Short answer: An HDB loan charges 2.6% a year, confirmed to 31 December 2026; banks' best fixed refinancing packages for HDB flats were 1.4% to 1.8% in March 2026. Both lend up to 75% of the price or valuation and are capped by the 30% Mortgage Servicing Ratio. HDB offers rate stability and an all-CPF down payment; banks are cheaper.
Updated 27 September 2026. Bank rates change often. The bank figures below are dated and attributed. Check current quotes before you decide.
How do an HDB loan and a bank loan compare?
| HDB concessionary loan | Bank loan for an HDB flat | |
|---|---|---|
| Interest rate | 2.6% a year (CPF OA rate + 0.1 point), reviewed quarterly | Fixed or SORA-linked; set by each bank |
| Maximum loan (LTV) | 75% of price, or of the lower of price and valuation for resale | 75% of the lower of price and valuation |
| Down payment | 25%, payable fully from CPF OA and/or cash | 25%, of which at least 5% must be cash |
| Maximum tenure | 25 years (shorter if age or lease limits bite) | 30 years; LTV falls to 55% if the tenure is over 25 years or the loan runs past age 65 |
| Debt limits | MSR 30% | MSR 30% and TDSR 55% |
| Interest rate used to assess you | 3% floor | 4% floor |
| CPF savings | Must use OA savings; may keep up to S$20,000 per buyer | Can keep any amount in OA |
| Lock-in and penalties | None; no early repayment penalty | Usually 1 to 3 years; penalty often about 1.5% of the loan |
| Switching | Can refinance to a bank at any time | Cannot switch back to an HDB loan |
Sources: CPF Board (12 June 2026), MyNiceHome/HDB (23 August 2026), MAS, MAS/HDB, September 2022.
Two points in this table are often misstated. First, the 30% MSR applies to any housing loan for an HDB flat, including a bank loan. A bank loan also has to pass the 55% TDSR, so switching to a bank does not avoid the MSR. Second, HDB lowered its LTV limit from 80% to 75% on 20 August 2024. The limit is now the same as a bank's (HDB).
What interest rate does an HDB loan charge in 2026?
The HDB concessionary rate is 2.6% a year. It is pegged at 0.1 percentage point above the CPF Ordinary Account (OA) rate, which is at its 2.5% floor. On 22 September 2026, CPF Board confirmed that both rates are unchanged for 1 October to 31 December 2026 (CPF Board).
The rate is reviewed every quarter. Because of the peg, it can only rise if the OA rate rises above its 2.5% floor.
What are bank mortgage rates for HDB flats in 2026?
Bank rates fell sharply over 2025. These are the most recent dated figures we could confirm from reputable sources:
| Date of figures | Package | Rate quoted | Source |
|---|---|---|---|
| December 2025 | Fixed-rate packages | 1.45% to 1.75% | EdgeProp, 23 April 2026 |
| 25 March 2026 | HDB refinancing, 2-year fixed | 1.38% to 1.45% | Stacked Homes (Cashew data), 27 March 2026 |
| 25 March 2026 | HDB refinancing, 3-year fixed | 1.50% to 1.60% | Stacked Homes (Cashew data), 27 March 2026 |
| 25 March 2026 | HDB refinancing, 5-year fixed | 1.78% | Stacked Homes (Cashew data), 27 March 2026 |
| 25 March 2026 | HDB refinancing, floating | 0.15% to 0.35% above 3-month SORA | Stacked Homes (Cashew data), 27 March 2026 |
The March 2026 figures are the best refinancing packages for HDB loans of S$300,000 to S$1 million; the lower rates in each range are for the larger loans.
For context, 3-month compounded SORA was 3.02% in March 2025 and 1.09% on 12 March 2026, according to Stacked Homes. EdgeProp puts it at 1.15% in January 2026 (EdgeProp).
These are the best advertised packages. Some need a minimum loan size, and after the fixed period most revert to a floating rate. They are not a quote for your loan.
How much does the rate difference cost each month?
The figures below are our calculation for a S$400,000 loan over 25 years, using standard monthly amortisation. The bank rates are examples in the range quoted above. We assume each rate holds for the whole 25 years. In practice, a bank fixed rate lasts only for the lock-in period.
| Interest rate | Monthly instalment | Total interest over 25 years |
|---|---|---|
| 1.5% (bank, example) | S$1,600 | S$79,924 |
| 1.8% (bank, example) | S$1,657 | S$97,022 |
| 2.6% (HDB loan) | S$1,815 | S$144,403 |
| 3.5% (bank, if rates rise) | S$2,002 | S$200,748 |
At 1.5%, the bank loan costs about S$215 a month less than the HDB loan. Over the first three years, interest comes to about S$17,100 at 1.5% and about S$29,900 at 2.6%, a gap of roughly S$12,800 (our calculation). The last row shows the risk: once bank rates go above 2.6%, the HDB loan is cheaper.
Which loan lets you borrow more?
