HDB Loan Interest Rate Trends Analysis 2026 | Homejourney
HDB loan interest rates remain fixed at 2.6% p.a. (CPF Ordinary Account rate + 0.1%), while bank loans have dropped to 3-year lows of 1.4%-1.8%, making refinancing attractive for HDB owners.[1][2][3]
This cluster on HDB Loan Interest Rate Trends Analysis dives into 2026 trends, helping you decide on switch HDB to bank loan, refinance HDB loan, or HDB loan to bank. For comprehensive HDB financing, see our pillar guide: HDB Loan vs Bank Loan 2026 Comparison | Homejourney . Homejourney prioritizes your safety with verified data and transparent tools.
Current HDB vs Bank Loan Rates in 2026
The HDB concessionary loan holds steady at 2.6% p.a., offering stability but now higher than competitive bank packages.[3] Bank fixed rates start at 1.35%-1.78% for Year 1 (loans over S$500k), with floating rates at 1M SORA + 0.25% (~1.36%).[5] DBS POSB offers 1.55%-1.60% for 3-year fixed HDB loans, no early repayment penalty.[1][6]
OCBC reports 7x increase in HDB-to-bank switches in 2025's first 11 months; DBS saw 13x uptake for POSB HDB loans.[1][2] For a S$500k loan, switching to OCBC's 5-year fixed saves ~S$4,100 yearly.[1]
Key Rate Comparison Table
| Loan Type | Rate (2026) | Example Savings (S$500k Loan) |
|---|---|---|
| HDB Concessionary | 2.6% fixed | - |
| DBS POSB 3Y Fixed | 1.55%-1.70% | ~S$3,600/yr[2] |
| OCBC 5Y Fixed | 1.4%-1.8% | ~S$4,100/yr[1] |
| Floating (1M SORA +0.25%) | ~1.36% | Varies |
Note: Rates for loans >S$1M often lower; conditions apply. Track live rates on Homejourney's bank rates page.
HDB Loan Interest Rate Trends: Sharp Decline in 2025-2026
From 3.1% fixed at 2025 start, rates halved to 1.4%-1.8% by late 2025, driven by US Fed cuts and low 3M SORA (~1.34%).[1][2] 3M SORA fell from >3.6% in 2023 to <1.4% recently.[2] Expect modest further drops in 2026 if Fed cuts continue, but bulk decline done.[2]
The chart below shows recent HDB loan interest rate trends analysis via SORA and fixed rates:
Rates hit 3-year lows; HDB's 2.6% now lags banks.[1][2] Homejourney updates SORA daily—visit https://www.homejourney.sg/bank-rates for real-time tracking.
SORA Deep Dive: Impact on HDB Refinancing
SORA (Singapore Overnight Rate Average) is the key benchmark for floating bank loans post-SIBOR.[2] 3M SORA at 1.34% enables low floating rates (SORA + spread 0.25%-0.5%).[5] Fixed rates (1-5Y) offer certainty, preferred by 90% of refinancing HDB owners.[2]
- 3M vs 6M SORA: 3M more volatile but responsive; 6M smoother for budgeting.
- Example: S$400k loan at 1.6% fixed (vs 2.6% HDB) saves S$500/month.[1]
Insider tip: For Tengah or Punggol HDB upgraders, time refinance HDB loan post-lock-in to capture lows. Use Homejourney's mortgage calculator.
Fixed vs Floating: Which for Your HDB Loan?
Fixed: Stable payments (e.g., DBS 1.6% 2Y), ideal for first-time buyers.[1] Pros: Predictability. Cons: Reverts higher post-lock-in.
Floating (SORA-based): Lower now (~1.36%), but rises with rates. Suits risk-tolerant investors.[2]
90% HDB refinancers pick fixed for budgeting ease.[2] Assess risk: Conservative? Fixed. Optimistic on rates? Floating.
Should You Switch HDB to Bank Loan in 2026?
Yes, if out of lock-in: Banks beat 2.6% with rebates (S$2k-S$2.8k).[5] But irreversible—no HDB loan return.[1] Costs: Legal fees ~S$2k-S$3k, valuation S$500.
- Check lock-in end (HDB loans have none, but confirm).
- Compare on Homejourney bank rates (DBS, OCBC, UOB, HSBC, etc.).
- Calculate savings with our tool.
- Apply via Singpass—one form, multi-bank offers.
- Consult Homejourney brokers for free guidance.
Read: Switch from HDB Loan to Bank Loan: Should You Do It in 2026? . For docs, see HDB Loan Documents Checklist 2026 | Homejourney Guide .
Disclaimer: Not financial advice. Rates change; verify eligibility. Homejourney verifies data for your safety.
Actionable Decision Framework
1. Risk Tolerance: Low? Fixed bank loan.
2. Loan Size: >S$1M gets best rates.[5]
3. Outlook: Rates may stabilize mid-2026.[2]
4. Costs: Offset by S$3k+ savings.
Search HDB flats in budget: Homejourney property search. Pair with How to Use CPF for HDB Down Payment: Homejourney 2026 Guide .
FAQ: HDB Loan Interest Rate Trends Analysis
What is the current HDB loan rate in 2026?
Fixed at 2.6% p.a. (CPF OA +0.1%). Banks offer 1.4%-1.8%.[1][3]
Is now a good time to refinance HDB loan?
Yes, with bank rates at lows and rebates. Savings up to S$4k/year, but irreversible.[1][2]
How does SORA affect HDB loan to bank switch?
Floating rates pegged to SORA (~1.34%) + spread beat 2.6%.[2]
Can I change HDB loan to bank and back?
No, switching to bank is permanent.[1]
How to compare rates safely?
Use Homejourney's verified bank rates for DBS, OCBC, UOB+.
Master HDB Loan Interest Rate Trends Analysis with Homejourney—your trusted partner. Compare rates now, calculate affordability, and apply securely via Singpass. For full HDB vs bank comparison, visit our pillar: HDB Loan vs Bank Loan 2026 Comparison | Homejourney .
