Updated September 2026. Loan rates, eligibility and limits change. Obtain a current HFE letter and binding bank offer before committing.
Compare the whole loan, not only today's rate
An eligible HDB buyer may finance through an HDB housing loan or a financial institution regulated by MAS. The right comparison depends on eligibility, cash and CPF position, rate structure, flexibility and the household's ability to withstand higher payments.
HDB housing loan
HDB states that its concessionary rate is pegged 0.1 percentage point above the prevailing CPF Ordinary Account rate and reviewed quarterly. Eligibility and the assessed amount are household-specific. Read the current HDB loan conditions and official interest-rate page rather than relying on a historical article.
Financial-institution loan
A bank package may use fixed, floating or hybrid pricing and can have lock-ins, repricing terms, clawbacks and early-repayment charges. At least part of the initial payment may need to be cash. Compare the Letter of Offer, not an advertisement.
Decision checklist
- Confirm HFE eligibility and both available loan amounts.
- Compare cash and CPF required at every transaction milestone.
- Stress-test monthly payments above the initial rate.
- Review lock-in, repricing, partial repayment and refinancing terms.
- Keep an emergency buffer after completion and renovation.
HDB's resale financing guidance explains current CPF and financing conditions. Seek independent financial advice for the household's circumstances.