COMPARE
HDB Loan vs. Bank Loan
​
#1
HDB Loan
Fixed interest.
Bank Loan
Fixed or Fluctuating interest.
#2
HDB Loan
Proof of income at beginning.
Bank Loan
Proof of income every renewal, especially if switching banks.
#3
HDB Loan
Cannot increase loan amount unless change in ownership / buying a new flat.
Bank Loan
Can increase or decrease based on income.
#4
HDB Loan
Fixed loan payment.
Bank Loan
Fluctuating loan payment.
#5
HDB Loan
Only for HDB, cannot be used for private property.
Bank Loan
Can be used for both HDB and private.
#6
HDB Loan
No refinancing available.
Bank Loan
Potential to refinance when interest is lower than HDB loan rate of 2.6%.
#7
HDB Loan
HDB Loan is fixed to HDB flat owner.
Bank Loan
Bank Loan can include other parties such as corporations.
#8
HDB Loan
HDB LTV 75%, 25 years.
Bank Loan
Bank LTV 75%, 25 years.
*Note: If start with bank loan, cannot switch back to HDB loan. If start with HDB loan, can switch to bank loan. However, once switched to bank loan cannot switch back to HDB loan.