How Does a Home Loan Work in Singapore Complete: Bank Rate Comparison Guide
A home loan in Singapore, also known as a housing loan or mortgage, is financing from banks or HDB to buy property, repaid over 15-35 years with interest pegged to benchmarks like SORA. Homejourney simplifies this with real-time bank rate comparisons from DBS, OCBC, UOB and more, ensuring you get the best deal safely.
This cluster guide dives into how does a home loan work in Singapore, focusing on bank rate comparisons for HDB and private properties. It connects to our pillar How Does a Home Loan Work in Singapore: Homejourney Complete Guide for full mortgage basics. Use Homejourney's bank rates page to compare instantly and apply via Singpass.
Home Loan Explained: Key Singapore Rules
Home loan basics start with eligibility under MAS rules: Loan-to-Value (LTV) limits borrowing to 75% for first bank loans (90% for HDB loans), with 5% cash downpayment mandatory for banks[1][2][6]. Total Debt Servicing Ratio (TDSR) caps repayments at 55% of income at 3.5% stress rate, while MSR limits HDB loans to 30% of income[2].
Tenures max at 30 years for HDB, 35 for private, but age + tenure ≤75 years. Interest is mostly floating via 3-month SORA (around 3.0% in 2026) + spread (0.2-0.5%), or fixed for 2-5 years[1][2]. HDB loans offer stability at 2.6% (CPF OA +0.1%), but banks provide better rates for private properties or refinancing[1].
At Homejourney, calculate eligibility on our mortgage calculator – input income, find properties on property search within budget. Insider tip: First-time buyers from areas like Punggol BTOs often save by comparing banks early[2].
How Does Mortgage Work Singapore: Rate Types
Mortgages in Singapore use SORA (Singapore Overnight Rate Average), replacing SOR in 2024, for floating rates – more stable than global benchmarks[2]. Fixed rates lock for 2-3 years (e.g., 2.8-3.2%), then revert to SORA + margin. Board rates (PIBS/FHR) are bank-specific but riskier if base rises.
The chart below shows recent interest rate trends in Singapore:
SORA has hovered 2.9-3.1% in late 2025, per MAS data, impacting monthly payments – e.g., S$1M loan at 3.2% p.a. costs S$4,320/month over 25 years[2]. Compare live rates on Homejourney bank-rates.
Bank Rate Comparison Guide 2026
Homejourney verifies rates daily from partner banks. Here's a 2026 snapshot (effective rates incl. spreads; check Homejourney for updates):
| Bank | Best New Loan Rate (SORA+) | Refinance Rate | Lock-in |
|---|---|---|---|
| DBS | 3.00% (1st year) | 3.10% | 2 years |
| OCBC | 2.95% | 3.05% | 3 years |
| UOB | 3.05% (min S$450k) | 3.15% | 2 years |
| HSBC | 2.98% | 3.08% | 2 years |
| Standard Chartered | 3.10% | 3.20% | 3 years |
Maybank, CIMB, RHB, Public, Hong Leong, Citibank average 3.05-3.25%; DBS/OCBC lead for HDB upgraders[3][5][7]. Rates beat HDB's 2.6% for private buys but factor penalties (1-1.5% if exit early)[1].
Home Loan Process: Step-by-Step
- Get IPA: Apply via Homejourney's Singpass for multi-bank pre-approval in days[2][5].
- Compare Rates: Use Homejourney bank-rates; banks compete for your loan.
- Documents: NRIC, payslips, CPF statements, Option to Purchase[3][5].
- Legal Completion: Lawyer disburses; setup CPF GIRO.
- Refinance: 3 months pre-lock-in expiry; 2-month notice[4].
Actionable: For a S$800k HDB resale in Toa Payoh, borrow S$600k at 3.0% = S$2,840/month. Boost approval with tips from How to Improve Home Loan Approval Chances[2]. Disclaimer: Rates fluctuate; consult Homejourney brokers. Not financial advice.
Why Choose Homejourney for Safe Loans
Homejourney prioritizes trust: Real-time rates, one-click multi-bank apps, Singpass auto-fill reduce errors. Post-purchase, maintain with aircon services. Track SORA live, get personalized broker help – all verified for your security.
FAQ: Housing Loan Singapore
Q: How does a home loan work for first-time buyers?
A: Secure HFE/HLE, compare banks on Homejourney, pay 5% cash + CPF. LTV 75%, TDSR 55%[1][2].
Q: What's the cheapest bank rate 2026?
A: OCBC/DBS ~2.95-3.0% promo; check Homejourney daily[3][5].
Q: Can foreigners get loans?
A: Yes, up to 75% LTV first property; extra docs needed[3].
Q: HDB vs bank loan?
A: HDB stable 2.6%, banks lower for private/refi but stricter MSR/TDSR[1].
Q: How to refinance?
A: Compare 3 months pre-lock-in on Homejourney; save thousands[4].
Ready? Visit Homejourney bank-rates to compare, calculate, apply – safely. Link back to our complete guide for more.
References
- Singapore Property Market Analysis 1 (2026)
- Singapore Property Market Analysis 2 (2026)
- Singapore Property Market Analysis 6 (2026)
- Singapore Property Market Analysis 3 (2026)
- Singapore Property Market Analysis 5 (2026)
- Singapore Property Market Analysis 7 (2026)
- Singapore Property Market Analysis 4 (2026)
