Home Loan Tenure & Bank Rate Comparison Guide | Homejourney

The shortest answer to “What is the optimal home loan tenure in Singapore?” is this: choose the shortest tenure you can comfortably afford without risking your cash flow, then compare bank rates across all major lenders to see how different tenures change both your monthly instalment and total interest cost.

This cluster guide on Home Loan Tenure: Bank Rate Comparison Guide sits under Homejourney’s main mortgage pillar, where we explain LTV, TDSR, stress tests and loan types in full detail. For deeper context, also see our related guides: Home Loan Tenure in Singapore: 25 vs 30 Years & Beyond | Homejourney Guide , Home Loan Tenure: How to Improve Approval Chances | Homejourney and What Is LTV Ratio & Why It Matters for Bank Rates | Homejourney .

What is home loan tenure and why does it matter so much?

Home loan tenure (or mortgage term) is the number of years you take to repay your home loan in Singapore. For HDB loans, the maximum tenure is generally 25 years, while bank loans can go up to 30 years for HDB and ECs, and commonly up to 30 years for private properties, subject to maximum age limits and MAS rules.[2][1]

In practice, your chosen loan period affects three critical things:

Monthly instalment – longer tenure = lower monthly payment
Total interest paid – longer tenure = much higher total interest
Loan approval – tenure affects your TDSR/MSR, which can decide if the bank approves your loan at your desired amount

From walking clients through showflats in Tampines and Queenstown to helping upgraders refinance Bukit Panjang condos, one pattern is consistent: borrowers who understand tenure trade-offs and compare multiple bank rates through Homejourney’s bank rates page (Bank Rates ) make safer, more confident decisions.

Typical tenures in Singapore: 25 vs 30 years and beyond

Under current MAS and HDB guidelines, these are the common benchmarks:[2][1]

HDB Concessionary Loan: up to 25 years (subject to remaining lease and age)
Bank loan for HDB/EC: up to 30 years, subject to age and property rules[2]
Bank loan for private property: typically up to 30 years or until borrower is 65–70, whichever is earlier[1]

In new towns like Punggol or Tengah, younger couples in their late 20s often take 30-year bank loans for flexibility, then shorten tenure later when income rises. In more mature estates such as Toa Payoh or Clementi, older upgraders in their 40s commonly get tenures of 18–23 years due to age limits and TDSR impact.

For detailed pros and cons of 25 year vs 30 year mortgage, see Home Loan Tenure in Singapore: 25 vs 30 Years & Beyond | Homejourney Guide .

How home loan tenure changes your monthly instalment and total interest

To see how tenure really affects cost, imagine a S$700,000 loan for a 4-room HDB resale near Hougang MRT with a typical bank rate of about 1.6% p.a. (floating based on 3M SORA) in today’s lower-rate environment.[7]

25-year tenure: Higher monthly instalment, lower total interest
30-year tenure: Lower monthly instalment, but significantly more interest paid over time

Because banks in Singapore price most floating packages off 3M or 6M SORA, plus a spread, your interest cost is affected not just by tenure but also by how SORA moves over time.[2][7] Homejourney’s calculator on Mortgage Rates lets you plug in different tenures and see the projected monthly payment and total interest under various SORA scenarios.

Important: A longer tenure can make monthly payments more manageable and improve your approval chances, but it is not automatically better. You must balance cash flow safety with interest savings.

Understanding SORA, fixed and board rates before comparing tenures

Before looking at how different banks price tenures, you need to understand the main rate types used in Singapore home loans:[2][4][7]

SORA-pegged (floating): Rate = 3M/6M Compounded SORA + bank spread. These move with the market.
Fixed rate: Interest is fixed for 2–5 years, then typically converts to a SORA or board-rate package.[4][7]
Board rate: Internal bank reference rate, adjusted at the bank’s discretion. Less transparent, usually for niche cases.

Most new loans in 2025–2026 are pegged to 3M SORA, which has fallen from around 3% in early 2025 to roughly 1.2% as of December 2025, bringing mortgage rates to their lowest in three years.[7] This is why many owners in areas like Sengkang and Jurong West have been refinancing to take advantage of the gap between older high-rate loans and today’s lower packages.[7]

The chart below shows recent interest rate trends in Singapore:

Use this trend together with Homejourney’s real-time SORA tracking on Bank Rates to decide if you want a longer or shorter lock-in to match your tenure strategy.

How banks price different tenures: what really changes?

Banks in Singapore typically quote the same headline spread for tenures between about 20 and 30 years, but three things often differ by tenure:

Approval amount: Longer tenure lowers your monthly instalment, improving your TDSR/MSR position, which can increase the loan you qualify for.[2]
Risk pricing: For some packages and borrower profiles, shorter tenures can come with slightly better spreads, because the bank sees lower long-term risk (this is more visible in renovation or personal loans, but the logic still applies).[3]
Package availability: Certain promotional packages are only available for minimum/maximum tenures (e.g. 5–30 years).

