How to Compare and Get the Best Bank Loan for a Condo in Singapore

Buying your dream house in Singapore is exciting, but finding the right home loan to finance it? That part can feel overwhelming.

For private condo buyers, the stakes are high. Your mortgage loan will likely run for 25 to 35 years, and even a 0.5% difference in interest rate can add up to tens of thousands of dollars in total interest over the full loan tenure. 

The good news is that home loan rates in 2026 are significantly lower than the peaks seen in 2022–2023. Fixed rates from major banks now start at around 1.25% p.a., and floating-rate packages are even lower.

But here’s the thing. The headline rates you see advertised are just one piece of the puzzle. When comparing bank loans for a condo in Singapore, you need to understand how banks calculate how much you can borrow, what costs are involved beyond the monthly mortgage, and what happens after your lock-in period ends.

This guide covers everything in plain English.

Key Takeaways

• Your maximum loan is shaped by LTV and TDSR. Your actual loan is whichever is more restrictive.
• Lock-in period, revert rate, free conversion rights, and legal subsidy all determine the true cost of a loan.
• Get your IPA before you place an option fee. It protects your 1% deposit and gives you a real budget, not a hopeful estimate.
• Fixed versus floating is a risk appetite decision. Fixed gives certainty for 2–3 years; floating is cheaper now, but can rise if SORA moves up.

How Much Can You Borrow? (LTV Explained Simply)

Before you fall in love with a unit, find out your maximum loan amount. This is determined by the Loan-to-Value (LTV) limit set by the Monetary Authority of Singapore (MAS).

LTV is simply the percentage of the property’s purchase price (or market value, whichever is lower) that a bank will lend you. 

So if your condo costs $1,500,000 and the LTV limit is 75%, your maximum loan is $1,125,000. The remaining 25% is your down payment.

The LTV limit depends on how many outstanding loans you currently have:

Outstanding Housing Loans	LTV Limit	Minimum Cash Down
None (1st property)	75%	5% cash
1 existing loan (2nd property)	45%	25% cash
2 or more loans (subsequent properties)	35%	25% cash

Important: If your loan tenure exceeds 30 years (or 25 years for an HDB flat), or the loan extends beyond age 65, the lower LTV tier applies — dropping from 75% to 55% for a first property. Always check both conditions.

Your CPF Ordinary Account savings can cover the non-cash portion of the down payment and your monthly installments, but only up to CPF withdrawal limits tied to the property’s value.

TDSR and MSR — How Banks Size Up Your Loan

Knowing the LTV tells you the property-side limit. The Total Debt Servicing Ratio (TDSR) tells you the income-side limit.

MAS mandates that your total monthly debt repayments, including your new mortgage loan, car loans, personal loans, and any other borrowing transactions, cannot exceed 55% of your gross monthly income.

Worked example:

• Gross monthly income: $8,500/month
• 55% TDSR limit: $4,675/month (maximum total monthly debt)
• Existing car loan repayment: $900/month
• Maximum monthly mortgage allowed: $4,675 − $900 = $3,775/month

A handy way to think about it is the Debt Servicing Ratio TDSR is a ceiling on your total monthly debt, not just your housing loan.

What about the Mortgage Servicing Ratio (MSR)?

The MSR only applies to HDB flat purchases and executive condominium (EC) units. It caps housing loan repayments at 30% of gross monthly income. For private condos, MSR does not apply; only TDSR does.

Banks also apply a stress test at 4% p.a. (or the actual rate if higher) when calculating how much you qualify for. This means your qualifying loan amount may be lower than you expect, even if current home loan rates are well below 4%.

Get Your In-Principle Approval (IPA) Before You Search

Before you place any option fee on a unit, obtain your In-Principle Approval (IPA), also known as AIP (Approval in Principle).

An IPA is a conditional letter from a bank confirming the maximum loan amount you’re likely to qualify for, based on your income, credit history, and existing loans. It does not lock you in, but it can be your planning tool.

Why it matters:

• You shop within a real budget, not a hopeful one
• Sellers and agents treat you as a serious buyer
• You avoid losing the option fee on a unit you can’t finance

How long does it take? 

Typically 1–3 business days. Validity is usually 30 days.

Documents you’ll need:

• NRIC
• Last 3 months’ payslips
• Latest IRAS Notice of Assessment
• CPF statement
• Statements for any outstanding loans

A mortgage specialist or mortgage broker can help you apply to multiple banks at once, so you can compare loan amounts and packages side by side without multiple hard credit checks affecting your score.

