The Quick Table
| Dimension | HDB Concessionary Loan | Bank Loan | Edge |
|---|---|---|---|
| Rate today | 2.6% p.a., fixed formula (CPF OA + 0.1%), unchanged since 1999 | 1.45%–1.9% fixed for 2–3 years, then floating SORA + spread | Bank (lower now) |
| Cash needed upfront | None required in cash; CPF OA can cover the full 10%/20% downpayment | 5% of price must be cash, regardless of CPF balance | HDB (lower cash burden) |
| Maximum LTV | 90% (BTO), 80% (resale) | 75%, either flat type | HDB (higher LTV) |
| Switching direction | Can switch to a bank loan any time, no penalty | Cannot switch back to an HDB loan, ever, on that flat | HDB (keeps the option open) |
| Eligibility | At least 1 SC; household income ≤$14,000 (family) or ≤$7,000 (single); no private property in last 30 months; resale price ≤$800,000 | No income ceiling, no citizenship requirement, no price cap | Bank (open to more buyers) |
| Applies to | HDB flats only | HDB flats or private property | Bank (works for private too) |
Full rate, LTV, and instalment detail, plus recommendations by buyer profile, are in the complete comparison. Today's actual bank packages by lender are on the live mortgage rates page.
When Each Wins
Tight cash or CPF reserves at completion
The 90%/80% LTV and CPF-only downpayment removes the biggest cash-flow barrier at purchase. You can still switch to a bank loan later once CPF OA has rebuilt.
Strong income and cash buffer, comfortable with rate resets
You qualify for the HDB loan but can absorb a floating-rate reset after the fixed period. Take the $150–$250/month saving and refinance actively at each lock-in end.
Risk-averse or single-income households
Permanent rate stability protects against the scenario that matters most: income disruption or a sharp rate cycle. That protection disappears the moment you switch to a bank loan.
Buyers who might add private property soon
The HDB loan only covers HDB flats. If a private purchase is on the near-term horizon, only the bank loan carries across both, but taking it now forecloses the HDB loan option on this flat permanently.
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Winfred Quek · CEA R073319H · Crestbrick Pte Ltd · L31010886H
Frequently Asked Questions
Is a bank loan or HDB loan cheaper right now?
On headline rate, bank fixed packages at 1.45% to 1.9% currently sit below the HDB concessionary loan's 2.6%. But the HDB loan needs less cash upfront (CPF can cover the full downpayment) and keeps the option to switch to a bank loan later at no penalty, an option a bank loan borrower gives up permanently.
Can I switch back to an HDB loan after taking a bank loan?
No. The switch from HDB loan to bank loan only runs one way. Once you take a bank loan on an HDB flat, whether at purchase or by refinancing out of an HDB loan later, you can never switch back to the HDB concessionary loan on that flat.
Which loan needs less cash upfront?
The HDB loan. Its downpayment, 10% for BTO or 20% for resale, can be covered fully by CPF Ordinary Account for many buyers. A bank loan always requires a minimum 5% cash downpayment regardless of CPF balance, on top of the same or lower LTV.
Related: Full Bank Loan vs HDB Loan comparison (6-scenario narrative) · 8-scenario deep dive · SORA glossary · Live Bank Mortgage Rates · Loan Repayment Calculator
Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA R073319H). This comparison is for general information only and does not constitute financial or legal advice. Rates and rules as of August 2026, confirm current packages with your bank and current HDB loan eligibility with HDB before committing.