Compare Home Loans Across Banks: Understanding Rates and Fees in Singapore
When you're ready to buy a property in Singapore, comparing home loans across different banks is one of the most important financial decisions you'll make. The difference between a 1.65% and 1.75% interest rate might seem small, but over a 25-year mortgage, it could save you tens of thousands of dollars. This guide breaks down how to compare home loans effectively, understand the fees involved, and find the best mortgage for your situation.
At Homejourney, we believe that transparent, trustworthy financial guidance is essential for making confident property decisions. That's why we've created this comprehensive resource to help you navigate the Singapore mortgage landscape with clarity and confidence.
The Current Singapore Home Loan Market (January 2026)
Singapore's home loan market is highly competitive, with rates now at 3-year lows.[1] As of January 2026, the major banks—DBS, OCBC, UOB, Standard Chartered, Maybank, HSBC, and CIMB—are actively competing for your business with attractive rates and incentives.[1][2]
The Big 3 local banks (DBS, OCBC, and UOB) command approximately 80% of the mortgage market, giving them significant advantages in pricing and product flexibility.[2] However, this doesn't mean they're always the best choice for every borrower—it depends on your specific situation, property type, and financial goals.
The chart below shows recent interest rate trends in Singapore to help you understand how rates have moved:
As you can see from the chart above, rates have stabilized at competitive levels, making 2026 an opportune time to lock in favorable mortgage terms.
Fixed vs. Floating Rates: Which Is Right for You?
The first decision when comparing home loans is whether to choose a fixed rate or floating rate mortgage. This choice fundamentally affects your monthly payments and long-term costs.
Fixed Rate Mortgages
With a fixed rate, your interest rate remains constant for a set period—typically 2 or 3 years.[1] As of January 2026, the best fixed rates available are:
- 2-Year Fixed: Maybank at 1.65%, Standard Chartered at 1.68%, and HSBC at 1.70%[1]
- 3-Year Fixed: Slightly higher rates, typically in the 1.70-1.80% range[1]
Fixed rates provide certainty and protection against rate increases. They're ideal if you want predictable monthly payments and believe interest rates will rise. However, once the fixed period ends, you'll need to refinance or switch to a floating rate.
Floating Rate Mortgages
Floating rates are pegged to a benchmark rate plus a bank spread. In Singapore, most banks now use SORA (Singapore Overnight Rate Average) as their benchmark, replacing the older SIBOR system.[2] Current floating rates include:
Floating rates typically start lower than fixed rates but fluctuate with the benchmark rate. They're suitable if you can tolerate payment variability and expect rates to remain stable or decline. The advantage is flexibility—with a shorter lock-in period (often just 1 year), you can switch to a different rate package quickly if rates change significantly.
Understanding Home Loan Fees and Charges
Interest rates are just one part of the equation. Home loan fees can significantly impact your total borrowing cost. Here's what you need to know:
Upfront Fees
- Processing Fee: Typically $500-$1,000, charged by the bank to process your application
- Valuation Fee: Usually $300-$500, covers the property valuation required by the bank
- Legal Fees: Approximately $1,000-$1,500, covers conveyancing and legal documentation
- Stamp Duty: Calculated as a percentage of the loan amount, non-negotiable government fee
For an HDB refinance, total upfront fees typically range from $1,800 to $1,900.[1] This is why bank cash rewards and subsidies matter—they directly offset these costs.
Ongoing Fees
- Annual Fee: Some banks charge $50-$150 annually (often waived for certain conditions)
- Early Repayment Penalty: Varies by bank; some charge 0.25-0.5% of outstanding balance
- Refinancing Fee: Similar to upfront fees, charged when you refinance to another bank
Bank Incentives and Cash Rewards
Most banks offer cash rewards to attract borrowers. As of January 2026, typical incentives include:[1]
- Loan amounts above $500,000: $1,500-$2,500 cash reward
- Loan amounts above $1 million: $2,500 cash reward
- Loan amounts above $1.5 million: $2,800 cash reward
These rewards can effectively cover all your upfront fees, making them a crucial factor in your comparison. DBS, for example, offers $2,000 for HDB refinances above $200,000, which fully covers typical refinancing costs.[1]
Comparing Rates by Property Type
Different property types—private properties, HDB flats, and Build-Under-Construction (BUC) properties—often have different rates and terms. Understanding these differences helps you find the best loan for your specific situation.
