Interest Rate

When you take a housing loan from HDB, you will enjoy a concessionary interest rate.

This concessionary interest rate is pegged at 0.10% above the prevailing CPF Ordinary Account (OA) interest rate, and may be adjusted in January, April, July, and October, in line with CPF interest rate revisions.

These are the concessionary interest rates for 2 quarters:


Concessionary Interest Rate

1 July 2022 to 30 September 2022

2.60% p.a.

1 October 2022 to 31 December 2022

2.60% p.a.

Computation of monthly interest rate

Interest is payable from the date your HDB loan is issued. The monthly interest is based on the outstanding loan balance at the beginning of every month.

  • Monthly interest payable = Outstanding loan balance as at the 1st of the month x R/12

Note: R = interest rate (per annum)

Computation of loan balance

The loan balance at the beginning of the month is calculated as follows:

  • Outstanding loan balance (as at 1st of current month) = Outstanding loan balance (as at 1st of previous month) + Interest charged for previous month - payments made in previous month



HDB market interest rate (no longer available)

If you had taken a housing loan from us before 2003, you may be repaying your loan based on our market interest rate (no longer given out as of 1 January 2003). In such cases, please take note of the computation of the Adjustable Rate Mortgage (ARM) Index.

The computation of the Adjustable Rate Mortgage (ARM) Index is as follows:

  • Average of the non-promotional HDB housing loan rates of the 3 local banks, namely DBS (POSB), OCBC, and UOB.

Note: The monthly interest rate is subject to the floor rate of the HDB concessionary interest rate.

The current HDB market interest rate is 3.16% p.a. The rate is reviewed on the 15th day of each month, and any revision will take place on the 1st of the second month that follows.

For example, if the ARM index changes, resulting in a corresponding change in the HDB market interest rate on 15 January, the new rate will take effect for payments due on 1 March.