Best Home Loan Rates Singapore February 2026: Boost Approval Chances

Best Home Loan Rates Singapore February 2026: How to Improve Your Approval Chances

As of February 2026, the lowest fixed mortgage rates in Singapore start from 1.35% for loans above $1 million, while floating rates begin at 1M SORA + 0.25% (approximately 1.36%)[1][2]. However, securing the best rate isn't just about finding the lowest headline number—your approval chances depend on how banks assess your financial profile, income stability, and creditworthiness.

This guide walks you through the current mortgage landscape and reveals seven actionable strategies to strengthen your loan application, ensuring you don't just find a competitive rate but actually get approved for it.

Current Home Loan Rate Landscape (February 2026)

Singapore's mortgage market in February 2026 reflects a competitive environment with promotional rates and flexible options across major banks. Understanding what's available helps you benchmark your options effectively.

Fixed Rate Mortgages remain the dominant choice for risk-averse borrowers. For resale condos and landed properties, promotional rates start at 1.48% for 2-year fixed terms, with established banks like Maybank offering 1.65% and DBS at 1.75%[1]. For HDB loans, fixed rates begin at 1.55% (1+1 year fixed) through promotional offers, with Maybank at 1.65%[1].

Floating Rate Mortgages are gaining traction as borrowers consider repricing flexibility. Most floating packages are structured around SORA (Singapore Overnight Rate Average) plus a spread. Current promotional rates start at 1M SORA + 0.25%, with Maybank offering 3M SORA + 0.40%[1]. The key advantage: if rates fall further, your monthly payment decreases automatically.

The chart below shows recent SORA trends to help you understand how rates have moved and what to expect:

Banks have introduced tighter spreads and flexible repricing options to attract borrowers actively comparing loan packages[4]. This competitive environment means your approval strategy matters as much as the rate itself.

7 Proven Strategies to Improve Your Mortgage Approval Chances

Banks assess mortgage applications using strict criteria. Here are seven evidence-based strategies to strengthen your profile before applying:

1. Optimize Your Debt-to-Service Ratio (TDSR)

Singapore banks use TDSR to determine how much you can borrow. Your total monthly debt obligations (including the new mortgage) cannot exceed 60% of your gross monthly income. To improve this ratio:

Pay down existing credit card balances and personal loans before applying
Avoid taking new loans 3-6 months before your mortgage application
Request credit limit reductions on unused cards (this lowers your potential debt obligations in the bank's eyes)
Use Homejourney's mortgage eligibility calculator to see exactly how much you can borrow based on your current TDSR

Example: If you earn $8,000 monthly and have $2,000 in existing debt payments, your available mortgage capacity is $2,800 (60% of $8,000 minus $2,000). Paying down that $2,000 in debt increases your mortgage capacity to $4,800.

2. Strengthen Your Income Documentation

Banks scrutinize income proof carefully. The stronger your documentation, the faster your approval:

Salaried employees: Provide 3-6 months of payslips, employment letter, and latest tax notice of assessment (NOA)
Self-employed/Business owners: Prepare 2-3 years of audited accounts, tax returns, and business registration documents
Freelancers/Commission earners: Show 2 years of consistent income through bank statements and contracts
CPF contributions: Ensure your CPF contribution records are up-to-date and match your declared income

Banks cross-reference your CPF contributions against your declared income. Any discrepancies raise red flags and delay approval. Verify your CPF statement on the CPF Board website before applying.

3. Build a Strong Credit History

Your credit score influences both approval chances and the interest rate offered. To strengthen your credit profile:

Check your credit report with Credit Bureau Singapore (CBS) for errors and dispute inaccuracies
Ensure all credit accounts are in good standing with no late payments in the past 12 months
Maintain credit utilization below 30% on all credit cards
Avoid multiple loan applications within 3-6 months (each application creates a hard inquiry that temporarily lowers your score)

Banks typically require a clean credit history for the past 2 years. Even one missed payment can significantly impact your approval chances.

4. Maximize Your Down Payment

A larger down payment reduces the bank's risk and improves your approval odds. Consider these options:

Private property buyers: While the minimum down payment is 20%, putting down 25-30% signals financial strength and may unlock better rates
HDB buyers: The minimum is 10% (split into two payments), but a larger down payment improves your loan-to-value ratio and strengthens your application
CPF withdrawal: Use your CPF savings for the down payment to preserve cash and demonstrate financial discipline

Banks view larger down payments as evidence of financial stability and commitment to the property.

5. Choose the Right Loan Structure for Your Profile

Your choice between fixed and floating rates affects approval differently:

Fixed rate mortgages: Easier to approve because monthly payments are predictable. Banks can more easily assess your repayment capacity. Recommended for first-time buyers and those with variable income.
Floating rate mortgages: Require stronger financial profiles because banks assess your ability to handle rate increases. Better for borrowers with stable, high income and strong credit histories.
Hybrid structures (1+1 or 2+2 year fixed): Offer a middle ground—predictability in early years with flexibility later. Often approved quickly while maintaining some rate protection.

If you're on the borderline of approval, starting with a fixed rate increases your chances. You can always refinance to floating later.

6. Prepare a Complete Documentation Package

Incomplete applications cause delays and rejections. Prepare these documents before applying:

NRIC and passport copies
Marriage certificate (if applicable)
Divorce decree or separation agreement (if applicable)
3-6 months of payslips
Employment letter with job title and salary confirmation
Latest 2 years of tax returns (NOA)
Latest CPF statement
Bank statements (3 months) showing down payment funds
Property purchase agreement or letter of intent
Valuation report of the property (if available)
List of existing debts and monthly obligations

Having everything ready before applying accelerates the approval process by 2-3 weeks.

