By MoneyBees
Compare an HDB concessionary loan at 2.6% with a bank loan on the same flat: monthly instalment, total interest, the cash you need and whether you pass HDB's and MAS's limits.
75% of the price is $412,500.
Car, personal loan and card minimums. Banks count these in the 55% TDSR.
Starts at 3M SORA, 1.2332% (MAS, 5 Oct 2026). Enter your bank's quote, spread included.
HDB loan at 2.6%
$1,815 a month
$144,403 interest over 25 years
Bank loan at 1.23%
$1,550 a month
$64,850 interest over 25 years
Bank loan saves
$79,553
bank loses if the rate after lock-in is above 2.83%
| HDB loan | Bank loan | |
|---|---|---|
| Interest rate | 2.6%, reviewed every quarter | 1.23% for 2 years, then 1.23% |
| Largest loan | 75%: $412,500 | 75%: $412,500 |
| Minimum cash downpayment | None, CPF OA can pay it all | $27,500 |
| Longest tenure | 25 years for you | 30 years |
| Instalment as % of income (test rate) | 21.1% at 3% | 23.5% at 4% |
| Early repayment | No fees | Per package, often a lock-in penalty |
| Switch later | Can refinance to a bank | Can never go back to HDB |
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Both loans are worked out on the same amount and tenure, with monthly rests. The bank loan uses your lock-in rate first, then resets the instalment at the rate after lock-in. If that later rate is above the break-even rate, the HDB loan costs less over the whole loan.
The bank also needs at least 5% of the price in cash, and 10% if the loan runs past 25 years or past age 65. HDB needs no cash if your CPF OA covers the 25%.
A couple, average age 32, borrow S$400,000 over 25 years for a S$550,000 flat. At HDB's 2.6% they pay S$1,815 a month and S$144,403 in interest. HDB tests the loan at 3.0%, a S$1,897 instalment, which is 21% of their S$9,000 income, inside the 30% limit. A bank loan needs S$27,500 in cash; it costs less only while the bank rate stays below about 2.6% for the whole loan.
Figures checked 3 Oct 2026.
It depends on the bank rate over the whole loan, not just the first 2 years. The HDB loan charges 2.6% from 1 Oct to 31 Dec 2026. A bank loan costs less only while its rate stays below about 2.6% on average. Use the break-even rate above to see how high the bank rate can go after lock-in.
2.6% a year from 1 October to 31 December 2026. It is pegged at 0.1% above the CPF OA rate of 2.5% and can change in January, April, July and October with CPF rates.
Up to 75% of the price for a new flat, or 75% of the lower of the price or value for a resale flat. Your instalment, tested at 3.0%, must be no more than 30% of household income. The LTV is lower if the lease does not cover the youngest buyer to age 95.
At least 5% of the lower of the price or value in cash, and 10% if the loan runs past 25 years or past age 65. With an HDB loan there is no minimum cash if your CPF OA covers the 25% downpayment.
No. You can refinance an HDB loan to a bank loan at any time without penalty, but you can never move a bank loan back to HDB.
At least one buyer must be a Singapore citizen, household income must be S$16,000 a month or less for families, and you need an HFE letter before you look for a flat. You cannot have taken 2 HDB loans before.
HDB: the shortest of 25 years, 65 minus the buyers' average age, and the lease left minus 20 years. Bank loans for HDB flats: up to 30 years, but the LTV drops to 55% if the loan runs past 25 years or past age 65.
Not on an HDB loan. A bank loan may charge a fee if you repay or refinance during the lock-in period; check your package.
These calculators provide general estimates for educational purposes only and are not personalised financial advice. Results may rely on rates and rules that change over time, so verify against official sources (IRAS, CPF Board, HDB, MAS) or consult a licensed financial adviser before making decisions.
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