# HDB loan vs bank loan & refinance calculator

Compare the **HDB concessionary loan (2.6% p.a.)** against **Singapore bank home loans** on monthly instalment, 3-year instalment reductions, switching costs and break-even months.

## 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](https://www.hdb.gov.sg/buying-a-flat/flat-grant-and-loan-eligibility/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](https://www.mas.gov.sg/news/media-releases/2022/measures-to-promote-sustainable-conditions-in-the-property-market-by-ensuring-prudent-borrowing-and-moderating-demand)) | **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](https://btoradar.com/guides/refinance-hdb-loan-to-bank-loan).