Compare Home Loan Rates in Singapore & Get Rewarded for It

A fixed-rate loan is a type of bank loan where the interest rate remains constant throughout the loan’s term. A fixed-rate loan carries the advantage that the borrower will always know exactly how much is due each month. The disadvantage is that if interest rates drop significantly, the borrower still continues to pay the higher rate.

A floating rate loan, also known as a variable rate loan, is a type of loan where the interest rate is not fixed but instead adjusts periodically based on a reference rate, often tied to a benchmark like the Alternative Reference Rate (ARR), such as the Singapore Overnight Rate Average (SORA). The advantages of floating rate loans include potential cost savings when interest rates are low, shorter loan terms due to variable rates, and the ability to benefit from falling interest rates. However, the main disadvantage is the uncertainty of interest rate fluctuations, which can lead to higher payments if rates rise.

Fixed Deposit Home Rate (FHR) loans are a type of home loan where the interest rate is pegged to the bank’s fixed deposit rate. The FHR serves as a reference point, determining the interest rate on the loan. FHR loans offer transparency and stability but come with limitations on control and susceptibility to changes in bank rates.

Singapore Overnight Rate Average (SORA) home loans are mortgage loans in Singapore that are linked to the SORA benchmark, which reflects the average rate of unsecured overnight interbank lending transactions. SORA-based home loans offer advantages such as transparency, responsiveness to market conditions, and better comparison among loan packages. However, they can also have higher volatility as rates can vary daily.

A Board Rate Loan, also known as a Mortgage Board Rate (MBR) loan, is a type of home loan in Singapore where the interest rate is set by the bank. This rate is determined internally by the bank and is not publicly disclosed. It can be influenced by various factors, including the bank’s cost of funding the loan and its own financial considerations. Board rate loans can offer tempting low initial rates and flexibility for short-term ownership. However, they come with inherent drawbacks, including lack of transparency, rate uncertainty, and potential rate volatility.

The lock-in period for home loans refers to a specific duration during which borrowers are obligated to maintain their loan with the original lender. If the loan is fully paid off or refinanced before this period ends, a penalty fee is incurred. The lock-in duration usually starts from the moment the bank disburses the initial loan payment based on the loan agreement. While the specific lock-in period can differ among various lenders, it commonly ranges from approximately one to five years.

The Total Debt Servicing Ratio (TDSR) is a financial metric used by banks and financial institutions to assess an individual’s eligibility for a housing loan. TDSR calculates the portion of a borrower’s gross monthly income that can be used to service all debt obligations, including the proposed housing loan. The general rule of thumb is that borrowers should have a TDSR of 60% or lower, meaning that their monthly debt obligations, including the potential housing loan, should not exceed 60% of their gross monthly income.

Banks prefer borrowers with lower TDSR ratios as it signifies a lower level of debt burden and a higher capacity to manage loan repayments. Borrowers with higher TDSR ratios might face challenges in loan approval due to the potential risk associated with their ability to manage additional debt. TDSR helps ensure that borrowers don’t overextend themselves financially and can comfortably manage their loan repayments.

The Maximum Loan Amount (MLA) calculation for your property considers key factors. These include your income (up to 30% of gross income annually), Debt-to-Income Ratio (DTI), credit history, property value, loan tenure, interest rate, and Debt Servicing Ratio (DSR). Bank policies and criteria also influence your MLA.

Yes, you can use your Central Provident Fund (CPF) Ordinary Account savings to pay for the down payment of a bank home loan when purchasing a private property. The CPF Ordinary Account can also be used for monthly housing loan instalments, stamp duties and legal fees. However, you cannot use your CPF Special Account savings for housing purposes.

Repricing a home loan involves switching to a new home loan package offered by the same bank, resulting in revised interest rates and terms without changing the lending institution. This option can be useful during financial hardships. The implications include potential interest rate reductions and adjusted loan terms, enabling borrowers to better manage their mortgage payments and financial situation.

