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

Saving money on your mortgage while boosting approval chances requires smart strategies tailored to Singapore's market. Homejourney, your trusted platform for safe property transactions, reveals 10 actionable ways to reduce mortgage costs, lower home loan payments, and cut interest costs effectively.

This cluster guide builds on our pillar content, 10 Ways to Save Money on Your Mortgage in Singapore | Homejourney, offering tactical steps for first-time buyers, HDB upgraders, and investors. With 2025 rates stabilizing around 2.40%-2.70% for fixed packages, timing is key[2]. Use Homejourney's bank rates comparison to compare DBS, OCBC, UOB, and more instantly.

Why Mortgage Savings Matter in Singapore's 2025 Market

Singapore's property prices are stabilizing with 1-2% PPI growth, but elevated rates persist despite easing[2]. A S$2.4M RCR condo demands S$600K downpayment (S$120K cash minimum), making mortgage savings tips essential. Homejourney prioritizes your safety by verifying data and simplifying applications via Singpass for faster approvals.

SORA (Singapore Overnight Rate Average), the key benchmark, averaged 3.25% in early 2025, with gradual declines expected[5]. Fixed rates offer stability at 2.40%-2.70%[2]. The chart below shows recent interest rate trends in Singapore:

As seen in the chart, rates are softening—perfect for refinancing. Calculate your eligibility first at Homejourney's mortgage calculator.

1. Make a Larger Downpayment to Cut Loan Size

Boost approval by reducing your loan-to-value (LTV) ratio—HDB limits to 75-90%, private up to 75%[2]. A bigger downpayment means less interest over time. Example: On a S$1M HDB flat, S$300K down (30%) vs S$200K saves thousands in interest.

Save 20-25% cash minimum via CPF Ordinary Account (OA).
Use Homejourney's eligibility calculator to model scenarios.
Avoid over-borrowing; aim for payments under 30% of income for easy approval.

2. Improve Your Credit Score for Better Rates

Banks like DBS and UOB check Credit Bureau Singapore (CBS) scores. A score above 1,400 unlocks sub-2.5% rates. Pay bills on time and keep credit utilization under 30%.

Check your free CBS report annually.
Reduce credit card debt 3-6 months pre-application.
Homejourney's multi-bank system flags issues early.

3. Shop and Compare Rates Across Banks

Don't settle for your bank's rate—compare via Homejourney bank rates. Fixed packages from HSBC or Standard Chartered hit 2.40% p.a.[2]. Submit one Singpass application to DBS, OCBC, UOB, Maybank, CIMB, and more.

Pro tip: Refinance 4 months before lock-in ends to avoid penalties[2][3].

4. Time Your Application with Rate Trends

Monitor 3M/6M SORA on Homejourney. With rates falling, apply during dips for lower home loan payments[5]. Avoid peak seasons like Q4 when banks tighten.

5. Leverage CPF Funds Strategically

Use CPF OA for downpayments and repayments to reduce mortgage costs—no cash outflow needed. But watch accrued interest. See our guide: 5 Strategies to Optimize Your Mortgage with CPF | Homejourney.

Top up OA before buying.
Calculate limits via HDB portal.
Combine with cash for LTV compliance.

6. Choose Fixed or Hybrid Packages Wisely

Fixed rates (2-5 years) at 2.40%-2.70% shield from hikes[2]. Hybrids split fixed/floating (e.g., DBS 50-50). Improves approval by showing risk awareness.

7. Refinance or Reprice Proactively

Switch banks or packages if savings exceed 0.5%. Free repricing available at some[2]. Homejourney tracks offers side-by-side.

8. Build a Strong Debt-to-Income Ratio

TDSR caps at 55%—pay down debts first. Emergency fund of 6 months' expenses signals stability to banks[1].

9. Get Mortgage Insurance for Protection

Low-cost insurance (e.g., HDB's Home Protection Scheme) pays off loan on death/disability, easing approval for families[2].

10. Use Homejourney's Multi-Bank Application

Skip bank-hopping—Homejourney sends one app to 10+ partners. Track status, compare offers, auto-fill via Singpass. Highest approval rates through verified data.

Actionable Steps to Implement These Tips

Run eligibility on Homejourney calculator.
Gather docs: NRIC, payslips (3 months), CPF statements, tax assessments.
Apply via bank rates page—offers in days.
Search budget-friendly properties at Homejourney property search.

Disclaimer: This is general advice; consult professionals. Rates as of 2025; verify current MAS/HDB rules.

FAQ: Mortgage Savings Tips

How much can I save refinancing now?
Switching to 2.5% fixed from 3.25% SORA on S$1M loan saves ~S$5K/year[2].

What's the best way to improve approval?
Strong credit, low DTI, and multi-bank apps via Homejourney boost chances 30-50%.

Can I use CPF fully for mortgage?
Yes, but limits apply—details in CPF Withdrawal Limits Guide.

When to refinance?
3-4 months pre-lock-in[3]. Use Homejourney for real-time rates.

Ready to save money on your mortgage? Start with Homejourney bank rates today. For full guide, visit our pillar: 10 Ways in Singapore. Trust Homejourney for transparent, safe financing.