HDB Loan Interest Rate

HDB Loan Interest Rate (concessionary)

The HDB loan interest rate (concessionary) is pegged at 0.1 percentage point above the prevailing CPF interest rate. The HDB loan interest rate is revised every quarterly, in January, April, July and October each year, in line with the revision in the CPF interest rate.

HDB loan interest rate (concessionary)
· Apr 2009 - Jun 2009 : 2.60% p.a.
· Jul 2009 - Sep 2009 : 2.60% p.a.

HDB Market Interest Rate
With effect from 15 October 2006, the computation basis for the HDB market interest rate peg, the Adjustable Rate Mortgage (ARM) Index has been revised. HDB has stopped giving out market rate mortgage loans since 1 Jan 2003.

Interest Computation Basis

HDB mortgage interest is computed on a monthly rest basis i.e. interest is imposed monthly based on the outstanding loan balance at the beginning of the month:
Monthly interest payable = Outstanding loan balance as at 1st of the month X R/12
· Where R = Interest rate (per annum)

source: HDB
http://www.hdb.gov.sg/fi10/fi10207p.nsf/WPDis/Servicing%20Your%20Mortgage%20LoanPolicies?OpenDocument