The fastest way to get banks to compete for your home loan in Singapore is to approach multiple lenders at once with a strong, well-documented profile, compare offers systematically, and use competing quotes to negotiate your mortgage rate down – all while protecting your credit, timelines, and personal data.
This pillar guide from Homejourney will show you, step by step, how to secure the best mortgage offer, manage multiple bank offers efficiently, and negotiate your mortgage rate safely so you consistently get a lower rate – whether you are buying an HDB in Punggol, a condo in Queenstown, or refinancing a landed home in Serangoon.
Executive Summary: Turning the Tables So Banks Compete for You
In Singapore, most buyers still walk into their “main bank” branch and accept the first home loan package they are offered.
But the borrowers who save tens of thousands in interest do the opposite: they create a structured process that forces DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank to compete for their business at the same time.
At Homejourney, we see this daily: two buyers taking $800,000 loans for similar 4-room resale HDBs in Ang Mo Kio can end up paying over $40,000 difference in total interest over 25 years simply because one compared and negotiated widely, while the other did not.
This guide will help you:
- Understand how Singapore banks price home loans (SORA, fixed, board rates)
- Design a simple 7-step process to make banks compete for your loan
- Know exactly what to say when you negotiate mortgage rates
- Use Homejourney tools to manage multi-bank applications safely
- Avoid common mistakes that weaken your bargaining power
Table of Contents
- Why You Want Banks Competing for Your Home Loan
- How Home Loans Work in Singapore (2026 Essentials)
- The 7-Step Strategy to Make Banks Compete
- Comparing Home Loan Packages Across Banks
- How to Negotiate Your Mortgage Rate Like a Pro
- Using Homejourney to Orchestrate Multi-Bank Competition
- Special Situations: HDB vs Private, New Launch vs Resale, Refinancing
- Risk Management, Fine Print, and Borrower Safety
- Frequently Asked Questions (FAQ)
Chapter 1: Why You Want Banks Competing for Your Home Loan
1.1 The Cost of Not Comparing and Negotiating
In 2026, typical bank home loan rates in Singapore are around the mid‑1% to low‑2% range for promotional fixed and SORA‑pegged packages, depending on loan size, tenure, and profile.[4] Higher or lower by just 0.20–0.40 percentage points can mean a very big difference over 25–30 years.
For example, consider a $700,000 loan over 25 years for a resale HDB flat in Tampines:
- At 1.60% p.a. effective rate, your monthly repayment is about $2,835 and total interest paid over 25 years is roughly $150,500.
- At 2.00% p.a., your monthly repayment is about $2,965 and total interest is about $189,500.
That 0.40% difference, which you can often close by having multiple banks compete, adds up to nearly $40,000 over the life of the loan.
1.2 Why Banks Are Willing to Compete
In Singapore’s highly regulated banking system, MAS supervision keeps systemic risks low and ensures banks are stable, but within that framework, banks still vie aggressively for good-quality mortgage customers.[3][4]
Banks compete because:
- Home loans are sticky. Once you lock in a bank for 2–5 years, you’re likely to stay, unless refinancing makes strong sense.
- Mortgages cross-sell other products. High-quality borrowers often use credit cards, insurance, and wealth products with the same bank.
- Relationship customers matter. Priority or premier banking segments (often with $200,000+ AUM) can sometimes get better mortgage pricing.
In practice, this means if you can present yourself as a strong borrower with competing offers on the table, banks have real incentive to improve their initial quote.
1.3 Why a Safe, Structured Process Matters
The challenge isn’t whether banks will compete; they will.
The challenge is doing it in a safe, organised, and data-driven way that protects you from:
- Over‑committing to the wrong package because of confusing terms
- Multiple uncoordinated credit checks, which can affect approval or limits
- Missing your Option to Purchase (OTP) or Sale & Purchase (S&P) deadlines
- Exposing your documents to too many third parties without oversight
Homejourney is built precisely to solve these problems: one safe, verified environment to compare, calculate, and apply to multiple banks, while keeping your personal data secure and your timeline on track.
Chapter 2: How Home Loans Work in Singapore (2026 Essentials)
2.1 Key Regulatory Concepts: LTV, TDSR, MSR
Before you get banks to compete for your home loan, you need to know how much you can borrow and what constraints banks must follow.
