Best Home Loan Rates Jan 2026: Approval Tips | Homejourney

Looking for the Best Home Loan Rates Singapore January 2026 Comparison: How to Improve Approval Chances? In early 2026, the most competitive bank home loan packages for both HDB and private properties are typically in the 1.4%–1.8% p.a. range for fixed rates and around 1M / 3M SORA + 0.25–0.40% for floating rates, depending on loan size, tenure and profile.[2][3] HDB’s concessionary rate remains at 2.6% p.a., so many buyers and owners are switching to bank loans to save on interest.[1][3][9]

This cluster guide drills into two things Singapore buyers care about right now: a practical January 2026 bank rate comparison framework, and clear, step-by-step tactics to boost your approval chances. For a broader overview of how home loans work in Singapore (including HDB vs bank loan, SORA trends, and 2026 market outlook), refer to our main pillar guide: Best Home Loan Rates Singapore January 2026 | Homejourney Comparison Guide .

Best home loan rates Singapore January 2026: What’s really a “good” rate?

As at late 2025 heading into January 2026, market data and bank boards show that competitive packages cluster around these levels:[1][2][3][6][7]

Bank fixed rates (2–3 year): about 1.4%–1.8% p.a. for strong profiles and larger loans, down from around 3.1% at the start of 2025.[2][3]
Bank floating SORA rates: margins from roughly 1M / 3M SORA + 0.25–0.40% p.a., giving effective first-year rates near the mid‑1% range for many borrowers.[1][2]
HDB concessionary rate: steady at 2.6% p.a., pegged at CPF OA rate + 0.1%.[1][3][9]
Promotional packages: some banks offer slightly lower fixed teaser rates (e.g. 1.35–1.45%) for big loans above S$1M with conditions like lock-in periods and minimum loan size.[1][2]

Channel NewsAsia and The Straits Times both report that mortgage rates in Singapore have fallen to roughly three‑year lows by late 2025, with fixed rates roughly half of what they were in January.[3][9] That is why more owners are refinancing or switching from HDB loans to bank packages.

Because packages change weekly and vary by profile, the safest way to see the lowest mortgage rate Singapore you can actually qualify for is to compare real-time offers for your loan amount and tenure. Homejourney’s bank rate comparison tool aggregates updated packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank so you see current numbers in one dashboard: Bank Rates .

How to compare home loan rates for January 2026 (without getting lost)

Instead of just asking “What is the best mortgage rate January 2026?”, focus on these five comparison levers that banks in Singapore actually use.

1. Fixed vs floating (SORA‑pegged)

Fixed rate: Interest is locked for 2–3 years. In late‑2025, fixed packages around 1.4–1.8% p.a. are common for good profiles.[2][3] Suitable if you prefer certainty and are budgeting tightly for your first BTO in Punggol or a resale 4‑room in Tampines.
Floating rate (1M or 3M SORA): Rate moves with SORA plus a fixed spread (e.g. 1M SORA + 0.25%).[1][2][4][6] Favours those who can handle some volatility and believe rates will stay low or trend down.

Insider tip from years of working with East‑side buyers in Bedok and Marine Parade: if your household cashflow is tight (e.g. young family with childcare and car instalments), a slightly higher fixed rate is often safer than chasing the absolute lowest floating rate.

2. Lock‑in period & penalties

Most promotional low fixed rates come with 2–3 year lock‑in. Breaking early (selling or refinancing) triggers penalties, usually about 1.5% of outstanding loan.
Some bank HDB packages (e.g. certain DBS/POSB loans) may have no penalty for early repayment during fixed period, but this varies by campaign.[3][6][7]

If you plan to upgrade from your Sengkang BTO to an EC around 2028, avoid ultra‑long lock‑ins unless the savings clearly outweigh potential penalties.

3. Total 3‑year cost, not just headline rate

For a S$700,000 loan over 25 years, the difference between 1.50% and 1.70% is roughly S$70–80 per month. But once you factor in legal subsidies, valuation fees and repricing costs, the package with the lowest headline rate may not have the lowest 3‑year cost.

Use Homejourney’s built‑in calculator at Mortgage Rates to model total interest over the fixed/lock‑in period, plus estimated fees.

4. SORA margin & repricing options

Compare the spread (e.g. +0.25% vs +0.40%) and how it steps up after year 2 or 3.[1][2][4]
Check if the bank allows free conversion after 12–36 months (often labelled FC12, FC24, FC36).[2]

This is critical for refinancing: a slightly higher first‑year rate but better long‑term margin plus free conversion can beat the “cheapest” year‑one promo.

5. Bank service and digital journey

If you’ve ever queued at a bank branch in Tampines Hub at 11am on a Saturday, you’ll know service levels differ. With Homejourney, you bypass that hassle: submit one digital application via Singpass, and our system sends it securely to multiple banks at once, including DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank and more Bank Rates . You then compare offers side‑by‑side in a clean interface.

Step‑by‑step: How to improve your home loan approval chances

Banks assess your loan using MAS rules (like the Total Debt Servicing Ratio, TDSR) and their own risk criteria. You cannot control macro rates, but you can improve how strong your profile looks within those rules.

Step 1: Check your borrowing limit before viewing homes

Before you even book viewings in areas like Queenstown or Jurong East, know your maximum loan under MAS rules. MAS caps your TDSR at 55% of gross monthly income for private properties, while HDB has its own Mortgage Servicing Ratio (MSR) limits for public housing.

Instead of guessing, use Homejourney’s mortgage eligibility calculator at Mortgage Rates to estimate:

Max loan amount based on income, age and existing debts
Indicative monthly instalment at current January 2026 rates
Whether you should target a S$700k, S$1M or S$1.3M property

Insider tip: many couples in new estates like Punggol, Sengkang and Yishun underestimate how much their car loan and credit cards eat into TDSR. Clearing a S$10k card balance a few months earlier can make a surprising difference to approval chances.

Step 2: Clean up your credit file (3–6 months before applying)

All major banks pull your credit report from Credit Bureau Singapore (CBS). A poor score or frequent late payments can mean higher spreads or outright rejection.

Pay every bill on time for at least 6 months — especially credit cards, personal loans and BNPL instalments.
Avoid new unsecured loans just before applying (e.g. big furniture instalments).
Reduce utilisation on your cards below ~30% of your limits.