Apply to Multiple Banks at Once: How Rates and Fees Work
When you apply to multiple banks simultaneously through a platform like Homejourney, you submit a single application that reaches all major lenders at once—DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more. Each bank independently assesses your application and responds with competing offers showing their specific rates, fees, and terms within 2-3 business days. This approach eliminates the need to visit multiple branches, protects your credit profile, and allows genuine rate comparison without the paperwork burden of sequential applications.
Understanding how rates and fees differ across banks is crucial because the difference between a 3.5% and 3.8% interest rate can cost you tens of thousands of dollars over a 25-year mortgage. This guide explains exactly what you'll see when banks respond to your multi-bank application, how to interpret their offers, and what hidden fees to watch for.
Why Apply to Multiple Banks at Once?
The traditional approach—applying to one bank, waiting for approval, then applying to another—takes weeks and triggers separate credit inquiries that can damage your credit score. Multi-bank applications solve this problem by allowing banks to compete for your business simultaneously.
When you use Homejourney's multi-bank application system, banks know you're comparing options, which is standard practice in Singapore's mortgage market. Rather than viewing multiple applications negatively, banks expect this behavior and respond with competitive offers. Your credit profile is protected because mortgage broker-facilitated inquiries are treated differently than direct applications—they register as a single inquiry rather than multiple hard pulls.
The strategic advantage is clear: you receive competing offers from 5-10 banks within days, compare rates and fees side-by-side, and negotiate from a position of strength. This competitive pressure often results in better rates than you'd receive from a single bank application.
Understanding Bank Rates: SORA vs Fixed vs Board Rate
When banks respond to your multi-bank application, they'll quote interest rates using different benchmarks. Understanding these differences is essential because they directly impact your monthly repayment and total interest paid.
SORA-Linked Rates (Floating): Most Singapore banks now offer SORA (Singapore Overnight Rate Average) plus a spread. For example, a bank might quote "SORA + 1.5%". Your actual interest rate fluctuates monthly based on SORA movements, which means your monthly repayment can change. SORA rates are typically lower than fixed rates but carry interest rate risk.
Fixed Rates: Some banks offer fixed-rate mortgages where your interest rate remains constant for a specified period (typically 2-5 years). After the fixed period ends, the rate reverts to SORA + spread or another floating benchmark. Fixed rates provide payment certainty and protect against rate increases, but they're usually higher than initial SORA rates.
Board Rate (Declining Balance): Older mortgages sometimes use the bank's Board Rate, which is less common now but still offered by some lenders. This rate is typically higher than SORA-linked rates.
The chart below shows recent SORA trends to help you understand how rates have moved:
As you can see from the chart, SORA rates have remained relatively stable, making it an attractive benchmark for borrowers. When comparing offers from your multi-bank application, pay attention to both the current rate and the spread—the spread is what differentiates banks and is often negotiable.
Breaking Down Bank Fees: What You'll See in Offers
When banks respond to your Homejourney multi-bank application, each offer includes several fees beyond the interest rate. Understanding these fees is critical because they can add thousands to your total borrowing cost.
Processing Fee: This is the bank's administrative cost for processing your application. Typical range: S$500-S$1,000. Some banks waive this fee for certain customer segments or loan amounts. This fee is usually non-negotiable but worth asking about.
Valuation Fee: Banks require a professional property valuation before approving your loan. This fee covers the appraiser's cost and typically ranges from S$500-S$1,500 depending on property value and location. The fee is usually deducted from your loan disbursement, so you don't pay it upfront.
Legal and Conveyancing Fees: Your lawyer handles the mortgage documentation and property transfer. Bank legal fees typically range from S$800-S$1,500, though you can engage your own lawyer. Compare what each bank charges versus using an independent lawyer.
Insurance Requirements: Banks require mortgage protection insurance (also called credit life insurance). This insurance pays off your remaining mortgage if you pass away or become permanently disabled. Premiums vary by bank and are typically S$50-S$150 annually. Some banks bundle this into your monthly repayment; others charge separately. This is one area where you can often shop around—you may be able to purchase insurance from a third party at lower cost.
Lock-in Period Penalties: Most mortgages include a lock-in period (typically 3-5 years) where early repayment triggers penalties. When comparing offers, check the lock-in period and penalty structure. Some banks charge 1% of outstanding loan amount; others use a sliding scale. If you anticipate refinancing or early repayment, this matters significantly.
Stamp Duty: This is a government tax on the mortgage deed, not a bank fee. Stamp duty is typically S$10-S$20 per S$1,000 borrowed and is mandatory. It's usually paid when you complete the mortgage.
How to Compare Offers from Your Multi-Bank Application
When banks respond to your application through Homejourney, you'll receive multiple offers with different rates and fees. The key is comparing them on a consistent basis—don't just look at the headline interest rate.
Calculate Effective Interest Rate: Use Homejourney's mortgage calculator to input each bank's rate, fees, and terms. This shows you the true cost of borrowing by factoring in all fees over the loan period. A bank with a 3.5% rate but S$1,500 in fees might have a higher effective cost than a bank with 3.6% rate and S$800 in fees.
Check the Spread Over SORA: If comparing SORA-linked offers, the spread is what differentiates banks. A spread of 1.4% is better than 1.6%. This 0.2% difference costs you thousands over 25 years. When banks compete for your business, spreads are often negotiable—don't accept the first offer.
Evaluate Lock-in Terms: A bank with a lower rate but longer lock-in period might not be better than a competitor with slightly higher rate but shorter lock-in. Consider your plans—if you might refinance in 3 years, a 5-year lock-in with penalties is costly.
