POSB HDB Loan - Smarter Rates with Flexible Options

Save S$3,100 a year¹ with stable rates linked to CPF-OAStay below HDB rates throughout your loan tenure² with the new POSB 3-Year CPF-OA HDB Loan.Starting from 1.78% p.a., its stable and transparent rate is pegged below the CPF Ordinary Account (CPF-OA) rate, giving you greater certainty over your mortgage repayments.You could save an average of S$3,100 a year¹ during your lock-in period, leaving more CPF-OA savings or cash for your future goals.Alongside continued mortgage savings, you'll enjoy flexibility and perks such as:

No early repayment fees

Free switch to a new package after 3 years

Waiver of fees if you sell your property during the commitment period

Cash subsidies on legal and valuation fees if you refinance

Up to S$4,000 in cash or shopping vouchers

Apply Now Compare the POSB 3-Year CPF-OA HDB Loan with the HDB Concessionary Loan HDB infographic

¹ Figures are based on a S$400,000 loan repaid in monthly instalments over 20 years. The interest savings shown are calculated over the three-year lock-in period of our CPF-OA HDB Loan package, compared with the HDB Concessionary Loan. As each instalment reduces the outstanding loan balance, the interest savings will also gradually decrease over time.² This applies as long as the CPF-OA rate remains at 2.50% p.a. and the HDB Concessionary Loan rate remains 0.10% p.a. above it. Flexibility to switch to another package after 3 yearsAfter your 3-year commitment period, you can enjoy a one-time switch to another prevailing loan package for free.Explore our HDB Loan packages

	POSB 3-Year CPF-OA HDB Loan	POSB 3-Year Fixed HDB Loan
Year 1	1.78% p.a. Pegged at 0.72% p.a. below CPF-OA rate	2.08% p.a.
Year 2
Year 3
Year 4	2.20% p.a. Pegged at 0.30% p.a. below CPF-OA rate	3-month (3M) SORA + 1.00% p.a.
Year 5	2.20% p.a. Pegged at 0.30% p.a. below CPF-OA rate
Thereafter	2.40% p.a. Pegged at 0.10% p.a. below CPF-OA rate
Commitment period	3 years
Reference rate	Pegged below CPF-OA rate of 2.50% p.a. throughout loan tenure	Pegged to 3-month SORA rates after the commitment period
Minimum loan amount	S$100,000	S$200,000
Maximum loan tenure	75% LTV: 25 years max loan tenor (provided borrower age + tenure ≤ 65 years old) 55% LTV: 30 years max loan tenor (provided borrower age + tenure > 65 years old)

Our 1.78% POSB 3-Year Fixed HDB Loan promotional package is ending on 23 Sep 2026. Please ensure you submit your application with full documents by 23 Sep and accept the offer by 30 Sep 2026. Frequently Asked Questions

What are the CPF-OA and 3M SORA benchmarks?

	3M SORA benchmark	CPF-OA benchmark
What is it?	The 3-month Singapore Overnight Rate Average, or 3M SORA, is a market-based benchmark based on actual overnight borrowing transactions between banks in Singapore.	The CPF-OA interest rate is reviewed quarterly and is subject to a legislated minimum of 2.50% p.a.
How does the rate behave?	It may rise or fall with market interest rates and economic conditions.	It is reviewed quarterly but has remained at its legislated minimum of 2.50% p.a. since 1999.
When and where is it published?	3M SORA rates are published daily on the MAS website at 9 a.m.	The CPF-OA interest rate is published on the CPF website.

Illustration 1: Can I save by switching from the HDB Concessionary Loan to a POSB HDB Loan?

Yes, if you ask Eric and Jean! The couple previously financed their 4-room HDB flat with the HDB Concessionary Loan but wanted to switch to a bank loan with a lower interest rate to reduce their monthly repayments.

They sought advice from a POSB Home Advice Specialist who introduced them to the POSB 3-Year CPF-OA HDB Loan. As its rates are pegged below the stable and transparent CPF-OA rate, they could save about S$3,100 a year in interest¹ for the first three years, while continuing to enjoy rates below the HDB rate thereafter.

As Eric and Jean decided to switch to a POSB HDB Loan by 31 October 2026, they will receive S$2,300 in cash rewards, comprising S$2,000 in Refinancing Cash Rewards and a S$300 Bonus Cash Reward.

Illustration 2: Should I consider a POSB HDB Loan for my first HDB flat?

Yes, especially if you want to enjoy both savings and stability! Meet Denise and Isaac who are preparing to receive the keys to their first HDB flat. As they plan to start a family, they want to keep their monthly repayments manageable.

The couple consulted a POSB Home Advice Specialist to learn about the new POSB 3-Year CPF-OA HDB Loan. Based on a S$400,000 loan repaid over 20 years, they realised that they could save about S$18,500 in interest compared with the HDB Concessionary Loan.