Deciding which type of housing loan is better? In this post, I'll talk about the differences of each type of loan and which you should consider.
Before we get into the comparison, take note that HDB loan is only eligible for HDB flats.
For Eg. BTO / SBF / DBSS / Resale flats
Private housing and ECs are not eligible for HDB loans.
Eg. EC / Private Condo / Landed Property
Check out the other eligibility criteria for HDB loan here.
Also, note that if you take a HDB loan, you can switch to a bank loan, but if you take a bank loan you cannot switch to a HDB loan
Here's a table I created that shows you the difference between the two.
Interest Rate % and Structure:
Max Loan Tenure
Early Repayment Penalty
Late Repayment Penalty
CPF OA Wiping Out
Which is the best for you?
In conclusion, both have its pros and cons and both meet the needs of different types of people. Which meets your needs best?