HDB concessionary loans are only for HDB flats. Buying a private condo like One Chuan Grove means taking a bank loan, and the rules are different.
Key differences
| HDB concessionary loan | Bank loan (private property) | |
|---|---|---|
| Interest rate | 0.1% above the CPF OA rate (about 2.6% p.a.) | Package-dependent, fixed or floating (SORA-based) |
| Max LTV | 75% | 75% (first loan) / 45% (2nd loan) |
| Income test | MSR 30% and TDSR 55% | TDSR 55% only |
| Stress-test rate | 3% | 4% |
| Lock-in / penalty | None | Often 2–3 years lock-in with penalties |
| Max tenure | 25 years | 35 years (75% LTV only if ≤ 30 years and ending by age 65) |
Should you repay your HDB loan before buying?
It depends on your route:
- Sell first: your HDB loan is repaid from the sale proceeds, and you get a 75% LTV on the condo.
- Buy first: with the HDB loan outstanding, the condo loan counts as your second housing loan. The LTV drops to 45% and the minimum cash rises to 25%. Some upgraders fully repay a small remaining HDB loan before booking to restore the 75% LTV. Check that you still have enough CPF and cash afterwards.
Floating vs fixed for a new launch
During construction, only part of the loan is drawn down, so rate differences matter less in the early years. Many buyers:
- Pick a package with a low lock-in during construction,
- Reprice or refinance closer to TOP, when the full loan is drawn,
- Compare fixed and floating based on their view of rates and their cash-flow comfort.
A quick comparison
For a $1.65M loan over 30 years:
| Rate | Monthly instalment |
|---|---|
| 2.5% | ~$6,520 |
| 3.0% | ~$6,956 |
| 3.5% | ~$7,409 |
| 4.0% (stress test) | ~$7,877 |
Try your own numbers with the mortgage calculator.