- Loan-to-Value (LTV) limit. For bank loans, MAS currently caps LTV at up to 75% for first housing loans (lower if you have existing home loans), depending on your age and loan tenure.[1]
- Total Debt Servicing Ratio (TDSR). Your total monthly debt obligations (including the new home loan) must not exceed 55% of your gross monthly income for private property loans.[1]
- Mortgage Servicing Ratio (MSR). For HDB flats and new ECs, MSR caps your housing loan instalment at 30% of your gross monthly income.[1]
These rules, set by MAS and HDB, apply to all banks; no bank can “bend” them. But within these rules, banks can compete on pricing, fees, and loan features.
To estimate how much you can borrow safely, use Homejourney’s Mortgage Eligibility Calculator on the bank rates page: Mortgage Rates . This tool factors in TDSR/MSR rules and gives you a realistic borrowing power range before you speak to any bank.
2.2 Types of Home Loan Rates in Singapore
Most competitive bank loans in Singapore fall into these categories:
- Fixed rate packages. Interest rate is fixed for a lock‑in period (e.g., 1–3 years), then typically converts to a floating rate. Good for borrowers who prioritise stability.
- SORA‑pegged floating packages. Rate is expressed as 1M / 3M / 6M SORA + a bank spread. SORA (Singapore Overnight Rate Average) is the volume‑weighted average rate of overnight unsecured SGD interbank borrowing.[4]
- Board rate or internal reference rate packages. Rates set internally by the bank, sometimes linked to fixed deposit rates or proprietary board rates. These offer flexibility but rely on bank transparency and policy.
2.3 Understanding SORA Before You Negotiate
SORA has become the main interest rate benchmark for SGD loans, replacing older benchmarks like SIBOR.[4] It is published by MAS and tends to track broader interest rate trends, including the US Federal Funds Rate.
When banks quote you a “3M SORA + 0.60%” package, your payable rate is the prevailing 3‑month SORA at each reset date plus the bank’s fixed spread. The spread is where banks compete most actively.
The chart below shows recent interest rate trends in Singapore:
By tracking SORA trends, you can judge whether a bank’s current spread is attractive and whether it might make sense to pick a shorter lock‑in so you can refinance later if rates move.
On Homejourney’s bank rates page, you can track live 3M and 6M SORA and see how different banks price their spreads in real time: Bank Rates .
2.4 Typical Lock‑In Periods and Penalties
Lock‑in periods for Singapore mortgages commonly range from 1–3 years. During lock‑in, if you fully redeem or refinance your loan, banks usually charge an early redemption penalty of about 1.5% of the outstanding loan amount.
For example, if you plan to upgrade from your 4‑room BTO in Punggol to a 5‑room resale in Bishan within three years, a shorter 1‑year lock‑in might give you more flexibility – and this is something you can negotiate when banks are competing for your loan.
Chapter 3: The 7‑Step Strategy to Make Banks Compete
Step 1 – Know Your Numbers Before You Talk to Any Bank
First, you need to know two key figures: your realistic maximum loan amount (based on TDSR/MSR) and your preferred monthly repayment range.
Use Homejourney’s Mortgage Calculator & Eligibility Tool here: . Enter your income, existing debts (car loans, student loans, credit card instalments), and property price.
Within a few seconds, you’ll see:
- Estimated maximum loan amount under current MAS rules
- Indicative monthly instalments at different rates and tenures
- Whether you are more constrained by LTV, TDSR, or MSR
This gives you a clear basis to compare offers and push back when a bank proposes a structure that strains your cash flow.
Step 2 – Shortlist Banks and Loan Types Strategically
In 2026, the most active mortgage lenders for residential properties in Singapore include:
- Local banks: DBS, OCBC, UOB
- Foreign banks with strong mortgage presence: HSBC, Standard Chartered, Maybank, CIMB, RHB Bank, Public Bank, Hong Leong Bank, Citibank
Instead of contacting every bank one by one, use Homejourney’s bank rates comparison to get an instant overview of the latest fixed and SORA‑pegged packages across all major lenders: Bank Rates .
Shortlist 4–6 packages that match your profile, for example:
- 2–3 fixed rate packages with 2–3 year lock‑ins
- 2–3 SORA‑pegged packages with attractive spreads and manageable lock‑ins
Step 3 – Prepare a Strong Borrower Profile
The stronger and cleaner your profile, the more seriously banks will compete for your loan.
Common documents banks require include:
- NRIC (front and back)
- Latest 3 months’ payslips and 12 months’ CPF contribution history (for salaried workers)
- Latest Notice of Assessment (NOA) from IRAS
- Proof of variable income (commission statements, bank statements) for self‑employed or commission-based earners
- Option to Purchase (OTP) or Sale & Purchase agreement
With Homejourney, you can use Singpass/MyInfo integration to auto‑fill many of these details securely during your application: Bank Rates . This reduces errors, speeds up approval, and reassures banks that your data is authentic and up‑to‑date.
