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Should I take up a HDB loan or bank loan?

For most home owners, buying a residential property is probably one of the biggest commitments in one’s lifetime.

Here’s some points which you should consider before taking up a housing loan.

1) HDB loan interest rate is at 2.6% pegged to CPFOA interest rate, which will be reviewed on a quarterly basis. For bank loans, interest rate can be as LOW as 2.05%.

2) Some bank loan rates are on a variable basis. One must be able to stomach future rate adjustments if any.

3) For HDB loans, maximum loan to value (LTV) can be up to 90%, which means that your initial downpayment is only 10% and can be paid using CPFOA funds. For bank loans, maximum loan to value (LTV) can be up to 75%, with 5% using cash and 20% using COFOA funds.

It is highly advisable to apply an in principle approval (IPA) from banks or home loan eligibility (HLE) before committing into any housing plans.

Always speak to a professional mortgage broker on this matter.

For a FREE consultation session, you may like to PM us at our hotline +65 85565271 or

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