DBS vs OCBC Home Loan Comparison 2026: Which Bank Offers Better Rates?
When refinancing or taking out a new home loan in Singapore, choosing between DBS and OCBC often comes down to comparing rates, features, and flexibility. Both banks dominate Singapore's mortgage market, collectively holding significant market share, but they approach lending differently. DBS currently offers some of the most competitive rates in the market, particularly for floating-rate packages and refinancing, while OCBC emphasises flexibility and longer-tenure fixed options that appeal to borrowers seeking payment stability.
At Homejourney, we believe informed borrowers make better financial decisions. This guide breaks down the key differences between DBS and OCBC home loans, compares them to other major banks, and helps you determine which option aligns with your financial goals. We've also included insights on how to evaluate these options using real data from Singapore's mortgage market in 2026.
Current DBS vs OCBC Mortgage Rates (January 2026)
Understanding current rates is essential for making your decision. Here's how DBS and OCBC stack up against each other and other major Singapore banks:
Fixed-Rate Home Loans (2-Year Lock-In):
- DBS: 1.65%-1.75% (depending on loan amount and promotion)
- OCBC: 1.65% (standard rate for qualified borrowers)
- Maybank: 1.55%-1.60%
- Standard Chartered: 1.60%-1.68%
- HSBC: 1.70%
Floating-Rate Home Loans (3-Month SORA + Spread):
- DBS: 3M SORA + 0.50% (for new loans)
- OCBC: 3M SORA + 0.65%
- Standard Chartered: 3M SORA + 0.30%
The chart below shows recent SORA trends to help you understand how interest rates have moved and what this means for your borrowing costs:
As you can see from the chart, rates have remained relatively stable in recent months. This is important context: when comparing fixed versus floating rates, you're essentially betting on whether rates will rise or fall. In the current declining rate environment, some borrowers are choosing floating rates to capture potential savings, though fixed rates remain more popular for their payment predictability.
DBS Home Loans: Strengths and Unique Features
Market Position: DBS holds the largest pool of Singapore dollar funds among local banks, giving it a structural advantage in pricing home loans competitively. The bank acquired POSB in 1998, creating a household brand trusted by generations of Singaporeans. This dominant market position translates directly to better funding costs, which DBS passes on to borrowers through competitive rates.
Standout Features:
- Fixed Deposit Rate Housing Loan (FHR6): DBS is currently the only bank offering a floating-rate loan pegged to fixed deposit rates rather than 3M SORA. This unique product appeals to borrowers who want floating-rate flexibility without SORA volatility.
- Refinancing Cash Rebates: DBS offers $2,000 cash rebate for loans above $500,000, $2,500 for loans above $1 million, and $2,800 for loans above $1.5 million. These rebates fully offset typical refinancing fees ($1,800-$1,900), giving borrowers net cash rewards.
- 100% Penalty Waiver on Sale: No early repayment penalties if you sell your property during the lock-in period, providing flexibility for upgraders.
- POSB HDB Loan Popularity: The POSB 3-year fixed HDB loan at 1.55% has seen take-up increase 13 times since the start of 2025, indicating strong market confidence in DBS's HDB offerings.
Best For: Borrowers refinancing HDB loans, those seeking the lowest floating rates for large loan amounts, and buyers who value funding flexibility and potential cash rewards.
OCBC Home Loans: Flexibility and Stability Focus
Market Position: OCBC is one of Singapore's "Big Three" local banks and maintains a strong presence in the mortgage market. The bank positions itself as offering flexibility-focused products rather than competing primarily on headline rates.
Standout Features:
- Fixed-Rate Preference: Four in five OCBC customers chose fixed-rate packages in 2025, reflecting strong customer preference for payment stability. OCBC has responded by developing longer-tenure fixed options beyond the standard 2-3 year lock-in periods.
- Repricing Flexibility: OCBC loans include options for partial prepayment and repricing during the loan term, allowing borrowers to adjust their strategy as circumstances change.
- Loan-Amount-Based Pricing: OCBC offers sharper pricing for larger loan amounts, making it competitive for borrowers taking out loans above $600,000.
- Emphasis on Long-Term Cost Control: Rather than focusing on lowest headline rates, OCBC emphasises total cost of ownership and flexibility features that reduce long-term borrowing costs.
Best For: Borrowers prioritising payment stability, those seeking repricing flexibility, and buyers with larger loan amounts who value long-term cost control over headline rates.
How DBS and OCBC Compare to Other Major Banks
While DBS and OCBC dominate the market, other banks offer competitive alternatives worth considering:
Maybank: Offers some of the lowest 2-year fixed rates (1.55%-1.60%) and appeals to borrowers prioritising headline rate savings. Strong for refinancing with competitive cash incentives.
Standard Chartered: Competitive floating rates (3M SORA + 0.30%) make it attractive for borrowers betting on declining interest rates. Particularly strong for large loan amounts.
HSBC: Targets borrowers with stable income profiles and larger loan amounts. Rates are bundled with banking relationship features, and loan size plays a larger role in final pricing competitiveness.
UOB: Offers competitive fixed and floating options, particularly for private property purchases. Includes various promotional packages throughout the year.
At Homejourney, we recommend comparing all major banks simultaneously rather than evaluating them in isolation. You can compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and more instantly on our bank rates page, which shows real-time rates updated daily from all major Singapore lenders.
Fixed vs. Floating: Which Strategy Suits You?
