Homejourney: Improve Home Loan Approval Chances & Rates 2026
To improve your home loan approval chances in Singapore, maintain a credit score above 700, keep your debt-to-income ratio under 55%, and provide stable income proof like the latest 3-6 months' payslips and tax assessments. Homejourney's bank rates page simplifies this with instant eligibility checks via Singpass.
This cluster article on Understanding Home Loan Interest Rates: How to Improve Approval Chances builds on our pillar guide, Homejourney: Home Loan Interest Rates Singapore 2026 Guide, offering tactical steps for first-time buyers and refinancers.
Current Home Loan Interest Rates in Singapore (Jan 2026)
Current mortgage rates have dropped to 3-year lows, with fixed rates at 1.4-1.8% and floating rates pegged to SORA + 0.25-0.40%.[2][1] For resale HDB flats, promo 1M SORA rates start at +0.30%, while 2-year fixed packages are around 1.45-1.65% from banks like DBS, OCBC, and Maybank.[1]
HDB loans remain at a fixed 2.6%, higher than competitive bank options, prompting switches—OCBC saw a 7x increase in 2025.[2] Track live home loan interest rate Singapore updates on Homejourney's bank rates page, comparing DBS, UOB, HSBC, Standard Chartered, and more side-by-side.
The chart below shows recent interest rate trends in Singapore, highlighting SORA movements and fixed rate packages:
As seen in the chart, 3M SORA has fallen to around 1.2%, driving down floating rates.[2] For mortgage rate 2026 outlook, experts predict modest declines, with banks competing via rebates in Q1.[2]
SORA vs Fixed Rates: Key Differences
SORA (Singapore Overnight Rate Average) is the primary benchmark for floating rates, with 3M SORA more common for stability vs 1M SORA's responsiveness.[2] Current spreads are tight at +0.25% for promos on resale condos.[1]
| Rate Type | Pros | Cons | Best For |
|---|---|---|---|
| Fixed (e.g., 2-yr @1.48-1.75%) | Predictable payments; lock-in protection | Higher initial rates; penalties if prepaid | Risk-averse buyers |
| Floating (SORA +0.25-0.70%) | Lower starting rates; flexible | Rate volatility | Investors expecting falls |
UOB's private home loan, for example, starts at 3M SORA +0.70% in year 2.[3] Use Homejourney's mortgage calculator for interest rate comparison.
7 Actionable Steps to Improve Home Loan Approval Chances
Boosting approval hinges on lender criteria from MAS and bank policies. Here's a step-by-step framework:
- Check Credit Score: Aim for 700+ via Credit Bureau Singapore. Pay off cards; avoid new debt 6 months prior.
- Lower Debt-to-Income (DTI): Keep total debt <55% of income. Close unused loans.
- Stable Income Proof: Submit IR8A, latest payslips, employment letter. Self-employed need 2 years' accounts.
- Increase Downpayment: 20-25% for HDB/private reduces LTV risk (max 75-90%).
- Compare via Homejourney: Use bank-rates for best home loan rate; submit one Singpass app for multi-bank offers.
- Time Your Application: Apply post-bonus; align with low SORA periods per our trends chart.
- Refinance Smartly: Switch from HDB 2.6% to bank rates <1.8%, saving S$4,100/year on S$500k loan.[2]
Insider tip: For HDB upgraders in areas like Punggol, factor CPF OA at 2.5% for Jan-Mar 2026.[6] Homejourney verifies data for safe decisions.
Homejourney Tools for Better Rates & Approvals
Homejourney prioritizes your safety with verified rates from DBS, OCBC, UOB, HSBC, Maybank, and partners. Track 3M/6M SORA daily, calculate payments, and apply securely via Singpass—no paperwork hassles.
Our multi-bank system matches you to the best home loan rate, with brokers offering personalized advice. Search budget-friendly properties on Homejourney property search post-approval.
- Instant eligibility calculator
- Side-by-side interest rate comparison
- One-click applications to 10+ banks
Disclaimer: Rates fluctuate; consult professionals. Homejourney provides info, not advice.
FAQ: Home Loan Interest Rates Singapore
Q: What are current mortgage rates in Singapore?
A: Fixed 1.4-1.8%; floating SORA +0.25-0.40% as of Jan 2026.[1][2]
Q: How does SORA affect my payments?
A: 3M SORA at ~1.2% + spread means ~1.45-1.6% effective. Use Homejourney calculator for scenarios.
Q: Can I switch from HDB to bank loan?
A: Yes, if rates <2.6%; no reverse possible. Saves up to S$500/month.[2]
Q: How to get the best home loan rate?
A: Compare on Homejourney bank-rates; strong profile gets promos.
Q: What's the 2026 rate outlook?
A: Modest falls expected; monitor Fed & SORA via our chart.[2]
Ready to secure better rates? Start with Homejourney's bank rates today. For full coverage, read our pillar: Homejourney Guide: Home Loan Interest Rates Singapore 2026 . Homejourney: Safe, trusted property journeys.
