For many years, I had advised people to stay with the HDB loan, rather than move towards the bank loan. The lower interest rate from the bank loan is based on the low interest rate environment. This would not last long.

We have now seen the effect of a rise in interest rate. The current rate on bank loans, although high, is not the peak. It will increase further.

The interest rate on HDB loan will also increase, but it will be more moderate compared to bank loans.

Home buyers have to factor in higher interest rate in the future. They cannot assume that the interest rate will remain at the low level. It is best to factor in a long term mortgage interest rate of 5%.
Several decades ago, the mortgage interest rate was 6% or higher.

Tan Kin Lian