Compare Home Loans Singapore: Homejourney's Bank Rate Guide

Why Comparing Home Loans Across Banks Matters More Than Ever

Choosing a home loan is one of the most significant financial decisions you'll make as a Singapore property buyer or investor. The difference between securing a mortgage at 2.45% versus 3.50% can mean tens of thousands of dollars in savings over a 30-year tenure. Yet many Singaporeans accept the first offer they receive, unaware that banks actively compete for your business and that rates, terms, and incentives vary dramatically across institutions.

At Homejourney, we believe every property buyer deserves access to transparent, comprehensive mortgage information. This guide walks you through everything you need to know about comparing home loans across Singapore's major banks, helping you make decisions with confidence and security.

The Current Singapore Home Loan Landscape in 2026

Singapore's mortgage market has undergone significant transformation since 2021, when the Monetary Authority of Singapore (MAS) mandated a shift from SIBOR and SOR benchmarks to SORA (Singapore Overnight Rate Average). Today's borrowers face more choices than ever, but also greater complexity in understanding which loan structure suits their financial situation.

Current market conditions: The 3-month SORA rate stands at approximately 2.27% (as of June 2025), with banks offering spreads ranging from 0.50% to 1.00% above this benchmark for floating-rate loans. Fixed-rate packages typically range from 2.45% to 3.75% for initial lock-in periods of 2-3 years, after which rates convert to floating SORA-based products.

The chart below shows recent SORA trends to help you understand how rates have moved and what this means for your borrowing decisions:

Understanding these trends is essential because your choice between fixed and floating rates directly impacts your monthly repayment and long-term cost. For first-time buyers, the decision often depends on your risk tolerance, expected tenure in the property, and market outlook.

Fixed-Rate vs. Floating-Rate Home Loans: Understanding Your Options

Before comparing specific banks, you need to understand the fundamental difference between the two main loan structures available in Singapore.

Fixed-Rate Home Loans: Predictability and Peace of Mind

Fixed-rate mortgages lock in your interest rate for a predetermined period, typically 2-3 years. During this lock-in period, your monthly repayment remains constant regardless of market rate movements. This provides certainty for budgeting and protects you if SORA rates rise significantly.

Current fixed-rate offerings (2026): DBS Easy Switch offers 2-year fixed rates at 2.45% p.a., while Maybank provides 2-year fixed at 3.30% p.a. and 3-year fixed at 3.75% p.a. Standard Chartered's Home Suite offers approximately 3.45% for 2-year fixed terms (calculated as 3M Compounded SORA + 1.00%).

After the lock-in period: Your loan automatically converts to a floating rate, typically pegged to 3M SORA plus the bank's spread. This means your repayment will fluctuate with market conditions. Most banks allow free conversion to alternative products after the lock-in period expires.

Best for: Borrowers who value payment predictability, expect to stay in their property for 5+ years, or believe interest rates will rise significantly.

Floating-Rate Home Loans: Flexibility and Potential Savings

Floating-rate mortgages are pegged directly to SORA plus a bank-determined spread. Your interest rate adjusts quarterly as SORA moves, meaning your monthly repayment fluctuates accordingly. However, floating rates typically start lower than fixed rates, offering initial savings.

Current floating-rate offerings: Most banks offer 1M or 3M SORA-pegged products with spreads ranging from 0.50% to 1.00%. For example, SBI Bank offers 3M SORA + 1.00% with no lock-in period, or 3M SORA + 0.50% with a 2-year lock-in. Maybank provides 1M SORA + 0.80% or 3M SORA + 0.70% options.

Lock-in considerations: Many floating-rate packages include optional lock-in periods (1-3 years) that offer lower spreads in exchange for rate commitment. This hybrid approach combines some fixed-rate benefits with floating-rate flexibility.

Best for: Borrowers comfortable with payment variability, planning to refinance within 5 years, or believing interest rates will fall or remain stable.