The LTV limit is 75% for both loans. So for many buyers, the real limit is the MSR, and HDB tests it at a lower interest rate than banks do. HDB assesses you at a 3% floor. Banks must use a 4% floor for residential loans (MAS). For a household earning S$8,000 a month, the MSR allows S$2,400 a month in repayments:
| Loan and assessment basis | Maximum loan supported by S$2,400 a month |
|---|---|
| HDB loan, 25 years at 3% | S$506,103 |
| Bank loan, 25 years at 4% | S$454,686 |
| Bank loan, 30 years at 4% (LTV capped at 55%) | S$502,707 |
These are our calculations. Actual approvals also depend on age, the remaining lease, and (for bank loans) your other debts under the 55% TDSR. On the same income, an HDB loan supports a loan about S$51,000 larger than a 25-year bank loan. A 30-year bank loan closes most of that gap, but for an HDB flat MAS cuts the LTV limit to 55% once the tenure goes past 25 years (MAS). The longer tenure only helps if you can pay a 45% down payment.
Example: a S$600,000 resale flat valued at the price needs a S$450,000 loan at 75% LTV. Under the 30% MSR, that loan needs a household income of about S$7,113 a month for a 25-year HDB loan, or about S$7,918 for a 25-year bank loan (our calculation).
Who is eligible for an HDB loan?
According to HDB's MyNiceHome guide (updated 23 August 2026), you need:
- At least one Singapore Citizen buyer.
- Household income within the ceiling: S$16,000 a month for families and S$8,000 for singles. These ceilings were raised from S$14,000 and S$7,000 for applications from 24 August 2026 (HDB).
- No ownership of, or interest in, private residential property in Singapore or overseas. You must also not have sold such property in the 30 months before your HDB Flat Eligibility (HFE) application.
- Fewer than two HDB housing loans taken before.
- Employment at the time of the HFE application and when the loan is disbursed.
A bank loan has none of these HDB conditions. It is assessed on the bank's credit criteria, the MSR and the TDSR. For many buyers above the income ceiling, or with a private property history, a bank loan is the only option.
Can you switch between an HDB loan and a bank loan?
You can refinance from an HDB loan to a bank loan at any time, with no penalty from HDB. The move is one-way: once you take a bank loan, you cannot go back to an HDB loan. After that, your options are repricing with your bank or refinancing to another bank (CPF Board).
This matters in 2026. With bank rates below 2.6%, a switch cuts your costs now. But you give up the HDB loan's certainty for good. If rates later rise above 2.6%, you cannot come back.
Which loan suits which buyer?
This is general information, not advice for your situation.
- An HDB loan suits buyers who value a stable rate, want to pay the down payment fully from CPF, may need the higher MSR loan amount from the 3% assessment rate, or want no lock-in or prepayment penalties.
- A bank loan suits buyers who do not qualify for an HDB loan, want to keep CPF OA savings, or accept rate changes in return for today's lower rates. You also need at least 5% of the price in cash.
FAQ
Is the HDB loan rate still 2.6% in 2026?
Yes. CPF Board confirmed on 22 September 2026 that the HDB concessionary rate stays at 2.6% from 1 October to 31 December 2026. It is pegged at 0.1 point above the CPF OA rate.
What is the LTV limit for an HDB loan now?
75%. HDB cut it from 80% to 75% on 20 August 2024. The limit is now the same as for a bank loan on an HDB flat, provided the bank loan's tenure is 25 years or less and does not run past age 65. Beyond that, the bank limit drops to 55%.
Does a bank loan for an HDB flat avoid the MSR?
No. The 30% MSR applies to all housing loans for HDB flats. A bank loan must also meet the 55% TDSR.
Can I switch from a bank loan back to an HDB loan?
No. You can refinance from an HDB loan to a bank loan, but not the other way round.
How much cash do I need with a bank loan?
At least 5% of the price must be cash. The rest of the 25% down payment can come from CPF OA savings or cash. With an HDB loan, the full 25% can come from CPF.
For more on debt limits, see our TDSR and MSR guide.
Sources
- CPF Board, "Government extends 4% interest rate floor on Special, MediSave and Retirement Account monies until 31 December 2027", 22 September 2026: cpf.gov.sg
- CPF Board, "HDB loan or bank loan? 3 differences you should know", 12 June 2026: cpf.gov.sg
- HDB/MyNiceHome, "Housing Loans for HDB Flat Buyers", updated 23 August 2026: mynicehome.gov.sg
- HDB, "Increase in Income Ceilings and Greater Support for Families with Children", August 2026: hdb.gov.sg
- HDB, "Measures to Cool the HDB Resale Market and Provide More Support for First-Time Home Buyers", 19 August 2024: hdb.gov.sg
- MAS, "Macroprudential Policies in Singapore" (LTV, MSR, TDSR): mas.gov.sg
- MAS, "Calculating TDSR" (4% medium-term interest rate floor): mas.gov.sg
- MAS, MND and HDB, "Measures to Promote Sustainable Conditions in the Property Market", September 2022 (3% HDB loan floor; effective 30 September 2022): mas.gov.sg
- Stacked Homes, "Singapore Mortgage Rates Dropped 61% In A Year. Is There Still Room To Fall?", 27 March 2026: stackedhomes.com
- EdgeProp, "Your mortgage rate matters, but it is not everything", 23 April 2026: edgeprop.sg
Repayment and loan-limit figures are SG Properties calculations using standard monthly amortisation and the inputs stated. They are illustrations, not loan offers. This page explains the rules and is not financial advice.
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