Private Property Loans
Private property mortgages are the most competitive segment. Maybank and Standard Chartered currently offer the best fixed rates, with Maybank at 1.65% for 2-year fixed and Standard Chartered at 1.68%.[1] For floating rates, Standard Chartered and Maybank lead with 3M SORA + 0.40%.[1]
The advantage of shorter lock-in periods (1 year for SORA packages) is significant—when rates change, you can refinance quickly without penalties, reducing your long-term interest expenses.[1]
HDB Flat Loans
HDB loans have become increasingly competitive. For resale HDB flats, promotional rates from banks now rival HDB's concessionary rates. The best 2-year fixed rates include:[1]
- Bank Promo: 1.50%
- Maybank: 1.55%
- Standard Chartered: 1.60%
- DBS and OCBC: 1.65%
This represents a significant opportunity—if you're an HDB owner considering upgrading, bank loans now offer better rates than HDB's concessionary loans. However, note that once you switch to a bank loan, you cannot return to HDB financing in the future.[4]
Build-Under-Construction (BUC) Properties
DBS is currently the best bank for BUC home loans, offering competitive floating rates and flexible mortgage packages.[1] BUC properties often have different terms because the property doesn't yet exist, requiring staged disbursement of funds.
How to Compare Home Loans Effectively
Comparing home loans across multiple banks requires a systematic approach. Here's how to do it right:
Step 1: Determine Your Loan Amount and Property Type
Start by calculating your maximum borrowing capacity. In Singapore, the Total Debt Servicing Ratio (TDSR) limits your total monthly debt payments to 60% of your gross monthly income. Once you know your loan amount and property type, you can narrow down which banks offer competitive rates for your situation.
Step 2: Compare Effective Interest Rates
Don't just look at headline rates—calculate the effective interest rate by factoring in all fees and incentives. A bank with a slightly higher rate but larger cash rewards might actually be cheaper overall. Use Homejourney's bank rates comparison tool to instantly compare effective rates across all major banks.Bank Rates
Step 3: Evaluate Lock-In Periods and Flexibility
Consider how long you plan to stay in the property and how comfortable you are with rate changes. Shorter lock-in periods (1 year) offer more flexibility to refinance if rates drop significantly. Longer lock-in periods (3 years) provide more certainty but less flexibility.
Step 4: Check Early Repayment Penalties
Some banks charge penalties if you repay early or refinance before the lock-in period ends. POSB HDB loans, for example, have no penalty for early repayment or sale during the lock-in period—an important advantage if you might sell or upgrade soon.[4]
Step 5: Apply Through Homejourney
Rather than applying to each bank individually, submit one application through Homejourney and let banks compete for your business. You'll receive personalized offers from multiple lenders, saving time and ensuring you get the best deal. Our Singpass integration auto-fills your details for faster processing.Bank Rates
The Best Banks for Different Scenarios
Based on current rates and offerings, here's which banks excel in different situations:
Best for Fixed Rates (Private Properties)
Maybank and Standard Chartered lead with the lowest 2-year and 3-year fixed rates. Maybank offers 1.65% for 2-year fixed, while Standard Chartered matches this and provides even lower rates with an established priority relationship (no lock-in period required).[1]
Best for Floating Rates (Private Properties)
Standard Chartered and Maybank again lead with 3M SORA + 0.40%, the lowest bank spreads available. Their 1-year lock-in period is also the shortest, allowing quick refinancing if rates change.[1]
Best for HDB Refinancing
DBS stands out for HDB refinancing, offering one of the lowest rates combined with a $2,000 cash reward for loans above $200,000—enough to fully offset all upfront refinancing fees of $1,800-$1,900.[1] This net cash benefit makes DBS the clear choice for refinancing.
Best for BUC Properties
DBS is the recommended choice for Build-Under-Construction loans, offering competitive floating rates and flexible mortgage packages designed for staged disbursement.[1]
Key Factors Beyond Interest Rates
While interest rates grab headlines, several other factors significantly impact your total cost and experience:
Bank's Credit Appetite and Approval Speed
Different banks have different risk appetites and approval criteria. Some banks approve applications faster or are more flexible with self-employed applicants. Homejourney's mortgage brokers can guide you to the best bank for your specific profile.Bank Rates
Online Banking Experience
You'll be managing this loan for 20-25 years. Consider the bank's digital platform quality, customer service responsiveness, and refinancing ease. The Big 3 banks (DBS, OCBC, UOB) generally offer superior digital experiences.
Refinancing Flexibility
Life circumstances change. Banks with lower refinancing fees, shorter lock-in periods, and no early repayment penalties offer more flexibility for your future needs.
Customer Service and Support
When issues arise, responsive customer service matters. Read recent reviews and ask your Homejourney mortgage broker about banks' service reputations.
Why Homejourney Makes Comparison Easier
Comparing home loans across banks can feel overwhelming. Homejourney simplifies this process with several trusted tools:
- Real-time rate comparison: See current rates from all major Singapore banks instantlyBank Rates
- Mortgage eligibility calculator: Determine your borrowing capacity before applyingBank Rates