Key Differences: Bank Loans vs. HDB Loans

If you're purchasing an HDB flat, you have the unique option of financing through HDB's concessionary loan scheme alongside traditional bank mortgages. Understanding these differences is crucial for your decision.

Note: Figures are illustrative based on a $400,000 loan with 30-year tenure. Actual rates and terms vary by bank and individual circumstances.

For HDB purchases, many buyers combine both options—taking the maximum HDB loan at 2.6% fixed, then financing the remainder through a bank mortgage. This strategy often results in the lowest overall blended rate. However, bank loans offer greater flexibility for private property purchases and refinancing opportunities.

How to Compare Home Loans: The Essential Factors

Comparing loan offers requires looking beyond headline interest rates. Here are the critical factors Homejourney recommends evaluating:

1. Effective Interest Rate (Including Spreads)

The advertised rate is only part of the story. Banks add spreads to the benchmark rate, and these spreads vary significantly. For example, if 3M SORA is 2.27% and Bank A offers SORA + 0.70% while Bank B offers SORA + 1.00%, Bank A's effective rate is 2.97% versus Bank B's 3.27%—a meaningful 0.30% difference that compounds over 30 years.

Action item: Always request the complete rate calculation including the spread. Use Bank Rates to compare effective rates across all major banks instantly.

2. Lock-in Period and Conversion Terms

The lock-in period determines when you can refinance without penalties. Most banks offer 2-3 year lock-in periods, but some provide 1-year options with higher spreads. After lock-in expires, check whether conversion to alternative products is free or incurs charges.

Comparison snapshot: DBS, OCBC, and Maybank offer free conversion after lock-in expires. Standard Chartered charges for conversion after 12 months on some products. RHB provides free conversion after 12 months. Always clarify these terms before committing.

3. Prepayment Flexibility and Penalties

Life circumstances change. Some banks allow partial prepayment (typically up to 50% of the original loan amount) during the lock-in period without penalties, while others charge substantial fees. This flexibility becomes valuable if you receive a bonus, inheritance, or want to accelerate loan repayment.

Best options for prepayment: Maybank waives partial payment penalties up to 50% during lock-in. RHB allows 50% partial payment during lock-in. UOB and OCBC also offer competitive prepayment flexibility. Compare this feature carefully if you anticipate additional funds during your lock-in period.

4. Valuation and Legal Fees

Banks charge for property valuation (typically $300-$800) and may subsidize or waive legal fees (usually $1,500-$3,000). These upfront costs add significantly to your total borrowing expense. Some banks waive valuation fees for refinancing, while others provide subsidies based on loan amount.

Fee comparison examples: Standard Chartered offers valuation subsidies for refinancing ($350 for $500K-$1M loans, $500 for $1M+ loans). SBI provides full valuation fee waivers for refinancing. DBS waives legal subsidies for refinancing after completion. These savings can total $1,000-$2,000 per transaction.

5. Minimum Loan Amount and Eligibility

Banks set minimum loan thresholds, ranging from $100,000 (Maybank) to $1,000,000 (Standard Chartered Priority). If you're purchasing a smaller property or refinancing a modest amount, some banks may not accept your application. Additionally, banks have different credit score and income requirements.

Minimum loan requirements: DBS accepts loans from $300,000. OCBC requires $400,000 minimum. UOB and Maybank are more flexible at $100,000-$300,000. Standard Chartered targets high-net-worth borrowers with $1,000,000 minimums (though some products accept $500,000-$700,000).

6. Loan Tenure and Total Cost Calculation

While most mortgages are 30 years, some banks offer 35-year tenures for higher loan amounts. A longer tenure reduces monthly payments but increases total interest paid. Conversely, shorter tenures (25 years) increase monthly payments but save substantially on interest.

Total cost example: On a $500,000 loan at 3.0%: 25-year tenure = $844,633 total interest; 30-year tenure = $989,663 total interest; 35-year tenure = $1,134,693 total interest. The difference between 25 and 35 years is $290,060—making tenure choice critical.

