Compare HDB Loan Rates & Bank Loan for HDB Home Loans (2025)

Your HDB Financing Options: Understanding HDB Concessionary Loans vs Bank Loans

When buying your HDB flat — whether it’s a BTO unit, a resale flat, or refinancing an existing loan — understanding your financing options is critical to making the smartest long-term decision.

In Singapore, buyers typically choose between two main paths: the HDB Concessionary Loan or a Bank HDB Loan.

Both options come with their unique strengths and trade-offs.

🏛️ Option 1: HDB Concessionary Loan

The HDB loan is a government-subsidized home loan scheme designed to make public housing more affordable for Singaporeans.

✅ Key Features:

Interest Rate: Fixed at 2.60% p.a. (pegged at CPF OA + 0.10%)

Loan-to-Value (LTV): Up to 80% of the property price or valuation (whichever lower)

Downpayment: 20% (fully payable via CPF Ordinary Account)

Early Repayment: No penalty for full or partial repayment

Eligibility: Strictly for Singapore Citizens; subject to income ceilings and property ownership rules

💡 Tip: HDB loans are highly stable, but generally more expensive than competitive bank loan rates today.

🏦 Option 2: Bank HDB Loan

A Bank HDB Loan refers to financing your HDB flat through a private financial institution like DBS, OCBC, UOB, or Maybank.

✅ Key Features:

Interest Rate: Often lower than 2.60% (both fixed and floating options available)

Loan-to-Value (LTV): Up to 75% of the property price or valuation

Downpayment: 5% cash + 20% CPF

Lock-In Period: Typically 2–3 years (depending on the package)

Flexibility: Ability to reprice (switch packages within the same bank) or refinance (switch to another bank) after the lock-in

Eligibility: More flexible; no income ceiling, but subject to Total Debt Servicing Ratio (TDSR) limits

💡 Tip: Bank loans can offer significant long-term interest savings, but require tighter financial planning.

📊 Quick Snapshot: HDB Loan vs Bank Loan Eligibility (2025)

Summary: Which Loan Should You Choose? (HDB Vs Bank Loan)

🤝 How Ace Mortgage Advisory Can Help:

Choosing between a HDB loan and a bank loan doesn’t have to be confusing.

At Ace Mortgage, we provide free side-by-side comparisons tailored to your income, CPF usage plans, and future financial goals — helping you make the best decision with complete confidence.

🟢💬 Enquire Now via WhatsApp

✅ HDB Bank Loan Eligibility Criteria

Before applying for a bank loan for your HDB flat — whether for a BTO, resale unit, or refinancing — it’s important to understand the key eligibility requirements banks consider.

Unlike HDB Concessionary Loans, which have strict citizen and income ceilings, bank loans focus more on your financial health, income stability, and debt servicing ability.

Ace Mortgage Advisory makes the eligibility process easy, helping you assess your readiness and guiding you to packages that fit your profile.

💼 Eligibility for Salaried Employees (Fixed Income Earners)

If you’re employed full-time with a regular salary, banks will usually review:

✅ Latest 3 months’ payslips and CPF contribution statements
✅ Notice of Assessment (NOA) from IRAS for income verification
✅ Employer details and confirmation of employment (where necessary)

💬 Tip: You can usually qualify for a HDB bank loan with a monthly income starting from ~$2,500, provided your total debt repayments stay within MAS guidelines.

🧾 Eligibility for Self-Employed and Variable Income Earners

If you’re self-employed, commission-based, or freelance:

✅ Last 2 years’ NOAs (Notice of Assessment) from IRAS
✅ 6–12 months’ personal and/or business bank statements
✅ Business registration documents (if applicable)

💬 Important: Banks typically discount self-employed income by 30% to account for variability — meaning only 70% of your declared income is considered.

💰 Supplementary Eligibility via Pledged or Show Funds

If your income isn’t sufficient or too variable, banks may allow you to boost your loan eligibility using:

✅ Pledged Assets: CPF, fixed deposits, or cash pledged for 48 months
✅ Show Funds: Consistent high bank balances over 6–12 months

💬 Often used by retirees, business owners with irregular earnings, or young buyers with family support.

CPF Usage
🧠 What Can Disqualify You from a HDB Bank Loan?
🚫 Excessive unsecured debts (credit cards, personal loans)
🚫 Poor credit history (e.g., missed loan repayments)
🚫 Insufficient income to pass TDSR / MSR tests
🚫 Bankruptcy record or ongoing financial litigation

🟢💬 Check My Eligibility

🔒 HDB Bank Loan Lock-In Periods & Early Repayment Penalties Explained

When taking a bank loan for your HDB flat, understanding the lock-in period and potential early repayment penalties is critical.
These terms affect how flexible you are if you choose to sell, refinance, or partially repay your loan before its maturity.

