When comparing Hong Leong Finance vs bank mortgage application process and timeline in Singapore, the main differences lie in how quickly they issue Approval-in-Principle (AIP), the type of underwriting (more bespoke for a finance company vs more standardised for major banks), and disbursement for different property types. For most buyers, the total time from first enquiry to full loan disbursement is about 3–6 weeks, whether you choose a Hong Leong Finance mortgage or a bank home loan, provided your documents are complete and your credit profile is straightforward.
This guide focuses on the step-by-step application process and timeline for Hong Leong Finance compared with major banks (DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, Citibank), and how Homejourney makes the entire journey safer, faster, and more transparent.
How this topic fits into your overall mortgage planning
This article is a tactical companion to our main pillar guide on Singapore home loans and refinancing . The pillar explains how to choose between HDB loans, bank loans and alternative lenders; this cluster zooms in on what actually happens after you decide: the application workflow, documents, and timing when comparing a Hong Leong Finance mortgage to a bank mortgage.
Most Homejourney users ask very practical questions at this stage: “When should I apply for AIP?”, “Will a finance company be slower?”, “Can I meet my OTP deadline?”. This guide answers those questions with Singapore-specific timelines and checklists.
Quick comparison: Hong Leong Finance vs bank mortgage process & timeline
Here is a simplified view of the typical process for a salaried borrower buying a resale condo in areas like Tampines, Jurong West or Redhill (where we frequently see Homejourney users buying 2–3 bedroom units in the $1.2–$1.8 million range):
- Step 1 – Pre-qualification & AIP
• Hong Leong Finance: 2–5 working days if documents are complete.
• Banks: 1–5 working days depending on bank and complexity.
• Faster if you submit via Homejourney using Singpass/MyInfo, because income and CPF data are pulled automatically for multiple lenders at once. - Step 2 – Full application after OTP
• Immediately after you pay the option fee (usually 1% of purchase price for private property).
• Loan letter of offer typically within 3–7 working days for both finance company and banks, subject to valuation and underwriting. - Step 3 – Legal work & disbursement
• Conveyancing lawyers coordinate with your lender.
• Disbursement usually 8–12 weeks from OTP for resale private property, and about 8 weeks for completed HDB resale flats (aligned with HDB completion timeline).
Overall, a Hong Leong Finance mortgage is not inherently slower than a bank mortgage; the timing is driven more by your document readiness, credit profile, property type (HDB vs private vs new launch), and how early you engage lenders.
Hong Leong Finance mortgage: what you’re dealing with
Hong Leong Finance (HLF) is a Singapore finance company regulated by the Monetary Authority of Singapore (MAS), and is one of the largest finance companies here.[10] It competes in the same space as banks for home financing but with a slightly different structure and some niche products.
Key offerings relevant to property owners include:
- HDB Home Loan: Fixed and floating rate packages for HDB flats, with financing of up to 75% of property value and fixed interest rates from around 1.85% p.a. (published promotional rate; subject to change).[4] The package references an internal HDB Home Rate (HHR).[4]
- Private property financing & equity loans: Products such as Mortgage Equity @50, which lets owners tap up to 50% of the property value at indicative rates from about 2.15% p.a. (subject to Hong Leong’s Private Property Rate).[3]
Because Hong Leong Finance is an alternative lender to banks, its underwriting can sometimes be more flexible for self-employed borrowers, business owners, or those with more complex income streams, within MAS’s Total Debt Servicing Ratio (TDSR) guidelines.
Major banks: how their processes compare
The big Singapore banks (DBS, OCBC, UOB) and foreign banks (HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, Citibank) largely follow a standardised internal process shaped by MAS rules, HDB requirements (for HDB flats), and URA/land title processes for private property.
In practice, this means:
- Fast, automated AIP assessments for straightforward salaried profiles, especially if you allow MyInfo/Singpass retrieval via platforms like Homejourney.
- Variety of packages – fixed rate, SORA-pegged floating packages, and board-rate loans, with different lock-in periods and repricing options.[1][2][5]
- Highly codified approval criteria – TDSR, LTV caps, and internal risk models are applied consistently.
As of late 2025, many banks’ headline fixed rates for strong profiles and larger loans (e.g. above $800,000) can start from about 1.35%–1.75% p.a. depending on tenure, property type and promo campaigns.[2][5] SORA-pegged packages may start from about 1M/3M SORA + a spread from ~0.25%, depending on bank and loan size.[2][5] These are indicative and change frequently; always check latest figures via Homejourney’s bank rates tool Bank Rates .
Step-by-step: Hong Leong Finance vs bank application process
1. Pre-qualification and Approval-in-Principle (AIP)
Goal: Know how much you can safely borrow before placing any OTP deposit.
Whether you choose Hong Leong Finance or a bank, the initial steps are similar:
- Information required (both finance company vs bank):
• Personal particulars and NRIC
• Employment details and income documents (3 months’ payslips, 12 months’ CPF contribution history for salaried, IRAS Notice of Assessment for 2 years for self-employed/business owners)
• Existing loans and credit card liabilities
• Intended property type and rough price range (e.g. 4-room resale HDB in Punggol around $650k, or 2-bedder in Queenstown around $1.4m) - Typical AIP timeline:
• Hong Leong Finance mortgage: about 2–5 working days after full document submission, longer if income structure is complex.
• Banks: as fast as 1–2 working days for straightforward salaried cases; 3–7 working days for self-employed or multiple-property investors.
Homejourney tip (insider): For popular projects near MRTs (e.g. Clementi, Queenstown, Tanjong Pagar), units can receive multiple offers within a weekend viewing. Serious buyers in these estates often secure AIP at least 2–3 weeks before house-hunting, so they can commit to an OTP on the spot without worrying about financing.
With Homejourney, you can submit your details once, use Singpass/MyInfo to auto-fill, and receive AIP options from Hong Leong Finance and multiple banks together Bank Rates . This reduces duplicate paperwork and lets you compare both finance company vs bank timelines side by side.
2. Full application after OTP
Once the seller grants you an Option to Purchase (OTP) for a private property, you usually have 14 days (local norm) to exercise it. For HDB, HDB’s own resale timeline applies. Within this window, you must convert your AIP into a formal application.
Documents typically needed (Hong Leong Finance & banks):
- Signed OTP (and Sale & Purchase Agreement for private property when available).
- Latest CPF withdrawal statements related to housing (if any).
- Valuation report (for resale HDB, HDB’s valuation is obtained through HDB; for private property, lender may appoint panel valuers).
- Updated income documents if AIP was done some time ago.
Timeline for letter of offer:
- Hong Leong Finance mortgage: typically 3–7 working days from full document submission and valuation confirmation, depending on internal credit checks.
