Which Bank has the Best Mortgage Housing Loan in Singapore 2022?

Buying a home in Singapore is a huge financial commitment whether it’s an HDB flat or private property. It is probably the biggest amount of money you’ll ever spend in a lifetime! Most of us can’t fork out such a huge lump sum, and hence, need the cheapest home loan (also known as a mortgage loan or housing loan).

A housing loan is unique to each individual and often customised around an individual’s personal needs, risk appetite and goals.

We are going to talk about the banks with the best housing loans in Singapore based on your property and loan type:

• Mortgage Loan for a Resale Private Property
• Mortgage Loan for a Resale HDB Flat
• Mortgage Loan Refinancing
• HDB Loan Refinance
• Mortgage Loan for a BUC Condo
• Mortgage Loan for a HDB BTO
• Types of Housing Loans for Different Properties in Singapore
• Comparing between a HDB loan vs a Bank loan

Mortgage Loan for a Resale Private Property in Singapore

If you’re financing a resale condo or landed property, the majority of banks are able to offer competitive housing loan interest rates due to the loan size. Deciding on which is the cheapest mortgage loan involves analysing not only the interest rates but flexibility of the mortgage package as well.

The following banks currently offer the best fixed and floating rate home loan packages:

Cheapest Fixed Rate Mortgage for a Resale Condo or Landed Home (Jan 2022)

BANK	LOAN TYPE	Year 1	Year 2
CIMB	2 Yr Fixed	1.08%	1.08%
SBI	2 Yr Fixed	1.10%	1.10%
Citigold	3 Yr Fixed	1.15%	1.15%
DBS	3 Yr Fixed	1.30%	1.30%
Maybank	4 Yr Fixed	1.58%	1.58%
RHB	5 Yr Fixed	1.58%	1.58%

Cheapest Floating Rate Mortgage for a Resale Condo or Landed Home (Jan 2022)

BANK	LOAN TYPE	Year 1	Year 2
Maybank	3M SORA	0.83%	0.83%
DBS	3M SORA	0.93%	0.93%
CIMB	3M SORA	0.93%	0.93%
UOB	3M SORA	1.01%	1.01%
DBS	FHR6	1.00%	1.10%
OCBC	1M SORA	1.10%	1.10%
SCB	36FDR	1.10%	1.10%

*Please note that there are lower interest rates packages from banks available which we are not allowed to advertise publicly in the table above.

Which bank has the best mortgage housing loan for a resale private property?

As fixed rates for private properties currently being offered vary from 2 years to 5 years, to minimize interest expense while enjoying stability on a fixed rate, either a 2 year or 3 year fixed rate would be a viable option to consider.

CIMB currently has the cheapest fixed rate home loan with the lowest 2 Year and 3 Year fixed interest rates for private properties. It is also able to provide even lower interest rates with a priority relationship established with the bank which does not require any lock-in period of funds.

With the unique interest rate environment currently, floating rates have generally dropped below a 1% benchmark which is a historical low over the past 5 years. Combined with a short lock in period, a floating rate package  provides the flexibility for borrowers to allow for a pivot by either repricing or refinancing should mortgage rates increase.

Maybank has the cheapest floating rate home loan for private properties due to its low bank spread and shortest lock in period of 1 year for it’s 3M SORA interest rate package. This gives borrowers a good blend of maximising interest savings over a short period without the restriction of a longer lock in period.

Don’t hesitate to contact our mortgage specialists to know more about a fixed or SORA interest rate packages and get a comprehensive new private property mortgage package that best fits your specific needs.

Mortgage Loan for a Resale HDB Flat in Singapore

Mortgage loans for a resale HDB property are categorised into either fixed or floating rates and usually come with a lock in period. All major banks in Singapore aggressively compete to offer attractive interest rates for HDB home loans due to the market size of HDB properties.

Cheapest Fixed Rate Mortgage for a Resale HDB Flat (Jan 2022)

BANK	LOAN TYPE	Year 1	Year 2
UOB	2 Yr Fixed	1.10%	1.10%
SBI	2 Yr Fixed	1.14%	1.14%
DBS	3 Yr Fixed	1.25%	1.25%
OCBC	4 Yr Fixed	1.38%	1.38%
DBS	5 Yr Fixed	1.48%	1.48%

*Please note that there are lower interest rates packages from banks available which we are not allowed to advertise publicly in the table above.

