Short answer
An HDB concessionary loan is pegged at 0.1 percentage point above the CPF Ordinary Account rate (2.6% a year at last check) and lends up to 75% of the price (the same cap as bank loans since 20 August 2024), while bank loan rates move with the market. Bank packages are fixed or floating, with floating loans tied to SORA.
Loan types
- HDB loan: only for HDB flats, stable rate, 75% loan-to-value (80% before 20 August 2024).
- Bank loan: for HDB and private property, 75% loan-to-value for a first loan, with at least 5% of the price in cash.
- Fixed rate: rate locked for a few years, then reverts.
- Floating rate: moves with SORA or a bank board rate.
What to compare
- Total interest over the lock-in period, not just year one.
- Lock-in length and penalties for early repayment.
- Legal subsidy, valuation and fire insurance terms.
- Refinancing options after the lock-in ends.
Sources to check
Frequently asked questions
Should I choose a fixed or floating loan?
Fixed gives certainty for a few years; floating can be cheaper when rates fall but moves both ways. It depends on your tolerance for payment changes.