The best bank loans for property investors in Singapore are usually SORA-pegged or short-lock-in fixed packages from major banks like DBS, OCBC and UOB, structured so that your rental yield mortgage comfortably covers your instalments and still leaves room for positive cash flow.
For investors using Homejourney, the safest approach is to compare all partner banks’ rates in real time, model your rental income loan payment under different scenarios, and choose the package that maximises your long-term investment return mortgage while preserving cash flow buffers.
How this cluster fits into Homejourney’s investment pillar
This article is part of Homejourney’s broader pillar on safe property investing and financing in Singapore, where we also cover topics like LTV & ABSD rules LTV & ABSD Rules for Safe Investment Property Loans | Homejourney and detailed rental yield vs mortgage cash flow analysis Rental Yield vs Mortgage: Cash Flow Analysis | Homejourney .
Here, we zoom in on one tactical question: which bank loan structures work best for property investors who want positive cash flow property and sustainable leverage, especially in today’s lower-rate environment in 2025–2026.[2]
Key principles: What makes a “best” investment property loan?
From years of working with investors in areas like Tampines, Queenstown and Geylang, the patterns are clear: the “best” loan is not just the one with the lowest headline rate, but the one that:
- Keeps monthly instalments comfortably below realistic net rental income
- Has a lock-in period that matches your investment horizon
- Offers flexibility for partial prepayment when your cash flow improves
- Limits interest rate volatility so you can plan your investment return
- Works within MAS TDSR and LTV rules for investment properties
According to recent coverage, fixed-rate housing loans in Singapore fell to around 1.4%–1.8% by end-2025, roughly half what they were at the start of 2025, while 3M SORA dropped to about 1.2% – the lowest since 2022.[2] These conditions give investors more room to structure safe, cash-flow-positive loans.
Understanding SORA and rate types for investors
Most investment property loans from DBS, OCBC, UOB, HSBC and other major banks now use compounded SORA (Singapore Overnight Rate Average) as the reference rate, plus a fixed bank spread.[2] Floating packages typically quote something like “3M SORA + X%” and reset every three months.
For investors, the three main rate types are:
- SORA-pegged floating: Usually lowest starting rates, but can rise if SORA increases
- Fixed-rate: Slightly higher at the start but gives certainty for 2–5 years[2]
- Board / internal rate: Pegged to a bank’s internal benchmark, less transparent, usually less popular with seasoned investors
Channel NewsAsia reports that SORA may have already “found a floor”, meaning further large rate drops are unlikely, and future movements could be sideways or slightly higher.[2] For investors, this makes a mix of short-lock fixed and SORA-pegged loans particularly attractive for balancing cash flow and flexibility.
The chart below shows recent interest rate trends in Singapore:
Use this as a reference alongside Homejourney’s live SORA tracking on our bank rates page Bank Rates to time refinancing or new purchases more safely.
Best bank loan profiles for Singapore property investors
Instead of chasing a single “best bank”, experienced investors in districts like 03 (Queenstown), 15 (East Coast) and 19 (Hougang/Sengkang) look for loan profiles that match their strategy. Below, we outline which types of loans from Homejourney partner banks tend to work best for typical investor use cases.
1. For high-yield, positive cash flow property (e.g. city fringe condos, HDB rentals)
Example: A 2-bedder in Boon Keng renting for S$3,400 per month, purchase price S$1.1M, 75% LTV, 30-year tenure.
At a blended rate around 1.5%–1.7% (typical of current fixed and competitive SORA packages from major banks in late 2025[2]), your monthly instalment is roughly S$2,800–S$2,900. After deducting S$300–S$400 for conservatively estimated maintenance and property tax, you still retain a small positive monthly surplus.
For this profile, the best investment property loans are typically:
- 2- or 3-year fixed-rate packages from banks like DBS, OCBC, UOB, HSBC or Standard Chartered, locking in today’s relatively low rates[2]
- SORA-pegged packages with competitive spreads from UOB, OCBC or Maybank when you expect rates to stay low or you have strong cash buffers
These work well as rental yield mortgage structures: your rental income comfortably covers loan servicing, and you enjoy predictable investment return mortgage metrics over the first few years.
2. For capital-gain focused investors (CCR units, new launches)
If you are buying a core central region unit near Orchard or Raffles Place, often with lower yields but stronger capital appreciation potential, your cash flow margin will be tighter.
Here, many investors prefer:
- Short-lock fixed (2-year) packages from DBS, OCBC or UOB to lock in stability while the project builds or stabilises rentals
- Flexible SORA packages from banks like HSBC, Standard Chartered or CIMB with partial prepayment options, so you can reduce principal if you receive bonuses or divest other assets
This strategy reduces the risk that rising rates crush your rental income loan payment coverage and allows you to refinance once the property stabilises or rates move again.
3. For multiple-property investors (portfolio across heartland and CBD)
Seasoned investors with 3–4 properties across areas like Jurong East, Pasir Ris and Tanjong Pagar usually blend different bank partners to diversify risk. For example:
- One SORA-pegged package with DBS for a CBD property
- A 3-year fixed package with OCBC for an East-side rental unit
- A flexible, investor-friendly package with UOB or Maybank for a suburban HDB rental
Homejourney’s portfolio tools and our related guide on financing multiple properties safely in Singapore Financing Multiple Investment Properties Safely in Singapore | Homejourney help structure this safely within MAS TDSR and LTV limits.
