What are the differences between an HDB loan and a bank loan

Question

hdb vs bank loan

Accepted Answer

CategoryHDB LoanBank LoanDownpaymentSmaller downpayment at 20%. Downpayment can be covered by a combination of cash and CPF OAHigher downpayment at 25% and 5% must be paid in cashInterest RatesFixed at 0.1% above CPF rate. Current HDB loan rate is at 2.6%Variable, depends on marketEligibilityIncome ceiling of S$14,000 (S$21,000 for extended families). Can take loan up to 2 times. Requires at least 1 SC buyerNo income ceiling, no loan number limit, available to anyone eligible to buy a HDB flat, including PR households for resale marketLoan TenureLoan tenure capped at 25 yearsMaximum loan tenure of 30 yearsRefinancingCan refinance to bank loanCannot refinance to HDB loanEarly RepaymentNo penalty on early repaymentPenalty applies on early repayment

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

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What are the differences between an HDB loan and a bank loan