HDB Loans Calculator

HDB Loan vs Bank Loan

Compare HDB concessionary loan against bank loan for your flat purchase.

HDB Monthly -
Bank Monthly -
HDB Total Interest -
Bank Total Interest -
Savings -

How to Use the Hdbloans Calculator

Key Takeaways

  • HDB loan rate is 0.1% above CPF OA rate — currently 2.6%. It cannot rise beyond CPF OA + 0.1%, making it a natural rate ceiling for buyers who fear SORA volatility.
  • Bank loans require a 20% down payment (5% cash + 15% CPF), HDB loans require only 10% (any combination of cash/CPF) — HDB loan preserves significantly more CPF savings at purchase.
  • Once you take a bank loan, you cannot switch back to an HDB loan — the choice is irreversible. If you take HDB loan first, you can refinance to a bank loan later.
  • HDB loan LTV is 80% (vs 75% for bank loans on private), but for HDB flats with short lease (under 60 years remaining), LTV is reduced — check the flat's remaining lease before assuming 80% LTV.
  • Bank loan rate lock-in periods (1–3 years) mean you face refinancing costs or penalty rate resets — factor in $2,000–$3,500 in legal/valuation fees per refinancing cycle.

What It Does

Should you take an HDB loan at 2.6% or a bank loan at a lower rate? Compare total interest, monthly payments, LTV limits, and flexibility side by side. Factor in CPF usage, prepayment penalties, and rate risk for a data-driven decision.

You can find this calculator in the Calculators tab on ShiokNest. It updates results instantly as you adjust inputs — no waiting, no page reloads.

Why It Matters

The choice between an HDB Concessionary Loan and a bank loan is one of the most consequential financing decisions an HDB buyer makes — and one of the least understood. HDB loan rate is pegged at 0.1% above CPF OA rate (currently 2.6%), while bank loans fluctuate with SORA. When SORA is low, bank loans appear cheaper. When SORA rises, the HDB loan — which cannot exceed 2.6% — becomes the cost-effective option. The correct comparison depends on where rates are heading over your loan tenure, not just where they are today.

The single most important number this calculator reveals is the total interest cost differential over your full loan tenure. A $400,000 HDB loan at 2.6% over 25 years costs $134,800 in total interest. The same loan at a bank rate of 3.5% costs $193,200 — a $58,400 difference. But at 2.5% (a competitive bank rate in a low SORA environment), the bank loan costs only $126,100 — $8,700 less than HDB. The total interest comparison over the full tenure, not the monthly payment comparison, is the correct decision framework.

The most common mistake buyers make is focusing only on the current monthly repayment difference. Bank loans may be $100–$200 cheaper per month at current rates — but carry refinancing risk, rate reset risk, and potentially higher lock-in penalties. HDB loans cannot be prepaid without penalty for 1 year, but offer full flexibility after that. A buyer who takes a bank loan for a $100/month saving and then faces a SORA spike of 2% may find their monthly repayment increases by $400 — erasing years of savings in a single rate cycle.

Use this calculator alongside the Mortgage Calculator and the Affordability Stress Test to pressure-test your HDB loan decision against rate scenarios.

How It Works

  • Navigate to Calculators — Click the "Calculators" tab in the ShiokNest navigation bar. All 47 calculators are grouped by purpose for easy access.
  • Select the calculator — Choose "How to Compare HDB Loan vs Bank Loan" from the calculator list. You will see default values already loaded so you can explore immediately.
  • ️ Enter your values — Replace the defaults with your own numbers. The key fields are:
  • Review the results — The calculator updates instantly as you change any input. Key results are displayed in KPI cards and charts that update as you adjust inputs.
  • Run what-if scenarios — This is where the real power lies. Change one variable at a time to see its impact. For example, try increasing the interest rate by 1% or extending your holding period by 5 years. Note how the results shift.
  • Compare and decide — Run 2-3 different scenarios and note the results. This gives you a range of outcomes to base your decision on, rather than relying on a single projection.

