10 Ways to Save Money on Your Mortgage in Singapore | Homejourney
The definitive guide to save money mortgage strategies for Singapore homeowners, backed by current 2026 data and Homejourney's trusted tools.
Executive Summary
Owning a home in Singapore is a major milestone, but high mortgage costs can strain your finances. With interest rates at 3-year lows in 2026, now is the perfect time to reduce mortgage costs and lower home loan payments. This comprehensive pillar guide from Homejourney reveals 10 Ways to Save Money on Your Mortgage in Singapore, including real examples, calculations, and insider tips.
Homejourney prioritizes your safety and trust by verifying bank rates and offering transparent tools like our bank rates comparison. Whether you're a first-time HDB buyer or refinancing a condo, these mortgage savings tips can save you thousands. Expect detailed strategies on CPF optimization, refinancing, and more, with actionable steps tailored to Singapore's regulations.
Key Takeaway: Homeowners switching rates saved up to S$500 monthly, per recent CNA reports. Start with Homejourney's mortgage calculator at https://www.homejourney.sg/bank-rates#calculator to see your potential savings today.
Table of Contents
- Introduction to Mortgage Savings in Singapore
- 1. Compare Rates Across All Major Banks
- 2. Time Your Refinancing with SORA Trends
- 3. Choose the Right Loan Tenure
- 4. Make Strategic CPF Payments
- 5. Use Interest Offset Accounts
- 6. Opt for Partial Prepayments
- 7. Break Fixed-Rate Lock-Ins Wisely
- 8. Leverage Penalty-Free Repayment Options
- 9. Refund CPF for Arbitrage Gains
- 10. Maximize MSR and TDSR Efficiency
- Common Mistakes to Avoid
- Your Mortgage Savings Action Plan
- FAQ: Saving on Mortgages in Singapore
- Next Steps with Homejourney
Introduction to Mortgage Savings in Singapore
Singapore's property market is unique, governed by strict rules from MAS, HDB, and URA. The Total Debt Servicing Ratio (TDSR) caps borrowings at 55% of income, while Mortgage Servicing Ratio (MSR) limits HDB/EC loans to 30%.Save money mortgage starts with understanding these frameworks.
In 2026, rates have fallen: fixed loans from 1.30%, floating from 3M SORA + 0% (1.15%). Homeowners like Ms. Denise Chan saved S$500/month by repricing from 3% to 1.6%.[2] Homejourney's platform lets you compare DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank rates instantly.
Over 30 years, a 1% rate drop on S$500,000 saves S$60,000+ in interest. This guide provides mortgage savings tips with calculations, risks, and Homejourney tools for safe decisions.
1. Compare Rates Across All Major Banks
The simplest way to reduce mortgage costs: shop around. Banks compete fiercely; Homejourney aggregates rates from 11 partners.
Example: S$800,000 loan at 25 years. DBS 1.6% fixed vs. OCBC 1.5%: monthly payment S$3,620 vs. S$3,580 – S$40/month or S$12,000 total savings.
| Bank | 2-Year Fixed Rate | Monthly Payment (S$500k, 25y) | Annual Savings vs. 2.5% |
|---|---|---|---|
| DBS | 1.60% | S$2,260 | S$4,500 |
| OCBC | 1.50% | S$2,240 | S$4,800 |
| UOB | 1.55% | S$2,250 | S$4,650 |
| HSBC | 1.45% | S$2,230 | S$5,100 |
Use Homejourney bank-rates for live comparisons and Singpass applications. Banks offer better deals via our multi-bank system.
2. Time Your Refinancing with SORA Trends
SORA (Singapore Overnight Rate Average) is the key benchmark. Rates hit 3-year lows in 2026.[2] Repricing surged 7x at OCBC in 2025.
SORA peaked at 3%+; now ~1.15%. Refinance when lock-in ends to avoid penalties.