Detailed Bank Comparison: 2026 Offerings

To help you make an informed decision, here's a comprehensive overview of Singapore's major banks and their current home loan offerings. For real-time rate updates and side-by-side comparisons, visit Bank Rates where you can compare all options instantly.

DBS Bank: Market Leader with Competitive Rates

Overview: As Singapore's largest bank by assets, DBS maintains the most extensive home loan product range. Following its acquisition of POSB, DBS has access to the largest pool of Singapore dollar funds, enabling competitive fixed rates.

Key products: DBS Easy Switch (2-3 year fixed at 2.45% p.a.), SORA-pegged floating rates, and specialized Build-to-Completion (BUC) loans with progressive payment options. DBS also offers board rate products for specific customer segments.

Current rates: Fixed rates from 2.45% (2-year), floating from 3M SORA + 0.70%. Minimum loan: $300,000.

Unique features: Free conversion after lock-in period. Waived legal subsidies for refinancing after completion. Special promotional rates for selected projects. Up to 50% prepayment flexibility during lock-in.

Best for: First-time buyers seeking competitive fixed rates, borrowers with loan amounts under $500,000, and those valuing DBS's extensive branch network and digital banking capabilities.

OCBC Bank: Premium Service with Competitive Terms

Overview: OCBC is Singapore's second-largest bank and offers comprehensive home loan solutions with strong customer service reputation.

Key products: SORA-pegged floating rates with 2-3 year lock-in options, fixed-rate packages, and specialized mortgages for high-net-worth clients.

Current rates: Floating from 3M SORA + 0.70%, with lock-in spreads as low as 3M SORA + 0.50% for 2-year commitments. Minimum loan: $400,000.

Unique features: Free conversion after lock-in. No valuation required for refinancing. Two-year clawback period (interest commences 3 months from loan origination or first disbursement). Competitive rates for loans $500,000+.

Best for: Borrowers with loan amounts $400,000-$1,000,000, those refinancing and wanting to avoid valuation costs, and customers prioritizing OCBC's premium banking experience.

UOB Bank: Flexibility and Accessibility

Overview: UOB offers accessible home loan products with flexible terms and strong digital banking platforms.

Key products: Fixed-rate HDB home loans, 3M SORA-pegged floating rates with quarterly adjustments, and prepayment flexibility options.

Current rates: Competitive SORA-based rates with flexible lock-in periods. Minimum loan: $100,000-$300,000 depending on product.

Unique features: Quarterly rate adjustments for transparency. Prepayment flexibility without penalties. Strong online application and approval process. Competitive rates across all loan sizes.

Best for: Borrowers with smaller loan amounts, those valuing payment flexibility, and customers seeking straightforward digital application processes.

Standard Chartered: Premium Offerings for High-Value Loans

Overview: Standard Chartered targets affluent borrowers with premium mortgage products and personalized service.

Key products: Home Suite Loan (fixed and floating options), Priority Mortgage Plus (deposit-based rate reductions), and MortgageOne (interest offset feature for private properties).

Current rates: Approximately 3.45% for 2-year fixed (3M Compounded SORA + 1.00%). Floating rates from 3M SORA + 0.70%. Minimum loan: $500,000-$1,000,000 depending on product tier.

Unique features: Free conversion after 12 months. Valuation subsidies for refinancing ($350-$500 depending on loan size). Deposit-based rate reductions (spreads lower by 0.05-0.10% for deposits exceeding $200,000-$500,000). MortgageOne interest offset feature allows offsetting savings against mortgage interest.

Best for: High-net-worth borrowers with substantial deposits, those seeking premium service and personalized advice, and customers with loan amounts exceeding $700,000.

Maybank: Competitive Rates with Strong Support

Overview: Maybank offers competitive home loan products with flexible terms and strong customer support infrastructure.

