Can I take on HDB loan now and pay 10% down and switch to a bank loan before key collection est in 2026?

Question

Hi, the HLE amount I was offered is really low ($30k) and downpayment with a bank loan is too high. Hence, I'm wondering what our options are. Can we take a HDB loan now so we can afford the 10% down first and then change from HDB loan to bank loan before collecting the key? What happens to the 10% down we've paid?

Peter Lin · Accepted Answer

You can choose to take a HDB loan first to reduce the amount required for your downpayment now.

You then have the option of "switching to" a bank loan before collecting your keys, but do note the following:

1) Since you haven't collected the keys yet, it will still be considered a "new purchase", so you will probably still need to pay the additional 15% downpayment (of which at least 5% of the purchase price must be in cash)

2) The application, approval and loan disbursement process with the bank will take about 2 months. This may end up delaying the key collection (since you cannot collect the keys until loan disbursement)

Alternatively, you can collect the keys first, and then refinance to a bank loan after you have paid the HDB loan for about 3 months (to prove to the bank that you're credit-worthy). This also means you don't need to worry about the downpayment since it is refinancing.

Hope this helps!

CH · Answer

Just happen to have recently spoken to a home loan adviser. Yes, as long as before key collection, you can switch from HDB to bank loan. But rules might have changed or will change in future. There are also limitations to a bank loan, as not all banks are willing to finance all types of property.

Not sure though about what will happen to the 10% downpayment, though.

Hope this helps.