission.

For GIRO and CPF payments, you don’t need to do anything. HDB will inform your bank or CPF Board to process the deductions.

Refer to your acknowledgement email and follow the instructions to complete your payment for other payment modes such as AXS, eNETS Debit, and PayNow via SGQR.

Late Payment Charges

HDB considers all payments that are not made within the month when they are due as late. Between 1 Apr 2022 and 31 Mar 2023, the charge rate for late payments is 7.5% per year.

Paying Your Housing Loan In Singapore Is Easy

New homeowners agree that CPF savings and bank loans have made paying housing loans rather easy.

Now that you know how to pay housing loan in Singapore, the process will be even simpler if you work with a money lender that offers accessible loans that meet your needs.

Do you need a licensed money lender that can fund your property purchase? Feel free to consult the financial advisors at Horison Credit.

If you are interested in our services and products, apply now and get a quote within a short period.