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Is This The Best HDB Home Loan Refinancing Package Singapore Has Ever Seen?

April 20, 2018

HDB Homeowners rejoice! As local banks rise to provide competitive interest rates amidst an environment of rising rates, one bank has – in a bid to surge ahead of it’s competition – created the best HDB Home Loan Package Singapore may have ever seen. With the potential to help customers safely save thousands of dollars, read on to find out more about what could be the best HDB Home Loan Refinancing Package and start saving on your home loan today!

Lower Interest Rate of 1.80%

Most Singaporean home owners hold a housing Loan from HDB but not many of us realize that the interest that HDB charges (2.60% P.A.) is much higher than what is offered by banks in Singapore.

Throughout Rate
FHR8 + 1.60% p.a.
(Currently 1.80%)

*The current FHR8 is 0.200%p.a. All rates are quoted on a per annum basis.

This new home loan package however offers a 1.80% interest rate, which is 0.80% less interest than a HDB Housing Loan. What does that mean for you? More savings of course, in fact look at the table below that shows you just how much you could save!

Remaining Loan Amount Interest Savings In 1 Year Monthly Interest Savings
$500,000 $4,000 $333
$300,000 $2,400 $200
$150,000 $1,200 $100

The best part? The basis of the interest rate calculation stays the same throughout the period of the loan at FHR8 (Currently 0.20%) + 1.60%.


Switch To This Package At No Cost To You

Refinancing your HDB loan would typically cost you at least  $2,500 with the legal and valuation fees. This is a major barrier to refinancing any home loan. However to help HDB homeowners make this transition, this package covers all legal and valuation costs associated with making the switch to this package.


Stay Safe With 5 Years Capped Interest Rate of 2.50% And A Fixed Deposit Based Rate

One of the most common arguments against taking a bank loan versus a HDB loan is that bank interest rates tend to change over time. There is some truth in this, and this is one of the reasons why this might be the best HDB loan package we’ve ever seen.

To ensure that you never end up paying more than you should, the bank has introduced a 5 year interest rate cap on this package of 2.50%. This means that during the 5 years capped period, no matter how high interest rates go up to, you will still pay less than the 2.60% being charged by HDB Concessionary loans.

Additionally, the FHR8 rate that is the basis of this loan is a fixed deposit rate. This means that if the bank raises the FHR8 interest rate, they would also have to pay customers on this fixed deposit rate a higher interest rate. This in turn means that whilst the bank can still raise interest rates, it would also have to think long and hard before doing so.

Get A Free Dyson Supersonic hair dryer (Worth $599)

No offer is complete without a free gift and this package comes with a pretty interesting one. On top of the thousands you could save, receive a free Dyson Supersonic hair dryer worth $599.


Continue to use CPF funds to repay your HDB Loan

This isn’t a unique feature of this loan package but rather a common misunderstanding HDB home owners have when refinancing their home loan with a bank. Most Singaporeans think that having a loan with a bank means that they will have to pay their loan back with cash instead of CPF.

This just isn’t true, you can continue repaying your loan with CPF even if you’re with a bank.

Curious about which bank is currently offering what is arguably the Best HDB Home Loan Refinancing Package? Click on the link below to find out more!



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Wayne Quek

Wayne is a Chartered Financial Analyst (CFA), and holds a Bachelor of Business Management (Finance) from Singapore Management University (SMU). A successful Relationship Manager during his time with DBS and HSBC, Wayne used his expertise in financial markets to help his clients build up comprehensive investment portfolios. The entrepreneur is also the founder of Home Loan Whiz, a mortgage consulting firm that assists clients with selecting ideal mortgages for their needs.

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