The Ultimate Guide to Getting an HDB Home Loan in Singapore (2026)
HDB loan or bank loan in 2026? Eligibility, the S$16,000 income ceiling, 75% LTV, 2.6% vs SORA rates, downpayments and a worked S$600,000 flat example.
How we made this. Updated for 2026 with AI-assisted research. Figures are linked to their sources — check them before you act.
To finance an HDB flat you choose between two loans: an HDB concessionary loan at 2.6% a year, or a bank loan. Both now lend up to 75% of the price. In October 2026 bank packages are cheaper, at about 1.5–1.8% floating and 2.0–2.2% fixed (The Business Times, 2 Oct 2026). The HDB loan costs more but gives you a stable rate, lets you pay the whole downpayment from CPF, and has no early repayment penalty. The right choice depends on your cash, your appetite for rate risk and whether you qualify.
At a glance
- HDB loan: up to 75% of the price or valuation, 2.6% a year, up to 25 years. You need at least one Singapore citizen buyer and a household income of S$16,000 or less a month.
- Bank loan: also up to 75%, but at least 5% of the price must be cash. Tenure is up to 30 years, but the limit falls to 55% if the loan runs past 25 years.
- On a S$450,000 loan over 25 years, 2.6% costs about S$2,042 a month and a 1.8% bank floating rate about S$1,864. The bank saves you about S$180 a month until its rate changes.
- You can refinance from an HDB loan to a bank loan, but never back again.
What has changed since this guide first ran
If you arrived from an old link, several numbers in the 2016 version are now wrong:
| Item | 2016 | October 2026 |
|---|---|---|
| HDB loan limit | 90% | 75% (since 20 Aug 2024) |
| Family income ceiling for HDB loan | S$12,000 | S$16,000 (since 24 Aug 2026) |
| Singles’ income ceiling | S$6,000 | S$8,000 |
| Bank loan benchmarks | SIBOR, SOR, board rates | SORA or fixed rates |
| TDSR | 60% | 55% |
| Eligibility check | HLE letter | HFE letter |
Sources: gov.sg HDB loans guide (updated 23 Aug 2026), HDB, 23 Aug 2026, MAS — TDSR.
SIBOR and SOR have been discontinued. Floating bank loans now use the Singapore Overnight Rate Average (SORA). On 1 Oct 2026, 3-month compounded SORA was about 1.23%.
Who qualifies for an HDB loan
The gov.sg HDB loans guide sets these conditions:
- At least one buyer is a Singapore citizen.
- Gross monthly household income is S$16,000 or less for families, or S$8,000 or less for singles. Extended families have a higher ceiling of S$24,000.
- You have not taken two or more HDB loans before.
- You do not own private residential property, in Singapore or overseas, and have not sold one in the 30 months before your HFE application.
- You are working when you apply for the HFE letter and when the loan is disbursed.
Apply for the HDB Flat Eligibility (HFE) letter before you book a flat or accept an option to purchase for a resale flat. It confirms whether you can buy, which grants you get and how much HDB will lend. You cannot switch to an HDB loan after you complete with a bank loan, so decide before you buy.
PR-only households, and anyone above the income ceiling, must use a bank loan.
How much you can borrow
The loan is the lowest of these:
- 75% of the price, or for resale flats 75% of the price or valuation, whichever is lower.
- What your income supports. The mortgage servicing ratio (MSR) caps instalments on HDB flats at 30% of gross monthly income. HDB tests this at an interest rate of at least 3%. Banks test it at 4%.
- The tenure cap. For an HDB loan, the tenure is the shortest of 25 years, 65 minus the buyers’ average age, or the remaining lease minus 20 years.
Before HDB lends, you must use the CPF Ordinary Account (OA) savings you have. Each buyer may keep up to S$20,000 in the OA as a buffer. If you are taking a second HDB loan, you must also put in the full CPF refund and part of the cash proceeds from the flat you sold.
The stress test matters more than the headline rate. On a S$450,000 loan over 25 years:
| Lender | Assessment rate | Instalment used for MSR | Income needed at 30% MSR |
|---|---|---|---|
| HDB | 3% | about S$2,134 | about S$7,110 |
| Bank | 4% | about S$2,375 | about S$7,920 |
So with the same income, a buyer may qualify for a larger HDB loan than bank loan.
Downpayment: where the cash goes
This is often the deciding factor for young couples.
- HDB loan: the downpayment is 25%, and you can pay all of it from CPF OA, cash, or both. For a new flat, 10% is due when you sign the Agreement for Lease and the other 15% at key collection (gov.sg BTO buying guide).
- Bank loan at 75%: also 25% in total, but at least 5% must be cash. For a new flat, 20% is due at the Agreement for Lease and the other 5% at key collection. If the bank loan runs past 25 years, the limit falls to 55% and the minimum cash rises to 10%.
