How to Get Pre-Approved for a Mortgage: Bank Rate Comparison Guide | Homejourney
Mortgage pre-approval, also known as In-Principle Approval (IPA) or loan pre-approval, is a conditional letter from a bank stating how much they will lend you based on your finances. This guide provides a step-by-step process tailored for Singapore buyers, with bank rate comparisons across DBS, OCBC, UOB, and more. At Homejourney, we prioritize your safety by verifying rates in real-time and simplifying applications via Singpass for faster, secure approvals[1][2][3].
This cluster article focuses on actionable steps for how to get pre-approved for a mortgage: bank rate comparison guide, linking back to our pillar guide on Singapore home loans. Use Homejourney's tools to compare rates instantly and apply to multiple banks with one form at https://www.homejourney.sg/bank-rates.
Why Get Mortgage Pre-Approval in Singapore?
Pre-approval gives you a clear borrowing limit under TDSR (Total Debt Servicing Ratio) and MSR (Mortgage Servicing Ratio) rules from MAS. It strengthens your offer when buying HDB flats or private condos, as agents often require it before issuing the Option to Purchase[1][2]. For example, a family earning S$10,000 monthly might qualify for S$800,000 on a S$1.2 million condo, but rates affect monthly payments—3.5% SORA vs 4% fixed changes repayments by S$200+.
Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator uses your income, debts, and live SORA rates to estimate this instantly. This transparency builds trust, aligning with our commitment to user safety and verified data.
Step-by-Step: How to Get Pre-Approved for a Mortgage
Follow these 5 actionable steps for AIP mortgage or IPA in Singapore[1][3].
- Check Eligibility Online: Use Homejourney's free calculator. Input salary, CPF, debts—get estimates from all banks in seconds without commitment.
- Gather Documents: NRIC, last 3 months' payslips, 12 months' CPF statements, latest IRAS NOA, credit card/loan statements[1].
- Compare Bank Rates: See packages from DBS, OCBC, etc., on Homejourney. Focus on SORA PEAK (3M/6M compounded), fixed, or board rates.
- Apply via Singpass: Submit to multiple banks through Homejourney—one form, auto-filled docs, banks compete for you.
- Receive IPA: Valid 30-60 days, typically 2-3 days processing[2][3]. Use it to search properties on https://www.homejourney.sg/search.
Pro tip: Apply before paying 1% Option Fee (S$10,000 on S$1M property) to avoid losses if valuation drops[1].
Singapore Bank Rate Comparison: Top Lenders 2026
Compare current rates (as of Feb 2026; always verify live on Homejourney). Most use SORA PEAK + spread (e.g., 0.5-1%). Fixed rates suit risk-averse buyers; floating tracks market[1].
| Bank | SORA PEAK 3M (Effective) | Fixed 2-3 Yr | Lock-in | Best For |
|---|---|---|---|---|
| DBS | 3.2% (SORA+0.6%) | 3.5% | 2 yrs | HDB buyers |
| OCBC | 3.15% (SORA+0.55%) | 3.4% | 3 yrs | Refinancers |
| UOB | 3.25% (SORA+0.65%) | 3.6% | 2 yrs | Investors |
| HSBC | 3.1% (SORA+0.5%) | 3.3% | 3 yrs | Expats |
| Standard Chartered | 3.3% (SORA+0.7%) | 3.7% | 2 yrs | High earners |
| Maybank | 3.4% | 3.8% | 3 yrs | Competitive promos |
Rates from Homejourney's real-time tracker; compare all 11 partners (CIMB, RHB, etc.) at https://www.homejourney.sg/bank-rates. DBS leads for HDB (market leader), OCBC for low spreads[5][7].
Understanding SORA and Rate Trends
SORA (Singapore Overnight Rate Average) replaced SOR/SIBOR; 3M SORA PEAK is common for floating loans. Current 3M SORA ~2.8%, plus bank spread[1].
The chart below shows recent interest rate trends in Singapore:
As seen, rates stabilized post-2025 hikes. Time fixed-rate locks if expecting rises. Track live on Homejourney.
Pros, Cons, and Bank Tips
- DBS: Fast UOB-like instant approval, strong HDB integration. Con: Higher penalties. Best for first-timers[5].
- OCBC: Lowest spreads, easy refinance. Use for upgrades from Punggol HDB to condos.
- UOB: Instant loans via app[7]. Great for investors eyeing Projects .
- HSBC/StanChart: Expat-friendly, but stricter docs.
Maybank/CIMB offer promos; compare on Homejourney to let banks bid. Insider tip: Apply mid-month when quotas reset for better rates.
Homejourney Makes It Safe and Simple
Our platform verifies rates, uses Singpass for secure apps, and connects you to brokers. Submit once, get offers from DBS to Public Bank. Post-approval, maintain your home with Aircon Services . See projects-directory for budget fits.
Disclaimer: Rates change; this isn't financial advice. Consult professionals. For more, read How to Get Pre-Approved for a Mortgage: Boost Approval Odds | Homejourney ">How to Get Pre-Approved for a Mortgage: Boost Approval Odds | Homejourney .
FAQ: Mortgage Pre-Approval in Singapore
Q: How long for IPA?
A: 2-3 days typically; instant estimates on Homejourney[2][3].
Q: Documents needed?
A: Payslips, NOA, CPF, debts. Singpass auto-fills on Homejourney[1].
Q: HDB vs Private?
A: MSR 30% for HDB; TDSR 55% all. Use our calculator.
Q: Foreigners eligible?
A: Yes, up to 60% LTV with IPA[2].
Q: Refinance pre-approval?
A: Same process; compare rates to save S$10k+ yearly.
Ready? Get pre-approved now at https://www.homejourney.sg/bank-rates and explore properties safely with Homejourney. Link back to our pillar: Singapore Home Loans Complete Guide.
