Choosing the right home loan in Singapore can easily save (or cost) you tens of thousands of dollars over your loan tenure. This guide shows you exactly how to compare home loans across banks in Singapore, avoid common pitfalls, and use Homejourney’s tools to safely find the best mortgage rate for your situation.
Instead of visiting multiple bank branches or juggling different sales pitches, you will learn a structured, transparent way to do a proper bank loan comparison and compare mortgage offers side-by-side—while keeping your personal data safe and your long‑term costs low.
Table of Contents
- Executive Summary: How to Compare Home Loans Safely
- Chapter 1: Home Loan Basics in Singapore (HDB vs Bank Loans)
- Chapter 2: Key Interest Rate Types – SORA, Fixed, and Board Rates
- Chapter 3: Recent Interest Rate Trends in Singapore
- Chapter 4: A Step‑by‑Step Framework to Compare Home Loans Across Banks
- Chapter 5: Overview of Major Banks and Their Home Loan Profiles
- Chapter 6: Comparing Home Loan Products – Lock‑ins, Penalties, and Fine Print
- Chapter 7: Current Market Rates and What Counts as a “Good” Deal
- Chapter 8: Matching the Right Loan to Your Profile (First‑timer, Upgrader, Investor)
- Chapter 9: Application Process, Documents, and Approval Timelines
- Chapter 10: How Homejourney Makes Bank Loan Comparison Safer and Easier
- Chapter 11: Common Mistakes Singaporeans Make When Comparing Home Loans
- FAQ: Real Questions from Singapore Home Buyers and Owners
- Next Steps: Using Homejourney for Your Home Loan Journey
Executive Summary: How to Compare Home Loans Safely
If you only remember one thing from this guide: a “good” home loan is not just about the lowest first‑year interest rate. It is about the total cost over time, your flexibility to refinance, and how well the package fits your real life (income stability, family plans, investment goals).
In Singapore, most buyers today choose between an HDB housing loan (2.6% fixed, from HDB) and a bank loan (usually lower at the start, but market‑driven and variable). Bank loans can be pegged to SORA (Singapore Overnight Rate Average), bank board rates, or offered as fixed‑rate packages for a number of years.[3][4]
This guide will help you:
- Understand how each loan type works in the Singapore context
- Use a clear framework to compare bank rate comparisons fairly (apples‑to‑apples)
- Know the typical ranges of rates and lock‑in periods among major banks
- Assess DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank at a high level
- Use Homejourney’s tools to compare, calculate eligibility, and submit a single multi‑bank application safely
Chapter 1: Home Loan Basics in Singapore (HDB vs Bank Loans)
1.1 HDB vs Bank Loans in 2025–2026
In Singapore, you can finance an HDB flat with either an HDB housing loan or a bank loan, but private properties (including most condos in Districts 9, 10, 11, and new launches in places like Lentor or Tampines) can only be financed with bank loans.
For many first‑time HDB buyers in estates like Punggol, Sengkang, or Yishun, the decision often boils down to: “Do I want predictable 2.6% with HDB, or potentially lower—but variable—bank rates?”
1.2 Key MAS and HDB Rules You Must Know
- Total Debt Servicing Ratio (TDSR): Caps your total monthly debt obligations (including car loans, credit cards, and other property loans) at a percentage of your gross monthly income under MAS rules.
- Mortgage Servicing Ratio (MSR): For HDB flats and Executive Condominiums bought from developers, your housing loan monthly instalment cannot exceed 30% of your gross monthly income (MSR applied on top of TDSR).[3]
- Loan tenure caps: Generally up to 30 years for HDB flats and 35 years for private property for bank loans, subject to age and other limits set by MAS and HDB.
Insider tip from daily Singapore experience: buyers of newer BTOs in Tengah or upcoming launches in Bayshore often underestimate how MSR and TDSR can constrain them when they upgrade later. When comparing home loans, always think two steps ahead—will this loan structure still work when you plan to upgrade to, say, a 3‑bedder condo in the OCR (Outside Central Region)?