Cheapest Floating Rate Mortgage for a Resale HDB Flat (Jan 2022)

BANK	LOAN TYPE	Year 1	Year 2
DBS	3M SORA	0.93%	0.93%
UOB	3M SORA	0.93%	0.93%
DBS	FHR6	1.00%	1.10%
OCBC	1M SORA	1.02%	1.02%

Which bank has the best mortgage housing loan for a resale HDB flat?

For a purchase of a HDB property which has a Minimum Occupancy Period (MOP) of 5 years, chances are homeowners would prefer a stable interest rate without having to pay too much of a premium for it at least for that period.

As our current interest rates are the lowest they have been for the past 13 years and taking into account the diverse fixed rate options available, DBS currently offers the lowest fixed rate mortgage across all fixed rate tenures (2 years to 5 years) for a resale HDB property in 2022.

Also, due to the uptrend in prices of resale HDB units, for a HDB loan amount above 600k, a strong point can be made for a floating rate due to the chunky interest savings that can be enjoyed in our current low interest rate environment.

Taking into account that striking a good balance between interest rate volatility and maximizing interest savings is key, DBS also has the cheapest floating rate package via it’s fixed deposit rate package (FHR6).

The reason why the fixed deposit rate home loan option from DBS sets itself apart is due to the cap of 1.40% imposed on the mortgage rate therefore acting as a hedge of sorts if the interest rates start to increase sooner rather than later.

DollarBack Mortgage specialists can assist you through the home loan application process for your new HDB home and advise you to make the best financial decision for yourself.

Since banks do change their housing loan packages and interest rates every month or so, we keep ourselves fully updated to help you get a “better” deal than what is published on the bank’s website.

Mortgage Loan Refinancing in Singapore

2021 was the year of extremely low-interest rates where banks in Singapore were competing hard to attract customers by providing the best deals on home loan packages. With the wide general consensus of mortgage rates going up in 2022, there is no better time to consider refinancing your home loan if you haven’t yet.

Let’s take a look at the best refinancing options by banks in Singapore.

Cheapest Fixed Rate Mortgage for a Refinancing (Jan 2022)

BANK	LOAN TYPE	Year 1	Year 2
CIMB	2 Yr Fixed	1.08%	1.08%
HSBC	2 Yr Fixed	1.10%	1.10%
SBI	2 Yr Fixed	1.10%	1.10%
Citigold	3 Yr Fixed	1.15%	1.15%
DBS	3 Yr Fixed	1.30%	1.30%
Maybank	4 Y Fixed	1.58%	1.58%

Cheapest Floating Rate Mortgage for a Refinancing (Jan 2022)

BANK	LOAN TYPE	Year 1	Year 2
SCB	3M SORA	0.83%	0.83%
DBS	3M SORA	0.93%	0.93%
HSBC	3M SORA	0.93%	0.93%
Citigold	1M SORA	0.96%	0.96%
UOB	3M SORA	1.01%	1.01%
Maybank	3M SORA	1.03%	1.03%
DBS	FHR6	1.05%	1.05%
BOC	3M SORA	1.08%	1.08%
OCBC	1M SORA	1.10%	1.10%

*Please note that there are lower interest rates packages from banks available which we are not allowed to advertise publicly in the table above.

Which bank has the best mortgage housing loan for a refinancing?

Taking into account the historically low interest rate environment currently, private property owners with a higher risk appetite favour a floating interest rate particularly with a market benchmark like SORA.

As bank spreads on a SORA home loan are still favourable, having the flexibility of switching to a different interest rate package within the lock in period helps to protect the downside should interest rates start to rise.

HSBC currently offers such a feature (commonly referred to as a repricing or conversion) on their 1M SORA mortgage packages. As the majority of mortgage options come with at least a 1 year lock in period, being able to change to a fixed rate package completely free of charge within the lock in period is definitely a good to have.

HSBC also stands out as the cheapest bank as it currently provides the highest cash rewards for all loan tiers which allows for a fully offset of all home loan refinancing fees.

Therefore, the cheapest mortgage loan for a private property refinancing would be from HSBC on a 1M SORA rate with a free repricing within the lock in period.

What are the downsides to a home loan refinancing?

Before you jump into refinancing your private property home loan, it is crucial to consider the downsides to refinancing your home including possible penalties on your existing loan as well as the upfront legal and valuation fees associated with refinancing.

You will have to pay the conveyancing fees (typically varies between $1,800 and $3000) and may also incur valuation fees (around $160 to $1000). Sometimes the upfront costs can outweigh the potential benefits. But don’t worry – we can help!

Also, through our partnership with conveyancing law firms, you get discounted legal fees and further cash rewards when you refinance your current mortgage loans with us. The lower upfront fees provide an opportunity to get reduced net interest rates on your housing loan and thus ultimately helping you save on your monthly repayments.

