Bank guide · 2026
POSB and DBS home loan Singapore: how they relate and what they offer
By Winfred Quek · 9 minute read · Last reviewed October 2026
Reviewed 13 October 2026 · Sources linked below
Key Takeaways
- HDB loan rate: CPF Ordinary Account rate plus 0.1%, reviewed quarterly.
- HDB loan rate: 2.60% per annum for 1 October to 31 December 2026.
- Bank package rates are not listed on this page. Check each bank for its current terms.
How the HDB loan rate is set
The HDB concessionary loan rate is pegged at 0.1% above the prevailing CPF Ordinary Account interest rate, and is reviewed quarterly. For 1 October to 31 December 2026 the rate is 2.60% per annum.
Where to check the HDB loan terms
HDB sets the eligibility and conditions for the HDB housing loan. Use HDB's housing loan page for the current terms.
How DBS and POSB bank packages are structured
POSB is a DBS brand, so a POSB home loan and a DBS home loan are the same bank's products. Bank packages generally fall into three families, and each one trades certainty against flexibility.
- Fixed rate packages: the interest rate is locked for a set period, then reverts to a floating reference rate. Your monthly payment is known for the fixed window.
- Floating rate packages pegged to SORA: the rate moves with compounded SORA plus a bank spread, so your payment changes as SORA moves.
- Hybrid packages: part of the tenure is fixed and the rest floats on SORA.
This page does not print bank rates, because they are repriced often. Open the bank's own rates page on the day you plan to apply, and if you compare banks, pull each page on the same day. Our SORA versus fixed comparison and explainer on how SORA works cover the mechanics.
What to compare beyond the headline rate
Two packages with the same advertised rate can cost very differently once you read the terms. Check these four items for every package you shortlist.
| Item | Why it matters |
|---|---|
| Lock in period | The window during which refinancing or full prepayment triggers a penalty. |
| Clawback | Cash rebates, subsidies or legal fee coverage the bank recovers if you exit within a set number of years. |
| Conversion terms | What rate you land on once a fixed period ends, and whether you can switch packages within the same bank without full refinancing costs. |
| Repricing option | Whether the bank lets you move to a new package internally at a lower administrative cost than refinancing to another bank. |
HDB loan or bank loan
Before you shortlist a bank package, check what you would be giving up. The HDB concessionary loan is pegged to the CPF Ordinary Account rate rather than SORA or a bank spread, and it is available only for an HDB flat under HDB's eligibility rules. Switching from an HDB loan to a bank loan is a one way move: HDB rules do not let you switch back later. Confirm the current loan terms on HDB's housing loan page before you decide.
Repricing with the same bank or refinancing out
When a lock in period is ending, there are two paths. Repricing keeps the loan with the same bank on a new package, usually for a smaller fee than the legal and valuation cost of refinancing to a different bank. Refinancing out makes sense when a competing package clears those extra costs within a reasonable payback window. Our refinancing guide covers the process, and the mortgage rate comparison tool is a starting point before you call the bank.
Frequently asked questions
Where do I check the current DBS home loan rate?
Go directly to the bank's own rates page, which lists its current fixed rate and SORA pegged packages. This is more reliable than any third party article, since the bank reprices packages regularly.
Is POSB cheaper than DBS for a home loan?
POSB is a DBS brand, so compare the actual package terms and rates on the bank's rates page rather than the brand name.
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Weighing POSB, DBS or the HDB loan?
In 30 minutes we run your numbers against the HDB concessionary loan and the current bank packages, structure first, not just the lowest first year number.
Winfred Quek · CEA R073319H · Crestbrick Pte Ltd
Sources & References
How does this apply to your own numbers?
General rules only take you so far. What actually decides your move is your financing, your timeline, and what you already own. A Property Portfolio Analysis maps your real position, so you are deciding on your own figures rather than a rule of thumb.
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