• Economic Strength: A strong economy can lead to higher rates due to increased borrowing demand.
• Inflation: High inflation can prompt central banks to raise rates.
• Government Policies: Monetary policies set by institutions like the Monetary Authority of Singapore (MAS) influence rates. 
• Global Factors: International economic conditions, including changes in the US Federal Reserve’s rates, affect Singapore’s rates.
• Loan Tenure: Longer tenures might result in slightly higher rates for lenders.
• Credit Score: Better credit scores often secure lower interest rates.
• Interest Rate Type: Fixed rates remain stable while floating rates vary with the market.
• Loan Amount and Asset Worthiness: Larger loans and asset values can influence rates.
• Competition and Demand: Market conditions and demand can impact rates.
• Regulatory Changes: Adjustments in regulations and lending practices can affect rates.

Understanding these factors helps navigate rate fluctuations. Therefore, it is important to consult a mortgage expert to make informed decisions and effectively manage your home loan.

The duration for processing and approving a home loan application in Singapore varies due to factors like bank procedures, documentation completeness, and applicant situation. Generally, this process spans from a few days to several weeks, depending on individual factors and bank procedures. Certain banks offer In-Principle Approvals within two to three days. Prompt submission of complete documents can accelerate the mortgage loan approval process.

In most cases, bank home loans are designed specifically for residential properties, such as houses and apartments, and may not be suitable for purchasing commercial properties or land. Commercial property loans are usually available for buying commercial properties like shops, offices, and industrial spaces. Commercial property loans often have different eligibility criteria, interest rates, and loan-to-value ratios compared to home loans. Generally, commercial property loans coverage starts from 80% to 90% of the property’s value, while home loans usually offer higher coverage for residential properties of up to 90%. It’s important to consult with financial institutions or experts to understand the specific options available for purchasing commercial properties or land. Always consider the differences in fees, terms, and requirements between home loans and commercial property loans.

When choosing a bank for your home loan, you should take into account several key factors that will shape your overall loan experience and costs. Considerations when choosing a housing loan include:

• Long-term impact of interest rate on repayments
• Transparent fee structures
• Availability of sufficient loan amount
• Suitable loan tenure options
• Quality of customer service
• Speed of loan approval
• Repayment flexibility
• Additional benefits offered
• Bank’s market reputation
• Prepayment and foreclosure policies
• Convenient online access

Making an informed decision about your home loan provider can result in both financial savings and a smoother journey throughout the repayment process.

Yes, you can apply for a joint housing loan with a co-applicant where multiple individuals become co-borrowers and share the responsibility of loan repayment. For married couples, this commonly occurs when both spouses contribute income to meet the loan amount needed. Co-borrowing extends to other relationships like siblings, relatives, friends, or investors.

Co-borrowing serves purposes such as ownership, increasing qualifying income, and boosting combined credit scores for loan approval. Averaging the credit scores of co-borrowers helps banks assess loan eligibility. However, complications can arise if co-borrowers split, requiring one to be released for another loan. It’s vital to address such issues before entering into co-borrowing arrangements.

For first-time buyers of HDB flats in Singapore, there are several grants available to enhance the affordability of your mortgage loans:

• Enhanced CPF Housing Grant (EHG): Open to local couples/families with an average monthly income of $9,000 or less, this grant applies to HDB BTO and resale flats. The grant amount, ranging from $5,000 to $80,000, is inversely proportional to income. Singles aged 35+ with income below $4,500 can receive $2,500 to $40,000.
• HDB Resale Flat Family Grant: Designed for first-timer couples/families buying a resale flat, Singaporean citizens can get $50,000 (2- to 4-room) or $40,000 (5-room and up). Citizen-PR couples get a reduced grant, with the potential to regain it later. Singles aged 35+ earning less than $7,000 can access $25,000 or $20,000 grants.
• Proximity Housing Grant (PHG): Available to resale flat buyers living within 4km of parents. This grant can be combined with others. It provides buyers $20,000 for staying near parents and $30,000 for living with extended family. Singles aged 35+ can also benefit.
• HDB Executive Condo (EC) Family Grant: First-time EC buyers earning $12,000 or less can access $10,000 to $30,000 grants, based on income.
• DollarBack Mortgage Cash Reward: Get cashback rewards up to $3,300 when you apply for a refinance or new home loan with DollarBack Mortgage, plus additional benefits such as legal fee discounts for a lower upfront fee.

These grants significantly reduce financial barriers for first-time buyers, making homeownership more achievable and affordable.

