HDB Loan Interest Rate Trends Analysis 2026 | Homejourney

HDB loan interest rates remain steady at 2.6% p.a., pegged 0.1% above the CPF Ordinary Account rate, while bank loans have dropped to 1.4%-1.8% as of late 2025, making refinancing attractive for HDB upgraders.[2][5][6]

This HDB Loan Interest Rate Trends Analysis provides actionable insights for first-time buyers, refinancers, and those planning to sell HDB buy private or HDB to private property upgrades. As part of Homejourney's comprehensive pillar guide on Singapore home financing, it equips you with data-driven decisions in a trusted, transparent environment.

Understanding HDB Concessionary Loan Rates

The HDB concessionary loan rate is fixed at 2.6% p.a., calculated as 0.1% above the CPF OA rate of 2.5%, unchanged since 2015 despite market shifts.[2][5] This stability suits risk-averse buyers, especially first-timers purchasing BTO flats in areas like Punggol or Tengah.

Unlike fluctuating bank rates, HDB loans offer predictability—no surprises in monthly payments. However, from August 2024, the Loan-to-Value (LTV) limit dropped to 75%, requiring a 25% downpayment via CPF or cash.[2]

Homejourney verifies these rates daily, ensuring you access accurate data for safe planning. Check our bank rates page for real-time comparisons.

Bank Loan Rates Surge Below HDB in 2025-2026

Bank loans for HDB properties hit 3-year lows by late 2025: POSB offers 1.55% fixed for 3 years, DBS around 1.5%-1.78%, and others like OCBC, UOB from 1.35%-1.8%.[3][4][6][7] Hong Leong Finance provides fixed rates starting at 1.85% for Years 1-3, then HHR-3.50% (HHR at 7.00%).[1]

These rates apply to loans above S$500k-$1M, with cash rebates up to S$2,800 for refinancing.[3] For upgrade financing like selling flat buying condo, banks now undercut HDB's 2.6%, prompting more HDB owners to refinance.[4][6]

POSB HDB loans saw 13x uptake in late 2025 due to no early repayment penalties.[4] Compare DBS, OCBC, UOC, HSBC, Standard Chartered, Maybank, and more side-by-side on Homejourney.

SORA Trends and Impact on Floating Rates

SORA (Singapore Overnight Rate Average) replaced SIBOR by end-2024, with 3M Compounded SORA at ~3.2% mid-2025, but bank packages add low spreads like 1M SORA +0.25% (~1.36%).[2][3]

Floating rates offer flexibility but rise with SORA hikes; fixed rates lock in savings now. For HDB upgraders, track 3M vs 6M SORA on Homejourney's bank rates page, updated daily.

The chart below shows recent interest rate trends in Singapore, highlighting HDB's steady 2.6% against falling bank rates:

As seen, bank rates halved from 3.1% early 2025 to 1.4%-1.8%, per CNA and ST reports.[4][6] This trend favors refinancing before potential US Fed cuts push SORA lower.

Fixed vs Floating: Comparison Table for HDB Buyers

Aspect	Fixed Rate	Floating (SORA)
Current Rate (2026)	1.35%-1.85% (1-3 yrs)[1][3]	1.36%-2.45%[2][3]
Stability	High (locked periods)	Variable
Best For	Risk-averse upgraders	Short-term, optimistic on cuts
Risk	Reverts higher post-lock-in	SORA volatility

First-timers: Choose fixed for peace of mind. Upgraders selling HDB for condos: Floating if expecting rate drops. Use Homejourney's mortgage calculator to model scenarios.

Actionable Steps for HDB Loan Decisions

Assess Eligibility: Check LTV (75% max for HDB), income via Homejourney calculator.
Compare Rates: Visit https://www.homejourney.sg/bank-rates for DBS, UOB, etc.
Refinance if Eligible: HDB owners switching save ~1% vs 2.6%; note no HDB loan return.[4]
Upgrade Planning: For HDB to private property, read our Selling HDB & Buying Private guide and Buy First or Sell First.
Apply Safely: Use Singpass on Homejourney—submit once, get offers from partners like HSBC, Maybank.

Insider tip: Time refinancing post-TOP for BUC loans, as initial drawdowns are low-interest. Always consult professionals; rates change.[1][3]

Economic Outlook and Predictions

With US Fed cuts expected, bank rates may dip further in 2026, widening the gap vs HDB's 2.6%.[2][4] Yet, volatility persists—SORA could rebound on inflation. Homejourney prioritizes your safety with verified data.

For sell HDB buy private, factor resale proceeds into downpayments. Link to property search for condos in your budget.

FAQ: HDB Loan Interest Rate Trends

Is HDB loan still 2.6% in 2026?
Yes, pegged at CPF OA +0.1%, steady at 2.6% p.a. per CPF Board.[5]

Should I refinance HDB to bank loan?
If rates stay below 2.6%, yes for savings, but note no HDB return and volatility. Use Homejourney tools.[4][6]

How does SORA affect my HDB bank loan?
Floating packages track SORA + spread; track live on Homejourney.[2]

Best for HDB to private upgrade financing?
Bank fixed rates now; see our HDB vs Bank Loan guide.

Disclaimer: This is not financial advice. Rates as of Dec 2025; verify with HDB/MAS. Homejourney verifies data for trust.

Ready for your HDB Loan Interest Rate Trends Analysis? Start with Homejourney's bank rates for comparisons, calculators, and Singpass applications. Explore our pillar guide on Singapore home loans for full coverage—your safe path to property success.