Home Loan Tenure: Bank Rate Comparison Guide | Homejourney
The optimal home loan tenure in Singapore balances affordable monthly payments with minimized total interest costs, typically ranging from 20 to 30 years depending on your age, property type, and LTV limits.[1][4] For most buyers, a 25-year mortgage offers a sweet spot, lowering payments compared to shorter terms while capping interest better than 30 years—especially with current low rates around 1.45-1.65% for fixed packages.[3][6]
This cluster article on home loan tenure: bank rate comparison guide dives into how tenure impacts rates across major banks like DBS, OCBC, and UOB. It connects to Homejourney's Complete Guide to Home Loan Tenure in Singapore Homejourney's Complete Guide to Home Loan Tenure in Singapore , providing tactical advice for first-time buyers and refinancers. At Homejourney, we prioritize your safety with verified rates and Singpass-enabled applications for transparent, secure decisions.
Why Home Loan Tenure Matters in Singapore
Loan period Singapore rules cap HDB loans at 25 years or age 65, whichever is shorter, while private property allows up to 30-35 years.[4] Longer tenures reduce monthly repayments but inflate total interest—e.g., a $500,000 loan at 1.5% p.a. costs $47,000 more interest over 30 years vs 25 years.[3]
Homejourney's real-time bank rates comparison shows how tenure affects effective rates. Shorter tenures may qualify for better spreads due to lower lender risk, but TDSR (55% debt cap) limits borrowing power.[4] Insider tip: For HDB upgraders in areas like Punggol, stick to 25 years to stay under age-65 rule and maximize CPF usage.
25-Year vs 30-Year Mortgage: Side-by-Side Comparison
Compare a $800,000 resale condo loan at 1.55% fixed rate:
| Metric | 25-Year Mortgage | 30-Year Mortgage |
|---|---|---|
| Monthly Repayment | $4,150 | $3,680 |
| Total Interest Paid | $247,000 | $324,000 |
| TDSR Impact (40% income) | Fits $10k/month salary | Fits $9k/month salary |
25 year vs 30 year mortgage: Choose 25 years if under 40 for lower lifetime costs; opt for 30 if cash flow is tight, but plan to shorten later via refinancing.[1][4] Use Homejourney's mortgage eligibility calculator to test scenarios instantly.
Current Bank Rates by Loan Tenure
Rates as of Feb 2026 are at 3-year lows, with 2-year fixed packages at 1.45-1.65% p.a., pegged to falling SORA (now ~1.2%).[6] Banks offer better spreads on shorter tenures for lower-risk profiles.
The chart below shows recent interest rate trends in Singapore:
As seen, SORA dropped from 3% to 1.2%, boosting fixed-rate promos. Compare via Homejourney bank rates for live updates from DBS, OCBC, UOB, HSBC, and more.[3][6]
| Bank | 2Y Fixed (25Y Tenure) | 2Y Fixed (30Y Tenure) | Min Loan |
|---|---|---|---|
| DBS | 1.65% | 1.68% | $500k |
| OCBC | 1.55% | 1.58% | $400k |
| UOB | 1.50% | 1.55% | $500k |
| HSBC | 1.48% | 1.52% | $500k |
| Maybank | 1.65% | 1.70% | $500k |
Data from bank promos; rates for resale/landed. Standard Chartered, CIMB, RHB similar at 1.55-1.65%. Lock-ins: 2 years standard, penalties 1.5% on prepaid amount.[2][3]
How to Choose Optimal Loan Tenure
- Assess Affordability: Use TDSR calculator on Homejourney. Aim for payments <30% income.
- Factor LTV: Max 75% first loan, drops to 45% second; longer tenure hits lower LTV sooner.[4]
- Plan Age Cap: Cannot exceed age 65; e.g., 40-year-old max 25 years.[4]
- Compare Banks: Shorter tenure gets 0.03-0.1% better rates at OCBC/HSBC.
- Refinance Strategy: Lock 2Y fixed, reprice post-lock-in when SORA dips.
Actionable: For a $1M BTO in Tengah, select 25-year DBS at 1.65% for $5,200/month vs $4,600 on 30-year—saving $90k interest. Verify on Homejourney and apply via Singpass for multi-bank offers.
Bank-Specific Insights for Your Tenure
DBS/POSE: Best for HDB; 3Y fixed at 1.55%, no early repayment penalty on sale.[6] Ideal 25Y for upgraders.
OCBC: Top for promos (1.55% 2Y); suits 30Y resale condos, high refinancing volume.[6]
UOB/HSBC: Competitive 1.48-1.50% for $500k+; floating SORA+0.5% post-fixed. Great for investors shortening tenure.
Maybank/CIMB for niche: Time deposits-linked rates. Always compare on Homejourney—let banks compete for you.
Application Steps with Homejourney
- Visit Homejourney bank-rates, input property details/tenure.
- Calculate eligibility; select optimal tenure.
- Submit one Singpass app—get offers from DBS, OCBC, etc.
- Documents: Income proof, property option fee. Approval: 1-3 weeks.
- Connect with Homejourney Mortgage Brokers for free guidance.
Disclaimer: Rates fluctuate; not financial advice. Consult professionals. Homejourney verifies data for trust.
Frequently Asked Questions
What is the optimal loan tenure in Singapore?
25 years for most, balancing payments and interest under age-65/LTV rules.[1][4]
Does loan tenure affect bank rates?
Yes, shorter tenures (20-25Y) often get 0.03-0.1% lower rates due to lower risk.[2][3]
25 year vs 30 year mortgage: Which saves more?
25-year saves ~$50k+ interest on $500k loan but raises monthly by $200-300.[3]
Can I change my home loan tenure later?
Yes, via refinancing/repricing post 2Y lock-in; use Homejourney to compare.[2]
How does Homejourney help with bank comparisons?
Real-time rates, multi-bank apps, Singpass—safe, fast, transparent.
Ready to find your optimal loan tenure? Start with Homejourney's bank rate comparison guide and link to property search for budget-matched homes. For full details, read our pillar: Complete Guide to Home Loan Tenure.