Step 4 – Apply to Multiple Banks Simultaneously (Safely)
Instead of sending one application today, another next week, and so on, you want all serious banks to be evaluating your profile at roughly the same time. This creates a true competitive environment.
On Homejourney, you can submit one secure application via the bank rates page and have it routed to multiple partner banks concurrently: Bank Rates . Our system and mortgage brokers coordinate the process so:
- Your documents are only uploaded once into a secure environment
- Banks receive consistent information, reducing back‑and‑forth questions
- Timeline is aligned with your OTP or refinancing deadline
This avoids the classic mistake of applying piecemeal to different banks, which can create confusion, duplicated credit checks, and missed opportunities to compare offers side by side.
Step 5 – Collect and Standardise All Offers
When you start receiving Indicative Approvals or Letters of Offer, you need a consistent way to compare them. A common mistake we see: borrowers focus only on the headline Year 1 rate and ignore spreads, reversion rates, and fees.
Use this simple comparison framework:
On Homejourney, these elements are laid out clearly for each bank so you can see differences at a glance, including estimated total cost over your chosen lock‑in period: Bank Rates .
Step 6 – Use Competing Offers to Negotiate
Once you’ve received at least 2–3 solid offers, it’s time to negotiate your mortgage rate. The key is to be transparent but structured.
A simple but effective script you can use:
- “Bank X has offered me 3M SORA + 0.55% with a 2‑year lock‑in and $2,000 subsidy on a $900,000 loan. I prefer to bank with you because my salary is credited here and I hold your credit card. Is there any way you can match or improve on this?”
Banks often have internal flexibility to:
- Shave 0.05–0.15% off the spread for strong profiles
- Improve subsidies (legal fees, valuation rebates)
- Adjust lock‑in terms (for example, allow partial prepayment without penalty)
Homejourney’s mortgage brokers can coach you on how far to push each bank based on current market conditions and your risk profile: Bank Rates .
Step 7 – Lock In the Best Overall Package (Not Just the Lowest Rate)
After negotiating, don’t just choose the lowest Year 1 rate. Compare the total cost over your expected holding period (usually the lock‑in duration) and the flexibility the package gives you.
Use this quick checklist to decide:
- Is the rate competitive versus other banks over the 2–3 year lock‑in?
- Are lock‑in terms acceptable versus your likely upgrade or sale timeline?
- Are there meaningful subsidies that offset legal and valuation costs?
- Is there free repricing after lock‑in, so you can switch within the same bank?
When you’re ready, sign the Letter of Offer and keep a clear copy. Homejourney can help you track key milestones and remind you when your lock‑in is ending so you can start the process again to get banks to compete for your refinancing.
Chapter 4: Comparing Home Loan Packages Across Banks
4.1 What You Should Always Compare
When you have multiple bank offers on the table, focus on these critical elements:
4.2 Insider Tips from On-the-Ground Experience
Based on real cases Homejourney has handled across estates from Jurong West to Bedok:
- For older buyers (above 45), banks may shorten the allowed tenure, which can increase monthly instalments. Negotiating for slightly better rates or longer tenure becomes critical to keep cash flow manageable.
- For self‑employed borrowers (e.g., F&B owners in Geylang or freelancers in creative hubs like Tiong Bahru), expect banks to scrutinise income stability more closely. Clear, well‑organised NOAs and bank statements significantly improve your chances and negotiating power.
- If you are buying near upcoming MRT lines (e.g., Cross Island Line stations in Ang Mo Kio and Hougang), banks may be more comfortable with the property’s long‑term value, which can support marginally better terms for strong profiles.
4.3 Using Homejourney’s Bank Rates Comparison Safely
On Homejourney’s bank rates page, you can:
- Compare rates from all major banks instantly – DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, and Citibank
- Filter by property type (HDB, private condo, landed), loan purpose (purchase vs refinancing), and rate type (fixed vs SORA vs board)
- View total estimated cost over 2–3 years, not just Year 1
Because Homejourney is independent and focused on user safety, we present bank information transparently and regularly update packages, using verified data from banks and official sources.[4]
Chapter 5: How to Negotiate Your Mortgage Rate Like a Pro
5.1 When to Start Negotiating
The best time to negotiate is after you have at least 2–3 concrete offers but before your OTP or lock‑in expiry deadline becomes too tight.
