For Singapore buyers comparing Hong Leong Finance vs bank mortgage comparison vs other banks comparison, the key trade-off is this: Hong Leong Finance’s home loans can be very competitive for larger HDB and private loans, but big banks like DBS, OCBC, UOB and HSBC still offer wider SORA-pegged choices, more digital tools, and sometimes lower headline rates for mass-market packages.
On Homejourney, you can safely compare Hong Leong Finance mortgage packages against all major banks in one place, check your eligibility instantly, and submit a single, secure multi-bank application via Singpass.
How this comparison fits into your overall mortgage strategy
This article is a focused cluster within Homejourney’s comprehensive Singapore home loan pillar guide .
If you are shortlisting between a Hong Leong home loan, a big local bank (DBS, OCBC, UOB) and other lenders like HSBC, Standard Chartered, Maybank, CIMB or RHB, use this guide to narrow your options, then head to Homejourney’s live bank rate comparison page at Bank Rates for the latest numbers and personalised calculations.
1. Hong Leong Finance vs banks: quick snapshot for Singapore borrowers
Here is a concise way to think about finance company vs bank home loans in Singapore:
- Hong Leong Finance (HLF): A MAS-regulated finance company offering HDB and private property loans, typically via its own reference rates (HHR for HDB, PPR for private) with promotional fixed or discounted packages for the first few years.[2][4][7] It can be attractive for larger loans (>S$500,000) and for borrowers who prefer working with a relationship manager at a neighbourhood branch.
- Local mega-banks (DBS, OCBC, UOB): Broadest range of SORA-pegged floating and fixed packages, strong online banking, frequent promotions, and dominant market share in both HDB and private mortgages.[1][3] These are what most first-time buyers in towns like Punggol, Sengkang, Tampines or Bidadari naturally consider first.
- Foreign and regional banks (HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Citibank, Hong Leong Bank): Often compete on niche segments – higher-income borrowers, shorter lock-ins, or special fixed-rate promotions – and can occasionally beat the big three by a small margin for certain tenures or property types.[1][9][10]
Standing in your shoes as a buyer walking showflats at Lentor, Tampines or Dairy Farm, the practical question is not “Which brand is better?” but “For my exact loan size, tenure and risk profile, which lender gives the best all-in cost and flexibility?” – that is where Homejourney’s calculators and bank-rates engine simplify things.
2. Hong Leong Finance mortgage products vs banks: what’s on the table?
2.1 Hong Leong Finance mortgage options (HDB & private)
Hong Leong Finance offers three main residential loan categories:
- HDB Home Loan – For purchase or refinancing of completed HDB flats (BTO, resale, and some DBSS), usually for loan amounts above S$500,000.[2][4] Packages are typically structured as:
- Private Property Home Loan – For condos, landed and ECs after MOP, with rates linked to Private Property Rate (PPR)[7] Typical minimum loan size is S$500,000.[7]
- Mortgage Equity / Term Loan (e.g. Mortgage Equity @50) – For owners above a certain age to release equity from private properties, with interest pegged to PPR.[6]
From experience working with borrowers in mature estates like Bishan or Clementi, Hong Leong Finance tends to be most competitive when:
- Your loan is mid-to-large (S$500,000–S$1.5M)
- You are comfortable with a finance-company reference rate rather than SORA
- You value personalised, branch-based service, for example at their branches in the CBD or heartland malls
2.2 Bank mortgage products: what do other lenders offer?
Major banks in Singapore, including DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank, typically offer:
- SORA-pegged floating packages – e.g. 3M SORA + spread. As at late 2025, comparison platforms report the lowest floating packages around 1M/3M SORA + 0.25–0.60% for larger loans.[1][3]
- Fixed-rate packages – Often 2–3 year fixed tenures with rates starting from around 1.30–1.78% p.a. in recent weeks for larger loans, depending on bank and campaign.[1][9]
- Board-rate / fixed-deposit-pegged loans – Less common now but still available at some banks and finance companies for buyers who prefer non-SORA benchmarks.[3][10]
For a typical first-time buyer taking a S$600,000 loan on a 4-room resale at Sengkang, the practical choice is usually between:
- A 2-year fixed package at around 1.4–1.7% p.a. from a bank
- A SORA-pegged floating package around 3M SORA + 0.50–0.70% p.a.
- A Hong Leong Finance fixed or HHR-discounted package in the 1.8–2.4% band in the first 2–3 years, as per its published tables.[2][4]
Always verify the latest numbers on Homejourney’s live comparison tool at Bank Rates , as banks and finance companies can change promotions without prior notice.[1][2][7]
3. Current Hong Leong Finance rates vs banks (2025 snapshot)
Based on Hong Leong Finance’s latest published tables:
- HDB Home Loan promotions (example structures, as of 9 Sep 2025):[2][4]
- Package A: 1.85% p.a. fixed for Years 1–3, then 3.50% p.a. (HHR – 3.50%).[2]
- Package B: 2.38% p.a. (HHR – 4.62) for Years 1–2, then 3.50% p.a. (HHR – 3.50%) from Year 3 onwards.[2]
- HDB Home Rate (HHR) itself is currently 7.00% p.a., with your effective charged rate at HHR minus a fixed discount during the promotional period.[2][4]
- Private Property Rate (PPR) is 6.15% p.a., with private packages offering promotional discounts off PPR for the first few years.[7]
In the same 2025 environment, sample market data shows top bank packages offering fixed rates from about 1.30–1.78% p.a., and floating SORA + spreads that can bring year-one effective rates into the low-1% to mid-1% range for strong profiles and large loans.[1][9][10]
Key takeaway: At first glance, Hong Leong Finance’s promoted fixed rates around 1.85–2.38% p.a. for HDB loans are not always the absolute lowest in the market, but they may still be attractive for certain profiles, especially when you factor in lock-in, penalties, and subsidies.
3.1 Simple monthly instalment comparison (illustrative)
Assume a S$500,000 loan over 25 years for a resale HDB flat in Yishun:
- At 1.40% p.a. (sample bank fixed): monthly instalment ≈ S$1,966 (illustrative).
- At 1.85% p.a. (Hong Leong Finance promo): monthly instalment ≈ S$2,089.
The difference is about S$120–130 per month, or roughly S$1,500 per year. This is not negligible, but if the Hong Leong Finance package offers more flexibility or a shorter effective lock-in that aligns with your upgrade plans (e.g. selling after 5 years to move from an HDB in Punggol to a condo near an MRT on the Thomson-East Coast line), it might still be worth shortlisting.
References
- Singapore Property Market Analysis 2 (2025)
- Singapore Property Market Analysis 4 (2025)
- Singapore Property Market Analysis 7 (2025)
- Singapore Property Market Analysis 1 (2025)
- Singapore Property Market Analysis 3 (2025)
- Singapore Property Market Analysis 9 (2025)
- Singapore Property Market Analysis 10 (2025)
- Singapore Property Market Analysis 6 (2025)