Examples

$500,000 HDB resale: total interest cost comparison over 25 years

Inputs
Flat price
$500,000
HDB loan
$400,000 (80% LTV) at 2.6%, 25yr
Bank loan (current rate)
$375,000 (75% LTV) at 3.0%, 25yr
Bank loan (stressed +1.5%)
Same loan at 4.5%, 25yr
Results
HDB loan monthly
$1,812/month | Total interest: $143,600
Bank loan at 3.0% monthly
$1,780/month | Total interest: $159,000
Bank loan at 4.5% monthly
$2,084/month | Total interest: $250,200
Extra down payment cost (bank loan)
$25,000 more upfront (75% LTV vs 80%)

How to read this: At today's 3.0% bank rate, the bank loan costs $15,400 MORE in total interest than the HDB loan, despite lower monthly payment in early years. The lower monthly payment reflects the smaller loan ($375K vs $400K due to LTV difference) — not a cheaper rate. If rates rise to 4.5%, the bank loan total interest exceeds HDB loan by $106,600. The HDB loan does not require extra cash for the larger down payment — it accepts 10% in any combination of cash and CPF vs bank loan's 5% cash + 15% CPF r...

Bank loan at record-low rates: when does it beat HDB loan?

Inputs
Flat price
$450,000
HDB loan
$360,000 at 2.6%, 25yr
Bank loan scenario
$337,500 at 1.8% (SORA 0.8% + spread 1%), 25yr
Refinancing assumption
Refinance every 2yr at $2,500/cycle
Results
HDB loan total interest (25yr)
$129,200
Bank loan total interest at 1.8%
$83,400
Bank loan refinancing costs (12 cycles over 25yr)
$30,000
Net saving vs HDB loan (if rates stay at 1.8%)
$15,800 — only if rates remain low throughout

How to read this: At 1.8% bank rate, the bank loan saves $45,800 in interest versus HDB loan. But once refinancing costs ($30,000 over 12 cycles) are deducted, the net saving is only $15,800 — assuming rates stay at 1.8% for 25 years, which Singapore saw between 2010–2021 but not since. If rates rise to 2.6% at any point (matching the HDB loan rate), the bank loan loses its advantage. The calculator shows this crossover explicitly: the bank loan only wins if the blended rate over the full 25 years stays be...

Tips & Pitfalls

Expert Tips

  • Use realistic assumptions — Singapore condo appreciation has historically averaged 2-4% per year. Avoid overly optimistic projections. When in doubt, use 3% as a baseline.

Common Pitfalls

  • Comparing current rates without stress-testing future rates — Bank loans look cheaper when SORA is low. But Singapore saw SORA-linked rates rise from 1.5% to 4.5% between 2021 and 2023. Always run the comparison at +2% stressed rate to see if the bank loan still wins.
  • Ignoring the down payment difference — HDB loan requires 10% down vs 20% for bank loan. For a $600,000 flat, this is $60K vs $120K required upfront. The extra $60K left in CPF at purchase earns 2.5% p.a. — factor this opportunity cost into the comparison.
  • Forgetting that switching is one-directional — You can switch from HDB loan to bank loan anytime after 1 year. But once you switch to a bank loan, you cannot return to HDB loan. Do not take a bank loan just for a current rate advantage if you may want HDB loan protection later.

Frequently Asked Questions

Is my data saved?
No. All calculations run entirely in your browser. Nothing is stored on our servers or shared with third parties.
What is the current HDB loan interest rate?
The HDB Concessionary Loan rate is pegged at 0.1% above the CPF OA interest rate. The CPF OA rate is 2.5% p.a. (as at April 2026), making the HDB loan rate 2.6% p.a. The rate is reviewed quarterly and has been stable at 2.6% for many years, but can change if the CPF board adjusts the OA rate. Check HDB's website for the most current rate.
Can I save my results?
Log in to save scenarios to your dashboard, or use the share button to copy a URL that encodes your inputs.
Can I switch from HDB loan to bank loan?
Yes — you can refinance from HDB loan to a bank loan at any time after the first year. You will need a new property valuation ($300–$500), legal fees ($1,500–$2,500), and the bank's loan processing. The HDB does not charge an early repayment penalty after 1 year. However, once you refinance to a bank loan, you cannot switch back to the HDB Concessionary Loan — the option is permanently gone.
Does taking a bank loan affect my CPF usage?
Yes. Bank loans require a minimum 5% cash down payment and allow up to 75% LTV (vs HDB loan at 80% LTV). The remaining 20% down payment can come from CPF OA. However, with a smaller loan from a bank (75% vs 80%), you draw down more CPF at purchase — reducing CPF savings available for retirement or future property purchases.

Related Resources

Article How to Read the Property Price Index Article How to Track SORA Rates for Your Mortgage Article How to Use the Mortgage Recommender Article How to Calculate Cash Proceeds from Selling Article How to Choose an Interior Designer in Singapore Calculator How to Use the Mortgage Calculator
Disclaimer: Figures shown are estimates for planning purposes only. Rates, rules, and grant quanta change frequently — verify with your bank, HDB, or a licensed financial advisor before acting.