HDB Loan Interest Rate Trends Analysis 2026 | Homejourney
The HDB concessionary loan interest rate remains fixed at 2.6% p.a. (CPF Ordinary Account rate of 2.5% plus 0.1% spread), while bank HDB loans have dropped sharply to 1.35%-1.8% in early 2026, driven by falling SORA and US Fed cuts.[1][2][3]
This HDB Loan Interest Rate Trends Analysis reveals why more HDB owners are switching to banks for savings up to S$4,100 annually on a S$500k loan. At Homejourney, we prioritize your safety with verified data and tools to compare rates securely.
Why HDB Loan Rates Matter in 2026
HDB loans offer stability at 2.6%, ideal for first-time buyers seeking predictability amid Singapore's cooling market.[3] Bank rates, however, have hit 3-year lows below HDB levels, sparking a refinancing boom—OCBC saw 7x more HDB-to-bank switches in 2025.[1]
As an HDB upgrader from Punggol to a Tengah BTO flat, I've seen families save S$500 monthly by repricing, like Ms Denise Chan's DBS switch from 3% to 1.6%.[1] Homejourney's bank-rates page tracks these shifts daily for confident decisions.
This cluster dives into trends, connecting to our pillar on HDB Loan vs Bank Loan 2026 Comparison for full financing strategies.
Current HDB vs Bank Loan Rates: Side-by-Side
HDB's fixed 2.6% contrasts with banks' packages: DBS POSB 3-year fixed at 1.55%-1.7%, OCBC 5-year fixed saving S$4,100/year on S$500k.[1][2] Floating rates pegged to 3M SORA (now ~1.34%) plus 0.25% start at 1.36%.[2][4]
| Loan Type | Rate (2026) | Lock-in | Best For |
|---|---|---|---|
| HDB Concessionary | 2.6% fixed | None | Stability |
| DBS POSB 3Y Fixed | 1.55%-1.7% | 3 years | HDB refinancing |
| OCBC Floating (3M SORA) | 1.34% + margin | Varies | Low rates now |
| UOB/HSBC Fixed | 1.35%-1.8% | 1-3 years | Short-term certainty |
Compare DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank and more side-by-side on Homejourney bank-rates. Use our calculator at https://www.homejourney.sg/bank-rates#calculator for your S$400k loan savings estimate: ~S$3,600/year.[2]
SORA Trends Driving HDB Loan Switches
SORA (Singapore Overnight Rate Average) is the key benchmark replacing SIBOR, with 3M SORA at 1.34% (Oct 2025 low, down from 3.6% in 2023).[2] Banks add a margin (e.g., 0.25%) for floating rates, now beating HDB's 2.6%.
The chart below shows recent interest rate trends in Singapore, highlighting 6-month SORA movements:
Rates fell from 3.1% (early 2025) to 1.4%-1.8%, fueled by US Fed cuts.[1] Track live 3M/6M SORA on Homejourney—insider tip: time refinancing post-MAS announcements for best deals.
Fixed vs Floating: Which for Your HDB Loan?
- Fixed Rates (e.g., DBS 1.55% 3Y): Predictable payments, 90% HDB refinancers choose this for budgeting.[2] Ideal if risk-averse, like families in Yishun HDBs.
- Floating (SORA): Lower now (1.36%), but volatile—could rise if inflation ticks up. Suits investors eyeing Homejourney property search for upgrades.
Decision framework: Assess risk tolerance—if payments can't exceed 30% income (TDSR), pick fixed. Calculate on Homejourney: S$500k loan at 1.6% fixed = S$2,400/month vs HDB's S$2,900.[1]
Refinancing caveat: Can't revert to HDB loan; factor legal fees (S$2k-3k).[1] Homejourney verifies eligibility instantly via Singpass.
Actionable Steps for HDB Loan Optimization
- Check Lock-in End: If ending 2026, reprice now—DBS/OCBC offer no-penalty options.[1]
- Compare on Homejourney: Visit https://www.homejourney.sg/bank-rates for DBS, OCBC, UOB rates + S$2k rebates.
- Run Calculator: Input income at mortgage calculator—apply via Singpass for multi-bank offers.
- Consult Brokers: Homejourney connects you safely, no hard sells.
- Protect Loan: Pair with HPS—see Home Protection Scheme Guide.
2026 outlook: Modest further drops possible, but act now before lock-ins end.[2] For docs, check HDB Loan Documents Checklist.
FAQ: HDB Loan Interest Rate Trends
Is HDB loan rate still 2.6% in 2026?
Yes, fixed at 2.6% (CPF OA +0.1%), stable but higher than banks' 1.35%-1.8%.[1][3]
Should I switch from HDB to bank loan?
If rates stay low, yes—save S$3,600/year on S$400k, but no HDB revert. Use Homejourney calculator.[2]
What is 3M SORA now?
~1.34% (late 2025), track live on Homejourney.[2]
Fixed or floating for HDB?
Fixed for certainty (90% choose it); floating if optimistic on rates.[2]
How to apply safely?
Via Homejourney's Singpass-integrated page—submit once, get offers from all partners securely.
Disclaimer: Rates fluctuate; not financial advice. Consult professionals. Homejourney verifies data for your trust.
Ready for HDB Loan Interest Rate Trends Analysis action? Start at Homejourney bank-rates and explore properties at property search. Link back to our pillar for full HDB vs Bank guide.
