How much can I save by switching from an HDB loan to a bank loan?
Switching from an HDB loan to a bank loan can save you approximately $280 monthly on a $500,000 loan or over $26,900 over five years on an $800,000 loan.
Last updated: 8 May 2026
The interest savings from switching to a bank loan are substantial and immediate. Here's how the numbers break down using standard mortgage calculations:
On a $500,000 outstanding loan over 25 years:
- HDB at 2.6%: ~$2,268/month
- Bank at 1.45%: ~$1,988/month
- Monthly saving: ~$280
- Annual saving: ~$3,360
- 5-year saving: ~$16,800
On an $800,000 outstanding loan over 25 years:
- HDB at 2.6%: ~$3,629/month
- Bank at 1.45%: ~$3,180/month
- Monthly saving: ~$449
- Annual saving: ~$5,384
- 5-year saving: ~$26,900
These figures assume a consistent rate throughout, which is conservative.