Home Loan Tenure: Bank Rate Comparison Guide

The optimal home loan tenure in Singapore balances lower monthly payments with minimized total interest costs, typically favoring a 25-year to 30-year mortgage depending on your age, income stability, and risk tolerance. For HDB flats, bank loans allow up to 30 years versus HDB's 25-year maximum, but longer tenures like 30 years increase total interest paid by 20-30%.[1][3]

This cluster article on home loan tenure, mortgage term, loan period Singapore, 25 year vs 30 year mortgage, and optimal loan tenure supports our pillar Complete Guide to Home Loan Tenure in Singapore. At Homejourney, we prioritize your safety and trust by verifying real-time rates from partner banks like DBS, OCBC, UOB, HSBC, and more, helping you make confident decisions.

Understanding Home Loan Tenure in Singapore

Home loan tenure is the loan period over which you repay your mortgage, directly impacting monthly installments and total interest. Shorter tenures mean higher monthly payments but less interest overall; longer ones ease cash flow but cost more long-term.[7]

In Singapore, maximum tenures are regulated: HDB loans cap at 25 years or age 65 (whichever earlier), while bank loans extend to 30 years for HDB flats and Executive Condominiums (ECs), or property lease remaining tenure for private properties.[1][3] Banks peg rates to SORA (Singapore Overnight Rate Average), with fixed options for 1-3 years before floating.[1][4]

As of late 2025, 3M SORA hovers around 2.8-3.0%, making floating rates competitive at 1M SORA + 0.25% (effective ~1.36-1.42%).[2] Homejourney's real-time tracking ensures you see live updates across all major banks.

25-Year vs 30-Year Mortgage: Key Comparison

Choosing between a 25 year vs 30 year mortgage is crucial for Singapore buyers. For a $500,000 HDB loan at 2.6% (HDB rate) or ~2.5% bank floating:

25-year tenure: Monthly ~$2,180 (HDB) or $2,150 (bank); total interest ~$154,000 (HDB) or $150,000 (bank).
30-year tenure (bank only): Monthly ~$1,980; total interest ~$212,000 – 37% more interest.[3][7]

Optimal loan tenure advice: Aim for the shortest feasible based on your TDSR (Total Debt Servicing Ratio ≤60%) and MSR (Monthly Servicing Ratio ≤30% for HDB). First-time buyers often start at 25-30 years for affordability, refinancing shorter later.[2]

Tenure	Monthly ($500k @2.5%)	Total Interest	Best For
25 Years	$2,150	$150,000	Higher income, minimize costs
30 Years	$1,980	$212,000	First-timers, lower monthly

Disclaimer: Calculations approximate; use Homejourney's mortgage eligibility calculator for personalized figures. Rates fluctuate per MAS guidelines.[4]

Current Bank Rates by Loan Tenure (Dec 2025)

Compare bank rates for different tenures across Homejourney partners. Lowest fixed starts at 1.30-1.35% (Year 1, $500k+ loans, 2-3 year lock-in).[2]

DBS: 1.50% fixed Y1 (2-yr lock), then 1M SORA+1.20%; strong for HDB, min $100k.
OCBC: 1.35% fixed Y1-Y2 (2-yr), FC24 option; ideal for new purchases. OCBC Home Loan [8]
UOB: 1.50% fixed (3-yr lock); waiver on sale.
HSBC/Standard Chartered: Floating 1M SORA+0.25% (~1.42%); min $500k.
Maybank/CIMB/RHB: Competitive fixed 1.30-1.60% Y1-2; for investors.

The chart below shows recent interest rate trends in Singapore:

As seen, SORA has stabilized post-2024 peaks, favoring longer tenures now but watch for 2026 Fed cuts.[2][3]

How to Choose Optimal Loan Tenure & Bank

Assess affordability: Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator inputting income, age, property price.
Compare rates: View all banks instantly on Homejourney bank-rates – real-time SORA + spreads.
Factor lock-in: Most 2-3 years; avoid penalties by planning repricing 3 months early.[2]
Apply multi-bank: Submit once via Singpass on Homejourney; get offers from DBS, OCBC, etc. competing for you.
Refinance tip: For upgraders, shorten tenure post-HDB sale. See Home Loan Tenure: Improve Approval Chances.

Insider tip: Pair with property search on Homejourney property search to match budgets across HDB/condos.

Pros & Cons of Major Banks by Tenure

DBS/OCBC/UOB (Big 3): Lowest rates for 25-30yr (1.35-1.50%), excellent apps via Singpass; cons: higher min loans ($400k+).[2]

Foreign banks (HSBC/StanChart/Citi): Aggressive floating for long tenures; pros: flexible; cons: stricter criteria.

Others (Maybank/CIMB): Best fixed for 30yr investors; great for refinancing. Compare all on Homejourney for your profile.

Actionable Steps with Homejourney

1. Visit https://www.homejourney.sg/bank-rates for side-by-side tenure comparisons.
2. Calculate optimal tenure via our tool.
3. Apply once – banks bid for your loan.
4. Track SORA live for timing.

Homejourney's mortgage brokers offer free guidance, ensuring transparency and safety.

FAQ

What is the best home loan tenure in Singapore?
Optimal is 25 years for cost savings if affordable; 30 years for lower monthlies on bank loans.[1][3]

Can I get a 30-year bank loan for HDB?
Yes, up to 30 years or age 65/lease end; HDB caps at 25.[1]

How do SORA rates affect my tenure choice?
Lower SORA favors longer tenures; use Homejourney tracker.[2][4]

Is fixed or floating better for long tenures?
Floating (SORA) often cheaper long-term; fixed for stability first 2 years.[2][5]

How to compare bank rates safely?
Use verified Homejourney bank-rates – no bias, real-time data.