Direct loan from HDB at a fixed rate of 2.6% (CPF OA rate + 0.1%). Max tenure 25 years, max LTV 75%. Only available to Singaporeans buying HDB flats and subject to income ceilings.
The HDB concessionary loan is only available to Singapore Citizens (with at least one Singaporean co-applicant for a family unit) buying an HDB flat. You must not own private property, and your average gross monthly household income must fall below the income ceiling — S$14,000 for families, S$21,000 for extended families, or S$7,000 for singles buying a 2-room flexi.
You can only take two HDB concessionary loans in your lifetime, and you need a valid HDB Flat Eligibility (HFE) letter before booking a flat.
Interest rate: 2.6% per annum (pegged at CPF Ordinary Account rate + 0.1%). The rate is reviewed quarterly but has been stable at this level for years.
Maximum tenure: 25 years (or up to age 65, whichever is shorter — though tenure-extending up to age 75 is possible at reduced loan amounts).
Maximum Loan-to-Value: 75% of the property price or valuation, whichever is lower.
Minimum downpayment: 25%, which can be paid entirely from CPF Ordinary Account, entirely in cash, or any combination.
Bank loans typically charge 3% – 4.5% (variable, pegged to SORA), so HDB loans currently look cheaper on rate. But bank loans allow tenures up to 30 years (shrinking monthly instalments) and have no income ceiling.
Bank loans require a minimum 5% cash downpayment; HDB loans can be financed entirely from CPF if you have the balance. This is the deciding factor for many young first-time buyers who are cash-poor but CPF-rich.
You can switch from an HDB loan to a bank loan later, but you cannot switch from a bank loan to an HDB loan once you've taken the bank route — so the HDB loan is the more flexible starting choice.
Your monthly instalment must satisfy two regulatory caps. MSR (Mortgage Servicing Ratio) caps your housing loan instalment at 30% of gross monthly income — applies to HDB flats and Executive Condominiums.
TDSR (Total Debt Servicing Ratio) caps your total monthly debt payments — mortgages, car loans, credit cards, personal loans — at 55% of gross monthly income.
If you fail either cap, the bank or HDB will offer a smaller loan. Run the numbers in our HDB Loan Calculator before you commit to an Option to Purchase.
2.6% per annum, pegged to the CPF Ordinary Account rate (2.5%) plus 0.1%. It has been stable at this level for over a decade and is reviewed quarterly.
Singapore Citizens (with at least one SC applicant) buying an HDB flat, subject to income ceilings of S$14,000/month for families and S$7,000 for singles buying 2-room flexi. Applicants must not own any private property and need a valid HDB Flat Eligibility (HFE) letter.
HDB loan: fixed 2.6%, max 25-year tenure, 80% LTV, no minimum cash downpayment (fully CPF allowed), but subject to income ceiling. Bank loan: 3% – 4.5% (variable or fixed-period), max 30 years, 75% LTV, minimum 5% cash, no income ceiling. You can refinance from HDB to bank loan but not back.
Yes. Unlike bank loans (which require minimum 5% cash), the HDB concessionary loan allows the entire 20% downpayment to be paid from CPF Ordinary Account if you have sufficient balance.