HDB Loan Interest Rate Trends Analysis
In 2026, HDB loan interest rates remain fixed at 2.6% p.a. (CPF Ordinary Account rate of 2.5% plus 0.1% spread), while bank loans have fallen sharply to 1.4%-1.8% p.a., making refinancing or switching attractive for HDB owners, especially upgraders.
Homejourney prioritizes your safety by verifying live rates daily, helping you make confident decisions in a trusted environment. This cluster on HDB Loan Interest Rate Trends Analysis supports our pillar guide on HDB upgrader mortgages, providing tactical insights for your HDB upgrade guide.
Current HDB vs Bank Loan Rates in 2026
The HDB concessionary loan holds steady at 2.6% p.a., offering stability with an 80% Loan-to-Value (LTV) ratio and lower downpayment requirements (10%, payable in cash and CPF).
Bank loans, however, have plummeted due to US Federal Reserve cuts and falling SORA benchmarks. As of early 2026, fixed-rate packages from DBS, OCBC, and UOB start at 1.55%-1.7% for 2-3 year lock-ins, with floating rates pegged to 3-month SORA at around 1.34%-1.4% plus bank margins of 0.2%-0.5%.
For a S$500,000 loan, switching from HDB to a bank loan like OCBC's could save up to S$4,100 annually. POSB (DBS) offers HDB-specific loans at 1.60% p.a., with no early repayment penalties—saving S$3,000+ yearly on a S$400,000 loan.
Visualizing HDB Loan Interest Rate Trends
The chart below tracks recent SORA and fixed-rate trends, showing the sharp decline from 3.1% in early 2025 to current lows—key for your HDB to condo financing plans.
As seen, 3-month SORA hit 1.34%—its lowest in three years—driving bank rates below HDB's 2.6%. Track live 3M and 6M SORA updates on Homejourney's bank rates page.
SORA Deep Dive: Impact on HDB Upgrader Mortgages
SORA (Singapore Overnight Rate Average) is Singapore's key benchmark, replacing older rates like SIBOR. 3-month compounded SORA is most common for floating loans, currently at 1.34%-1.4%, expected to hover there through 2026.
Banks add a margin (e.g., SORA + 0.25%-0.5%), yielding effective rates of 1.6%-1.9%. For HDB upgrader mortgage seekers upgrading from HDB to private property, this beats HDB's fixed 2.6%—but note you can't revert to HDB loans after switching.
Insider tip: HDB owners in mature estates like Toa Payoh or Ang Mo Kio, with sale proceeds ready, can leverage low rates now. Use Homejourney's mortgage calculator at https://www.homejourney.sg/bank-rates#calculator to model payments.
Fixed vs Floating Rates: Comparison Table
Choose based on risk tolerance. Fixed rates lock in certainty; floating follows SORA for potential savings.
| Feature | Fixed Rate (e.g., DBS 2-Year @1.6%) | Floating (SORA + Margin) |
|---|---|---|
| Current Rate | 1.55%-1.8% | 1.6%-1.9% |
| Pros | Predictable payments; ideal for upgraders budgeting upgrade property loan | Lower initial rates; free conversion options after 1-3 years |
| Cons | Higher post-lock-in; refinancing fees | Rate volatility; suits low-risk tolerant |
| Best For | Risk-averse families upgrading from HDB | Investors timing low SORA |
Homejourney compares rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank side-by-side—submit one Singpass application for personalized offers.
Actionable Decision Framework for HDB Upgraders
- Assess Eligibility: Check TDSR (60% debt cap) and MSR (30% for HDB) using Homejourney's calculator. Link sale proceeds via https://www.homejourney.sg/search for budget-matched properties.
- Compare Rates: Visit Homejourney bank rates for real-time quotes. HDB switchers saw 13x uptake at DBS in late 2025.
- Timing: Refinance at lock-in end to avoid fees. Bulk of 2023-2024 loans refinanced; mid-2026 activity may slow.
- Risk Check: Conservative? Stick to HDB or 3-year fixed. Optimistic on rates? Go SORA floating.
- Apply Safely: Use Singpass on Homejourney for instant verification—no paperwork hassles.
Read our HDB Loan vs Bank Loan 2026: Which Financing Option Suits You Better? ">HDB Loan vs Bank Loan 2026 comparison and HDB Upgrader Mortgage Guide: Complete Singapore Financing ">HDB Upgrader Mortgage Guide for deeper insights.
Disclaimer: Rates fluctuate; consult Homejourney mortgage brokers for personalized advice. Homejourney verifies data for your security.
FAQ: HDB Loan Interest Rate Trends
Is now a good time to switch from HDB loan to bank loan?
Yes, with bank rates at 1.55%-1.8% vs HDB's 2.6%, but you can't revert. Savings: S$3,600+ yearly on S$400k loan. Compare on Homejourney.
What is 3M SORA and how does it affect my HDB upgrader mortgage?
3-month SORA is ~1.34%; banks add 0.2%-0.5%. Falling SORA lowers payments—track on Homejourney.
Fixed or floating for upgrade from HDB to condo?
Fixed for stability (e.g., 1.6% lock-in); floating for savings if rates stay low. Use our table above.
Can I refinance HDB loan multiple times?
Yes with banks, but check fees. Homejourney's multi-bank system simplifies.
How does Homejourney ensure safe HDB upgrade guide financing?
We verify rates daily, offer Singpass apps, and prioritize transparency—your trusted partner.
Ready for your HDB Loan Interest Rate Trends Analysis? Start comparing at Homejourney bank rates and explore properties via property search. Link back to our pillar on HDB upgrader financing for the full guide.