At Ace Mortgage Advisory, we ensure you’re fully aware of these terms — helping you plan your mortgage journey smartly and avoid unnecessary costs.

⏳ What Is a Lock-In Period?

A lock-in period is the minimum number of years you must stay with your chosen bank loan package without incurring penalties.

If you attempt to fully redeem, refinance to another bank, or make major changes to your loan during this period, early repayment penalties apply.

💬 Tip: Most bank loans for HDB flats have lock-in periods between 2 to 3 years, depending on whether you choose a fixed or floating package.

Typical Lock-In Periods for HDB Bank Loans

✅ Note: Some floating rate packages come with no lock-in, offering flexibility for future refinancing — useful if you expect rates to drop.

💰 What Are Early Redemption Penalties?

If you fully redeem or refinance externally during the lock-in period:

✅ Penalty is typically 1.5% of the outstanding loan amount.

📌 Example: If you have a $500,000 loan balance and redeem early →
Penalty = $500,000 × 1.5% = $7,500

Want to repay part of your loan earlier? Here’s how banks usually allow it:

✂️ Partial Prepayment Rules

✅ Advance notice (30–90 days) is usually required for partial prepayments even during lock-in.

🔁 Repricing vs Refinancing

Repricing: Switch to a new package within the same bank (often free or with minimal cost after lock-in).

Refinancing: Switch your loan to another bank (penalty applies if within lock-in period).

💬 Tip: Some banks offer one-time free repricing even during lock-in (subject to negotiation and promotion availability).

🤝 How Ace Mortgage Advisory Helps You Save
✅ We review and negotiate your lock-in clauses before application
✅ Help you secure free repricing options where possible
✅ Advise if “no lock-in” floating packages suit your future plans
✅ Plan your refinancing timeline to avoid penalty traps

📢 Important: Never break your lock-in casually!

Early repayment penalties can wipe out thousands of dollars in savings. Always consult with a mortgage advisor before making big moves.

🟢💬 Get a Personalized Lock-In Review

🏦Compare HDB Bank Loan Options Across Major Banks (2025)

Choosing the right bank for your HDB loan can make a huge difference to your long-term financial savings, flexibility, and refinancing opportunities.
While the HDB Concessionary Loan is government-backed and stable, bank loans offer more options — and better rates — for borrowers who plan carefully.

At Ace Mortgage Advisory, we help you compare offerings from all major banks so you find the one that fits your specific financial situation — without the guesswork.

🏷 Quick Comparison: HDB Bank Loan Features (2025)

📌 Note: Rates, spreads, and promotions are indicative and subject to monthly updates.

🧠 Key Factors to Consider When Comparing Banks

✅ Interest Rates:
Small rate differences (even 0.1%–0.2%) can add up to significant savings across 20–30 years.

✅ Lock-In Periods:
Most banks offer 2–3 year lock-in periods, but some flexible packages may offer no-lock-in or free repricing clauses.

✅ Repricing Options:
After the lock-in, can you easily reprice to a new package with the same bank? Some banks offer one-time free repricing.

✅ Legal Subsidies and Promotions:
Banks occasionally offer cash rebates or subsidized legal fees when you take up or refinance a home loan with them.

✅ Digital Tools & Customer Service:
Good digital platforms allow easier document submission, loan tracking, and refinancing options later.

🏆 Bank-Specific Highlights for HDB Buyers:

DBS: Strong digital platform, transparent SORA packages, fast approvals

OCBC: Eco rewards for energy-efficient HDB buyers; flexible switching options

UOB: Consistent rate stability, Go Green Home Loan cash bonuses

Maybank: Attractive promotional rates, especially for refinancers

HSBC: Great for international borrowers or buyers planning future upgrades

🤝 Why Let Ace Mortgage Handle the Comparison for You?

✅ Access to real-time rates and exclusive promotions
✅ Personalized side-by-side comparison across all banks
✅ 100% free advice — no fees, no obligations
✅ Help you avoid hidden penalties, unfavorable clauses, or poor refinancing terms

We don’t just find you a loan — we help you plan your mortgage strategy for the next 3–5 years.

🟢💬 Request a Bank Loan Comparison

📝How to Apply for a HDB Bank Loan (Step-by-Step Guide)

Applying for a HDB bank loan can feel complicated — but it doesn’t have to be.
At Ace Mortgage Advisory, we simplify the entire journey, helping you secure the best bank loan for your HDB flat with minimal stress and maximum savings.

Here’s a clear breakdown of the process to apply for a HDB bank loan in Singapore:

✅ Step 1: Speak to a Mortgage Advisor (Free Consultation)
Your journey begins with a quick WhatsApp chat, phone call, or online meeting with one of our licensed advisors.
We’ll ask you a few important questions:

✅ Are you buying a BTO, resale flat, or refinancing an existing HDB loan?
✅ What’s your monthly income and financial profile (fixed salary, self-employed)?
✅ What’s your estimated loan amount and preferred tenure?