Chapter 2: Key Interest Rate Types – SORA, Fixed, and Board Rates
2.1 SORA‑Pegged Home Loans
In recent years, most floating‑rate home loans in Singapore have shifted from SIBOR to SORA (Singapore Overnight Rate Average), following MAS’ transition roadmap.[3] SORA is computed from actual overnight interbank transactions, making it more transparent and robust.
Common structures you will see when you compare home loans Singapore include:
- 3M SORA + spread (e.g., 3M SORA + 0.50%)
- 1M SORA + spread (less common, usually more volatile)
- Some banks offering special promo spreads for the first 2–3 years
For example, based on recent market data, some banks have offered promotional packages like 3M SORA + 0.40%–0.60% for year 1–3.[1] The final rate you pay changes as SORA moves, plus the fixed spread charged by the bank.
2.2 Fixed‑Rate Home Loans
Fixed‑rate home loans lock in your interest rate for a set period, typically 2–3 years in Singapore. For instance, in late‑2025, some banks were offering 2‑ or 3‑year fixed packages in the range of about 1.4%–1.8%.[1][4]
These packages are popular with first‑time buyers in new towns like Punggol, Sembawang, or Tampines because monthly instalments are predictable for the first few years when cash flow is tight.
2.3 Board‑Rate and Fixed‑Deposit‑Linked Loans
Some banks still offer loans pegged to an internal board rate or a fixed deposit rate (FHR). These can be attractive initially, but the bank has discretion to revise the board or FHR, subject to their internal policies and terms.
When you do a bank loan comparison, be especially careful with board‑rate packages: you must read the bank’s historical pattern of changes (where available) and understand that the bank can adjust these without needing MAS to move benchmark rates.
Chapter 3: Recent Interest Rate Trends in Singapore
After the sharp rate hikes in 2022–2023, Singapore home loan rates have eased significantly. Fixed‑rate packages that used to be around 3.1% at the start of 2025 dropped to about 1.4%–1.8% later in the year, according to local media reports.[4] Floating SORA‑pegged loans have also moderated as global interest rates softened.
The chart below shows recent interest rate trends in Singapore:
From this trend, many borrowers in 2025–2026 have been refinancing from older, higher‑rate loans into new packages, especially when still within the same or a lower lock‑in penalty range.[4] This is why a structured way to compare mortgage offers across banks is critical—rates can move quickly.
Chapter 4: A Step‑by‑Step Framework to Compare Home Loans Across Banks
4.1 The 7 Things You Must Compare (Beyond Just the Headline Rate)
When you do a serious bank rate comparison for Singapore home loans, look at these 7 dimensions:
- Interest structure: SORA, fixed, board or FD‑linked
- Lock‑in period: usually 2–3 years; some packages have no lock‑in
- Spread after promo: what happens after year 2 or year 3?
- Partial prepayment rules: can you pay down without penalty?
- Refinancing and repricing options: cost and conditions to switch
- Legal and valuation subsidies: cash rebates or subsidies, and claw‑back conditions
- Foreign currency or special‑purpose clauses (for some investment loans)
For a typical couple buying a 4‑room resale flat in Ang Mo Kio or Queenstown, the difference between a 1.6% vs 1.9% loan on a S$500,000 mortgage over 25 years can easily exceed S$20,000–S$25,000 in interest over the life of the loan. That is roughly the cost of a full renovation of a 3‑room flat in some city‑fringe locations.
4.2 Quick Comparison Checklist
Use this simple table when you compare home loans Singapore across banks:
On Homejourney’s bank rates page Bank Rates , you can fill in these blanks automatically—rates, lock‑in, and indicative features are pulled in from multiple banks so you can see them side‑by‑side without manual data entry.
4.3 Insider Tip: Match Lock‑In to Your Real Plans
Having lived through market cycles in Singapore, one pattern is clear: many owners in maturing towns like Bishan, Clementi, or Toa Payoh end up selling or upgrading earlier than planned—often at the 4–7 year mark when kids start school or parents move in.
When comparing home loans, do not just pick the longest lock‑in because the rate is lowest. If you foresee a possible sale or upgrade in 3–5 years, a shorter lock‑in (or a package with a waiver of penalty upon sale) may be more valuable than a slightly lower rate.
