| Feature | HDB housing loan | Bank housing loan |
|---|---|---|
| Interest | 2.6% p.a. for Jul–Sep 2026; pegged 0.1 percentage point above the CPF OA rate | Market package; fixed or floating terms can change |
| Maximum LTV | Up to 75%, subject to eligibility and assessment | Generally up to 75% for a first housing loan, subject to lender and regulatory rules |
| Minimum downpayment at 75% LTV | 25%, payable using CPF OA, cash or both | 25%, with at least 5% in cash and the balance in cash or CPF OA |
| Lock-in and early repayment | No lock-in or early repayment penalty | Lock-in periods and early repayment charges may apply |
| Future switch | Can refinance to a bank later | Cannot switch that flat's bank loan back to an HDB housing loan |
When an HDB loan may fit better
- You qualify and value a stable published rate.
- You need the option to use CPF OA or cash for the full downpayment.
- You want flexibility to make lump-sum repayments without a bank penalty.
- You prefer keeping the option to refinance to a bank later.
When a bank loan may fit better
- You do not qualify for an HDB housing loan.
- You have enough cash for the mandatory cash portion of the downpayment.
- You understand the package after its fixed period and can absorb rate changes.
- You are comfortable with the lock-in, repricing and redemption terms.
Compare the total package, not only year-one interest
Ask each bank for the fixed-period rate, subsequent pricing formula, lock-in period, partial-prepayment terms, full-redemption charge, repricing fee and estimated effective cost. Model a higher future rate before choosing a floating or short fixed package.
Start with your HFE outcome and the HDB loan calculator. Then compare the same property price, loan amount and tenure across offers.
Downpayment example
At a $600,000 flat price and 75% LTV, the minimum downpayment is $150,000. With an HDB loan, it may be paid using CPF OA, cash or both. With a bank loan, at least $30,000 (5% of the flat price) must be cash, while the remaining $120,000 can be cash or CPF OA, subject to applicable rules.
Official sources and review date
Reviewed 25 Aug 2026 against HDB's interest-rate page and CPF Board's current HDB loan or bank loan comparison. Bank packages are not quoted because they change; obtain current written offers.
Frequently asked questions
What is the HDB housing loan interest rate in 2026?
HDB publishes a 2.6% concessionary rate for 1 July to 30 September 2026. The rate is pegged 0.1 percentage point above the prevailing CPF Ordinary Account rate and can be reviewed quarterly.
Can I switch from a bank loan back to an HDB loan?
No. CPF Board states that a flat already financed with a bank loan cannot switch back to an HDB housing loan for that property.
How much cash is required for an HDB flat with a bank loan?
At 75% LTV, the 25% downpayment includes at least 5% of the flat price in cash. The remaining 20% can be paid with cash or CPF OA, subject to the applicable rules.
This guide is general education, not a loan offer or personal financial advice. HDB and financial institutions decide eligibility and loan amounts using the prevailing rules and your application details.