HDB Loan vs Bank Loan 2027 Calculator
Choosing between an HDB concessionary loan at 2.6% and a Singapore bank home loan at around 3.0–3.5% in 2027 is one of the biggest financial decisions a flat buyer makes. This calculator shows you monthly instalments, total lifetime interest, total cash outlay (including CPF accrued interest forfeited), and the breakeven point at which one option becomes cheaper than the other.
Min 20% for bank loan, 25% for HDB.
Max 25 (HDB) or 30 (bank).
2.6% = CPF OA rate + 0.1%. Pegged.
Typical 2027 fixed 3yr SORA-pegged.
CPF OA accrued at 2.5% = lost growth.
How HDB and Bank Loans Differ in 2027
HDB concessionary loans are funded by the Singapore government and priced at the CPF Ordinary Account interest rate plus 0.1% — which equals 2.6% per annum in 2027 because the OA rate is fixed at 2.5%. The rate is reviewed quarterly but has barely moved in 20 years. Bank home loans in 2027 are typically SORA-pegged with a margin of 0.6–1.0%; the 3-month SORA hovers around 2.5%, putting effective bank rates between 3.0% and 3.5%. Last updated: 2026-05-18. Source: HDB, MAS SORA data, IRAS.
Worked Example — SGD $400,000 Loan Over 25 Years
For a SGD $400,000 loan repaid over 25 years: HDB at 2.6% costs SGD $1,815/month (total interest SGD $144,500). Bank at 3.0% costs SGD $1,897/month (total interest SGD $169,100). Bank loan adds SGD $24,600 in lifetime interest. However, the bank loan allows you to keep more in CPF OA earning 2.5% guaranteed, partially offsetting the gap. If you pay 80% of instalments from CPF OA, the accrued interest forfeited on HDB loan is SGD $115,400 versus SGD $120,800 on the bank loan — a smaller differentiator than the headline rate suggests.
When the Bank Loan Wins
Banks beat HDB when: (1) Rates drop to 1.5–2.0% as in 2020. (2) You take a long 30-year tenor (HDB caps at 25 years for resale). (3) You have surplus cash and use partial cash payment to reduce CPF forfeiture. (4) You want refinancing flexibility — bank loans can be refinanced every 3 years for a better deal. (5) Your IPA only qualifies via bank credit assessment. The trade-off: bank loans carry interest rate risk that HDB loans do not.
When the HDB Loan Wins
HDB beats banks when: (1) Rates are above 3.5% — current 2027 environment makes HDB cheaper by SGD $20K–$40K over 25 years. (2) You want rate certainty for life. (3) You meet the SGD $14,000/month household income ceiling for HDB loan eligibility. (4) You have no down payment surplus — HDB requires only 20% (5% cash + 15% CPF or cash) for 2027 buyers, versus banks requiring full 25% in cash + CPF. (5) You want zero refinancing hassle. HDB loans cannot be refinanced once taken; bank loans can switch back to HDB only via specific MND scheme channels.