💬 No paperwork needed at this stage — we focus on quick eligibility checks and helping you understand your best options.

✅ Step 2: Compare Bank Loan Packages
Based on your profile, we’ll recommend tailored packages from top banks like DBS, OCBC, UOB, and others.

✅ Choose between fixed-rate or floating SORA packages
✅ Compare lock-in periods, interest rates, CPF usage flexibility
✅ Understand total repayment estimates and future refinancing options

💡 You’ll receive side-by-side comparisons with no hard sell — just honest advice customized for you.

✅ Step 3: Submit In-Principle Approval (IPA) Application
Once you’ve selected the best package, we’ll assist with submitting your In-Principle Approval (IPA) — an important step that secures your borrowing capacity before you commit to any purchase.

📋 Documents Typically Required:

NRIC (front and back)

Latest 3 months’ payslips or 2 years’ NOA (for self-employed)

CPF Contribution History (via CPF portal)

Option to Purchase (OTP) if already available

Latest 6 months’ bank statements (for variable income profiles)

✅ We handle the submission process through the bank’s secure digital platforms — keeping you informed at every step.

✅ Step 4: Receive and Accept the Letter of Offer (LO)
Once the bank approves your loan:

✅ Review the Loan Letter of Offer (LO) carefully — we explain all key terms (lock-in, penalties, repricing options).
✅ Coordinate with your appointed lawyer to handle legal conveyancing matters.

📌 If you’re refinancing, we also handle coordination with your existing mortgage provider.

✅ Step 5: Loan Disbursement and Ongoing Support
After legal completion:

✅ Your bank disburses the loan amount directly to your seller or existing financier.
✅ You collect your keys (for new purchases) or enjoy savings (for refinancing cases).

💬 We continue to support you post-disbursement — advising when to reprice, refinance, or optimize your mortgage in future.

🧠 Important Tip:

✅ Get an IPA early — before signing the OTP!
✅ Compare beyond just rates — look at penalties, lock-ins, and refinancing flexibility.
✅ Always align your home loan structure with your CPF usage and long-term goals.

🤝 Why Apply Through Ace Mortgage Advisory?

✅ Fast, professional, and free mortgage comparisons
✅ Personalized advice from Singapore-licensed mortgage advisors
✅ No cost to you — we’re paid by banks, not by customers
✅ Access to exclusive promotions, legal subsidies, and preferential rates

Don’t navigate your HDB financing alone — let the experts fast-track your journey.

🟢💬 Apply for a HDB Bank Loan Now

🚀 Apply for Your HDB Bank Loan Today (Fast, Free & Hassle-Free)

Found the ideal bank loan package for your HDB flat?
Let Ace Mortgage Advisory guide you through the next steps — quickly, smoothly, and at zero cost to you.

We help you secure the best home financing options across top banks in Singapore — handling everything from rate comparison to final approval, so you can focus on moving into your dream home.

✅ Why Apply Through Ace Mortgage Advisory?

✔ Access Latest Bank Promotions:
We help you unlock preferential rates, free legal subsidies, and bank-exclusive perks that aren’t advertised to the public.

✔ Unbiased Advice Across All Banks:
We are not tied to any single bank. We provide clear, honest comparisons based purely on your financial needs and goals.

✔ No Fees, No Pressure:
Our service is completely free — we’re paid by the banks, not by you. You get professional support without any extra costs.

✔ Fast, Professional Support:
From initial consultation to IPA application, our team speeds up your journey — minimizing paperwork hassles and avoiding costly mistakes.

🗂 What You’ll Need to Get Started

Starting your application is simple. You don’t need the Option to Purchase (OTP) yet.

Here’s what we need initially:

✅ Basic personal information (age, citizenship, marital status)
✅ Income details (fixed salary, self-employed, CPF usage)
✅ Intended property type (BTO, resale flat, refinancing)
✅ Target loan amount and preferred loan tenure

💬 We’ll advise if any additional documents are needed based on your specific profile.

📞 How It Works After You Reach Out

We provide a customized comparison of the best HDB bank loans.

You select your preferred loan package.

We help submit your In-Principle Approval (IPA) application.

Upon approval, we guide you through acceptance and legal coordination.

You secure your new home confidently — at the best possible rates.

🧠 Important Reminders:

Don’t sign any OTP or Sales Agreement without an IPA.

Lock in attractive rates early — bank rates can fluctuate monthly.

Consider your CPF usage, cash flow, and refinancing flexibility.

🚀 Ready to Get Started?

Applying for a HDB bank loan doesn’t have to be stressful.
Let Singapore’s trusted mortgage specialists guide you every step of the way — for free.

🟢💬 Apply Now via WhatsApp

⏱️ Takes less than 2 minutes. No fees, no pressure — just clear, expert help.