Do it yourself, in three steps
What will my HDB loan cost?
Answer three short questions. You get the monthly instalment, the total interest, and a picture of how fast the debt actually comes down.
What you should know before you decide
HDB charges the CPF Ordinary Account rate plus 0.1%. The OA has paid 2.5% for decades, so the loan has sat at 2.6% just as long. It moves only if CPF moves — never because a promotion expired.
The cap dropped from 80% in August 2024. On a $550,000 flat you can borrow $412,500 and must find $137,500 yourself. None of it has to be cash — CPF and grants can cover the lot.
On a $412,500 loan, stretching 20 years to 25 cuts about $335 off the monthly payment and adds roughly $32,000 of interest. Neither answer is wrong — just know which one you are choosing.
Every dollar you take from your OA stops earning 2.5%, and you must put it back with that interest when you sell. Paying in cash instead keeps the OA compounding and leaves you more cash later.
No lock-in, no penalty. You can make a lump-sum repayment any time, for free. That means a long tenure with occasional lump sums behaves like a short tenure with an escape hatch — which is usually the safest way to run it.
Reading the chart
The curve is what you still owe. It falls slowly at first because early payments are mostly interest, then steepens. That is why a lump sum in year three does far more work than the same lump sum in year eighteen.
Common questions
Is the 2.6% fixed forever?
Pegged, not fixed. It is the CPF Ordinary Account rate plus 0.1%. If CPF revises the OA rate, the loan rate follows. It has been 2.6% for a very long time.
Can I repay early?
Yes, any time, in part or in full, with no penalty. You choose whether the lump sum shortens the tenure or lowers the monthly payment.
How much cash do I need?
For an HDB loan, potentially none — CPF and grants can cover the whole 25%. A bank loan is different: at least 5% of the price must be cash.
What if my CPF runs out mid-loan?
You pay the difference in cash by GIRO. Watch your OA balance after a job change or any period of lower CPF contributions.
Can I use an HDB loan for a condo?
No. HDB concessionary loans are for HDB flats only.