10 Ways to Save Money on Your Mortgage: How to Improve Approval Chances
Saving money on your mortgage while boosting approval chances is possible through smart preparation and strategic choices. In Singapore's competitive 2026 market, where fixed rates start from 1.35% and floating SORA-linked rates hit 1.09%, these 10 tactics can cut interest costs and secure better terms from banks like DBS, OCBC and UOB.
This cluster article dives into actionable steps for first-time buyers, HDB upgraders and refinancers. It builds on our pillar guide, 10 Ways to Save Money on Your Mortgage in Singapore | Homejourney10 Ways to Save Money on Your Mortgage in Singapore | Homejourney , offering tactical advice to navigate TDSR limits and MSR rules effectively.
Why Mortgage Savings Matter in 2026 Singapore
Homejourney prioritizes your financial safety by verifying data and providing transparent tools. With rates at 3-year lows—fixed packages at 1.4%-1.8% and floating below 2%—timely action saves thousands[1][2]. For a S$500,000 loan, switching to a 1.6% rate saves S$4,100 yearly versus 2.6% HDB loans[2].
Approval hinges on TDSR (60% debt cap) and stable finances. Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator instantly checks your borrowing power using Singpass.
1. Check and Boost Your Credit Score Early
A strong credit score (above 700) unlocks lower rates. Review your CTC report via Credit Bureau Singapore—fix errors like late payments immediately.
- Pay all bills on time for 6 months pre-application.
- Reduce credit card limits to under 30% utilization.
- Avoid new loans 3-6 months before applying.
Pro tip: Homejourney users see 20% higher approvals via our pre-check toolsBank Rates .
2. Use Homejourney's Multi-Bank Comparison
Don't apply bank-by-bank—wastes time and queries. Homejourney's https://www.homejourney.sg/bank-rates compares DBS (1.6% fixed), OCBC, UOB, HSBC, Standard Chartered, Maybank and more side-by-side.
One Singpass application sends details to 10+ banks, auto-filling income and CPF data for faster processing. Track offers in real-time—users report 0.2-0.5% better rates[2].
3. Time Your Application with Rate Trends
Rates fell to 3-year lows in 2026[2]. SORA (Singapore Overnight Rate Average), the key benchmark for floating loans, drives 80% of packages.
The chart below shows recent interest rate trends in Singapore:
As seen, 3M/6M SORA dropped, making floating rates attractive. Fixed 2-year packages from 1.35% suit stability seekers[1][4]. Monitor via Homejourney for optimal timing.
4. Maximize CPF Usage Strategically
CPF Ordinary Account (OA) funds reduce principal faster than cash. For HDB buyers, use up to available balance post-reservation fee.
Compare OA vs cash: OA at 2.5% interest beats low savings rates. See our guide CPF OA vs现金还房贷哪个更划算？Homejourney权威指南 . Limits: 80% OA for new flats, full for resale使用CPF减轻房贷负担完整指南 | Homejourney新加坡2026 .
5. Choose Fixed vs Floating Wisely
Fixed locks rates 1-3 years (popular: 4/5 chose fixed in 2025[2]). Ideal for budgeting. Floating tracks SORA + spread (from 1.09%), better for sales (penalty waivers)[4].
- Risk-averse? Fixed from DBS/OCBC.
- Planning resale? Floating with waiver.
Test scenarios on Homejourney calculator to lower home loan payments.
6. Gather Documents in Advance
Banks approve faster with complete files. Checklist:
- NRIC/Passport
- Last 3-6 months payslips/bank statements
- CPF statements (last 12 months)
- Form B/IPTO (HDB)
- Latest tax assessment (IR8A)
Singpass via Homejourney auto-fills 70%, speeding approvals by 50%.
7. Shorten Loan Tenure if Possible
25 vs 30 years on S$800,000 at 1.8%: Saves S$100,000+ interest. TDSR allows if under 60%.
Start with 30 years, partial repay with bonuses/CPF to shorten effectively. Avoid overstretch—use Homejourney affordability tool.
8. Reprice or Refinance at Lock-In End
Most 2-year lock-ins: Reprice same bank (admin fee) or refinance (legal fees S$2,000-3,000). Target 3 months before end[5].
OCBC saw 7x repricing in 2025, saving S$500/month[2]. Homejourney simplifies multi-bank offers.
9. Leverage Promotions and Waivers
Banks offer cashback (up to S$3,000), free legal fees for loans >S$500k[1]. Floating often waives 1.5% sale penalties[4].
Compare on Homejourney—our partners like HSBC, CIMB prioritize verified applicants.
10. Work with Homejourney Mortgage Brokers
Our brokers negotiate exclusive rates, review profiles for max approval. Personalized: Match to your risk profile and plans.
Disclaimer: Rates fluctuate; consult professionals. Homejourney verifies data for trust.
FAQ: Mortgage Savings Tips
Q1: How much can I save refinancing now?
S$500k loan from 3% to 1.6%: S$500/month, S$4,100/year[2]. Use calculator.
Q2: Fixed or floating for HDB resale?
Floating for penalty waivers on sale[4]. Fixed for stability.
Q3: CPF limits for mortgage?
OA up to balance; see CPF取款限额完整指南：2026年Homejourney房产买家权威解析 ">CPF取款限额完整指南：2026年Homejourney房产买家权威解析 .
Q4: Approval timeline?
1-3 weeks via Homejourney multi-bank; Singpass speeds it.
Q5: Best banks 2026?
DBS/OCBC fixed 1.4-1.8%; floating from Maybank 1.09%[1][4]. Compare at bank-rates.
Ready to save? Start with Homejourney's bank rates comparison and eligibility check. Find budget-friendly properties at https://www.homejourney.sg/search. For full strategies, read our pillar: 10 Ways to Save Money on Your Mortgage in Singapore.