Fixed-Rate Loans: Lock in your rate for 2-3 years (or longer with OCBC's extended options). Your monthly payment remains constant, making budgeting predictable. Fixed rates are ideal if you believe rates will rise or prefer payment certainty. In 2025, most Singapore borrowers chose fixed rates for exactly this reason—the psychological comfort of knowing your exact monthly obligation.
Floating-Rate Loans: Your rate adjusts with 3M SORA plus a bank spread. In a declining rate environment, floating rates offer significant savings. However, you face payment volatility if rates rise. For HDB loans above $600,000, financial experts increasingly recommend floating rates due to potential interest savings in our current declining rate environment, provided you can tolerate payment fluctuations.
The decision depends on your risk tolerance, financial flexibility, and interest rate outlook. Homejourney's mortgage eligibility calculator can help you model both scenarios and see the actual monthly payment differences.
Key Differences: DBS vs OCBC Head-to-Head
Rate Competitiveness: DBS edges ahead with lower floating rates (3M SORA + 0.50% vs OCBC's + 0.65%) and competitive fixed rates. For refinancing, DBS's cash rebates provide additional value.
Product Innovation: DBS wins with its unique fixed deposit rate housing loan (FHR6). OCBC counters with extended fixed-rate tenure options and repricing flexibility.
Customer Preference: DBS appeals to rate-conscious borrowers and refinancers. OCBC appeals to stability-focused borrowers who prioritise predictable payments.
Loan Size Advantage: Both banks offer better pricing for larger loans. DBS particularly competitive above $500,000; OCBC competitive above $600,000.
Refinancing Incentives: DBS significantly ahead with $2,000-$2,800 cash rebates that exceed typical refinancing fees.
How to Choose: A Decision Framework
Choose DBS if:
- You're refinancing an existing HDB loan (cash rebates offset all fees)
- You have a large loan amount ($500,000+) and want the lowest floating rate
- You value funding flexibility and unique product innovation
- You're comfortable with SORA-linked floating rates in a declining rate environment
Choose OCBC if:
- You prioritise payment stability and predictability
- You want repricing flexibility to adjust your strategy mid-loan
- You're considering longer fixed-rate tenures beyond 3 years
- You prefer a bank emphasising long-term cost control over headline rates
Consider Other Banks if:
- Maybank's 1.55% 2-year fixed rate appeals to you (lowest headline rate)
- You want Standard Chartered's 3M SORA + 0.30% floating rate (lowest spread)
- You have specific banking relationship requirements with HSBC or UOB
Rather than choosing based on one factor, Homejourney recommends calculating your actual monthly payments under different scenarios. Our mortgage eligibility calculator shows you borrowing power and real payment amounts for each bank's products, helping you make data-driven decisions rather than rate-chasing.
Application Process and Timeline
Both DBS and OCBC have streamlined their application processes, but there are subtle differences:
DBS: Offers online application with Singpass integration, allowing auto-population of personal data for faster processing. Typical approval timeline: 3-5 business days for straightforward applications. Refinancing applications often faster (2-3 days) given existing banking relationship.
OCBC: Also offers online application with similar Singpass integration. Approval timeline comparable to DBS (3-5 business days). Repricing flexibility features may require additional documentation if you plan to adjust terms mid-loan.
At Homejourney, we've simplified this process further. You can submit one application and receive offers from all major banks simultaneously, allowing banks to compete for your business. Using our Singpass integration, your application auto-fills in seconds, reducing paperwork and accelerating approval timelines across all banks.
Real-World Scenario: Which Bank Wins?
Scenario 1: Refinancing an HDB Loan ($450,000)
- DBS: 1.65% fixed + $2,000 cash rebate = Net advantage
- OCBC: 1.65% fixed (no cash rebate)
- Winner: DBS (cash rebate offsets refinancing fees)
Scenario 2: New BTO/Resale HDB Purchase ($350,000, Floating Rate)
- DBS: 3M SORA + 0.50% = ~1.15% (current effective rate)
- OCBC: 3M SORA + 0.65% = ~1.30% (current effective rate)
- Standard Chartered: 3M SORA + 0.30% = ~0.95% (current effective rate)
- Winner: Standard Chartered (lowest spread), but DBS strong second
Scenario 3: Private Property Purchase ($800,000, Stability Priority)
- DBS: 1.75% fixed (2-year lock-in)
- OCBC: 1.65% fixed (2-year lock-in) + repricing flexibility
- Maybank: 1.60% fixed (2-year lock-in)
- Winner: Depends on repricing value to you; OCBC competitive if flexibility matters
These scenarios highlight why one-size-fits-all recommendations fail. Your optimal choice depends on loan amount, property type, rate strategy, and personal priorities. Homejourney's comparison tools account for all these factors, showing you personalized recommendations rather than generic rankings.
Why Homejourney's Approach to Bank Comparison Matters
Choosing between DBS, OCBC, and other banks involves evaluating dozens of variables: headline rates, spreads, lock-in periods, penalties, cash rebates, repricing options, and customer service quality. At Homejourney, we prioritise your safety and trust by:
- Verifying Information: All rates and features are verified directly from banks' official sources, updated daily to ensure accuracy.
- Transparent Comparisons: We show you complete information—not just headline rates, but spreads, effective rates, fees, and all terms that impact your total borrowing cost.
- Personalized Recommendations: Rather than declaring one bank "best," we help you calculate which bank suits your specific situation using our mortgage eligibility calculator.
- Multi-Bank Applications:
