In general, home loan products in Singapore can be categorised into two different groups – conventional and HDB home loan

With a variety of offerings of home loan products in Singapore, it is not surprising that many consumers struggle to differentiate between the different types of home loans.

In general, home loan products in Singapore can be categorised into two different groups – conventional and HDB home loan. Let’s take a quick look at the difference between the two:

Conventional Home loan

Conventional home loan accounts for a large majority of the total home loans in the market. In a conventional home loan, a borrower agrees to repay the loan amount together with interest over an agreed loan period.

Banks normally charge either a 1) fixed (fixed only for first few years then converts into floating) or 2) variable interest rate on conventional home loans. Most home loans in Singapore ...