On Homejourney’s bank rates comparison page (Bank Rates ), you can set your desired tenure (e.g. 23 years instead of the default 25 or 30) and instantly see:

Updated monthly instalments for DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank
Which banks are more competitive at longer tenures vs shorter ones
Effective interest costs over time so you do not just chase the lowest headline rate

Bank-by-bank tenure and rate structure: what to watch for

Note: Exact rates change frequently. Always verify current offers on Bank Rates and with the bank’s official site or your Homejourney mortgage consultant before deciding.

DBS Bank

DBS typically offers SORA-pegged and fixed packages for both HDB and private properties, with tenures up to 30 years (subject to age and MAS caps). Lock-ins are commonly 2–5 years, with early repayment penalties during the lock-in.

Best for: Borrowers who value stability, strong digital banking and often competitive fixed packages, especially for HDB buyers.

OCBC Bank

OCBC’s home loans for HDB and private properties offer both fixed and SORA-pegged rates.[9] Tenure is usually up to 30 years, with 2–3 year lock-ins. OCBC has been active in refinancing, with many owners switching to its five-year fixed packages in the recent lower-rate environment.[7]

Best for: Borrowers who want slightly longer fixed-rate protection (e.g. 3–5 years) matched to a 20–30 year tenure.[7]

UOB

UOB’s HDB loan page illustrates a common structure: year 1 fixed or promotional rate, then 3M SORA plus a spread from year 2 onwards, with 2-year lock-in and maximum tenure of 30 years or up to age 65.[5]

Best for: Buyers who want flexibility such as free conversions after the lock-in and clear SORA-based pricing tied to mainstream tenures (20–30 years).[5]

Foreign banks: HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, Citibank

These banks generally offer similar maximum tenures (up to about 30 years) but may:

Price more aggressively for higher loan amounts (e.g. S$800,000+ condos in city-fringe areas like Bishan or Redhill)
Offer special packages for refinancing with legal subsidies, which matter if you intend to shorten your tenure during a refinance
Provide unique board or hybrid packages (e.g. step-up or step-down structures) that suit specific cash-flow needs

Best for: Investors and higher-income borrowers who want fine-tuned structures (e.g. shorter 15–20 year tenure with aggressive spread) or specialised refinancing deals.

Step-by-step: how to choose your optimal loan tenure in Singapore

Use this simple framework before you commit to 25 years, 30 years, or any other tenure.

1. Start from your safe monthly budget, not the bank’s maximum

Walk through your actual monthly expenses – including childcare, parents’ allowance, car instalments, insurance and future plans like having a second child. In estates like Sengkang and Choa Chu Kang, it is common to underestimate childcare and tuition costs, which can quickly push your debt ratio up.

Use Homejourney’s mortgage calculator on to test different scenarios (e.g. 25 vs 30-year tenure at various rates) and see where your monthly instalment sits as a percentage of your household income.

2. Check MAS rules: LTV, TDSR and MSR

MAS imposes Loan-to-Value (LTV) limits and Total Debt Servicing Ratio (TDSR) caps that directly affect how much you can borrow and over how long.[2] For HDB flats, Mortgage Servicing Ratio (MSR) also applies and caps the portion of income used for housing loans.

Longer tenures lower your monthly instalment, which can help you pass TDSR/MSR, but you still must meet LTV and cash/CPF downpayment rules. For a full breakdown, see Loan-to-Value (LTV) Ratio in Singapore: Homejourney’s Essential Guide for Safe B... and Straits Times Housing News for recent policy news.

3. Compare 25 vs 30-year mortgage side-by-side

On Bank Rates , set the same property price and loan amount, then switch tenure between 25 and 30 years. Look at:

Difference in monthly instalment
Difference in total interest over the full term
Whether shorter tenure still keeps you under a safe budget buffer (e.g. no more than 30–35% of combined income)

If your cash flow is tight now (for example, you just bought a new BTO in Tengah and are also paying for renovation), you might start with 30 years, then refinance and shorten the tenure when your income rises in 5–8 years. Homejourney’s refinancing flow and comparison tools make this path clear and structured.

4. Align tenure with your life plans

Think about when you realistically want to be debt-free and how long you expect to stay in the property:

If you plan to keep a 4-room HDB in Bukit Batok as your forever home, a slightly shorter tenure (e.g. 23–25 years) can make sense to finish before retirement.
If you are buying a city-fringe condo in Geylang or Balestier as an investment with a 7–10 year horizon, cash flow and rental yield may matter more than total interest over 30 years; a longer tenure can keep monthly instalments comfortably below expected rental.

5. Use Homejourney to compare all banks and apply once

Once you have a target tenure (for example, 28 years):

Go to Bank Rates and set your desired tenure, property type (HDB/EC/private) and loan type (new purchase or refinance).
Use the mortgage eligibility calculator on to estimate your maximum loan and safe instalment.
Review rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank side-by-side.
Apply once via Homejourney’s multi-bank application. With Singpass/MyInfo, your details auto-fill in seconds, reducing errors and speeding up approvals.
Let Homejourney’s mortgage brokers reach out with personalised guidance so you can fine-tune tenure, lock-in and package type safely.