Key products: 2-3 year fixed-rate packages (3.30%-3.75%), SORA-pegged floating rates with lock-in options, and flexible prepayment terms.

Current rates: Fixed rates from 3.30% (2-year) to 3.75% (3-year). Floating from 1M SORA + 0.80% or 3M SORA + 0.70%. Minimum loan: $100,000.

Unique features: Partial payment penalty waiver (up to 50% of loan during lock-in). Free conversion after lock-in. 1-year lock-in option available. Competitive spreads for borrowers with strong financial profiles.

Best for: Borrowers seeking flexibility, those planning to make additional payments during lock-in, and customers with loan amounts under $500,000 valuing accessibility.

Other Major Banks: CIMB, RHB, SBI, Hong Leong, and Citibank

CIMB Bank: Offers competitive SORA-pegged rates from 3M SORA + 0.70%, minimum loan $800,000, free conversion after 6 months, and $500 valuation subsidy. Best for borrowers with mid-to-large loan amounts.

RHB Bank: Provides flexible SORA rates with 50% partial payment allowed during lock-in, free conversion after 12 months, and minimum loan $500,000. Competitive for refinancing.

SBI Bank: Offers attractive 2-year fixed rates at 1.55% p.a. followed by 3M SORA + 1.00%, floating options with no lock-in, and full valuation fee waivers for refinancing. Minimum loan $500,000. Excellent for refinancing.

Hong Leong Finance: Provides board rate products (rates determined by the bank and adjusted at their discretion), flexible terms, and competitive rates for HDB properties.

Citibank: Offers SORA-based mortgages and specialized products for specific customer segments.

Step-by-Step: How to Compare Home Loans Effectively

Step 1: Assess Your Financial Situation

Before comparing loans, understand your financial position. Calculate your total monthly income, existing debt obligations, and available down payment. This determines your borrowing capacity and which banks will approve your application.

Key metrics banks evaluate: Debt-to-Income Ratio (typically maximum 60% for HDB, 55% for private properties), credit score (850+ is excellent, 750+ is good), employment stability, and down payment amount.

Use Homejourney's mortgage eligibility calculator at Bank Rates to estimate your borrowing capacity instantly. This free tool uses your income, existing debts, and property price to calculate maximum loan amount across different banks.

Step 2: Determine Your Loan Structure Preference

Decide whether you prefer fixed-rate stability or floating-rate flexibility. Consider your risk tolerance, expected tenure in the property, and market outlook. Most first-time buyers benefit from 2-3 year fixed rates that provide certainty while allowing refinancing flexibility after lock-in expires.

Step 3: Use Homejourney's Bank Rates Comparison Tool

Rather than contacting each bank individually, use Bank Rates to compare all major banks simultaneously. Enter your loan amount, property type, and tenure preference to see:

• Real-time interest rates from 12+ banks
• Effective rates including spreads
• Lock-in periods and conversion terms
• Prepayment flexibility and penalties
• Valuation and legal fee structures
• Eligibility requirements for each bank

This single platform eliminates the need to contact multiple banks and ensures you're comparing accurate, current information.

Step 4: Calculate Total Cost, Not Just Monthly Payment

Many borrowers focus only on monthly repayment, missing the bigger picture. Use the calculator to compare total interest paid over the full loan tenure. A 0.30% rate difference might seem minor but translates to $50,000+ in savings over 30 years on a $500,000 loan.

Total cost calculation: Loan amount × (1 + interest rate × tenure in years) = approximate total cost. For example: $500,000 × (1 + 0.03 × 30) = $950,000 total cost (including $450,000 interest).

Step 5: Evaluate Non-Rate Factors

Interest rate is critical but not the only consideration. Evaluate:

• Flexibility: Can you refinance easily? Are prepayment penalties reasonable?
• Customer service: Does the bank offer 24/7 support? How is their refinancing experience?
• Digital banking: Can you manage your loan online? Is the app user-friendly?
• Fees: Are valuation and legal fees reasonable or waived?
• Conversion options: What rates are available after lock-in expires?