HDB Loan Refinance in Singapore

Refinancing your HDB loan to a bank loan may be a good idea, especially if you don’t intend to move to a new place anytime soon. It can also bring you significant cost savings.

Let’s say you take a loan amount of $350,000 with a loan tenure of 25 years.

With an HDB loan at 2.6% p.a., your monthly repayments will be approx. $1,604, of which say $758 goes towards interest. So you would pay about $126,353 in interest by the end of the loan tenure.

For the same loan amount and tenure, a bank loan at 1.3% p.a. would translate into monthly repayment of about $1,367. If $379 goes towards interest, you would pay only about $60,138 in interest by the end of the loan tenure.

The difference you see ($66,215) is no small change! However, keep that in mind that refinancing includes paying conveyancing fees, so your savings from switching to a bank loan must justify the costs to refinance.

DollarBack Mortgage brings you a list of banks with the best HDB loan refinance packages and the highest rebates and rewards.

Cheapest Fixed Rate Mortgage for HDB Loan Refinancing (Jan 2022)

BANK	LOAN TYPE	Year 1	Year 2
SBI	2 Yr Fixed	1.14%	1.14%
Hong Leong	2 Yr Fixed	1.20%	1.20%
DBS	2 Yr Fixed	1.30%	1.30%
Maybank	3 Yr Fixed	1.30%	1.30%
OCBC	4 Yr Fixed	1.38%	1.38%
DBS	5 Yr Fixed	1.40%	1.40%

Cheapest Floating Rate Mortgage for HDB Loan Refinancing (Jan 2022)

BANK	LOAN TYPE	Year 1	Year 2
DBS	3M SORA	0.93%	0.93%
UOB	3M SORA	0.93%	0.93%
DBS	FHR6	1.00%	1.00%
OCBC	1M SORA	1.02%	1.02%
Maybank	3M SORA	1.03%	1.03%
OCBC	1M SORA	1.10%	1.10%
Citibank	1M SORA	1.15%	1.15%
Hong Leong	Board Rate	1.18%	1.18%

*Please note that there are lower interest rates packages from banks available which we are not allowed to advertise publicly in the table above.

Which bank is the best for a HDB loan refinance?

For a HDB loan refinance, the cheapest bank would be DBS not only due to it having one of the lowest interest rates but also because it provides a cash reward of $2,000 for loan amounts above 200k to fully offset all upfront refinancing fees.

Taking into account that the total upfront fees for a HDB refinance come up to around $1,800 to $1,900 and all other banks generally provide subsidies between $1,400 to $1,800, DBS has the slight edge for you to enjoy net cash rewards even after all the upfront fees are fully covered.

When should you refinance a HDB loan?

Our experts suggest that you should consider refinancing your HDB home loan when interest rates are lower as you will be able to channel more of your disposable income into savings, retirement funds, etc.

The best time to refinance is every 2 to 3 years (based on your lock-in period), however, you don’t need to wait for the lock-in period to end to opt for refinancing. It is good to start the refinancing process three to four months before your lock-in period ends.

If you intend to stay in the same flat for a few more years to come, refinancing to a bank loan could be a smart move.

Also, refinancing can help you if your financial situation has changed (for good or bad) and you are looking to either clear off your loan faster or want to lower your monthly repayment to ease the cash flow.

Mortgage Loan for a BUC Condo in Singapore

Buying a new private property that is still under construction (BUC) is very common in Singapore. When you are buying a BUC property, you have the option of paying for your new home progressively to the developer in stages, rather than all at once. This is known as the Progressive Payment Scheme (PPS).

Basically, this scheme allows you to pay for a property according to the stage of construction it is at.

A typical Progressive Payment Scheme (PPS) for a BUC condo looks like this:

Percentage of purchase price	Stage / Progress
OTP (Option to Purchase) fee in cash	5%
Upon signing the Sale & Purchase Agreement / within 8 weeks immediately after the date of OTP	15%
Loan disbursal and monthly repayments begin from here
Foundation work	10%
Reinforced concrete framework	10%
Partition walls	5%
Roofing/Ceilings	5%
Internal plumbing and plastering, door and window frames, and wiring	5%
Roads, drains, and car parks	5%
Receipt of TOP (residents can move in)	25%
Completion (receipt of Certificate of Statutory Completion)	15%
Total	100%

So, should you get a BUC home loan before your new home is completed? Well, yes. We’ll tell you why.

The structure of the progressive payment scheme in the table above clearly shows that buyers can’t wait for the TOP (Temporary Occupation Permit) date to get their housing loan.