Yes, you can use your CPF (Central Provident Fund) savings to repay your home loan in part or in full before its maturity. It’s important to note that CPF savings from your Ordinary Account (OA) can be used for this purpose. The process of utilising your CPF savings to partially or fully repay your housing loan varies based on the type of loan you’ve acquired.

To use your CPF savings for HDB loan repayment, ensure you have enough funds in your CPF Ordinary Account and know your maximum usage limit. You can apply online through the HDB website or complete a CPF withdrawal form at an HDB Branch. Online applications take about three working days, while branch submissions take around three to five working days for processing. 

For bank loans, first seek approval from your housing loan provider. Then, ensure you have sufficient CPF Ordinary Account savings and check your usage limits on the Homeownership dashboard. Next, submit an online application using your Singpass. If you’re repaying the full loan, remember to attach the bank’s redemption statement and your lawyer’s legal bill (if applicable) to the application. Your request will typically be processed within five working days.

While mortgage rates are anticipated to decrease, the exact timing remains uncertain. The impact of US Fed rate hikes, economic health, global interest rates, and Singapore’s monetary policies influences mortgage loan rates.

Furthermore, the shift from SIBOR and SOR to SORA as the benchmark interest rate by local banks in Singapore, as per MAS regulations, has also introduced uncertainties. 

To secure the best home loan rates, staying informed, monitoring creditworthiness, comparing loans, and seeking guidance from experts like DollarBack Mortgage’s consultants are recommended to navigate this evolving landscape.

For an HDB loan refinance, DBS stands out. It offers one of the lowest interest rates and a cash reward of $2,000 for loan amounts above $200k, which fully offsets your upfront refinancing fees. Total upfront fees for an HDB refinance come to roughly $1,800 to $1,900, and while most banks subsidise between $1,400 and $1,800, DBS goes far enough to leave you with a net cash reward even after every upfront fee is covered. Want to be sure? We’ll run a housing loan comparison across all 16 banks before you commit.

DBS is currently the best bank for a BUC loan, thanks to one of the most competitive floating rates and a flexible package. It gives you two free switches to a different interest rate package from the first loan disbursement up to six months after the Temporary Occupation Permit (TOP), and it waives penalties on any unreleased loan amount if you sell the property.

This flexibility matters for BUC condos. Because of the staggered repayment schedule and the way these units tend to appreciate by the time they reach TOP, many owners and investors choose to sell once their keys are ready. With around 15% of the mortgage still to be released when the unit is fully built, selling could otherwise trigger penalties of a few thousand dollars. DBS removes that cost without charging a premium on the interest rate, which is what makes it our pick for a BUC home loan.

BUC properties use a unique payment structure that works differently from completed homes, so it pays to plan early. Speak to our mortgage specialist team, and we’ll help you secure the best deal while there’s still time.

Fixed rates for private property loans currently range from 2 to 5 years, so a 2-year or 3-year fixed package is a sensible way to minimise interest while enjoying rate stability. Maybank has the lowest 2-year fixed rate for private properties, and HSBC can go even lower if you establish a priority relationship, with no requirement to lock in funds.

HSBC and Maybank also offer the strongest floating rates for private property, helped by low bank spreads and a short one-year lock-in on their 3M SORA packages. Should SORA rates continue to increase, a shorter lock-in lets you switch packages quickly if rates move, which keeps your interest expense down. To see how these stack up against some of the best mortgage rates in Singapore, our team can run a full mortgage loan comparison for you.

For a resale HDB flat, which carries a 5-year Minimum Occupancy Period (MOP), most buyers prefer a stable interest rate without paying too much of a premium for it. Given the range of fixed options available, DBS currently offers the best fixed rate for a resale HDB.

For larger loans above $600k, a floating rate can also make sense, since the interest savings in a declining rate environment can be substantial. DBS has a strong floating option through its CHR and fixed deposit home rate package (FHR6). What sets the FHR6 apart is that it’s pegged to a fixed deposit rate rather than 3M SORA like most other banks, which tends to make it more stable.

Banks revise their packages roughly every month, so the mortgage rates in Singapore you see advertised aren’t always the best available. We keep on top of these changes to help you secure a better deal than what’s published on the bank’s own website.