Step 6: Submit Multi-Bank Applications Through Homejourney

Once you've identified 2-3 preferred banks, submit applications through Bank Rates . Homejourney's multi-bank application system allows you to:

• Complete one application form
• Submit simultaneously to multiple banks
• Use Singpass/MyInfo to auto-fill information for faster processing
• Receive competing offers from all banks
• Let banks compete for your business

This approach typically results in better offers than applying to individual banks, as lenders know they're competing for your business.

Understanding SORA and Interest Rate Benchmarks

Most Singapore home loans today are pegged to SORA (Singapore Overnight Rate Average), the benchmark set by the Monetary Authority of Singapore. Understanding how SORA works is essential for floating-rate borrowers.

What is SORA?

SORA is the average interest rate for overnight unsecured lending between banks in Singapore. It's calculated daily by MAS based on actual market transactions, making it a transparent, market-driven benchmark. Banks use 1-month or 3-month compounded SORA as the basis for most home loans.

How SORA Affects Your Repayment

If your loan is pegged to 3M SORA + 0.70%, your interest rate changes every three months as SORA moves. For example:

• If 3M SORA is 2.27% and your spread is 0.70%, your rate is 2.97%
• If SORA rises to 2.50%, your new rate becomes 3.20%
• If SORA falls to 2.00%, your new rate becomes 2.70%

Your monthly repayment adjusts accordingly, typically increasing or decreasing by $50-$150 per month for every 0.25% rate change on a $500,000 loan.

SORA vs. Previous Benchmarks

Prior to 2021, banks used SIBOR (Singapore Interbank Offered Rate) and SOR (Swap Offer Rate). SORA replaced these benchmarks because it's based on actual market transactions rather than bank submissions, making it more resistant to manipulation. If you have an older SIBOR or SOR loan, refinancing to SORA-based products typically results in lower rates.

Refinancing: When and How to Switch Banks

Refinancing allows you to switch to a different bank or loan product, typically after your initial lock-in period expires. Strategic refinancing can save thousands in interest.

When to Refinance

Optimal refinancing scenarios:

• Lock-in period expires and your bank's new rate is uncompetitive
• You've built significant equity and want to access cash-out refinancing
• SORA rates have fallen significantly since you locked in
• Your financial situation improved (higher income, better credit score) enabling better rates
• You want to shorten loan tenure to reduce total interest paid

Avoid refinancing if: Your current rate is already competitive, refinancing costs (valuation, legal fees) exceed potential savings, or you're within a lock-in period with substantial prepayment penalties.

Refinancing Process Through Homejourney

Homejourney simplifies refinancing by allowing you to compare new offers from all major banks, calculate potential savings, and submit applications without repeating extensive documentation. Many banks waive valuation fees for refinancing, reducing costs from $1,500-$2,500 to just legal fees ($500-$1,000).

To refinance strategically, use Bank Rates to compare current market rates 2-3 months before your lock-in expires. This allows time for approval before your current lock-in period ends.

Special Loan Products: Build-to-Completion (BUC) and Progressive Disbursement

If you're purchasing a property under construction, banks offer specialized BUC loans that disburse funds progressively as construction stages complete.

How BUC Loans Work

Rather than receiving the full loan amount upfront, BUC loans disburse funds in stages—typically 30% upon purchase agreement, 35% at mid-construction, and 35% upon completion. This structure benefits borrowers by:

• Reducing interest costs (you only pay interest on disbursed amounts)
• Aligning loan disbursement with construction progress
• Providing flexibility if project timelines shift

Banks Offering BUC Products

DBS EasySwitch Loan: Exclusive BUC packages with progressive payments, special promotional rates for selected projects, and waived legal subsidies for refinancing after completion.

Standard Chartered Home Suite: Supports BUC properties with progressive disbursements based on construction stages, fixed and floating options, and free loan conversion after lock-in.

