Calculator
HDB loan vs bank loan & refinance calculator
Compare HDB's 2.6% concessionary rate against current bank rates, including legal/valuation costs and break-even months.
Example comparison · $350,000 over 25 yrs
$4,068
Net 3-year instalment reduction after $1,800 switching cost ($163/mo difference)
Monthly instalment comparison
These are instalment cash-flow differences, not interest savings. Rates are assumed constant; outstanding balances after three years differ.
Break-even time on $1,800 switching cost: 12 months. Annual instalment reduction: $1,956/yr. Read our HDB-to-bank refinancing guide before locking in.
HDB loan vs bank loan: key structural differences
Since 20 August 2024, both HDB housing loans and bank housing loans have the same 75% maximum Loan-to-Value (LTV) limit (HDB Housing Loan). The decision comes down to interest rate spread, upfront cash, and flexibility:
| Feature | HDB housing loan | Bank housing loan |
|---|---|---|
| Interest rate | 2.6% p.a. (pegged at 0.1% above the CPF OA rate) | Varies by bank and package (fixed or SORA-pegged); enter the rate you are quoted |
| Maximum LTV | 75% of price or value | 75% of price or value |
| Minimum cash downpayment | $0 (all 25% can come from CPF OA + EHG) | 5% of purchase price must be paid in cash |
| Rate used to assess the 30% MSR | Higher of 3% and the HDB rate (HDB/MAS, Sept 2022) | 4% medium-term floor set by MAS |
| Early repayment | No lock-in or prepayment penalty | Packages often carry a lock-in period with a prepayment penalty; check your offer |
| Can you switch later? | Yes — can refinance from HDB to a bank at any time | One-way street — once on a bank loan, you can never switch back to an HDB loan |
When refinancing from HDB to a bank makes sense
Because switching from an HDB loan to a bank loan is irreversible, most buyers who qualify for an HDB loan start on HDB at key collection (preserving $0 minimum cash and zero lock-in) and evaluate refinancing once their loan balance is drawn down and bank rates sit meaningfully below 2.6%. Read our full guide on switching from an HDB loan to a bank loan.
Common questions
Can I switch back to an HDB loan if bank interest rates rise above 2.6%?
No. HDB rules treat the switch to a bank housing loan as permanent for that flat. Once you take or refinance into a bank loan, you cannot revert to an HDB loan on the same flat.
Why do banks require a higher income than HDB for the exact same 75% loan?
Both loans cap your monthly instalment at 30% of gross monthly income (Mortgage Servicing Ratio). However, HDB assesses the instalment at the higher of 3% and its 2.6% rate, whereas MAS requires banks to use a 4% medium-term rate floor.
What does refinancing an HDB loan cost?
You pay conveyancing legal fees and a valuation fee. Some banks offer a subsidy for these above a minimum loan size, usually with a clawback if you leave within a set period. Amounts and conditions vary by bank, so compare written offers; enter your net cost in the calculator.