The chart below shows recent interest rate trends in Singapore:
As seen, rates fell steadily. A S$500k loan switch saves S$4,100/year.[2] Track via Homejourney for perfect timing. See related: Pay Off Mortgage Faster: Singapore Bank Rate Comparison Guide 2026 .
3. Choose the Right Loan Tenure
Shorter tenure = less interest, but higher payments. Max HDB tenure: 75% age to 65.
Calculation: S$500k at 2%:
- 20 years: S$2,550/month, total interest S$112k
- 30 years: S$1,850/month, total interest S$166k
Difference: S$54k savings, but S$700 more monthly. Balance with TDSR using Homejourney's calculator.
4. Make Strategic CPF Payments
CPF Ordinary Account earns 2.5%; use for housing to reduce principal. But refund if cash yields better arbitrage.[1]
Insider tip: For HDB in Jurong West (S$500k), allocate OA first. Homejourney verifies eligibility.
5. Use Interest Offset Accounts
Park cash to offset interest. S$500k loan, S$100k offset: pay on S$400k only.[1] 70% offsets fully; risk-free return = mortgage rate.
Offered by select banks; check Homejourney partners like HSBC. Saves thousands annually.
6. Opt for Partial Prepayments
Most banks allow penalty-free partials in lock-in (e.g., DBS, OCBC).[2] Reduce principal early.
S$10k prepay on S$500k/2%/25y: saves S$25k interest. Compare partial vs lump sum: Partial Prepayment vs Lump Sum: Which Saves More via Homejourney .
7. Break Fixed-Rate Lock-Ins Wisely
Fixed at 2.8-3%? Penalty ~1-2% of loan, but savings offset if rates drop.[1] Ms. Chan halved her rate.[2]
Break-even: 6-12 months. Use Homejourney to model.
8. Leverage Penalty-Free Repayment Options
Choose packages with flexible prepayments.[2] UOB, Standard Chartered offer this. Saves on cut interest costs.
9. Refund CPF for Arbitrage Gains
Refund used CPF if idle cash <1% yield. Restore OA at 2.5%, repay loan strategically.[1] ~1% annual arbitrage.
Risk: Discipline needed. Homejourney advisors guide safely.
10. Maximize MSR and TDSR Efficiency
MSR 30% for HDB/EC.[3] Raise income ceiling hopes for EC (S$16k now). Optimize debts pre-application.
Homejourney calculator shows borrowing power instantly.
Common Mistakes to Avoid
- Ignoring fees: Legal/valuation S$2-3k on refinance.
- Fixed vs floating mismatch: Fixed popular (80%).[2]
- Overlooking CPF refunds.
- Not timing repricing.
Disclaimer: Not financial advice; consult professionals. Homejourney verifies data for trust.
Your Mortgage Savings Action Plan
- Calculate eligibility: Homejourney calculator.
- Compare rates: bank-rates.
- Track SORA via Homejourney.
- Prepay S$5-10k/year.
- Reprice every 2 years.
Expected: 20-30% cost reduction over loan life.
FAQ: Saving on Mortgages in Singapore
Q: How much can I save by refinancing?
A: Up to S$4,100/year on S$500k.[2] Use Homejourney tools.
Q: Fixed or floating in 2026?
A: Fixed for stability (80% choose).[2] Floating if rates fall further.
Q: Best prepayment strategy?
A: Partial for flexibility. See Partial Prepayment vs Lump Sum: Which Saves More on Singapore Mortgages? Homejou... .
Q: CPF for mortgage?
A: Yes, but consider refunds.[1]
Q: MSR/TDSR impact?
A: Caps at 30%/55%; optimize income.[3]
Q: Homejourney benefits?
A: Compare 11 banks, Singpass apply, live SORA tracking.
Next Steps with Homejourney
Visit https://www.homejourney.sg/bank-rates to compare, calculate, and apply securely. Search properties at https://www.homejourney.sg/search within your budget. Homejourney ensures safety through verification and transparency. Start saving on your mortgage today!