For a complete walkthrough of what the IPA process involves, what it confirms, and what it doesn’t, see In-Principle Approval (IPA) Loan Singapore — Ultimate Guide.

Fixed Rate or Floating Rate?

This is one of the most important decisions in your home loan journey, and it comes down to your risk appetite and your view of where interest rates are heading.

Fixed-Rate Home Loans

Your monthly repayments stay the same for a set period, usually 2 to 3 years. After that, your loan automatically shifts to a floating rate once the lock-in ends. Fixed-rate mortgages suit buyers who want certainty in cash flow and prefer not to worry about market fluctuations.

Floating Rate Home Loans (SORA-Based)

These are tied to SORA or the Singapore Overnight Rate Average, which is the volume-weighted average rate of overnight borrowing transactions between banks, published daily by MAS. Most banks reference either 1-month or 3-month Compounded SORA.

Your monthly mortgage can go up or down as SORA moves. In early 2026, SORA has fallen significantly from its 2023 highs, making floating-rate packages attractive again. However, past experience (SORA exceeded 3.7% in 2023) reminds us that higher interest is always a possibility.

Some older packages reference board rates or interest rates set entirely at each bank’s discretion. These offer less transparency than SORA-linked packages and are now less common.

	Fixed Rate	Floating Rate (SORA)
Indicative rate (early 2026)	~1.25% – 1.60% p.a.	~1.10%–1.45% p.a. (effective)
Stability	Yes — for 2–3 years	No — moves with market
Total interest paid	Slightly higher (for certainty)	Potentially lower, but variable
Best for	First-timers, budgeting certainty	Those comfortable with rate changes
Risk	Reverts to floating after lock-in	The rate can rise if SORA rises

Rates are indicative as of early 2026. Always verify the latest home loan rates directly with the bank or through a mortgage broker.

Check these 5 Other Factors

Headline rates attract attention. These five factors determine whether the loan actually works for you.

1. Lock-in Period: Most home loan packages carry a 2-year lock-in during which early repayment triggers a penalty (typically 1.5% of the outstanding loan amount). On a $900,000 loan, that’s $13,500. Always confirm the lock-in before signing.

2. What Happens When Lock-in Ends: After the fixed period, your rate reverts to a floating rate, which is often tied to the bank’s board rates or SORA. Ask specifically: What is the rate in Year 3 and beyond? This is an important factor that headline comparisons routinely omit.

3. Free Conversion: Some home loan packages offer a one-time free conversion. It means you’ll be able to switch your rate type within the same bank at no cost. This is most common in packages for properties under construction, but some completed properties packages now offer it within or after the lock-in period.

4. Repricing vs Refinancing

• Repricing (same bank, new package): minimal fees, quick process — ideal when your current bank has a competitive offer.
• Refinancing (new bank): involves legal and valuation fees again ($2,000–$3,500 total), but you can access lower home loan rates if another bank’s packages are significantly better.

5. Legal Subsidy: Many banks offer a partial or full legal subsidy to offset the legal fees involved in switching. This is a genuine cost-saving benefit, but we still recommend you compare the full loan cost, excluding the upfront incentives.

The Full Upfront Cost Picture

Your monthly installments are only part of what you’ll pay when buying a private condo. Budget for all of these costs involved:

Cost	What to Expect
Option Fee	~1% of purchase price (paid to reserve the unit; credited on exercise)
Down Payment	Min 25% total (5% must be cash; the rest can be CPF savings)
Buyer’s Stamp Duty (BSD)	1%–6% (tiered on purchase price or market value) Source: IRAS BSD
Additional Buyer’s Stamp Duty (ABSD)	0% (SC, 1st property) → 20% (SC, 2nd) → 30% (SC, 3rd+) → 60% (foreigners)
Legal Fees	~$2,500–$3,500
Property Valuation	~$250–$500 (for property valuation required by the bank)
Mortgage Insurance (MRTA/fire)	Varies; fire insurance is mandatory under MAS rules
Property Taxes	Annual, based on the annual value set by IRAS

BSD Quick Estimate (on a $1.5M condo):

• First $180,000 at 1% = $1,800
• Next $180,000 at 2% = $3,600
• Next $640,000 at 3% = $19,200
• Remaining $500,000 at 4% = $20,000
• Total BSD ≈ $44,600

Note: For condos priced above $2M, two additional BSD tiers apply: 5% on the next $1,500,000 and 6% on any remaining amount. Always factor this in for higher-value purchases. Source: IRAS BSD

Seller’s Stamp Duty (SSD) applies if you sell within 3 years of purchase. Factor this into your longer-term cash flow planning.

