HDB Loan vs Bank Loan

Finance

When buying an HDB flat, you generally choose between an HDB housing loan and a loan from a bank. The HDB loan has a fixed concessionary interest rate pegged to the CPF Ordinary Account rate, allows a higher loan-to-value limit, and requires an HDB Loan Eligibility letter with income and other conditions. Bank loans may offer lower interest at times but the rate can fluctuate, require a cash downpayment portion, and impose their own credit checks. HDB loans are only for HDB flats, while bank loans can also fund private property. Rates, limits and eligibility are subject to the latest rules.

Related terms

CPF Accounts (OA / SA / MA)SRS (Supplementary Retirement Scheme)CPF LIFEGST (Goods and Services Tax)Income Tax & IRASBaby Bonus & CDA