Hong Leong Finance vs Bank Mortgage Comparison: Ultimate 2025 Guide
This definitive guide compares Hong Leong Finance home loans against major Singapore banks like DBS, OCBC, and UOB. Homejourney prioritizes your safety with verified rates and transparent comparisons to help you secure the best Hong Leong Finance mortgage or bank home loan.[1][2]
Discover current rates, eligibility, application tips, and why finance company vs bank options matter for HDB or private properties. Use Homejourney's tools for instant comparisons at https://www.homejourney.sg/bank-rates.
Executive Summary
Hong Leong Finance offers competitive fixed rates starting at 1.85% p.a. for the first three years on HDB loans above S$500,000, pegged to HDB Home Rate (HHR) at 7.00% thereafter.[2] Banks like DBS provide lower floating rates from 1M SORA + 0.25% (around 1.36-1.43%), but with shorter lock-ins.[1] Finance companies suit risk-averse buyers; banks offer flexibility for investors.
Homejourney verifies all data for trust, letting you compare Hong Leong home loan options against 11+ partners instantly. Calculate eligibility at https://www.homejourney.sg/bank-rates#calculator and apply via Singpass for faster approvals.
Table of Contents
- Hong Leong Finance Overview
- Major Banks Overview
- Rates Comparison Table 2025
- Pros and Cons: Finance Company vs Bank
- Eligibility and Application Process
- Refinancing with Hong Leong vs Banks
- Homejourney Tools for Safe Decisions
- FAQ
Hong Leong Finance Overview
Hong Leong Finance, a leading alternative lender in Singapore, specializes in HDB and private property loans. Established with a strong track record, it pegs rates to HHR (7.00% p.a.) for HDB and PPR (6.15% p.a.) for private properties.[2][5][6]
Key products include HDB Home Loans with 3-year fixed rates at 1.85% for loans over S$500,000. This appeals to first-time HDB buyers seeking stability over bank volatility.[2] Unlike banks, finance companies like Hong Leong offer simpler approvals for certain profiles, but higher long-term rates.
Hong Leong HDB Home Loan Details
| Period | Rate (% p.a.) |
|---|---|
| Year 1-3 | 1.85 (Fixed) |
| Year 4+ | 3.50 (HHR - 3.50) |
Rates as of Sep 2025; minimum loan S$500,000.[2] For resale HDB in areas like Toa Payoh, this means stable payments for upgraders.
Private Property Loans
Hong Leong's Mortgage Equity @50 offers rates from 25 Sep 2025, pegged to PPR 6.15%. Ideal for investors in condos near MRTs like Orchard.[6][8]
Major Banks Overview: DBS, OCBC, UOB and More
Banks dominate with SORA-pegged floating rates. DBS, with its vast SGD pool, leads fixed rates from 1.30-1.35% for loans over S$500k-$2M.[1] OCBC and UOB offer similar, with features like free conversion (FC12/24).
Compare via Homejourney at https://www.homejourney.sg/bank-rates. Banks suit flexible borrowers; see UOB vs DBS Mortgage Comparison: Which is Better for You | Homejourney ">UOB vs DBS Mortgage Comparison: Which is Better for You | Homejourney for UOB vs DBS details.
Key Bank Products
- DBS: 1.35% fixed Year 1-2 (min S$500k), then SORA variants.[1]
- OCBC: 1.50% fixed, FC36 option.[1]
- UOB: 1M SORA +0.25% (1.43%), sale penalty waivers.[1]
- HSBC/Standard Chartered: Competitive for expats, floating from 1.44%.[3]
- Maybank/CIMB/RHB: Fixed 1.38%, good for refinancing; see CIMB vs RHB Home Loan Singapore: Apply via Homejourney ">CIMB vs RHB Home Loan Singapore: Apply via Homejourney .[3]
2025 Rates Comparison: Hong Leong Finance vs Banks
Bank rates beat Hong Leong initially but may rise post-lock-in. HDB loans cap at 80% LTV vs banks' 75%.[4] Track live SORA on Homejourney.
| Lender | Year 1-2 Rate | Year 3 Rate | Lock-in | Min Loan |
|---|---|---|---|---|
| Hong Leong Finance (HDB) | 1.85% Fixed | 1.85% Fixed | 3 years | S$500k |
| DBS | 1.35% Fixed | SORA +0.50% | 2 years | S$500k |
| OCBC | 1.50% Fixed | SORA +0.60% | 2-3 years | S$400k |
| UOB | 1M SORA +0.25% (1.43%) | SORA +0.35% | 2 years | S$500k |
| CIMB/RHB | 1.38% Fixed | Floating 1.34% | 2 years | S$1M |
Data from Dec 2025; rebates S$2,000-$2,800 on refinancing.[1][2][3] For S$1M HDB loan, banks save ~S$5,000 in Year 1 interest vs Hong Leong.
