What is the current HDB loan rate vs bank loan rate?

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.