7. Apply Through Multiple Banks Simultaneously

Rather than applying to one bank at a time, submit applications to multiple banks within a short timeframe (ideally within 2-3 days). This approach:

Increases your approval chances—different banks have different lending criteria
Generates competing offers, allowing you to negotiate better rates
Reduces the impact of hard inquiries (multiple applications within 14 days typically count as one inquiry)
Saves time compared to sequential applications

This is where Homejourney's multi-bank application system becomes invaluable. Instead of visiting each bank individually, you submit one application through Homejourney that reaches DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and other major lenders simultaneously. Your details auto-fill using Singpass/MyInfo, and you receive competing offers side-by-side within days.

Bank-Specific Approval Criteria (February 2026)

While all banks follow MAS guidelines, each has slightly different approval criteria and rate structures:

DBS Bank: Offers competitive fixed rates (1.75% for 2-year fixed on resale properties) with flexible conversion options. Approval is typically faster for salaried employees with DBS accounts.
OCBC Bank: Emphasizes flexibility with partial prepayment and repricing options. Rates vary by loan amount, with sharper pricing for loans above $1 million. Strong approval rates for borrowers with existing OCBC relationships.
UOB: Competitive rates across all loan sizes. Known for streamlined approval processes and clear communication timelines.
HSBC: Offers 1.70% fixed rates with strong support for refinancing applications. Particularly favorable for borrowers with existing HSBC wealth management relationships.
Standard Chartered: Competitive rates at 1.68% for 2-year fixed terms. Known for flexibility in assessment for self-employed applicants.
Maybank: Promotional rates from 1.55-1.65% with strong support for first-time HDB buyers. Fastest approval for borrowers with existing Maybank relationships.

Rather than applying to each bank separately, use Homejourney's bank rates comparison page to see all current rates and submit applications to multiple banks instantly.

Fixed vs. Floating: Which Improves Your Approval Chances?

Your choice between fixed and floating rates affects both your approval likelihood and long-term costs:

Fixed Rate Mortgages (1.35%-1.75% for 2-3 year terms) are easier to approve because banks can accurately predict your repayment capacity. Monthly payments remain constant, making it simple for banks to assess your TDSR. This is the safer choice for first-time buyers or those with variable income.

Floating Rate Mortgages (1M SORA + 0.25% to 0.40%) require stronger financial profiles. Banks stress-test your application by calculating what happens if rates rise 2-3%. You must demonstrate capacity to handle higher payments. However, if you're confident rates will remain stable or fall, floating rates offer better long-term value.

Current data shows that fixed mortgages still dominate Singapore's market, with most borrowers choosing payment certainty over rate optimization[7]. However, floating rates are gaining traction as borrowers consider repricing flexibility.

How Homejourney Simplifies the Approval Process

Navigating multiple bank applications is time-consuming and stressful. Homejourney transforms this process through three key features:

1. Mortgage Eligibility Calculator: Before applying anywhere, calculate exactly how much you can borrow based on your income, existing debts, and property price. This prevents wasted applications and helps you focus on properties within your actual budget.

2. Singpass/MyInfo Integration: Your income, employment status, and CPF data auto-fill instantly. No manual form-filling required. Your application reaches banks within seconds, not days.

3. Multi-Bank Submission: One application, multiple banks. Receive competing offers from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and others simultaneously. Compare rates, terms, and features side-by-side before deciding.

Beyond rate comparison, Homejourney's mortgage brokers provide personalized guidance throughout the approval process. They understand each bank's specific criteria and can advise on which applications to prioritize based on your profile.

Start your application journey at Homejourney's bank rates page, where you can calculate your eligibility, compare current rates, and submit applications to multiple banks in minutes.

Common Approval Mistakes to Avoid

Even strong applicants face rejections due to preventable errors:

Applying too soon after job change: Most banks require 6-12 months in your current role. Changing jobs immediately before applying significantly reduces approval chances.
Taking new loans before applying: A new car loan or personal loan taken 2-3 months before your mortgage application will likely result in rejection due to TDSR violations.
Inconsistent income documentation: If your payslips show different amounts than your CPF contributions or tax returns, banks will reject the application pending clarification.
Incomplete property information: Provide full property details (address, type, purchase price, valuation) upfront. Vague applications are automatically rejected.
Ignoring your credit report: Check your CBS credit report before applying. Errors or old defaults can cause rejections even if you've since recovered financially.
Applying to too many banks at once: While multiple applications within 2-3 days are fine, applying to 10+ banks signals desperation and raises red flags.

Timeline: From Application to Approval

Understanding the approval timeline helps you plan your property purchase effectively:

Days 1-3: Submit applications through Homejourney to multiple banks. Banks begin initial assessment and request any missing documents.
Days 4-7: Banks conduct credit checks and income verification. You may receive requests for additional documents (employment letters, CPF statements, etc.).
Days 8-14: Property valuation is arranged. Banks assess the property's market value to determine their lending limit.
Days 15-21: Final underwriting and approval decision. Most applications are approved or rejected by this point.
Days 22-28: Loan offer letter issued. You review terms, negotiate if needed, and accept the offer.
Days 29-35: Legal documentation prepared. Solicitor reviews loan terms and property purchase agreement.
Day 35+: Completion and fund disbursement. Your mortgage is activated and funds transferred to the seller.

Total timeline: 4-6 weeks from application to fund disbursement. Using Homejourney's multi-bank system can compress this to 3-4 weeks by generating competing offers quickly.