Practical timelines from real Singapore cases:
- For a resale HDB in Bukit Batok, borrowers typically have 21 days from OTP grant to exercise. Aim to secure AIP and conduct most negotiations within the first 7–10 days.
- For a new launch condo in Queenstown, banks can issue AIPs even before the launch day; start comparing and negotiating a few weeks earlier so you can commit confidently on booking day.
5.2 What You Can and Cannot Negotiate
Things you can usually negotiate:
- Spread on SORA packages (e.g., from +0.60% down to +0.55%)
- Cash rebates and subsidies for legal and valuation fees, especially for larger loans (e.g., above $800,000)
- Lock‑in flexibility (e.g., allowing penalty‑free sale during lock‑in, which some banks offer)
Things you cannot negotiate:
- MAS rules like LTV limits, TDSR, and MSR – these apply uniformly across banks
- Property valuation by the bank’s panel, although you can request reconsideration if you have strong evidence
5.3 Sample Negotiation Scripts You Can Use
Here are practical scripts drawn from real borrower conversations in Singapore (adapt them to your situation):
- “Bank A has offered 2‑year fixed at 1.55% with $2,000 subsidy for my $1,000,000 loan on a condo in Hougang. I’ve been crediting my salary with your bank for 5 years. Can you improve your current 1.60% offer or match the subsidy?”
- “I like your 3M SORA package because of the shorter lock‑in, but Bank B is giving SORA + 0.50% versus your +0.55%. If you can move closer to +0.50%, I’m prepared to sign with you this week.”
Homejourney’s brokers can help you refine these scripts based on live market intel and your specific bank mix: Bank Rates .
5.4 How Far Is “Reasonable” to Push?
In current conditions, shaving 0.05–0.15 percentage points off a spread or headline rate is realistic for strong borrowers, especially for larger loans and for customers with existing relationships with the bank. Extremely aggressive demands often backfire and may slow your approval.
A balanced approach is safest: let banks know you are comparing seriously, show competing offers clearly, but remain polite and realistic. Homejourney’s role is to give you an accurate sense of what is achievable so you don’t under‑negotiate or over‑stretch.
Chapter 6: Using Homejourney to Orchestrate Multi-Bank Competition
6.1 Why Use a Multi‑Bank Platform Instead of DIY
Coordinating multiple bank applications yourself can be time‑consuming and risky. You may end up:
- Submitting inconsistent information to banks
- Forgetting key deadlines like OTP expiry or lock‑in end dates
- Overlooking a better package because the paperwork feels overwhelming
Homejourney solves this by:
- Providing a single, secure application that goes to multiple banks
- Centralising communications so you don’t have to juggle multiple bankers’ emails and calls
- Offering real‑time rate updates from all major Singapore banks on the bank rates page: Bank Rates
6.2 Homejourney Features That Make Banks Compete
Homejourney is designed around the idea that you should not have to chase banks; they should compete for you.
Key features include:
- Bank rates comparison. See rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, and Citibank in one place: Bank Rates .
- Mortgage eligibility calculator. Understand your borrowing power within MAS rules instantly: .
- Multi‑bank application. Submit one application and receive offers from multiple banks.
- Singpass/MyInfo integration. Auto‑fill income and identity details securely for faster approval.
- Homejourney Mortgage Brokers. Get human guidance on which bank to pick and how to negotiate.
6.3 Safety and Data Protection on Homejourney
Because Homejourney prioritises user safety and trust, we:
- Use secure encryption and verified bank integrations to handle your data
- Work only with established MAS‑regulated banks
- Provide transparent information about packages, fees, and risks
- Continuously incorporate user feedback to improve the mortgage journey
This means you can let banks compete for your business without sacrificing privacy or control over your information.
Chapter 7: Special Situations – HDB vs Private, New Launch vs Resale, Refinancing
7.1 HDB vs Bank Loans: When to Switch and How to Make Banks Compete
For HDB buyers, you have a choice between an HDB concessionary loan (currently 0.1% above the prevailing CPF Ordinary Account interest rate) and bank loans. HDB loans offer higher LTV and more flexibility on early repayment, but bank loans can be cheaper in low‑rate environments.[4]
If you are considering refinancing from HDB to a bank loan after your MOP in estates like Punggol or Sengkang, the best approach is:
- Use Homejourney’s calculator to check if the interest savings justify legal and valuation costs: .
- Compare bank refinancing packages side by side, focusing on SORA spreads and fixed‑rate promos.
- Let banks compete by making clear you are switching from a stable HDB loan – banks often value such borrowers and may offer better introductory rates.
For a deeper dive into refinancing considerations, see these related Homejourney articles:
