Frequently Asked Questions

An HDB Loan is a housing loan provided by the Housing & Development Board (HDB) in Singapore to eligible buyers for the purchase of HDB flats.

A Bank Loan, on the other hand, is a housing loan provided by banks or financial institutions in Singapore for the purchase of residential properties, including HDB flats.

Interest Rates: HDB Loans typically offer lower interest rates compared to Bank Loans.

Loan Quantum: HDB Loans allow you to borrow up to 90% of the flat’s purchase price or valuation, whichever is lower, while Bank Loans typically offer up to 75-80% financing.

Eligibility: HDB Loans are only available for the purchase of HDB flats, while Bank Loans can be used for both HDB flats and private properties.

Flexibility: Bank Loans usually offer more flexibility in terms of loan tenure and repayment options compared to HDB Loans.

Lower Interest Rates: HDB Loans typically offer lower interest rates compared to Bank Loans.

Higher Loan Quantum: HDB Loans allow you to borrow up to 90% of the flat’s purchase price or valuation, which can be beneficial for buyers with limited cash savings.

Government Backing: HDB Loans are backed by the Singapore government, providing borrowers with a sense of security.

Flexibility: Bank Loans offer more flexibility in terms of loan tenure, repayment options, and interest rate packages.

Suitable for Private Properties: Bank Loans can be used for the purchase of both HDB flats and private properties, providing buyers with more options.

Potential Cost Savings: While interest rates may be higher, Bank Loans often come with promotional packages and incentives that can result in cost savings over the loan tenure.

• Consider your financial situation, including your cash savings, income stability, and long-term financial goals.

• Evaluate the interest rates, loan quantum, and flexibility offered by both options.

• Factor in any promotional packages or incentives offered by banks.

• Seek advice from a financial advisor or mortgage specialist to assess which option aligns best with your needs and preferences. You can also use Real Estate Dad's 'HDB vs Bank Loan Calculator Sheet' to carefully assess both options.

Yes, it is possible to refinance your housing loan from an HDB Loan to a Bank Loan or vice versa. However, there may be costs involved, such as legal fees and administrative charges. Be sure to consider the implications and consult with a financial advisor before making a decision.

With an HDB Loan, you are subject to HDB's policies and regulations, which may change over time and affect your loan terms. With a Bank Loan, interest rates are typically variable and subject to market fluctuations, which could result in higher monthly repayments if rates increase.

You can visit the official websites of HDB and various banks in Singapore to learn more about their respective housing loan products and eligibility criteria. Additionally, consulting with a financial advisor or mortgage specialist can provide personalized guidance based on your specific circumstances.