How DBS, OCBC, and UOB Compare

All three major banks offer competitive private home loan packages. The best one depends on your loan amount, preferred loan tenure, and which other benefits matter most to you.

Bank	Fixed Rate (2 yr, indicative)	Floating Rate (SORA)	Notable Feature
DBS home loan	~1.55%–1.60% p.a.	FHR6 + 0.35% (Y1-2); SORA + 1.00% (thereafter)	Fixed-deposit board rate option (FHR6); online application available
OCBC home loan	~1.45% p.a. (2-year)	1 M Compounded SORA + 0.98%	Free repricing option; flexible lock-in packages
UOB home loan	~1.60%–2.60% p.a.	3M Compounded SORA + 0.70% (Y1-2)	Strong 2–3 year fixed packages with competitive rates

Rates indicative as of early 2026. Confirm current packages with your bank or mortgage specialist before committing.

When comparing, always ask for the Year 3 and beyond rate. The same amount borrowed at different interest rates can mean very different total interest paid over the full loan tenure.

A Quick Word on HDB Loans vs Bank Loans for Condo Buyers

The HDB concessionary loan and HDB home loan are only available for HDB flat purchases. If you are buying a private condo, you must use a bank loan. There is no HDB loan option.

For executive condominiums (ECs), HDB loan rules (including MSR at 30% and an 80% LTV for HDB financing) apply during the initial development phase. After the EC is privatised (typically at the 10-year mark), it is treated as private property and standard bank loan rules apply.

If you currently have an HDB concessionary loan and are upgrading to a condo, note that switching from an HDB home loan to a bank loan is a one-way move. You cannot revert to an HDB loan for a future HDB flat purchase once you have taken a bank loan. Plan accordingly.

For a side-by-side breakdown of how HDB, condo, and EC loan structures differ across LTV limits, MSR/TDSR rules, and rate types, see HDB Vs Condo Vs EC Loan: Guide To Compare Mortgage Rates.

Finding the Best Home Loan for Condos in Singapore

Getting the best bank loan for a condo in Singapore is not about chasing the lowest headline rate. It is about understanding your maximum loan amount, choosing a fixed or floating rate that suits your risk appetite and cash flow, budgeting for all upfront costs, and reading the fine print on your lock-in period and what comes after.

Done right, a well-chosen mortgage loan can mean significant savings over the entire loan tenure, and the peace of mind that your monthly repayments are manageable even if market conditions change.

DollarBack Mortgage is a licensed mortgage broker that compares home loan packages from major Singapore banks, including DBS, OCBC, UOB, and more, at no cost to you. Our mortgage specialists help you secure your In-Principle Approval quickly, explain the costs involved clearly, and find the financing options that genuinely fit your situation.

Get a free home loan comparison today — no obligation, no pressure.

Disclaimer: All interest rates and figures in this article are indicative as of early 2026 and are subject to change without notice. Calculations are illustrative only and do not constitute financial advice. Please seek independent advice from a qualified mortgage specialist before making any borrowing decision. DollarBack Mortgage earns a standard referral fee from banks upon successful loan disbursement.

Sources: MAS LTV Explainer|IRAS Buyer’s Stamp Duty|MAS SORA|MAS MSR & TDSR Rules

Frequently Asked Questions

Can I use my CPF Ordinary Account savings to pay for a condo bank loan?

Yes. Your CPF savings can be used toward the down payment and monthly mortgage repayments for private residential properties, subject to the CPF withdrawal limits (tied to the property’s value and remaining lease).

What is the maximum loan amount I can get for a private condo?

This depends on two things: the LTV limit (75% for a first property with no outstanding loans) and your TDSR limit (55% of gross monthly income). Your actual maximum loan is whichever of the two is more restrictive, plus the bank’s own credit assessment.

Should I use a mortgage broker or apply online directly?

A mortgage broker compares home loan packages across multiple banks at no cost to you. Brokers earn a standard referral fee from the bank, not from you. Applying online directly saves time but limits you to one bank’s packages. For a high-stakes borrowing transaction, such as a private condo purchase, getting multiple views makes sense.

What happens after my lock-in period ends?

Your rate will typically revert to a floating rate (SORA-based or board rate, depending on your package). At that point, you can reprice with the same bank or refinance with a new one to lock in a better deal. Most property buyers should mark their calendar 3 months before their lock-in ends and start comparing options then.

Do I need mortgage insurance for a condo loan?

Fire insurance is mandatory under MAS regulations for all residential property loans. Mortgage Reducing Term Assurance (MRTA) is optional but worth considering for financial protection if your income stops.