BUC loans typically offer rates 0.10-0.25% lower than standard mortgages because the bank's capital outlay is staged. If purchasing a new launch property, specifically request BUC rates when comparing offers.

The Role of Credit Score and Financial Profile

Your credit score, income stability, and debt profile significantly impact loan approval and rates offered. Understanding these factors helps you optimize your application.

Credit Score Impact

Singapore banks don't use traditional credit scores like Western institutions. Instead, they evaluate your credit profile through:

• Credit Bureau Singapore (CBS) report: Shows payment history, outstanding debts, and credit inquiries
• Central Depository (CD) records: Indicates property ownership and mortgage history
• Employer verification: Confirms income stability and employment tenure

Maintaining a clean payment history (no late payments, defaults, or bankruptcy) is essential. If you have past credit issues, explain them in your application—banks often approve loans despite historical problems if circumstances have improved.

Debt-to-Income Ratio (TDSR)

Banks limit your total monthly debt obligations (mortgage + credit cards + car loans + personal loans) to approximately 60% of gross monthly income for HDB purchases and 55% for private properties. This regulatory requirement, set by MAS, ensures you can afford repayments even if rates rise.

TDSR calculation example: If your gross monthly income is $10,000 and you have $2,000 in existing debt obligations, banks will limit your new mortgage payment to approximately $4,000 (60% of $10,000 minus existing $2,000 debt).

Improving Your Application Profile

If you're concerned about approval odds, consider:

• Increasing your down payment (reduces loan amount and improves LTV ratio)
• Paying down existing debts before applying
• Ensuring stable employment for at least 6 months
• Maintaining a clean payment history for 6+ months before application
• Providing additional income documentation (spouse's income, rental income, investment returns)

Hidden Costs and Fees: What You Actually Pay

Beyond interest rates, several costs affect your total mortgage expense. Understanding these prevents unpleasant surprises.

Upfront Costs

• Valuation fee: $300-$800 (bank's property assessment cost). Some banks waive this for refinancing.
• Legal fees: $1,500-$3,000 (conveyancing and mortgage documentation). Some banks subsidize or waive this.
• Loan processing fee: $200-$500 (varies by bank). Occasionally waived for competitive borrowers.
• Stamp duty: 0.2% of loan amount (government fee, not bank fee). Mandatory for all mortgages.

Ongoing Costs

• Fire insurance: Mandatory, typically $200-$400 annually. Some banks provide 1 year free.
• Property tax: Annual tax on property value (not mortgage-related but part of ownership costs).

Refinancing Costs

If you refinance, expect:

• Valuation fee: $300-$800 (often waived by new bank)
• Legal fees: $500-$1,000 (lower than initial purchase)
• Early repayment penalty: Only if you're still within lock-in period of current bank

Refinancing savings calculation: Compare potential interest savings against total refinancing costs. Generally, if you'll save more than $2,000 in interest over the remaining loan period, refinancing is worthwhile.

Loan Approval Timeline and Documentation

Understanding the approval process helps you plan your purchase timeline effectively.

Typical Approval Timeline

• Days 1-3: Submit application with supporting documents
• Days 4-7: Bank conducts property valuation and credit checks
• Days 8-14: Bank reviews valuation and approves loan in principle
• Days 15-21: Legal documentation and final approval
• Days 22-28: Loan disbursement and completion

Total timeline: 3-4 weeks for straightforward applications. Complex cases (self-employed, foreign income, multiple properties) may take 4-8 weeks.

Required Documentation

Prepare these documents before applying:

• NRIC and passport copies
• Last 3 months of payslips
• Last 2 years of tax returns or Notice of Assessment (NOA)
• Bank statements (3-6 months)
• Employment letter confirming position and income
• Property agreement/Option to Purchase
• Proof of down payment funds

Self-employed applicants need additional documentation: business registration, audited financial statements, and business bank statements.

Speeding Up Approval