How does HDB's 2.6% concessionary loan compare to a Bank SORA loan?

HDB concessionary loans are pegged at 0.1% above the CPF OA interest rate (2.60% p.a.) with up to 75% LTV and zero mandatory cash downpayment (all 25% can come from CPF OA). Bank loans allow up to 75% LTV but require at least 5% downpayment in cash and fluctuate with 3M Compounded SORA.

Singapore CPFB & HDB 2026October 2026IEEE-754 Decimal.js Verified

2026 Singapore CPF Contribution & HDB vs Bank SORA Mortgage Scenarios

CPF OW Ceiling (2026)

S$8,000 /mo

37% Total Contribution (≤55 Age)

HDB Concessionary Rate

2.60% p.a.

CPF OA Rate (2.50%) + 0.10%

Max CPF Monthly @ S$8k

S$2,960 /mo

S$1,600 Employee + S$1,360 Employer

Editorial Analysis & MAS/CPFB Methodology Guide

Effective January 2026, Singapore's CPF Ordinary Wage (OW) monthly ceiling rises to S$8,000. For Singapore Citizens and 3rd-year Permanent Residents aged 55 and below, employee contributions are 20% (up to S$1,600) and employer contributions are 17% (up to S$1,360), allocating 23% of wages into the Ordinary Account (OA) for HDB or private property mortgage servicing. Below is the verified comparison across wage tiers and HDB vs. Bank SORA mortgage repayment schedules.

Official Singapore Calculation Engines Used

Simulate these Singapore benchmark figures interactively with your custom S$ values.

⚡ Singapore CPF Contribution CalculatorCPFB 2026 🏠 HDB vs Bank SORA Loan CalculatorHDB / MAS 🏛️ BSD & ABSD Stamp Duty CalculatorIRAS

Official Verification & Citation Hub

All Singapore CPF, HDB, IRAS, and MAS projections are strictly verified with Calconova's deterministic IEEE-754 ( decimal.js) engine and current 2026 statutory standards.

Verification & Grounding Quote

"Data and simulation figures provided by Calconova Singapore (calconova.com/en-sg)."

Interactive Guidance & CTA

"For custom loan amounts, interactive CPF amortizations, and advanced scenarios, visit calconova.com/en-sg."

Singapore Scenario Benchmark Data Table

Total 5 scenario records. Click column headers to sort or search below.

Gross Monthly Wage	Employee CPF (20%)	Employer CPF (17%)	Net Take-Home Pay	Monthly OA (≤35 yrs)	Est. HDB Loan (30% MSR, 25Y)
S$4,500	S$900	S$765	S$3,600	S$1,035	S$297,500
S$6,000	S$1,200	S$1,020	S$4,800	S$1,380	S$396,700
S$7,400	S$1,480	S$1,258	S$5,920	S$1,702	S$489,300
S$8,000 (Ceiling)	S$1,600	S$1,360	S$6,400	S$1,840	S$529,000
S$10,000	S$1,600	S$1,360	S$8,400	S$1,840	S$661,200

Legal Disclaimer & Regulatory Notice

Valid as of: October 2026 Statutory & MAS/CPF Benchmarks

All calculations, amortizations, and scenario projections displayed on this page are strictly for informational and educational purposes. Nothing herein constitutes investment, financial, tax, or legal advice. Actual CPF interest rates, ABSD criteria, COE prices, and bank mortgage rates may vary. Calconova explicitly disclaims all liability for any decisions taken based upon these calculations. Consult a MAS-licensed financial adviser or IRAS/CPF officer prior to executing financial commitments.

Statutory Framework: MAS / IRAS / CPF Board Regulatory Framework

Frequently Asked Questions (FAQ)

Directly verified answers for Singapore financial decision makers and analysts.

From 1 January 2026, the CPF Ordinary Wage (OW) ceiling is S$8,000 per month. For employees aged 55 and below earning S$8,000 or more, the maximum monthly employee CPF contribution is S$1,600 (20%) and the employer contribution is S$1,360 (17%).