HDB Home Loan Singapore
HDB Home Loan — Compare Every Bank, Find the Best Package
SORA or fixed? HDB loan or bank loan? We compare packages from 12+ banks and give you a straight recommendation based on your income, CPF balance, and property — not on which bank pays the highest referral.
HDB concessionary loan vs bank loan — the actual difference
This is the first decision you face when buying an HDB flat, and it has long-term consequences. Here is an honest breakdown.
HDB Concessionary Loan
- + Up to 80% LTV (higher than bank loans)
- + Rate fixed at CPF OA + 0.1% (2.6% p.a. currently)
- + More flexibility if you face financial hardship
- + No lock-in period; can switch to bank loan later
- − Only for Singapore Citizens
- − Income ceiling applies (currently $14,000/month household)
- − Rate typically higher than bank packages when market rates are low
Bank Loan
- + Typically lower rates when SORA is low
- + Available to PRs and Citizens; no income ceiling
- + Fixed-rate option provides certainty
- + Can refinance across banks at lock-in expiry
- − 75% LTV (5% lower than HDB loan)
- − Lock-in period (1–3 years); clawback if you exit early
- − Cannot switch back to HDB concessionary loan once taken
When a bank loan makes more sense
When current SORA-pegged rates are significantly below 2.6%, and you have stable income and a healthy CPF balance to cover the 25% down payment. The savings on a $600K loan at 0.5% lower rate over 25 years can exceed $70,000.
SORA vs fixed rate — what we actually recommend
We don't have a preference. We don't earn differently based on which you choose. Here is an honest comparison based on where rates are today.
SORA-pegged packages
SORA packages are typically expressed as 3-month compounded SORA + a spread (e.g. SORA + 0.80%). Your rate changes quarterly as SORA moves. As of April 2026, SORA is below its 2023 peak, which makes SORA packages attractive — but they carry upside risk if rates rise again.
Best for: Borrowers who can tolerate some monthly repayment variability, who believe rates will stay flat or fall, or who plan to refinance within 2–3 years anyway.
Fixed rate packages
Fixed packages lock your rate for 1, 2, or 3 years. You know exactly what you'll pay each month during the fixed period. After it ends, the package typically converts to a floating rate — at which point refinancing usually makes sense.
Best for: Borrowers with tight monthly budgets who need certainty, those who are stretching to buy, or anyone who wants to avoid watching rate announcements.
Our approach: We model your repayments under both options, show you the break-even scenario, and recommend based on your income stability and cash flow — not on which package looks better on paper.
Eligibility criteria
- ✓Singapore Citizens or Permanent Residents
- ✓TDSR ≤ 55% of gross monthly income
- ✓LTV up to 75% for first property bank loan
- ✓Minimum income: $2,000/month (most banks); $3,000 for some packages
- ✓Property must be an HDB flat (new BTO, resale, or DBSS)
- ✓CPF usage allowed for down payment and monthly instalments
- ✓No outstanding HDB flat for resale buyers (subject to flat type)
Criteria are indicative and may vary by lender. We verify your specific position before any application is submitted.
Banks we compare for HDB loans
We have active relationships and current package data from all major Singapore banks offering HDB mortgage products.
What we do that a bank can't
Simultaneous comparison
We run your profile against all 12+ banks at once. Going to each bank yourself takes weeks and triggers multiple hard credit checks. We do one coordinated assessment.
Rate negotiation
Mortgage rates are not always fixed — there is often room to negotiate the spread, especially for larger loan amounts. We use our volume and relationships to push for better terms.
No bank bias
A DBS relationship manager will recommend a DBS package. We recommend the package that fits you — whichever bank that happens to be. Our fee is the same regardless.
HDB home loan — frequently asked questions
Should I take an HDB concessionary loan or a bank loan?
The HDB concessionary loan charges a fixed rate of 0.1% above the CPF OA rate — currently 2.6% p.a. — regardless of market conditions. It offers up to 80% LTV (vs 75% for bank loans) and more flexible repayment if you hit financial difficulty. Bank loans are typically cheaper when rates are low, but they fluctuate. If you have stable income and a reasonable CPF buffer, a bank loan often saves money over a 25-year horizon. If you prefer predictability or have tighter cash flow, the HDB loan's stability has real value. There is no universally correct answer — it depends on your specific situation.
What is SORA and how does it affect my HDB mortgage rate?
SORA — Singapore Overnight Rate Average — replaced SIBOR as Singapore's main mortgage benchmark. SORA-pegged rates are expressed as "3-month compounded SORA + spread." When SORA falls, your rate falls; when it rises, your rate rises. As of April 2026, SORA is lower than its 2023 peak. Fixed rates lock your rate for 1–3 years regardless of market movement. The right choice depends on your view of interest rate direction and your sensitivity to monthly repayment changes.
What is the maximum loan I can get for an HDB flat?
For a bank loan: 75% LTV on a first property purchase, meaning you cover 25% through down payment (of which 5% must be in cash, 20% can be CPF). For an HDB concessionary loan: up to 80% LTV. The actual quantum is further constrained by TDSR — your total monthly debt repayments (including this mortgage) cannot exceed 55% of gross monthly income. We calculate your exact maximum loan before you make any offer on a flat.
Can I refinance my HDB loan later if I take a bank loan now?
Yes. Once your lock-in period expires (typically 1–3 years), you can switch to any bank or even the HDB concessionary loan, subject to HDB eligibility rules at that time. Note: you can switch from an HDB concessionary loan to a bank loan, but you cannot switch back from a bank loan to an HDB concessionary loan. This is an important and often overlooked point — once you go to a bank, that option is closed. We make sure you understand this before recommending a bank loan.
How long does it take to get an HDB loan approved?
For bank loans, Letter of Offer typically comes within 3–7 business days once you submit a complete application with all documents. We pre-screen your documents and submit to 2–4 matched banks simultaneously, which speeds up the process. The full disbursement cycle — from application to HDB completion — follows HDB's timeline, typically aligned with your flat's completion or resale schedule.
Want the full picture on property financing in Singapore?
Read the complete property financing guide →Find the best HDB loan package for your situation.
Takes 3 minutes. No documents needed. We'll tell you your TDSR position, maximum loan quantum, and which banks offer the best packages for your profile.
Check my eligibility — free →Last updated: April 2026