One thing important to note here is that since your payments are progressive (based on the stage of construction), the mortgage home loan is also disbursed portion by portion by the bank, according to the agreed payment schedule.

It is also a prerequisite for the buyer to get their BUC home loan approved first for CPF to disburse funds which you will need to cover the remaining downpayment and other fees before the OTP expires. Therefore, you must get your BUC loan as early as possible after putting down your option fee of 5%.

Let’s take a look at the list of banks offering the best home loan interest rate packages for BUC properties:

Cheapest BUC Home Loan Rates (Jan 2022)

BANK	LOAN TYPE	Year 1 to 4
SCB	3M SORA	0.98%
UOB	3M SORA	1.01%
DBS	3M SORA	1.01%
Citigold	3M SORA	1.02%
OCBC	1M SORA	1.04%
SCB	36FDR	1.10%
DBS	FHR6	1.15%

*Please note that there are lower interest rates packages from banks available which we are not allowed to advertise publicly in the table above.

Which bank has the best mortgage housing loan for a BUC condo?

UOB is currently the cheapest bank for a BUC home loan for one of the best floating rates it offers and the flexibility within it’s mortgage package.

Apart from providing two free switches to a different interest rate package before and after the Temporary Occupancy Period (TOP), it also allows for a waiver of penalties on any unreleased loan amount in the event the property is sold.

For a building under construction condo (BUC), due to the staggered repayment schedule and general appreciative nature as it reaches TOP, many homeowners or investors choose to sell their units once their keys are ready to be collected.

However, with 15% of the mortgage still left to be released by the bank even though the unit has been fully built, that would mean penalties of around a few thousands if the property is sold.

Therefore, by having such a flexibility of a penalty waiver without the opportunity cost of a premium in the mortgage interest rates, UOB stands out specifically as the best bank for a BUC home loan.

Since BUCs require a specific type of home loan that has its unique payment structure and works differently from completed home loans, it is important to plan ahead for your home loan. You can get in touch with our mortgage experts and consultants who can help you get the best deal possible while there’s enough time!

Mortgage Loan for a HDB BTO in Singapore

When opting for a bank loan for a HDB BTO unit, it is important to note that the home loan rates for a new BTO work differently from a completed HDB resale property. Mortgage packages for HDB BTO units generally only have floating rates without a lock-in period.

Cheapest Mortgage Loan Rates for a HDB BTO (Jan 2022)

BANK	LOAN TYPE	Year 1	Year 2
DBS	3M SORA	1.01%	1.01%
UOB	3M SORA	1.01%	1.01%
Maybank	3M SORA	1.03%	1.03%
OCBC	1M SORA	1.11%	1.11%
DBS	FHR6	1.15%	1.15%
SCB	3M SORA	1.33%	1.33%

*Please note that there are lower interest rates packages from banks available which we are not allowed to advertise publicly in the table above.

Which bank is the best for a HDB BTO loan?

The cheapest bank loan for BTO HDB property is currently from DBS due it having one of the lowest 3M compounded SORA (3M SORA), fixed deposit (FHR6) as well as Fixed rates.

Apart from just the interest rates alone, for HDB BTO loans which are generally lower in quantum (below 500k), DBS historically and consistently has one of the most competitive repricing options which allow borrowers to switch to a competitive interest rate package for free should their interest rates increase after their keys are collected.

This reduces the hassle of having to refinance consistently and having to bear upfront fees in the event other banks do not provide subsidies due to a lower loan amount for HDB BTO units.

Types of mortgages loans for different properties in Singapore

Based on your property type/status, you can choose from different mortgage loan options offered by all major banks in Singapore. Be sure to also know what to ask when getting a mortgage loan so that it makes the comparison process of the different options much easier.

Young couples looking to buy an under-construction HDB BTO (Built to Order) or a resale/completed HDB flat often go with the HDB concessionary loan, mainly due to its low cash downpayment benefit and no early repayment penalties.

If you are looking to buy a resale completed private property in Singapore or one that is still under construction (BUC), or simply want to refinance your home loan, you have got a lot of bank loan options.

Here’s a summary of the two main types of home loan options available for different properties in Singapore:

1. Housing Loans for Private Properties (Condos and Landed Homes)

When buying a completed private property in Singapore or a project that is still under construction, you can choose from a wide range of home loan interest rates and packages depending on your monthly instalment budget and risk tolerance.

For private property (still under construction): It is best suggested to pick a floating rate bank loan without a lock-in period when buying a private or landed property that is still under construction. It lets you reprice or refinance to a lower rate in the near future.

