Home buyers using more cash and CPF for down payment even as mortgage loans rise
Home buyers in Singapore are using more cash and CPF for down payments despite rising mortgage sizes.
Intelligence analysis by Qwen 2.5 (3B)
Home buyers are increasingly relying on their own funds for property purchases, even as mortgage sizes have grown.
Home buyers in Singapore are putting more of their own money into buying houses, even though house prices are going up. They are using cash or money from a special savings account to pay part of the house price, not borrowing as much money.
Analysis
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OCBC's Perspective on Borrowing Behavior":"OCBC's group head of consumer secured lending, Tok Geok Peng, noted that home buyers are not simply borrowing proportionately more to keep up with property prices. Instead, they are using more cash or Central Provident Fund (CPF) savings for down payments. This is attributed to OCBC borrowers' incomes growing faster than property prices. The bank financed more than a third of private property market transactions in 2025.","
Loan Sizes and Down Payments":"OCBC's figures show that while home prices and mortgage sizes have both increased between 2021 and the first half of 2026, loan sizes did not rise as quickly. For new private launches, purchase prices rose 49% while median mortgage sizes increased 35%. For private resale homes, prices rose 36% while mortgages grew 32%. For HDB resale flats, both purchase prices and median mortgage sizes increased 32%. This suggests that buyers are funding a larger share of their purchases with cash or CPF, rather than debt.","
Mortgagee-Sale Listings":"Mortgagee-sale listings have hit a six-year high, reflecting financial pressures from earlier years and increased interest rates. Auction activity is expected to continue but may moderate later in 2026. The rise in home prices has pushed many mortgages above the $1 million mark. Nearly eight in 10 borrowers buying new private launches took out home loans of at least $1 million in the first six months of 2026, up from four in 10 in 2021."}
Key points
- Home buyers are using more cash and CPF for down payments
- Mortgage sizes have grown but not as much as home prices
- Mortgagee-sale listings have hit a six-year high
This trend could lead to more stable mortgage payments and fewer defaults, as buyers are using more of their own money for down payments.
However, if buyers continue to use more of their own money, it could lead to fewer buyers in the future, as they might not have enough savings for a down payment.
