HDB Loan Interest Rate Trends 2026: Homejourney Analysis
The HDB concessionary loan maintains a fixed interest rate of 2.6% p.a., pegged at 0.1% above the CPF Ordinary Account rate, offering stability amid market fluctuations.[5][1] However, in 2026, bank loans for HDB flats have dropped to 1.4%-1.8%, making refinancing attractive for eligible owners.[1][3] This HDB loan interest rate trends analysis from Homejourney helps buyers and upgraders decide between HDB loans and competitive bank options.
At Homejourney, we prioritize your financial safety with verified data and tools like our bank rates comparison, where you can track live rates from DBS, OCBC, UOB, and more. This cluster focuses on rate trends, linking back to our pillar guide on HDB financing options for comprehensive insights. See related: HDB Loan vs Bank Loan 2026: Which Financing Option Saves You More? ">HDB Loan vs Bank Loan 2026.[2]
Current HDB Loan Interest Rate: Fixed at 2.6%
The HDB loan rate is concessionary and fixed at 2.6% p.a., calculated as CPF OA rate (2.5%) plus 0.1% spread, providing predictable payments.[1][5] This rate hasn't changed despite global shifts, appealing to risk-averse first-time buyers who value stability over potential savings.[2] Unlike bank loans tied to SORA, HDB's rate shields you from volatility but now lags behind bank offers at 1.55%-1.7%.[3][8]
For context, on a S$400,000 loan over 25 years, HDB's 2.6% means about S$1,900 monthly, versus S$1,600 on a 1.6% bank loan—saving S$300 monthly or S$90,000 over the term.[3] Homejourney's mortgage calculator lets you crunch these numbers instantly.
HDB Loan Interest Rate Trends: Sharp Bank Loan Decline
Bank HDB loan rates started 2025 at 3.1% fixed but fell to 1.4%-1.8% by late 2025, driven by US Fed cuts and low SORA (now ~1.34% for 3M).[1][3] HDB's 2.6% remains unchanged, creating a rare gap where banks undercut HDB—POSB offers 1.55%-1.7% fixed for 3 years with no early repayment penalty.[3][8] Refinancing from HDB to banks surged: OCBC saw 60%+ growth in HDB switches.[3]
The chart below shows recent interest rate trends in Singapore, highlighting SORA drops and bank package movements over the past 6 months:
As visible, 3M SORA hit 3-year lows below 1.4%, pushing bank margins lower. Expect modest further drops in 2026 if Fed cuts continue, but bulk decline occurred.[3] Track live 3M/6M SORA on Homejourney's bank-rates page.
HDB Loan Eligibility: Who Can Get HDB Loan?
HDB loan eligibility requires Singapore citizenship for at least one applicant, household income under S$14,000 monthly (public officers up to S$16,000), and no prior HDB loan usage unless minimum occupation period met.[5] First-timers get 90% LTV (10% downpayment: 5% cash/CPF upfront, 5% within 3 months); second-timers 80% LTV.[2] Check full HDB loan requirements and HDB concessionary loan criteria via HDB InfoWEB.
- Key Criteria: SC/PR household, no property ownership in last 30 months (first-timer), TDSR <60%.[2]
- Income Ceiling: S$14,000 (family/single), assessed via latest Notice of Assessment.
- Downpayment: 10-25% via CPF/cash; no bank loan if taking HDB.
Once you take a bank loan for HDB, you can't revert to HDB financing—critical for refinancing decisions.[1][3] Use Homejourney's eligibility tools for a safe assessment. Related: HDB Loan Eligibility 2026: Who Qualifies & How Much | Homejourney ">HDB Loan Eligibility 2026.
Fixed vs Floating: Analysis for HDB Borrowers
| Feature | HDB Fixed 2.6% | Bank Fixed (1.6% 2-3yr) | Bank Floating (SORA+) |
|---|---|---|---|
| Rate Stability | High (Lifetime) | Medium (Lock-in ends) | Low (Market-linked) |
| Current Rate | 2.6% | 1.55-1.8% | 1.34%+0.2-0.5% (~1.6%) |
| Best For | Risk-averse | Short-term savings | Rate fall expectation |
| Risks | Miss lower rates | Reprice hikes | Rate rises |
Fixed suits budgeting; 90% HDB refinancers chose it for certainty.[3] Floating (SORA-pegged) risks volatility but offers flexibility—ideal if you predict stability.[1] Assess your risk: Conservative? Stick HDB or short fixed. Aggressive? Floating now. Homejourney compares DBS (1.6%), OCBC, UOB packages side-by-side.
Actionable Steps: Should You Switch from HDB Loan?
- Check Lock-in: Refinance only post-lock-in to avoid penalties.
- Calculate Savings: Use Homejourney calculator—S$400k loan saves S$3,600/year at 1.6% vs 2.6%.[3]
- Compare Banks: DBS/POSB 1.55-1.7%, rebates S$2k+.[6][8]
- Apply via Singpass: One form on Homejourney gets offers from all partners (HSBC, Maybank, CIMB).
- Weigh Irreversibility: No HDB revertal; factor legal fees (~S$2k).[1]
Insider tip: Time repricing end-2026 when 2023 loans unlock—rates may hold low.[3] Search budget-fit HDBs on Homejourney property search.
FAQ: HDB Loan Interest Rate Trends
What is the current HDB loan interest rate?
The fixed concessionary rate is 2.6% p.a., stable since pegged to CPF OA +0.1%.[5]
Who can get HDB loan in 2026?
Singaporean households earning <S$14k/month, meeting LTV/TDSR; first-timers preferred.[2]
Are bank loans better than HDB now?
Yes, at 1.4-1.8% vs 2.6%, but irreversible switch—use Homejourney to compare.[1][3]
What are HDB loan requirements?
SC applicant, income proof, 10-25% downpayment; full checklist on HDB site.[5]
How does SORA affect HDB loans?
HDB unaffected (fixed); banks use 3M SORA (~1.34%) + margin for floating rates.[3]
Disclaimer: Rates fluctuate; Homejourney provides tools, not financial advice. Consult professionals. Data as of Feb 2026 from HDB/MAS sources.
Ready to save? Visit Homejourney bank-rates for live comparisons, calculators, and Singpass applications. Link back to our HDB financing pillar for full coverage—trust Homejourney for safe, verified property decisions.
