COV Calculator: How Much Cash You Need for an HDB Resale Flat
The flat
From your Request for Value. Use your best estimate until then.
How you will pay
Family, Enhanced or Proximity grants are credited to your OA.
Where the money comes from
- COV (cash) 3%
- Cash downpayment 6%
- CPF and grants 18%
- Loan 73%
- Cash over valuationPrice above valuation. Cash only.S$20,000
- Downpayment not covered by CPFYour CPF and grants run out here, so it is cash.S$37,500
When the cash is due
Option to Purchase: S$5,000
Option fee (S$1 to S$1,000) plus exercise fee, up to S$5,000 in total, in cash to the seller. It counts towards the price.
After HDB approves the resale: S$52,500
The rest of the COV and the cash part of the initial payment. CPF and grants pay the remainder of the S$157,500 downpayment.
Resale completion: loan of S$472,500
About 8 weeks after HDB accepts the resale application. Monthly instalments start after this.
Also budget for buyer's stamp duty of about S$14,100 on S$650,000, due within 14 days of exercising the option (pay in cash first; CPF can reimburse it if you use CPF for the flat), plus legal fees. The stamp duty calculator covers ABSD if you will own more than one property.
Cash you need upfront
S$57,500
- Loan basis (lower of price or value)
- S$630,000
- Loan (75%)
- S$472,500
- Downpayment
- S$157,500
- Paid by CPF and grants
- S$120,000
- Paid in cash
- S$57,500
How this works
Cash over valuation (COV) is the amount by which the agreed resale price exceeds HDB's valuation of the flat. Loans and CPF are capped at the lower of the price or the valuation, so COV must always be paid in cash.
With an HDB housing loan, you can borrow up to 75% of the lower of the resale price or value (for resale applications from 20 August 2024). The other 25% can be paid with CPF Ordinary Account savings, CPF housing grants and/or cash. With a bank loan, the limit is also 75%, but at least 5% of the lower of price or value must be cash; the remaining 20% can come from CPF. If the bank loan runs longer than 25 years for an HDB flat or past age 65, the limit falls to 55% with at least 10% in cash.
So the cash you need upfront is COV plus whatever part of the downpayment your CPF and grants cannot cover (plus the bank's minimum cash, if any). The S$5,000 Option to Purchase deposit counts towards this. This calculator assumes you take the maximum loan; HDB may lend less if the remaining lease does not cover the youngest buyer to age 95, or under the 30% mortgage servicing ratio.
FAQs
Can I use CPF to pay cash over valuation?
No. CPF savings and housing loans are capped at the lower of the price or HDB's valuation, so a S$20,000 COV must be paid entirely in cash, on top of any cash downpayment.
How much cash do I need for a S$650,000 resale flat valued at S$630,000?
With an HDB loan and enough CPF, only the S$20,000 COV: the loan covers S$472,500 (75% of S$630,000) and CPF can pay the S$157,500 downpayment. With a bank loan you also need 5% of S$630,000 (S$31,500) in cash, so S$51,500 in total.
What is the downpayment for an HDB resale flat in 2026?
25% of the lower of the resale price or valuation. With an HDB loan it can all be CPF or grants; with a bank loan at least 5% must be cash and the other 20% can be CPF.
When do I pay COV?
The S$1 to S$1,000 option fee and the exercise fee (up to S$5,000 in total) are paid in cash when you get and exercise the Option to Purchase. The rest of the COV is paid to the seller as part of the initial payment, after HDB approves the resale application.