Pros and Cons: Finance Company vs Bank
Hong Leong Finance Pros
- Longer fixed periods (3 years) for budgeting.[2]
- Simpler for HDB resale; insider tip: faster processing for Toa Payoh flats under S$800k.
- No SORA volatility risk initially.
Hong Leong Cons
- Higher post-lock-in (3.50%).[2]
- Limited to S$500k+; fewer features like FC.
Banks Pros
- Lower rates (1.30-1.50%); SORA tracks market.[1][3]
- Flexibility: Reprice/refinance easily; waivers on sale.
- Better for BUC condos in Punggol (progressive drawdown).
Banks Cons
- Floating risk if SORA rises (current 3M SORA ~1.18%).[1]
- Stricter eligibility for freelancers.
Best for: Hong Leong for conservative HDB buyers; banks for investors. Compare on Homejourney for your profile.
Eligibility, Documents, and Application Process
Eligibility: Age 21+, Singaporean/PR, income S$3k+/mth. TDSR 55% cap (MAS). HDB: 80% LTV, banks 75%.[4] Use Homejourney calculator: https://www.homejourney.sg/bank-rates#calculator.
Documents Needed
- NRIC/Passport
- Income proof (last 3 payslips)
- Sale & Purchase Agreement
- CPF statements
- For refinancing: Latest loan statements
Hong Leong: 3-7 days processing; banks 5-14 days. Apply multi-bank via Homejourney with Singpass – one form, multiple offers.
Refinancing: Hong Leong vs Banks
Refinance if rates drop >0.5%. Hong Leong rebates S$2,300+; banks match. Costs: 1.5% penalty if early. Track via Homejourney's real-time SORA. Example: S$800k loan at 1.85% to 1.35% saves S$4,000/year.
Steps: 1) Check eligibility on Homejourney. 2) Submit via https://www.homejourney.sg/bank-rates. 3) Compare offers. Ideal for Tengah HDB upgraders.
Homejourney: Your Safe Mortgage Partner
Homejourney builds trust with verified rates from DBS to RHB. Features:
- Instant comparisons including Hong Leong home loan.
- Singpass auto-fill for 50% faster approvals.
- Live SORA tracker.
- WhatsApp support for queries.
Find properties at https://www.homejourney.sg/search matching your budget. Post-purchase, check Aircon Services ">Aircon Services for maintenance.
FAQ: Hong Leong Finance vs Bank Mortgages
What is the current Hong Leong Finance mortgage rate?
1.85% fixed for Years 1-3 (HDB, >S$500k), then 3.50%.[2]
Hong Leong Finance vs bank: Which is cheaper?
Banks start lower (1.30-1.50%) but float; Hong Leong fixed longer.[1][2]
Can I apply to Hong Leong and banks via Homejourney?
Yes, one Singpass application gets offers from all.[Homejourney]
Best for HDB resale in 2025?
Banks for rates; Hong Leong for stability. Compare at https://www.homejourney.sg/bank-rates.
What are finance company vs bank differences?
Finance: Fixed, simpler; Banks: Flexible, lower initial.[4]
Refinancing penalties?
1.5% within lock-in; waivers for sales.[1]
Hong Leong for private property?
Yes, PPR-based from 6.15%.[6]
How to calculate payments?
Use Homejourney's free calculator.[Homejourney]
Disclaimer: Rates change; not financial advice. Consult professionals. Homejourney verifies data for safety.
Ready? Start at https://www.homejourney.sg/bank-rates for the best Hong Leong Finance mortgage or bank deal. Homejourney ensures transparent, secure journeys.
References
- Singapore Property Market Analysis 1 (2025)
- Singapore Property Market Analysis 2 (2025)
- Singapore Property Market Analysis 5 (2025)
- Singapore Property Market Analysis 6 (2025)
- Singapore Property Market Analysis 8 (2025)
- Singapore Property Market Analysis 3 (2025)
- Singapore Property Market Analysis 4 (2025)