Example. Say you buy a S$600,000 resale flat that values at S$600,000:
- HDB loan: borrow S$450,000. Pay the S$150,000 downpayment from CPF if your OA balances cover it.
- Bank loan: borrow S$450,000. Pay S$150,000, of which at least S$30,000 must be cash.
If the price is above the valuation, the difference is cash over valuation (COV). You pay it in cash on top of the downpayment, because both lenders lend only on the lower figure.
First-timers buying resale may get up to S$230,000 in grants, which cuts what you need to borrow. See the HDB grants guide.
The interest-rate maths
Home loans are amortised. Each month’s interest is charged on the balance still owed, unlike the flat-rate method used for car loans. That is why paying down principal early saves real money.
Example: S$450,000 over 25 years
| Rate | Monthly instalment | Total interest over 25 years |
|---|---|---|
| HDB 2.6% | about S$2,042 | about S$162,500 |
| Bank 1.8% (if it stayed there) | about S$1,864 | about S$109,200 |
| Bank 3.5% (if rates rose) | about S$2,253 | about S$225,800 |
Over the first two years, the 1.8% loan charges about S$15,700 in interest against about S$22,800 for HDB, a saving of roughly S$7,100. That gap is why many buyers pick banks when rates are low.
The catch is that bank rates do not stay fixed. Fixed packages usually reset after two or three years. Floating packages move with SORA every month. SORA was only about 1.2% in October 2026, but it was far higher in 2023. If rates return to those levels, a bank loan can cost more than HDB’s 2.6%.
The HDB rate is not fixed by law either. It is pegged at 0.1 percentage point above the CPF OA rate and reviewed every quarter. It has stayed at 2.6% for many years because the OA rate has stayed at 2.5%.
Try your own numbers in the Propwise mortgage calculator.
HDB loan vs bank loan, side by side
| HDB loan | Bank loan | |
|---|---|---|
| Who can get it | SC household within income ceiling | Anyone the bank approves, incl. PR households |
| Maximum loan | 75% | 75% (55% if tenure > 25 years) |
| Minimum cash | None | 5% (10% at 55% LTV) |
| Maximum tenure | 25 years | 30 years |
| Rate in Oct 2026 | 2.6%, reviewed quarterly | About 1.5–2.2%, resets or floats |
| Early repayment | No penalty | Often a penalty during the lock-in period |
| Switching | Can refinance to a bank | Can refinance to another bank, never to HDB |
Before you choose a bank, read the letter of offer for lock-in periods, penalties, clawbacks of legal subsidies and what happens to the rate after the fixed period. Our mini guide to refinancing covers this.
How to choose
- Short of cash? The HDB loan lets you pay the full downpayment from CPF. A bank needs at least 5% in cash.
- Want certainty? A 2.6% rate that has not changed for years is easier to plan around than a SORA loan.
- Have spare cash and can handle rate swings? A bank loan is cheaper today, and you can refinance when the lock-in ends. Keep a buffer in case rates rise.
- Not eligible for HDB? PR-only households, buyers above the income ceiling and owners of private property must use banks.
- Want to switch later? Starting with HDB keeps both options open. Starting with a bank does not.
A longer tenure lowers the instalment but raises total interest. For the trade-offs, see 4 benefits of opting for a longer loan tenor, and remember the 25-year line for bank loans on HDB flats.
Bottom line
In 2026 the gap between the two loans is the familiar one. Banks are cheaper while rates stay low, and HDB is safer and needs less cash. Both lend up to 75%. HDB lets you use CPF for the whole downpayment, and its stress test is gentler, so you may be able to borrow more. Get your HFE letter early, compare at least two bank offers against 2.6%, and stress-test any bank quote at 3.5% to 4% before you sign. The move from HDB to a bank is one-way.
Sources
- Housing loans for HDB flats — gov.sg (MyNiceHome), updated 23 August 2026
- Increase in income ceilings and greater support for families with children — HDB, 23 August 2026
- CPF housing grants for HDB flat buyers — gov.sg (MyNiceHome), checked October 2026
- MSR and TDSR rules — Monetary Authority of Singapore, checked October 2026
- Loan tenure and loan-to-value limits — Monetary Authority of Singapore, updated 27 March 2024
- Measures to promote sustainable conditions in the property market — Monetary Authority of Singapore, 29 September 2022
- SORA daily chart and reference rates — HousingLoanSG, 1 October 2026
- HDB BTO/SBF buying guide — gov.sg (MyNiceHome), checked October 2026
- S’pore mortgage rates rise following Fed hike: What home owners should look out for — The Business Times, 2 October 2026
