HDB Loan Interest Rate Trends Analysis 2026 | Homejourney
The HDB concessionary loan rate remains fixed at 2.6% p.a. (0.1% above CPF Ordinary Account rate), but bank loans have dropped below this level in 2026, with floating rates around 1.34%-1.7% and fixed options from 1.55%-1.7% p.a., making banks more attractive for many buyers.
Homejourney prioritizes your safety by verifying rates daily and offering transparent comparisons from DBS, OCBC, UOB, and more. This cluster dives into HDB loan interest rate trends analysis, linking back to our pillar guide on HDB financing options for comprehensive coverage.
Current HDB Loan Interest Rate: The Fixed 2.6% Benchmark
The HDB concessionary rate is pegged at 2.5% CPF OA rate + 0.1%, holding steady at 2.6% p.a. regardless of market fluctuations. This provides stability for risk-averse first-time buyers, with an 80% loan-to-value (LTV) ratio and lower cash downpayment requirements (as low as 5% cash if using CPF).
Unlike volatile bank rates, the HDB rate offers predictability—no surprises in monthly payments. However, as of late 2025 into 2026, this stability comes at a cost: banks now offer lower rates, prompting more HDB owners to refinance.
At Homejourney, track these rates securely on our bank rates page, where we compare HDB vs bank options side-by-side for your peace of mind.
HDB vs Bank Loan Rates: 2026 Snapshot
Bank loans have surged in popularity for HDB flats, with rates now undercutting HDB's 2.6%. For example, POSB (DBS) offers a 3-year fixed rate at 1.55%-1.7% p.a. with no early repayment penalty, saving ~S$3,600 yearly on a S$400,000 loan. UOB's promotional SORA package starts at 3M Compounded SORA + 0.70% (around 2.0% effective in early 2026).
Floating bank rates tied to SORA have hit 3-year lows: 3M SORA at ~1.34% p.a., plus bank margins of 0.25%-1.0%. Fixed options from OCBC, UOB, and DBS range 1.6%-1.8% for 2-3 years.
| Loan Type | Rate (2026) | LTV | Key Perk |
|---|---|---|---|
| HDB Concessionary | 2.6% fixed | 80% | Stable, CPF-friendly |
| Bank Floating (SORA) | 1.34% + margin (~1.6-2.0%) | 75% | Lower now, cash rebates |
| Bank Fixed (2-3 yrs) | 1.55%-1.7% | 75% | No penalty options |
Note: Rates from DBS/POSB, UOB; subject to profile. Once you switch to bank, no return to HDB loans. See our full HDB vs bank loan rates comparison.
SORA Trends Driving Bank Loan Appeal
SORA (Singapore Overnight Rate Average) is the key benchmark for floating bank loans, replacing older rates like SIBOR. 3M Compounded SORA fell from over 3.6% in 2023 to 1.34% by late 2025, pushing effective rates below HDB's 2.6%.
Projections for 2026: SORA may stabilize at 1.3%-1.4% if US Fed cuts continue and SGD stays strong. Banks like DBS, OCBC, UOB add margins (0.7%-1.0%), but promotions keep totals low.
The chart below shows recent interest rate trends in Singapore, highlighting how SORA and HDB rates compare over the past 6 months:
As seen, bank floating rates dipped sharply, outpacing HDB's flat line—ideal for refinancing now. Homejourney updates live 3M/6M SORA daily on our bank rates page.
Fixed vs Floating: Which is Better in 2026 Trends?
- Fixed Rates: Lock in 1.55%-1.7% for 2-3 years (e.g., DBS 1.6%, UOB fixed tranches). Best for risk-averse buyers expecting rises.
- Floating (SORA): Currently ~1.6% effective, but volatile. Suits those with buffers, as rates could rebound mid-2026.
Homeowners ending 2022-2023 lock-ins (3-4%) are repricing to save S$500/month. Refinancing from HDB to banks rose 35-40% YoY in 2025, per brokers.
Decision framework: Assess risk tolerance—if stable income, floating saves more now; if cautious, fixed or HDB. Use Homejourney's mortgage calculator for personalized scenarios.
Actionable Steps for HDB Loan Decisions
- Check Eligibility: Use Homejourney's calculator at bank-rates#calculator with TDSR (60% debt cap).
- Compare Rates: View DBS, OCBC, UOB, HSBC, etc., on . Submit one Singpass app for multi-bank offers.
- Time Refinancing: Act before mid-2026 moderation; factor fees (S$2-3k rebates offset).
- Explore Properties: Search budget-matched HDB flats on Homejourney search.
- Related Reads: HDB Loan vs Bank Loan 2026 Comparison | Homejourney ">HDB Loan vs Bank Loan 2026 | HDB Loan vs Bank Loan Rates 2026: Full Comparison | Homejourney ">Rates Comparison.
Disclaimer: Rates fluctuate; consult Homejourney brokers or advisors. Not financial advice.
FAQ: HDB Loan Interest Rate Trends
Is bank loan better than HDB's 2.6% rate now?
Yes, in 2026—banks at 1.55%-1.7% save significantly, but can't revert to HDB later.
What is the HDB concessionary rate formula?
CPF OA (2.5%) + 0.1% = 2.6% fixed.
Will SORA rates rise in 2026?
Possible stabilization at 1.3%-1.4%; monitor via Homejourney.
How to switch from HDB to bank loan?
Reprice at lock-in end; use Homejourney's multi-bank app for offers.
Where to compare HDB vs bank loan rate?
Trust Homejourney's verified bank-rates page.
Ready for HDB loan interest rate trends analysis in action? Visit Homejourney bank rates to compare, calculate, and apply securely today. Link back to our HDB financing pillar for full details.
