The HDB downpayment changes will be inline with the transfer of HDB loan to banks.
This is quoted from the Ministerial statement.
"10% Cash Downpayment on Housing Loans"
"Currently, bank financing for private property is subject to a cap of 80% of the property value. The remaining 20% downpayment must be paid in cash and serves as a buffer for the banks. CPF money cannot be used for this downpayment, because the CPF Board ranks ahead of the bank in its claim, and so, in a default, CPF money does not provide any buffer for the bank.
Now that the lending bank will rank ahead of the CPF Board, CPF can be used for part of the downpayment. However, it would not be prudent to do away with the cash requirement altogether, because this could encourage excessive property speculation. We have thus decided to allow 10% of the downpayment for private property purchase to be paid out of CPF savings. The remaining 10% will still have to be paid in cash. The maximum quantum of bank financing will stay at 80% of property value.
The new rules will apply to CPF Board applications for private property purchases where the options to purchase were entered into, on or after 1 Sep 2002. Properties for which the options were signed before 1 Sep 2002 will not be affected.
HDB loans, whether subsidised or not, currently have no cash downpayment requirement. HDB flat buyers are allowed to use CPF savings to pay the full 20% downpayment, because for HDB loans, CPF’s claim rank second to HDB’s claim. When market rate HDB loans are transferred to bank origination, we will initially preserve this arrangement. But for the longer term, the rules for these bank-originated mortgages on HDB flats should be aligned with the rules for private property mortgages. We will phase in the 10% cash downpayment requirement for bank mortgages on HDB flats gradually, over 5 years. "