For private property (completed or resale): You get to choose from competitive home loan packages from major banks offering fixed or floating interest rates for buying completed or resale private property. Please note that HDB loans are not available for executive condominiums (EC).

2. Housing Loans for HDB Properties

Looking to finance your HDB flat? You can apply for an HDB housing loan, which is also the most common choice for all Singaporeans looking to become first-time homeowners. It is the most lenient of home loans that require paying almost nothing in cash if you have enough CPF savings.

However, it comes with certain income and citizenship restrictions, such as your income must be lower than the maximum household income limit; you must not own any other property locally or overseas, and others.

Also, the HDB home loan rate is fixed at 2.6% (which can theoretically change). That said, even HDB flat buyers can opt for a bank loan which has its own set of pros and cons. We’ll talk about it in a later section below.

For HDB BTO (under construction): To buy a HDB property that is still under construction, you can either get a HDB loan or a floating rate bank loan.

For HDB flat (resale or completed BTO): An HDB flat that is built or completed, you can get a full range of loan options, including HDB loan and a fixed or floating rate bank loan.

Comparing between a HDB loan vs a bank loan

Should you take a loan from a bank or get a HDB loan? Well, it depends on your financial capability and risk appetite. Both the home loan options have their own set of pros and cons.

As with most loan-related things, what worked out for them might not work for you and vice-versa.

Let’s take a look below at the pros and cons of both loan types:

1. Eligibility Restrictions

HDB home loans come with various eligibility conditions, which include income and citizenship requirements and a few more.

Banks generally have few (if any) eligibility restrictions. If someone has a good credit score, a steady monthly gross income (more than $2500) and minimal monthly debt obligations, then they are more or less eligible for a bank loan.

Banks mainly care about your ability to pay them back and that’s about it.

2. Loan to Value limit (LTV) and Downpayment

HDB loan allows you to borrow up to 90% of the property purchase price and requires only a 10% downpayment.

For bank loans, the maximum loan you can take up is up to 75% of the property value. Out of the required 25% downpayment, at least 5% must be in cash. The remaining amount can be paid with CPF OA savings. While this 15% difference (90% and 75%) is quite significant, you can save even more if you can afford the cash outlay required for bank loans.

Although an HDB loan requires less upfront, it can be more expensive in the long run, especially if you are taking a bigger loan to reduce your downpayment amount.

Bank loans may require a higher downpayment (the upfront cost) but offer more potential interest savings in the longer run.

3. Penalties

One key advantage of HDB loans is no early repayment penalties, unlike banks. Banks will charge a penalty of up to 1.5% of your outstanding amount on early repayment, selling off or refinancing your HDB flat within the lock-in period.

Similar penalties go for late repayment. HDB is generally more lenient with a 7.5% late repayment charge per year against the late repayment fee of $50 per repayment by banks.

4. Interest Rates

The interest rate for HDB housing loans is 2.6% per annum. It is pegged at +0.1% of CPF OA interest rate and hasn’t changed since 1999, and thus it is a preferred choice for those reluctant to take risks.

On the other hand, bank mortgage loans have lower interest rates but are more volatile as they are based on current SIBOR and SOR rates. Bank interest rates range between 0.8% to 2% (based on the interest rate trend from 2014 to 2021).

Considering if bank loans or HDB loans are better, chances are bank home loans triumph almost every time as you can enjoy competitive interest rates and continue to maximise savings by refinancing every time just before the lock-in period ends.

Since there are more chances of finding low housing loan rates for a HDB property with banks, you can use the above guide to pick the cheapest home loan for your next HDB flat purchase or a HDB loan refinance in 2021.

Final Thoughts

Home loan packages offered by banks keep changing, which makes it hard for the general public to stay updated and find the cheapest bank housing loans in Singapore. Not anymore!

DollarBack Mortgage provides the best possible home loan options in Singapore so that all homeowners can make an informed decision. The company was founded on the premise of educating the general public about mortgage-specific knowledge, loan-related risks and trends previously well-kept within the banking industry.

We have also partnered with key law firms specialising in conveyancing and are listed on the panel of all major banks in Singapore.

DollarBack Mortgage works with more than 21 leading banks in Singapore, including DBS, Standard Chartered, Maybank, Citibank, HSBC, and OCBC Bank to ensure you get the best service and guidance when it comes to finding the cheapest home loan in Singapore.

As an added benefit, we offer exclusive rewards and promotions when you refinance or get a new home loan through us.

Our home loan experts and mortgage consultants are always happy to answer all your questions and give you the best advice based on your financial situation.