By MoneyBees
Compare an HDB loan at 2.6% with a bank loan on the same flat: instalment, total interest, 5% cash, LTV and MSR limits, and the rate after lock-in where the bank loses.
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.
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