Are you finding it hard to figure out whether HDB Loan or Bank Loan is the right choice for you?

Believe it or not, it’s EASY once you understand the difference:

HDB Loan

  • Pegged to CPF Rates
  • Average gross monthly household income cannot exceed:
    • $14,000 for families
    • $21,000 for extended families
    • $7,000 for singles (depends on flat type)
  • 10% deposit required (CPF can be used)
  • Have to use up ALL your CPF money (minus $20k)
  • You can change to a bank loan anytime
  • No penalty for early payment
  • Late payment: 7.5% per annum

Bank Loan

  • Fixed Rate (initial years) or Pegged to benchmark interest rates (Sibor/Sora)
  • No income cap
  • 25% deposit required (5% has to be cash)
  • Flexible in amount of CPF used
  • You can change to another bank loan after lock-in period
  • You can’t go back to take up loan from HDB for same property.
  • Some penalty for early payment during lock-in period.
  • Late payment: 24% per annum

But Wait! Here’s an EASIER way!

We have created a short quiz for you to help you determine what is best for YOUR needs. Have a go at it below:

Take Our HDB Loan vs Bank Mortgage Quiz

And find out what type of home financing is most suitable for you!

Are you looking to purchase an HDB or Private Property/Executive Condominium?

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From consultation until loan approval, we will do the hard work for you. Get in touch with us TODAY to find out more!