Many buyers think that using any bank rate comparison tool or mortgage rate comparison app guarantees the best mortgage rates in Singapore. In reality, there are several Common Compare Singapore Bank Mortgage Rates in One Place Mistakes that can cost you tens of thousands over your loan tenure if you are not careful.
This guide zooms into these specific mistakes and shows you how to compare bank rates Singapore safely and accurately, using Homejourney’s verified data and tools. For a full step-by-step home loan playbook (from HDB vs bank loan to refinancing), refer to our main pillar guide: .
What are the most common mistakes when you compare Singapore bank mortgage rates in one place?
When Singapore buyers use a bank rate comparison tool or mortgage rate comparison app, the most common mistakes are:
- Judging purely by the lowest headline interest rate without checking fees, lock-in, or repricing terms
- Not understanding the difference between SORA, fixed and board rates
- Comparing DBS, OCBC, UOB rates and other banks using outdated data
- Ignoring how loan size, property type and LTV rules change the actual rate you receive
- Overlooking penalties, legal subsidies and clawbacks when refinancing
- Assuming every bank will approve the same loan quantum and tenure
Below, we break these down with real Singapore examples and practical tactics so you can use Homejourney’s tools confidently and safely.
Mistake 1: Chasing the “best mortgage rates” based only on the first-year number
One of the biggest Common Compare Singapore Bank Mortgage Rates in One Place Mistakes is filtering for the absolute lowest first-year rate and stopping there. In 2025, it is common to see promotional fixed packages advertised around the mid‑1% range for the first two years, while average mortgage rates in the market are almost twice as high compared with early 2025 levels.[4]
But the effective cost of your loan depends on:
- How the rate changes after the promotional period (e.g. SORA + spread after year 2)
- Whether there is a lock-in period (commonly 2–3 years for DBS, OCBC, UOB and other banks)
- Admin, fire insurance and legal fees that may offset a small rate advantage
Example: For a $600,000 loan on a 25-year tenure:
- Package A: 1.48% fixed for 2 years, then 2.8% thereafter
- Package B: 1.65% fixed for 3 years, then 2.5% thereafter
On a comparison screen, Package A looks cheaper. But if you intend to hold the property for 10+ years and do not plan to refinance frequently, Package B’s lower “thereafter” rate may lead to significantly lower total interest paid over time. Homejourney’s bank rates comparison feature helps you model these long‑term scenarios instead of focusing only on Year 1.
Mistake 2: Not understanding SORA, fixed and board rate packages
Many users of a mortgage rate comparison app simply see “floating” or “fixed” and pick whichever is lower. But Singapore has several distinct rate types, each with different risk profiles and transparency:
- SORA-pegged rates: Based on the Singapore Overnight Rate Average, a benchmark overseen by MAS. SORA is published and transparent, and most banks quote loans as 1M or 3M SORA plus a spread.
- Fixed rates: A guaranteed rate (e.g. 1.55% p.a.) for a set lock-in period, then typically revert to a SORA or board-based formula.
- Board rates: Internal bank reference rates with less transparency, since each bank decides when and how to adjust them.
MAS has guided the shift away from SIBOR and SOR towards SORA, so most new floating packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and others are now SORA-based.[2]
Actionable tip: On Homejourney, always:
- Check whether the rate type is “Fixed”, “1M SORA”, “3M SORA” or “Board”
- Review both the benchmark (current SORA) and the spread (e.g. 1M SORA + 0.30%)
- Consider your risk appetite – e.g. if you are a young family buying a 4‑room BTO in Punggol, a 2–3 year fixed package can help with budgeting in the first years after key collection
Mistake 3: Comparing DBS, OCBC, UOB rates using outdated or generic data
Another common mistake is assuming that a generic “DBS OCBC UOB rates” table you saw last month still reflects the current offers. Bank home loan promotions can change within weeks, especially when market SORA moves. At the start of 2025, three‑year fixed home loan packages were about 3.1% p.a., but by late 2025, fixed loans had almost halved to around 1.4%–1.8% p.a.[4]
If you rely on static articles or screenshots, you may:
- Miss out on time‑limited promotions or legal subsidies
- Overestimate rates and delay purchasing unnecessarily
- Underestimate rates and miscalculate your long‑term affordability
Homejourney solves this by integrating real‑time rate updates from all major Singapore banks and surfacing them in one interface, while clearly timestamping when the rates were last refreshed. This reduces the risk of making a decision on outdated DBS, OCBC, UOB or foreign bank packages.
Mistake 4: Ignoring MAS and HDB rules when comparing bank rates
Some buyers compare the “best mortgage rates” without considering whether they are even eligible for that loan structure. MAS and HDB rules affect how much you can borrow, your required downpayment and even whether you can choose an HDB loan instead of a bank loan.[2]
Key factors include:
- Loan-to-Value (LTV) limits: Bank loans generally allow up to 75% LTV while HDB loans allow up to 80%, subject to Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR) rules.[2]
- Downpayment structure: For bank loans, at least 5% must be in cash; for HDB loans, the 20% downpayment can be fully paid by CPF savings.[2]
- HDB vs bank lock‑in: HDB’s rate is 2.6% p.a. and has more lenient repayment terms, whereas bank loans may offer lower rates but come with lock‑ins and penalties.
On Homejourney, the comparison journey starts by asking if your property is HDB or private, new launch or resale, and your intended loan quantum. This ensures the bank rate comparison tool only shows packages that match MAS and HDB rules for your situation.
Mistake 5: Forgetting to compare total cost, not just interest rate
When you compare bank rates Singapore, focusing only on the percentage rate can hide important costs such as:
- Legal fees and valuation fees (sometimes subsidised by banks)
- Fire insurance premiums required by the lender
- Repricing fees after your lock-in period ends
- Prepayment and redemption penalties (usually 1.5% of outstanding amount during lock-in)
Example from the ground: In 2024, several buyers I spoke with in Sengkang and Tampines accepted packages with slightly lower advertised rates, only to discover that the bank did not provide legal subsidies for refinancing. The result: they paid $2,000–$2,500 in legal costs out-of-pocket, which wiped out the first year’s interest savings compared with a slightly higher‑rate package that covered all fees.
Homejourney’s calculator helps you estimate nett savings after legal and admin costs, so you avoid being misled by a low headline percentage.
Mistake 6: Assuming all banks will approve the same loan amount
Even if a bank rate comparison tool shows a very attractive package from Bank A, you may not qualify for the same loan quantum or tenure that you see for Bank B. Each bank — DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, Citibank — has its own internal credit assessment and risk appetite.
Banks consider:
