Best Bank for First-Time Home Buyers Singapore: Homejourney's Definitive 2025 Guide

This comprehensive pillar guide reveals the best bank for first-time home buyers in Singapore, comparing rates, eligibility, and processes across top lenders like DBS, OCBC, and UOB. Homejourney prioritizes your safety with verified rates and multi-bank applications via Singpass for faster, secure approvals.

As first-time buyers navigate HDB flats or private condos, choosing the right first-time buyer mortgage saves thousands. We analyze 2025 data from MAS and bank promos, offering actionable advice to secure your new buyer home loan.

Executive Summary: Your Path to the Best First-Time Home Loan

In December 2025, the best banks for first-time home buyers offer fixed rates from 1.35%-1.78% p.a. in Year 1 and SORA floating from +0.25% (effective ~1.43%). DBS, OCBC, and promo rates lead for HDB and private properties[1][2].

Homejourney's real-time comparison at https://www.homejourney.sg/bank-rates lets you find the top first property loan instantly. Calculate eligibility, apply to multiple banks with Singpass, and let lenders compete for you.

Key insight: First-timers save up to S$20,000 in rebates on loans over S$1M via Homejourney's verified partners[2]. This guide equips you with data-driven decisions in Singapore's competitive market.

1. Understanding First-Time Buyer Mortgages in Singapore

A first-time buyer mortgage finances up to 75-90% of your HDB flat or condo value, with rates pegged to SORA (Singapore Overnight Rate Average) or fixed packages. SORA replaced SIBOR in 2024; 1M/3M SORA is ~1.18% as of Dec 2025[7][9].

First-timers qualify for ABSD remission (no Additional Buyer's Stamp Duty) if buying first HDB/resale private property. Downpayment: 5% cash + rest CPF/cash, with Cash Over Valuation (COV) in cash[3].

Insider tip: For BUC (Build-Then-Collect) condos, loans disburse progressively—5% at foundation, up to 60% at TOP—making early rates less critical[10]. Use Homejourney's mortgage calculator to model scenarios.

Key Mortgage Types for New Buyers

Fixed Rate: Locked 1-3 years (e.g., 1.35%-1.78% Year 1), then reprice to SORA[1][2]. Ideal for budgeting.
Floating SORA: 1M/3M SORA + spread (e.g., +0.25%), follows market[7]. Lower long-term if rates fall.
Board Rate: Bank-internal, less transparent—avoid for beginners.

Lock-in penalties: 1.5% on prepaid principal if breaking early. Free conversion after 12-36 months offered by top banks[2].

2. Eligibility and Regulations for Beginner Mortgages

First-time buyers need stable income (min S$2,000/month), age 21-65, Singaporean/PR, and no prior property ownership. MSR (Monthly Servicing Ratio) caps at 30% of income; TDSR at 55% total debt[1].

HDB: Income ceiling S$14,000/month for flats. Private: LTV up to 75% (90% for
Original insight: With 2025 rates at 3-year lows (1.4-1.8% fixed), lock now—Homejourney tracks live SORA at bank-rates [9].

2025 LTV and Downpayment Table

Property Type	Max LTV First-Timer	Min Downpayment
HDB Flat	90%	5% cash + 5-20% CPF/cash
Resale Condo <S$1.5M	90%	5% cash + COV cash
Private >S$1.5M	75%	25% (5% cash)

Source: MAS/URA 2025 rules[3]. Calculate yours on Homejourney.

3. HDB Loan vs Bank Loans: Which is Best for First-Timers?

HDB Loan: Fixed 2.6% p.a. (theoretical), no lock-in, but income <S$14K, Singaporean majority household[1]. Pros: Stability. Cons: Higher rate vs banks' 1.4% promos.

Bank loans: Lower rates (1.35%+), flexible, but lock-ins. Best for dual-income or private properties.

Practical advice: HDB for safety; banks for savings (e.g., S$10K/year on S$500K loan). Compare on Homejourney bank-rates.

4. Top 11 Banks for First Property Loans Compared (Dec 2025)

Homejourney verifies rates daily from partners. Here's the snapshot for S$500K+ loans[1][2].

Best Fixed Rates Table (Year 1-2, % p.a.)

Bank	Loan Type	Year 1	Year 2	Rebate
Promo (Various)	2Y Fixed	1.35-1.50	1.35-1.50	S$2K+
OCBC	2Y Fixed	1.60	1.60	S$2-2.8K
DBS	2Y Fixed	1.65-1.75	1.65-1.75	S$2-2.8K
UOB	2Y Fixed	1.60	1.60	S$2.3K
HSBC	2Y Fixed	1.70	1.70	Up to S$1K refer

Best Floating SORA Rates (Spread over 1M SORA)

Bank	Type	Year 1-2 Spread	Effective (~1.18% SORA)
Promo	1M SORA	+0.25%	1.43%
Maybank	3M SORA	+0.40%	1.58%
DBS	3M SORA	+0.28%	1.46%

Maybank, SCB, CIMB, RHB, Public, Hong Leong, Citibank offer competitive promos—full comparison on Homejourney[1][2].

5. In-Depth Reviews: Best Banks for First-Time Buyers

DBS Bank: Market Leader for Reliability

Dominant with POSB integration, DBS offers 1.65-1.78% 2-3Y fixed, generous S$2.8K rebates on S$1.5M+ loans[2]. Pros: FC24/36 free conversion, vast branches. Cons: Slightly higher rates. Best for HDB buyers.

Application: 3-7 days via Singpass. User experience: Top-rated app[6]. Compare on Homejourney.

OCBC Bank: Competitive for New Purchases

1.60% 2Y fixed, up to 75% LTV for private/HDB[6]. Pros: S$2-2.8K rebates, FC24. Cons: Min S$400K private. Ideal for condos.

Insider: OCBC excels in BUC progressive payments[10]. Apply multi-bank via Homejourney.