Bank-by-bank overview for investment property loans
Below is a tactical overview of how key Homejourney partner banks typically position themselves for investors. Always check current rates and terms via Homejourney’s live comparison page Bank Rates , as packages and promotions change.
DBS Bank
Profile: Market leader with deep SGD funding base and competitive fixed rates, as highlighted by independent mortgage advisers.[4]
Best for investors who want:
- Competitive 2–3 year fixed packages at or near market lows[2][4]
- Smooth online processes and fast approval for straightforward salaried profiles
- Strong reputation and stability for long-term holds
Typical strengths for property investors: DBS often prices aggressively for larger loans (e.g. above S$800k–S$1M), offers occasional legal subsidies and cash rebates, and supports repricing options when your lock-in ends.[4][2]
Considerations: Lock-in penalties apply for early redemption or sale during the fixed period, so match the lock-in with your investment horizon.
OCBC Bank
Profile: Known for flexible SORA packages and strong support for both local and overseas property investors, including an Overseas Property Loan for selected markets like the US, UK, Japan, Malaysia and Australia.[3]
Best for investors who:
- May eventually diversify into overseas markets while managing loans from Singapore[3]
- Like SORA-pegged floating packages with competitive spreads
- Appreciate clear communication and strong digital banking tools
OCBC’s overseas property loans typically allow you to borrow in SGD or the property’s local currency, with LTV up to 55–60% depending on location and currency.[3] This is useful for seasoned investors expanding beyond Singapore once their domestic portfolio is stable.
UOB (United Overseas Bank)
Profile: Strong local presence and competitive for both fixed and SORA-linked packages, with particular appeal to investors who value customer service and flexibility.
Best for investors who:
- Want a mix of fixed and floating loans across multiple properties
- May need custom solutions (e.g. self-employed income, variable bonuses)
- Plan to refinance every few years to optimise returns
HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, Citibank
Profile: These banks often run promotional packages that can be extremely attractive for investment properties at certain times, especially for higher loan amounts.
Strengths for investors:
- Occasional lowest-in-market SORA spreads or fixed rates for specific tenures
- Appealing legal subsidies for refinancing, which can reduce your effective cost
- More flexibility for foreigners or high-income professionals in certain cases
Considerations: Package structures and pricing can be more dynamic, so it is critical to use Homejourney’s live comparison rather than relying on outdated rate tables.
How to choose the best loan for a rental investment (step-by-step)
To maximise the chance of a positive cash flow property, use this simple, practical framework that investors in areas like Sengkang and Bukit Batok have found helpful:
Step 1: Estimate realistic rental yield, not just asking rents
Use recent rental contracts from URA or HDB data, and apply a small discount to account for vacancy and negotiation. For example, if similar units sign at S$3,500, assume S$3,200–S$3,300 when stress-testing.
For deeper analysis, refer to Homejourney’s guide on rental yield vs mortgage payment Rental Yield vs Mortgage Payment: Safe Investment Analysis with Homejourney .
Step 2: Model your rental income loan payment coverage
On Homejourney’s mortgage calculator Mortgage Rates or , key in:
- Purchase price
- Loan amount (respecting LTV and ABSD limits – see our LTV & ABSD guide LTV & ABSD Rules for Safe Investment Property Loans | Homejourney )
- Interest rate (test both current and +1% stress scenario)
- Tenure
Then calculate your monthly instalment and compare it to your conservative net rental (after maintenance, MCST fees, property tax, and a vacancy buffer). Aim for at least 20–30% cushion between rental income and monthly instalments.
Step 3: Choose a bank and package type
Use Homejourney’s bank rates page Bank Rates to:
- Compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank in one place
- See which banks currently have the most attractive SORA spreads or fixed rates for your loan size
- Check lock-in periods, free partial prepayment options and legal subsidies
For most investors seeking stable investment return mortgage outcomes, a 2- or 3-year fixed from a major bank or a well-priced SORA package with partial prepayment flexibility is usually safest.
Step 4: Apply safely through Homejourney
Instead of visiting multiple bank branches, you can:
- Use Singpass/MyInfo via Homejourney Bank Rates to auto-fill your details
- Submit one multi-bank application and let banks compete for your business
- Receive offers from all major lenders, then pick the one that best supports your investment goals
- Get guidance from Homejourney Mortgage Brokers for complex cases (self-employed, multiple properties, overseas income)
This process reduces errors, speeds up approval and helps ensure your documents (NOA, CPF statements, existing loan summaries) are consistent across banks – a small but important detail that experienced investors know can affect approval smoothness.
Current market context and risk management for investors
Mortgage rates are currently at multi-year lows, with both fixed and floating packages more attractive than HDB’s 2.6% concessionary rate in many cases.[2] CNA reports that some owners switching to bank loans save around S$4,100 annually on a S$500,000 loan by moving to a five-year fixed package.[2] While this data mainly covers owner-occupied loans, the same rate environment benefits investors.
However, MAS and most advisers highlight that interest rates do not move in a straight line.[2] To keep your investment safe:
