What is the current HDB loan rate vs bank loan rate?
The HDB concessionary loan rate is currently 2.6% per annum, set at 0.1% above the CPF OA rate of 2.5%. Bank loan rates are significantly lower, with fixed rates starting from around 1.45%-1.55% and SORA-pegged floating rates at approximately 1.61%-1.71% as of early 2026. This gap of over 1 percentage point makes refinancing from an HDB loan to a bank loan worth serious consideration.
Last updated: 22 Apr 2026
The HDB concessionary loan rate is set administratively at 0.1% above the CPF Ordinary Account (OA) interest rate, which has been 2.5% for many years, making the HDB loan rate a steady 2.6% per annum. This rate does not move with market conditions, meaning HDB borrowers pay the same rate regardless of whether broader interest rates rise or fall.
Bank loan rates, by contrast, are market-driven. As of early 2026, fixed rates start from 1.45%-1.55% for typical HDB loan sizes, with some promotional packages offering rates as low as 1.48% for 2-year fixed periods. Floating rates pegged to SORA are currently around 1M SORA + 0.25%-0.35%, which works out to approximately 1.61%-1.71%.
This means the gap between HDB and bank rates is currently over 1 percentage point, one of the widest spreads in recent memory, and a compelling reason for HDB homeowners to seriously consider refinancing.