HDB Housing Loan
What is an HDB housing loan?
An HDB housing loan is a loan from HDB to buy an HDB flat, at a concessionary interest rate pegged 0.1 percentage point above the CPF Ordinary Account rate (2.6% a year when the OA rate is 2.5%). It covers up to 75% of the price or value, for up to 25 years, and is open to eligible households with at least one Singapore citizen.
Key facts
- Interest rate
- 0.1 percentage point above the CPF OA rate, reviewed quarterly (2.6% with the OA at 2.5%)
- Loan-to-value limit
- Up to 75% of the price (new flats) or the lower of price and value (resale), since 20 August 2024
- Maximum tenure
- Shortest of 25 years, 65 minus the applicants' average age, or remaining lease minus 20 years
- Income ceiling
- $16,000 a month for families; $24,000 for extended families; $8,000 for singles
- Rate used to assess how much you can borrow
- The higher of a 3.0% floor and the prevailing HDB loan rate
- Refinancing
- You can move from an HDB loan to a bank loan, but not back
As of 6 Nov 2026. Source: HDB, MND, MoneySense, CPF Board.
How an HDB loan works
You apply for the loan through your HFE letter, which tells you upfront how much HDB will lend. HDB looks at your age, income, job stability and existing debts, and assesses the loan at the higher of a 3.0% interest rate floor and its actual rate, so you don’t borrow beyond your means.
| Feature | HDB loan | Bank loan |
|---|---|---|
| Interest rate | OA rate + 0.1 point (2.6% now) | Fixed or floating, set by the bank |
| Loan-to-value limit | Up to 75% | Up to 75% for a first loan |
| Maximum tenure | 25 years | Up to 30 years for HDB flats |
| Debt limit | Mortgage Servicing Ratio of 30% | MSR of 30% and TDSR of 55% |
| Switch later? | Can refinance to a bank | Can’t refinance to HDB |
Example
A couple, both 35, buy a $500,000 flat and borrow 75% from HDB over 25 years.
| Item | Amount |
|---|---|
| Loan (75%) | $375,000 |
| Monthly repayment at 2.6% | $1,701.26 |
| Repayment HDB uses to assess you, at the 3.0% floor | $1,778.29 |
| Minimum household income at a 30% MSR | About $5,928 a month |
Common mistakes
- Refinancing to a bank without thinking ahead. You can’t return to an HDB loan.
- Counting on the actual rate for affordability. HDB assesses at 3.0% or higher.
- Ignoring the remaining lease. An older flat can mean a shorter tenure and a lower loan.
Frequently asked questions
Who can take an HDB loan?
At least one applicant must be a Singapore citizen, the household must be within the income ceiling, the core family must not have taken two or more HDB loans, and no one listed can own or have disposed of private residential property in the 30 months before the HFE letter application.
How much can I borrow?
Up to 75% of the price or value, subject to your finances and the Mortgage Servicing Ratio. If the remaining lease can't cover the youngest applicant to age 95, the limit is pro-rated down from 75%.
Is an HDB loan cheaper than a bank loan?
It depends on market rates. The HDB rate moves only with the CPF OA rate, which has a legal minimum of 2.5%, so it stays at 2.6% or more. Bank rates move with the market and can be higher or lower.
What happens if I buy before selling my current flat?
HDB charges a commercial interest rate on the new loan until you sell the existing flat within 6 months of completing the purchase and use the CPF refund and up to 50% of the cash proceeds to pay down the new loan.
Related terms
Sources
Every figure on this page was checked against the official government sources above on 6 Nov 2026. See our editorial policy.
This is general information, not financial, legal or tax advice.