10 Ways to Save Money on Your Mortgage: How to Improve Approval Chances

Saving money on your mortgage while boosting approval chances is achievable through smart strategies tailored to Singapore's market. Homejourney, prioritizing your safety and trust, outlines 10 ways to save money on your mortgage, reduce costs, and secure better home loan terms from banks like DBS, OCBC, and UOB.

This cluster article builds on our pillar guide, 10 Ways to Save Money on Your Mortgage in Singapore, offering tactical steps for first-time buyers, HDB upgraders, and refinancers. With rates at 3-year lows—3-month SORA at 1.34%—now's the time to act[2]. Use Homejourney's bank rates page to compare offers safely.

Why Mortgage Savings Matter in Singapore's 2026 Market

Singapore's Total Debt Servicing Ratio (TDSR) caps borrowing at 55% of income, making approval competitive. Lower rates from 3-4% in 2023-2024 to 1.55-1.8% now enable big savings—like $3,600 yearly on a $400k HDB loan[2]. Homejourney verifies data for confident decisions, helping you reduce mortgage costs without risks.

Refinancing from HDB's 2.6% rate to bank loans is surging, but approval hinges on credit score, income stability, and CPF usage. Platforms like Homejourney streamline this with Singpass integration for instant eligibility checks.

10 Actionable Ways to Save Money on Your Mortgage & Improve Approval

Follow these steps to lower home loan payments and enhance approval odds. Each includes Singapore-specific tips and Homejourney tools.

1. Check Your Credit Score Early
   
   Access your Credit Bureau Singapore report via Singpass. Scores above 1,400 boost approval from DBS or OCBC. Fix errors 3 months ahead—insider tip: Consistent payments on credit cards raise scores 50-100 points yearly.
2. Reduce Debt-to-Income Ratio
   
   Pay off cards and personal loans before applying. TDSR compliance is key; aim for under 40% debt. Example: Clearing $10k debt on $10k monthly income unlocks $50k more borrowing power.
3. Maximize CPF Contributions
   
   Use Ordinary Account (OA) CPF for downpayments—earns 2.5% vs. bank savings <1%. Refund strategy: Pay down loan, refund CPF for arbitrage[1]. Homejourney's calculator shows impacts instantly.
4. Shop Multiple Banks via Homejourney
   
   One application on Homejourney's bank-rates sends details to DBS, OCBC, UOB, HSBC, and more. Compare 1.15-1.30% rates[4]; saves time and secures rebates up to $4,100 yearly on $500k loan[3].
5. Time Your Application with SORA Trends
   
   SORA is Singapore's benchmark; 3M SORA at 1.34%[2]. The chart below shows recent interest rate trends in Singapore:

   Rates may hover 1.3-1.4% into 2026[2]. Lock fixed rates (1.6%) for stability or float for potential drops[3].

6. Opt for Offset Accounts
   
   Park cash to offset interest—$100k offsets $430k of $500k loan effectively[1]. Offered by select banks; boosts liquidity while cutting costs risk-free.
7. Break Lock-Ins Strategically
   
   Post-2-year lock-in (standard in SG), reprice or refinance. Penalty often offset by savings; e.g., from 3% to 1.6% saves $500/month[3]. Check via Homejourney.
8. Leverage Cash Rebates & Promotions
   
   Banks offer rebates, legal subsidies for refinancing[2]. HDB switchers save vs. 2.6% rate—but note no reverse[2]. Compare on Homejourney for best deals.
9. Build 6-Month Emergency Fund
   
   Banks assess stability; DBS advises this for approvals[5]. Keeps ratio low, shows readiness—vital for investors or freelancers.
10. Consult Homejourney Brokers
    
    Apply via Homejourney for personalized guidance. Multi-bank submission tracks status, auto-fills via Singpass, ensuring transparency and speed.

Step-by-Step Mortgage Savings Checklist

Use this to cut interest costs:

• Gather docs: Income proof, CPF statements, IC (Singpass-ready).
• Calculate eligibility at Homejourney calculator.
• Submit multi-bank app—expect offers in 1-3 days.
• Review TDSR, LTV (80% HDB, 75% private).
• Sign best offer; track via platform.

Common pitfall: Ignoring fees—factor $2-3k for valuation/legal. Pro tip: Refinance mid-2026 if rates dip further[2].

Homejourney: Your Safe Path to Mortgage Savings

Homejourney verifies info, listens to feedback, and builds trust. Skip bank queues—use our platform for secure, one-stop savings. Link budgets to properties via property search.

Disclaimer: Not financial advice; consult professionals. Rates as of Jan 2026[2][4].

FAQ: Mortgage Savings Tips

1. How much can I save refinancing HDB to bank loan?
HDB at 2.6% vs. bank 1.55%; $3,600/year on $400k[2]. Use Homejourney comparator.

2. What's the best way to improve mortgage approval?
Boost credit score, lower debts, stable income. Homejourney's Singpass app speeds verification.

3. Fixed or floating rates in 2026?
Floating (SORA+0%) at 1.15% for savers; fixed 1.6% for peace[3][4]. Chart above guides.

4. Can I switch back from bank to HDB loan?
No—once bank, stay bank[2]. Plan via Homejourney.

5. How does Homejourney help save on mortgage?
Multi-bank apps, live rates, brokers—compare DBS vs. UOCB safely.

Ready to save money on your mortgage? Start at Homejourney bank-rates and explore our pillar guide for more: 10 Ways in Singapore.

References

1. Singapore Property Market Analysis 2 (2026)
2. Singapore Property Market Analysis 1 (2026)
3. Singapore Property Market Analysis 4 (2026)
4. Singapore Property Market Analysis 3 (2026)
5. Singapore Property Market Analysis 5 (2026)