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Comparison between HDB loan and bank loan
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| Category | HDB Loan | Bank Loan |
|---|---|---|
| Downpayment | Smaller downpayment at 20%. Downpayment can be covered by a combination of cash and CPF OA | Higher downpayment at 25% and 5% must be paid in cash |
| Interest Rates | Fixed at 0.1% above CPF rate. Current HDB loan rate is at 2.6% | Variable, depends on market |
| Eligibility | Income ceiling of S$14,000 (S$21,000 for extended families). Can take loan up to 2 times. Requires at least 1 SC buyer | No income ceiling, no loan number limit, available to anyone eligible to buy a HDB flat, including PR households for resale market |
| Loan Tenure | Loan tenure capped at 25 years | Maximum loan tenure of 30 years |
| Refinancing | Can refinance to bank loan | Cannot refinance to HDB loan |
| Early Repayment | No penalty on early repayment | Penalty applies on early repayment |