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There are two important numbers that we need to know when buying an HDB flat: the downpayment required and the maximum loan that we qualify for. Between the two, the downpayment could be argued as being more important as it affects the amount of loan needed and has to be fully financed using our savings. With the average 4-room build-to-order (BTO) flats in the February 2024 BTO Exercise starting at $362,500, this would mean a downpayment of at least $72,500. This sizeable amount could be daunting for some homebuyers, especially young couples looking to start their families. To help this group of buyers purchase their BTO HDB flats early, HDB allows the downpayment to be paid in installments under the Staggered Downpayment Scheme (SDS) as an extension of the HDB downpayment requirements. Typically, we would need to place an initial amount as downpayment when buying an HDB flat. It is dependent on the purchase price of the property and whether we are taking an HDB housing loan, a bank loan, or financing it fully without a loan. We could choose to pay for the downpayment with either cash, CPF Ordinary Account (OA) savings (including CPF housing grant if eligible), or a mix of both. Regardless of our financing option, the downpayment is split in two stages. The first half of the amount is due within 9 months after booking a new flat when signing the Agreement for Lease (AFL). The remaining second half is paid during the collection of the keys. The downpayment amount at the two stages depends on the financing option that we choose. If we were to take up an HDB housing loan, the downpayment payable would be at least 20% of the purchase price. This is based on the latest cooling measure announced in September 2022, which restricts the loan-to-value (LTV) limit to 80%. The amount is split equally, with 10% of the purchase price paid at each stage. On the other hand, if we were to take up a bank loan, the downpayment payable would be at least 25% of the purchase price based on the LTV limit of 75%. Buyers would be expected to pay the first 20% of the purchase price in the first stage, during the signing of the AFL, and the remaining 5% in the second stage, during the key collection.   With 4-room BTO prices in non-mature towns ranging between , buyers taking up HDB housing loans would be expected to pay between $30,000 and $43,000 in downpayment within 9 months of booking the flat. For certain buyer profiles, like those who are current or recent full-time students and/or National Servicemen (NSFs), this financial requirement might be overbearing and may delay their homeownership plans. That’s where the HDB Staggered Downpayment Scheme is meant to benefit this group of flat buyers. Under the Staggered Downpayment Scheme (SDS), the initial downpayment requirement for BTO flat buyers when they sign the AFL is halved (to 5% or 10% of the flat price). The balance amount is paid when the key to the flat is collected. Depending on the financing option that we choose, we may only need to pay an initial downpayment of between 5% and 10% of the purchase price instead of the usual 10% to 20% within 9 months of booking the flat. ·       Cash payment only   To further assist young couples in progressing with their homeownership plans, HDB announced in March 2024 that it will enhance the SDS by halving the initial downpayment requirement for those taking an HDB housing loan from 5% to 2.5%. This change would take effect from the June 2024 BTO Exercise and would be applicable to couples who are eligible to defer their income assessment for the enhanced housing grant (EHG) and an HDB housing loan.   With the revised SDS, young couples may face fewer financial hurdles in meeting the initial downpayment requirements to purchase a flat. Moreover, given the median waiting time of around 3.5 years for BTO flats, they could by then save up more money and earn a higher income to reassess their income before key collection. The SDS is available to two groups of new HDB flat buyers: Assuming we fulfil the eligibility conditions for the SDS, we will be informed during the flat booking appointment of our eligibility. Even if we could meet the usual initial downpayment requirements of between 5% and 10%, we could consider taking up the SDS, if we are eligible. It could be a useful way to retain liquidity and earn a higher rate of return on our money until the key collection stage, which could take between 3 and 4 years.   is Singapore's first Real Estate brand to merge creative media and proptech, driving a new era of property sales. With more than 1,700 videos launched, 1,200 transactions, and a 4.8-star Google rating, they know what it takes to sell a home. Stagnant property listing? Sell it through .