An HDB concessionary loan is the housing loan HDB grants to eligible flat buyers at the concessionary interest rate. That rate is pegged at 0.1 percentage point above the prevailing CPF Ordinary Account interest rate and is reviewed every quarter.
Key takeaways
- The concessionary rate is 2.6% p.a. for 1 July to 30 September 2026, being 0.1% above the CPF Ordinary Account rate of 2.5% p.a.
- The Loan-to-Value limit is up to 75%, applying to complete resale applications received on or after 20 August 2024 and to flat applications from the October 2024 sales exercise onwards.
- Average gross monthly household income has to be within SGD 14,000 for families, SGD 21,000 for extended families, or SGD 7,000 for singles under the Single Singapore Citizen Scheme.
- The repayment period is the shortest of 25 years, 65 years minus the average age of the applicants, and the remaining lease minus 20 years.
- Monthly instalments are limited to 30% of monthly income under the Mortgage Servicing Ratio, and the Total Debt Servicing Ratio does not apply to an HDB housing loan.
See how this applies to your own figures.
HDB Loan Rate →How the rate is set
The concessionary interest rate is pegged at 0.1 percentage point above the prevailing CPF Ordinary Account interest rate, and may be adjusted in January, April, July and October in line with CPF interest rate revisions. With the OA rate at its legislated floor of 2.5% p.a., the concessionary rate is 2.6% p.a. for 1 July to 30 September 2026. Interest is computed on a monthly-rest basis.
Eligibility conditions
- At least one applicant is a Singapore Citizen
- No member of the core family nucleus has taken two or more housing loans from HDB
- Average gross monthly household income within SGD 14,000 (families), SGD 21,000 (extended families) or SGD 7,000 (singles under the Single Singapore Citizen Scheme)
- No interest in a local or overseas private residential property, and none disposed of in the last 30 months
- The remaining lease of the flat is more than 20 years
How the loan amount is worked out
HDB computes the eligible loan amount using the higher of an interest rate floor of 3.0% p.a. and the prevailing HDB housing loan interest rate, so the assessment allows for rates rising. The Loan-to-Value limit is up to 75% of the flat price, or of the lower of the resale price and valuation, and is pro-rated downwards where the remaining lease does not cover the youngest applicant to age 95. There is no minimum cash payment where CPF Ordinary Account savings and the loan cover the payments, and no fee for early repayment.
Key HDB concessionary loan figures
| Item | Figure |
|---|---|
| Concessionary interest rate (1 Jul to 30 Sep 2026) | 2.6% p.a. |
| Peg | CPF Ordinary Account rate + 0.1% |
| Loan-to-Value limit | up to 75% |
| Interest rate floor used to size the loan | 3.0% p.a. |
| Income ceiling — families | SGD 14,000 per month |
Figures as at 2026. Source: HDB.
Worked example
On a flat priced at SGD 500,000 with an HDB concessionary loan at the maximum 75% Loan-to-Value limit, the loan is SGD 375,000, and the remaining SGD 125,000 is met from CPF Ordinary Account savings and cash. Interest accrues at 2.6% p.a. for as long as that rate applies, and the repayment period is capped at 25 years.
Related terms
All Singapore glossary terms →Related calculator
Track the current HDB concessionary rate and how it is pegged to the CPF Ordinary Account rate.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to HDB and the CPF Board and seek independent professional advice before making any financial decisions.