Factor in Service Quality: The cheapest rate isn't always best if the bank's customer service is poor or their online banking platform is clunky. You'll interact with this bank for 25 years, so consider the total experience.
The Multi-Bank Application Timeline and Fee Structure
Understanding the timeline helps you plan when you'll actually incur these fees. Most fees aren't paid upfront—they're deducted from your loan disbursement or paid at completion.
Days 1-3 (In-Principle Approval): You submit your multi-bank application via Homejourney using Singpass/MyInfo. Banks respond with In-Principle Approvals (IPAs) showing maximum loan quantum. No fees are charged at this stage—IPAs are non-binding and free.
Days 4-7 (Offer Comparison): You receive formal offers from responding banks detailing rates, fees, and terms. Review these carefully using Homejourney's comparison dashboard, which displays all offers side-by-side. Still no fees charged.
Week 2 (Bank Selection and Valuation): You select your preferred bank and formally accept their offer. The bank orders a property valuation. The valuation fee (S$500-S$1,500) is charged at this stage but typically deducted from your loan disbursement, not paid out-of-pocket.
Weeks 2-4 (Full Approval): The bank completes its assessment, including valuation review and documentation verification. Processing fees (S$500-S$1,000) are charged now, again typically deducted from disbursement. Your lawyer begins preparing mortgage documents.
Weeks 4-6 (Completion): You complete the purchase. Stamp duty is paid, and the bank disburses funds. Legal fees (S$800-S$1,500) are paid to your lawyer. Insurance premiums begin.
Negotiating Rates and Fees After Your Multi-Bank Application
One major advantage of multi-bank applications is negotiating power. When you have competing offers, banks are motivated to improve their terms.
Negotiate the Spread: If one bank offers SORA + 1.5% and another offers SORA + 1.4%, the difference is negotiable. Contact the bank with the higher spread and ask if they can match or beat the competitor's rate. Many will, especially if you're a good customer profile.
Request Fee Waivers: Processing fees and legal fees are sometimes waivable, especially for larger loans or if you're bringing other business to the bank (savings account, credit card, etc.). Ask explicitly—the worst they can say is no.
Compare Insurance Options: Don't automatically accept the bank's insurance product. Get quotes from independent insurers—you can often purchase mortgage protection insurance for 20-30% less than what banks charge.
Lock-in Period Negotiation: Some banks will shorten their lock-in period or reduce penalties if you're comparing with competitors. This is especially true if you're a strong applicant with good income and credit profile.
Hidden Costs to Watch For
Beyond the explicit fees listed in your offer, several hidden costs can surprise you.
Early Repayment Penalties: If you pay off your mortgage early, the bank charges a penalty during the lock-in period. Some banks charge 1% of outstanding loan; others use a sliding scale. Clarify this before accepting an offer.
Refinancing Fees: If you refinance to another bank later, you'll pay similar fees again (processing, legal, valuation). Plan for this if you think you might refinance in 5-10 years.
Mortgage Protection Insurance Increases: Insurance premiums can increase over time, especially if you're on a renewable annual policy. Check if premiums are guaranteed or if they can increase.
Appraisal Shortfall: If the bank's valuation comes in lower than your purchase price, you'll need to pay the difference out-of-pocket or increase your down payment. This isn't a "fee" but a significant cost risk.
Using Homejourney to Simplify Rate and Fee Comparison
Homejourney's multi-bank application system is specifically designed to make rate and fee comparison straightforward. Here's how it works:
Real-Time Rate Comparison: Visit Homejourney's Bank Rates page to see current rates from all major Singapore banks in one place. This gives you baseline rates before you apply, helping you understand what's competitive.
Eligibility Calculator: Use Homejourney's mortgage eligibility calculator to determine your borrowing power under TDSR and MSR rules. This shows you what loan amounts different banks might approve, helping you set realistic expectations before applying.
One-Click Multi-Bank Application: Submit a single application through Homejourney that reaches all major banks simultaneously. Use Singpass/MyInfo to auto-fill your details in under 5 minutes rather than spending 30-45 minutes per bank.
Side-by-Side Offer Comparison: When banks respond, Homejourney's dashboard displays all offers side-by-side, showing rates, fees, lock-in periods, and terms clearly. This makes comparison effortless and helps you spot the best value.
Mortgage Broker Support: Homejourney's mortgage brokers are available throughout the process to answer questions about rates, fees, and terms. They understand each bank's preferences and can provide guidance on which offers represent the best value for your situation.
Frequently Asked Questions About Rates and Fees
Do all banks charge the same fees?
No. Processing fees, valuation fees, and legal fees vary significantly between banks. Some banks charge S$800 total; others charge S$2,000+. This is why comparing the complete offer—not just the interest rate—is essential. Homejourney's side-by-side comparison shows all fees clearly so you can calculate total cost.
Can I negotiate the interest rate after my multi-bank application?
Yes, absolutely. When you have competing offers, you're in a strong negotiating position. Contact your preferred bank and ask if they can match or beat a competitor's rate. Many banks will improve their offer, especially on the spread portion of SORA-linked rates. Document competing offers and present them clearly when negotiating.
What's the difference between SORA + 1.5% and a fixed 3.8% rate?
SORA + 1.5% is a floating rate that changes monthly based on SORA movements. If SORA is currently 2.3%, your rate is 3.8%, but it could be 3.6% next month or 4.0% the month after. A fixed 3.8% rate stays constant for the fixed period (usually 2-5 years), protecting you from rate increases. SORA rates are typically lower initially but carry interest rate risk; fixed rates are higher but provide certainty. Choose based on your risk tolerance and rate outlook.
