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POSB Home Loan Review: Why You Should Get a POSB Loan for Your HDB Flat

POSB Bank approve loans to buy home
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Key Features


  • Individuals who are looking to purchase a property or HDB flat
  • Borrowers looking to learn more information on HDB Loans
  • Individuals who are looking for a loan with an above-average fixed rate period duration 


  • Individuals who are looking to finance with another bank
  • Borrowers who are looking to refinance 

So you’ve found the perfect home. It has the perfect location, the perfect look, the perfect amount of space for you and maybe your family. You now know what you’re getting, but have you decided how you’re getting it?

As many prospective homeowners may know, finding the perfect home is only a part of what you need to do when it comes to purchasing a house. Luckily, you’re already halfway there. 

The next half is finding the housing loan Singapore that best caters to your financial needs. 

When it comes to purchasing HDB flats, you have many options for loans. What makes DBS POSB HDB housing loans ideal compared to the concessionary loan and other banks? If it is on your shortlist of considerations, here are some reasons it might just be exactly what you are looking for.

The Benefits 

  • Upfront cash rewards. Helps you save more money by easing your cashflow or saving on payments for interest rates.
  •  Six months of insurance protection plan. Secure your finances from personal accidents and sudden loss of income for 6 months with free home payment care.
  •  Estimated earnings of additional S$600 interest rates every year. If you are an owner of a multiplier account, a POSB home loan helps add extra money to your fund.


POSB offers you a reliable and stable rate fixed for up to 5 years, freeing you of the worry of your payments being affected by market fluctuations.

HDB Loan Package Year 1 Year 2 – Year 5 Year 6 and thereafter Cash reward
Super Savers Package 1.5% p.a 1.5% p.a FHR24 + 0.9% p.a S$2,000 (For loan amount of S$250,000)

* FHR means that the home loan interest rate for the loan is dependent on the bank’s deposit rate, in this case FHR24 refers to DBS Bank’s prevailing 24-month Singapore dollar fixed deposit rate, currently rated at 0.9% p.a.

* Listed rates are as of January 4, 2021.

The Super Savers Package is specifically designed for you to pay less interest in the span of five years and beyond, with the minimum loan of S$100,000 up to 75% of purchase price for OTP dated July 6, 2018, and after.


POSB doesn’t charge a processing fee, and is often no different from other banks when it comes to other penalties. Note that legal fees, valuation fees, and insurance premiums are often charged by external providers.

Fees and charges With Lock-in Without Lock-in
Loan processing

Loan rejection after acceptance of the letter of offer 0.75% of undisbursed loan amount
Late payments Overdue interest computed as 5% above DBS Prime Rate on the overdue amount
Repayment of part of or all of the loan 1.5% of amount repaid

POSB HDB Loans v.s. Other Banks

How do other banks compare to POSB? See it in the table below.

Bank POSB/DBS Maybank HSBC Hong Leong Finance Standard Chartered bank
Year 1 1.5% 1.5% 1.45%  1.45% 1.28%
Year 2 1.5% 1.5% 1.45%  1.45% 1.28%
Year 3 1.5% 1.5% 1.45%  1.75% (Board) 1.72% (FDR36 + 1.0%)
Year 4 1.5% 1.5% 1.5% (1M SIBOR + 1.25%) 2.2% (Board) (FDR36 + 1.0%)
Year 5 1.5% 1.5% 1.5% (1M SIBOR + 1.25%) 2.2% (Board) (FDR36 + 1.0%)
Year 6 – onward 1.8%  (FHR24 + 0.9%) 2.75% (Board Rate) 1.5% (1M SIBOR + 1.25%) 2.2% (Board) (FDR36 + 1.0%)
Minimum Loan Amount S$100,000 S$100,000 S$800,000 S$100,000 S$500,000

What Makes the POSB HDB Fixed House Loan Stand Out From That of Other Banks?

POSB HDB loans have overall more competitive rates compared to that of most other banks. In addition, it has the best five-year loan plan compared to other banks, providing a reliable, low-interest fixed rate, protecting you from higher interest due to market fluctuation. While Maybank has a similar fixed rate for 5 years, its floating rate for years thereafter is significantly higher and is subject to Board Rates, making POSB more ideal.

Eligibility and Requirements

POSB is very lenient when it comes to requirements. You can check your own eligibility during application by submitting personal information that may include your income, or connecting your bank account. You can also ask assistance from experts, like Loan Advisor.

The documents you have to prepare prior to application are:

  • POSB Application Form
  • NRIC
  • Option to Purchase Document or Sales & Purchase Agreement
  • Income Documents
  • Credit Card Statements & other financial commitments
  • HDB Information & Financial Information

See also: Buying a HDB flat with HDB Loan

Steps to Follow During Application

  1. Provide details. Simply proceed to the POSB application site, and fill up an online form concerning personal information.
  2. Upload documents. Provide the necessary documentation during the application as listed above.
  3. Take up your chosen loan. Submit your application, with a finalized choice of the loan package.


In the case of the purchase of a flat, you have the option of going for an HDB housing loan with the Singaporean government or going for a bank like POSB.

Both options provide different benefits. HDB loans usually have smaller down payments, incur no penalties for early repayments, or refinancing, and you can easily switch to a bank loan if you so desire. However, HDB loans are also strict on requirements and are based on HDB concessionary loan rates (currently 2.60% p.a).

Bank loans on the other hand have significantly lower interest rates and are more lenient with eligibility criteria, and POSB is a great choice in this regard over its contemporaries.

POSB HDB Home Loans prove to be a more than a competitive option with a good five-year plan and bring other attractive benefits to the table. A protection plan and cash rewards are always a welcome addition. When purchasing a flat, POSB loans are a viable option.

It is important to weigh your options when it comes to home loans, but this can often be a lot to take in. Making the most of your resources at hand is advised, including getting assistance when necessary. 

Loan Advisor is one of the most trustworthy finance directory comparison sites in Singapore. Don’t hesitate to consult the experts from Loan Advisor to guide you through your financial choices and show you different opportunities that can help you in your journey of getting your new home.

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