Here’s How Much You Need To Earn Monthly To Buy A Million-Dollar HDB Maisonette In Singapore

24 February 2024 | BY

Here’s the breakdown of how much you need to budget for a million-dollar HDB maisonette home in Singapore.

how to afford a million dollar hdb maisonette

HDB maisonettes in Singapore are one of the most popular types of housing. Multi-storey living and the luxury of space are among some of the reasons why they’re highly sought after. Due to the space premiums they offer, it’s not uncommon for HDB maisonettes to cost a million dollars. 

If you’ve clicked this article, chances are you’re:

  1. A first-time homeowner who doesn’t mind forking out more for a large home, or
  2. An HDB upgrader deciding between buying a condo or a larger HDB flat

Either way, you’re probably wondering exactly how much you have to earn to buy a million-dollar HDB maisonette. You and your partner will have to earn a minimum gross household income of $12,097 if you’re taking an HDB loan (or $12,117 if you’re taking a bank loan). Here’s the breakdown of the nitty gritty.

How much do you need to buy a million-dollar HDB maisonette in Singapore?

modern industrial maisonette interiorImage credit: The Interior lab

In the best-case scenario, you and your partner need only earn a minimum gross household income of $12,097 if taking an HDB loan. For those financing their home with a bank loan, you both need to earn a few more dollars to meet the required $12,117 per month. 

These figures were obtained by assuming the maximum loan-to-value (LTV) limit for each loan type and a 25-year loan tenure. In the case of those taking a bank loan, we’re presuming you’re well within the 55% Total Debt Servicing Ratio (TDSR) threshold.

HDB loan Bank loan
Loan amount $800,000 $750,000
Downpayment $200,000 $250,000 (of which $50,000 must be in cash)
Estimated monthly mortgage repayment $3,629 per month $3,635 (Assuming interest rate of 3.2% p.a.)
Minimum gross household income required $12,097 per month $12,117 per month

How much cash upfront you need will depend on how you’re financing your flat, if you’ve owned a flat before, and how old your flat is. 

The last HDB maisonettes were built in 2,000 and have 75 years remaining on the lease. Assuming you want to maximise the amount of CPF OA monies you can use, the home has to cover the youngest buyer till they are 95 years old. 

If not, the CPF OA savings amount that can be used will be pro-rated. You can always use the CPF housing usage calculator to get an estimate. 

For those who have researched whether buying an HDB maisonette is a worthy investment for a young homeowner and your conclusion is “yes”, here are some other things to take note of.

First-time homeowners buying HDB maisonettes

maisonette interior

First-time homeowners looking to buy a million-dollar HDB maisonette will likely qualify for an HDB loan and some HDB housing grants.

We’re looking at up to $80,000 in HDB housing grants via the Proximity Housing Grant and CPF Housing Grants for Resale Flats for families. Unfortunately, because you’re in the market for a flat in the million-dollar bracket, you won’t qualify for the Enhanced CPF Housing Grant (Families) because you have the first-world problem of earning too much. 

How much Proximity Housing Grant (Families) can I get for a million-dollar HDB maisonette

Under the Proximity Housing Grant (Families), you can get $20,000 if you live within 4km of your parents. If you live with your parents, you can get $30,000.

You can only take the Proximity Housing Grant once

How much CPF Housing Grants for Resale Flats (Families) can I get for a million-dollar HDB maisonette

First-timer household (both Singapore Citizens) $50,000
First-timer household (one Singapore Citizen, one Singapore Permanent Resident) $40,000
First-timer and second-timer couples $25,000

Source: HDB

As you can see, there are certain eligibility criteria to qualify for the full CPF Housing Grants for Resale Flats (Families) amount. If one of you is buying an HDB flat for a second time, the CPF housing grant will be less.

Another criterion is your family nucleus must consist of one Singapore Citizen and include another citizen or Singapore Permanent Resident. Additionally, your average gross monthly income must not exceed $14,000.

If you previously took a CPF Housing Grant (Singles) to buy a 2-room BTO flat or resale flat when you were single, you can apply for the Top-Up Grant.

You don’t have to do the quick maths to figure out the grant numbers. When you apply for your HDB HFE letter, the final grant amount will be made known. You’ll also be informed if you qualify for an HDB loan and how much loan you can get. 

Second-time homeowners buying HDB maisonettes

bishan hdb maisonette window balconyImage credit: The Interior Lab

If you’re a second-time homeowner, you’re likely looking to upgrade to a larger HDB flat and/or a home located in more central neighbourhoods. 

Traditionally, Singaporeans who bought an HDB flat as their first home will flip the property once the Minimum Occupation Period is up. The profits made will be used to scale the property ladder and buy a condo.

However, there has been a recent trend where the number of HDB upgraders opting to buy a condo has declined. It suggests that HDB upgraders are being priced out of buying private homes. The next best thing to do is to upgrade laterally into a larger HDB flat and zhng it to your liking.

As a second-time homeowner, you are subject to more restrictions. For example:

  • If you have previously taken an HDB loan, the eligibility criteria to take on a second HDB loan is even stricter; the loan amount will also be reduced by the full CPF refund and part of the cash proceeds from the disposal.
  • If you have taken HDB grants to finance your first HDB flat, you will not be eligible for HDB resale grants again.

If you don’t qualify for an HDB loan, you will have to take a bank loan. For those moving from a private property to an HDB flat, you will need to meet a 30-month wait-out period to take on an HDB loan. 

If you’re buying your executive maisonette without any CPF Housing Grant (excluding the Proximity Housing Grant), you will be subject to a 15-month wait-out period.

How to buy a million-dollar HDB maisonette in Singapore?

interior of a maisonetteImage credit: KOZÉ STUDIOS

These figures for a million-dollar HDB maisonette are just an estimate. Your actual monthly mortgage instalments and required gross minimum income earned will vary based on your individual circumstances. 

Regardless, it’s good to remember that buying a 6-figure property is no small feat. Whatever home purchase decision you make, do ensure you are in a financially sound position. You will also have to pay for Buyer’s Stamp Duty and other tax and legal fees. And if you intend to build the home of your dreams, do set aside some money for renovations too!

Read our other housing guides:

Cover image credit: KOZÉ STUDIOS, The Interior Lab

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