Ultimate guide to getting your HDB home loan in Singapore

Real estate purchase is easily one of the biggest financial commitments we will undertake in our lifetime. We spend the next 20-30 years contributing a portion of our salary to the repayment of the amount.
The good news is that you have the choice of getting a HDB or bank home loan in Singapore when you purchase a HDB flat. There is no hard and fast rule that places one above the other but you have to weigh the options and make the choice wisely depending on your financial situation.
Home loan Singapore 101
The common misconception is that monthly installments for home loans are calculated the same way as a car loan, personal cash loan or renovation loan. It is actually not true.
Car loans or personal loans charge interest using the flat add-on method. This means loan amount x interest rate x number of months for the loan tenure = monthly installment.
On the other hand, home loan monthly repayments are based on a loan amount amortized over the loan tenure, and interest is computed based on diminishing balance each month. Hence, the thought process is usually more detailed. The type, length and interest rate you end up with for your home loan can make or break your finance. Read this guide in its entirety and you will not go wrong!

Credits: Lucas Leow