HDB vs Bank Loan Calculator Singapore: Compare a Realistic Horizon

Compare two financing scenarios over the period you expect to keep the package. The HDB rate defaults to 2.6%, the published July–September 2026 rate. The bank rate and fees are illustrations. This tool calculates repayments, not eligibility.

Worked example matching the defaults

S$500,000 over 25 years gives S$2,268.35 monthly at 2.6%, versus S$2,345.13 at 2.9%. Over 36 months, interest is S$37,342.02 versus S$41,720.86. With S$2,500 bank fees and zero HDB fees, the bank option costs S$6,878.84 more in interest and fees. Negative savings mean the bank scenario is more expensive.

How the comparison works

Both options start with the same principal and remaining tenure. Payments are monthly on a reducing balance using annual rate ÷ 12. Rates stay constant throughout the scenario. Interest and upfront fees are costs; repaid principal reduces debt. The comparison stops at your chosen horizon.

Net economic saving = interest saved − additional fees. It also equals lower payments accumulated over the horizon, minus additional fees, plus the improvement in remaining loan balance. These are two views of the same saving; do not add them together.

The economic break-even is the first month within the selected horizon when cumulative interest savings cover the extra fees. The cash-recovery figure divides extra fees by the reduction in monthly payment and rounds up. It answers a different question: how long until lower payments replenish the upfront cash. Neither discounts future money or predicts changing rates.

What the model leaves out

It excludes eligibility, required downpayment, future rate resets, later refinancing costs, CPF interest and early-exit charges unless included in the entered fees. Both rates are held constant even beyond any actual fixed-rate period. Run a second, higher bank-rate scenario, and shorten the horizon if the quoted package changes earlier.

The tool caps the common term at 25 years because it compares an HDB concessionary loan. Your actual HDB term can be shorter. HDB-to-bank refinancing cannot subsequently be reversed for the same loan. HDB: loan eligibility, LTV and tenure. HDB: concessionary rate and monthly interest. HDB: refinancing with a financial institution.

Last updated: 14 Sep 2026 · Editorial Policy · Advertising Disclosure · Corrections