On 4 August 2022

Which Home Loan is Right For You!

Singaporeans will go to at least three different retailers to compare the specifications, price and freebies offered on a television or fridge before making a purchase. However, when it comes to the biggest financial decisions of their lives, they simply leave it to their property agent or take a HDB loan. Wanting to make a difference, the founders of Singapore Mortgage Advisory decided to embark on an educational and awareness campaign to help you save money. 
For the purpose of this article, we take a look at the recent Dakota Crest, King George’s Heights House that is going for SGD 700,000.00

Here is short comparison for you below:

It is a loan for Singaporeans at a fixed interest rate of 2.6% and various restrictions such as: 

Only for HDB flats.

One buyer must be a Singaporean.

  1. Monthly income must not exceed $14,000 or 21,000 with extended families. 
  2. Monthly income must not exceed $7,000 for singles buying a 5 room or smaller resale flat or two-room new flat in a non-mature estate under the Single Singapore Citizen (SSC) Scheme.
  3. Must not own any private property (residential) in Singapore or overseas.
  4. Must not have taken more than two HDB loans.
  5. Have not disposed of any private property (residential) within thirty months before the loan application. 


  1. You will have lesser restrictions. Banks will run a credit check to see if you can afford the loan. It is that simple. 
  2. 5% cash down payment
  3. No early repayment/ repayment with penalties

If you’re afraid of floating rates and prefer a more stable fixed rate; here are some projections for you.

What is the difference you asked ? 

What does this mean ?

The total interest for bank loan will be:  $36,102 ($435,122) and the total interest for HDB loan will be  $71,708 ($504,748)

Total cash flow savings will be $35,980

The Question; Should you get an HDB Loan or a Bank Loan ? 

We would say, if you have the 5% cash to spare, you should take a bank loan. If you do not, then a HDB loan will be suitable for you. Once you collect your keys, call us to refinance a bank loan.