Debated in Parliament on 20 Oct 2022.
Ms Foo Mee Har asked the Minister for National Development in light of increasing mortgage interest rates by financial institutions amidst a rising interest rate environment, whether HDB will be similarly adjusting its HDB mortgage loan rate beyond the prevailing rate of 2.6% after 31 December 2022.
The HDB concessionary interest rate has been pegged at 0.10% above the prevailing CPF Ordinary Account (OA) interest rate since 1986. This is because HDB obtains the funds to issue housing loans from the Government at the CPF OA rate and includes a spread of 0.10% to recover HDB’s cost of administering loans.
The HDB concessionary interest rate is, currently, 2.6% per annum and will remain at this level until 31 December 2022. HDB will continue to review the HDB concessionary interest rate quarterly, in tandem with the CPF OA rate reviews.
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