Let’s be honest: There are plenty of articles out there comparing the difference between HDB loans and bank loan. Google “HDB Loan vs Bank Loan” and you’ll see them. Most of these articles will be repeating or emphasising the same things listed in this article. 

If you are still reading this though (and I’m sure you have been reading from multiple sources and have done your due diligence), you’re probably looking for a more defined answer to how to best make your choice.

Which is why, instead of repeating what everyone has been talking about, let’s take it a step further and simplify the decision-making process.

HDB Loan vs Bank Loan

For the sake of recap, we’ll briefly covered the HDB loan vs bank loan difference.

In general, if you wish to purchase a home, but do not have the cash to spare to pay off everything all at once, there are two solutions for you: Get a home loan from HDB or a mortgage from a bank. They are technically both the same thing: solutions to provide you temporary finance to make a home purchase.

The debate lies on the question: which is better?

To summarise, we have created a comparative infographic for you to take a look:

The above graphic is a simplified illustration of the difference to expect. Do note however that they are subject to change by regulatory boards such as MAS, CPF and HDB.

‘So Which One Should I Get?’

Now that you know the difference, which one should you apply for?

To answer this, we created a short quiz to help you. There are only 6 questions to go through (sometimes less). By the end of it, you will be given a possible solution to consider: 

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 home?

RELATED READS:  Should I pay down my Home Loan as fast as possible? - Pros and Cons

Managing Housing Loan Costs

Remember, your housing loan costs can be managed and put under control. The government has a multitude of grants to keep your housing costs low, while the banks offer ways to refinance your home mortgage every few years. Consider what is best for you in the long term, and save thousands by making the correct choice. We are here to help you make that smart decision. Drop us a message and talk to us!
About The Author

About The Author

Shamir Wahid

Shamir has more than 8 years of banking experience across various areas in Retail, Corporate and Private banking (including Islamic finance) for one of the largest banks in Southeast Asia. In Corporate Banking, he was involved in structuring loan transactions for real estate developers and REITs. He also worked with private bankers to provide credit solutions to their high net worth clients.