Understanding your monthly mortgage payment breakdown in Singapore starts with knowing how much of your payment goes to principal vs interest, how your home loan EMI (equated monthly instalment) is calculated, and how different bank rate types (SORA, fixed, board rate) affect your long-term cost. This guide walks you through the breakdown step-by-step and shows you how to compare bank rates safely using Homejourney’s tools so you can borrow confidently and avoid costly surprises.
This article is a tactical follow-up to our main pillar guide, Understanding Your Monthly Mortgage Payment Breakdown in Singapore | Homejourney Guide Understanding Your Monthly Mortgage Payment Breakdown in Singapore | Homejourney... . For a full A–Z overview of Singapore home loans, repayment structures and regulations, start with that pillar and use this cluster as your actionable rate-comparison and calculation playbook.
What exactly is in your monthly mortgage payment?
In Singapore, your monthly home loan instalment typically consists of only two main components:
- Principal – the portion that pays down your outstanding loan amount
- Interest – the cost you pay the bank for lending you the money
If you are buying a condo in Punggol or an HDB in Yishun, the structure is the same: at the start of the loan, most of your EMI goes to interest; over time, as your outstanding loan shrinks, more goes to principal. This pattern is called an amortization schedule.
For HDB loans, the interest rate is currently 2.6% per annum (pegged at 0.1% above the prevailing CPF Ordinary Account rate), as stated by HDB’s official loan information.[4] Bank loans, however, can be significantly lower or higher depending on market rates and product type, which is why doing a transparent comparison on Homejourney’s bank rates page Bank Rates is critical before you commit.
How your home loan EMI is calculated (simple Singapore example)
Your monthly mortgage payment in Singapore is usually calculated using a standard EMI formula based on:
- Loan amount (e.g. S$600,000)
- Interest rate (e.g. 1.60% p.a.)
- Loan tenure (e.g. 25 years)
As a rule of thumb, for every S$100,000 borrowed over 25 years at around 1.6%–1.8% p.a., your EMI is roughly S$380–S$400 per month. So a S$600,000 loan might translate to about S$2,280–S$2,400 in monthly payments. This is an approximation — Homejourney’s mortgage calculator Mortgage Rates and affordability tools on the bank rates page Bank Rates will compute it precisely to the cent.
Insider tip from the ground: Many buyers walking around showflats in Tampines or Sengkang only focus on the total price. You should always ask your agent or banker, “What does this mean in actual monthly cash + CPF outflow?” Then cross-check with Homejourney’s calculator to ensure the numbers match your salary and CPF contributions before placing an Option Fee.
Principal vs interest: how your amortization schedule really works
An amortization schedule is a table that shows, for every month of your loan:
- How much goes to interest
- How much goes to principal
- Your remaining outstanding balance after each payment
In the first few years of a 25- or 30-year loan, it is normal that more than half of your EMI is interest. By year 10–15, the balance starts to tilt in your favour as more of each payment reduces your outstanding principal.
For example, on a S$600,000 loan at 1.60% p.a. over 25 years, your first monthly instalment might see roughly S$800+ going to interest and S$1,400+ to principal. By year 15, interest could drop to under S$500 while principal takes up the bulk of the instalment. Homejourney’s amortization schedule view (within the calculator tools on Bank Rates ) helps you visualise this month-by-month breakdown clearly.
Key bank rate types in Singapore: SORA vs fixed vs board rate
To understand and compare your mortgage payment breakdown properly, you must first understand how your bank sets the interest rate. In Singapore, the main types for home loans are:
1. SORA-pegged floating rates
Most new floating packages today are pegged to the Singapore Overnight Rate Average (SORA), a benchmark rate published by MAS. Banks then add a spread, such as “3M SORA + 0.40%”.[3] MAS publishes daily SORA and compounded SORA on its official site; banks then adjust their loan rates in line with these benchmarks.
Recent market data shows 1-month SORA around 1.11% and 3-month SORA around 1.24% in late 2025.[2] Banks might offer packages like “1M SORA + 0.25%” or “3M SORA + 0.40%”, translating to effective rates of roughly 1.36%–1.65% p.a. in current conditions.[1][2]
How this affects your EMI: your monthly instalment can change every 1 or 3 months depending on the review period. If SORA rises, your interest portion grows and principal shrinks, unless you adjust your payments. Homejourney offers real-time SORA tracking within Bank Rates so you can see how market changes may affect your future payments before you commit.
2. Fixed-rate packages
Fixed rates in Singapore are typically fixed for 2–5 years, not for the entire 25–30-year tenure.[2] Banks such as DBS, OCBC, UOB, Maybank and HSBC commonly offer 2- or 3-year fixed packages.
As of late 2025, market comparisons show competitive fixed rates in the range of about 1.45%–1.80% for years 1–3, depending on loan size and bank.[1][2] For example, some 2-year fixed packages start around 1.48%–1.65% p.a. for Year 1 and 2.[1] Exact rates vary by bank, property type and loan quantum, so always check the latest via Homejourney’s live comparison tool on Bank Rates .
How this affects your EMI: your EMI is stable during the fixed period, which is helpful for budgeting — especially for young couples in Bidadari or Tengah planning childcare costs and car loans alongside housing. After the fixed period, most packages revert to a higher floating rate unless you refinance.
3. Board rate / internal rate packages
Some banks use an internal board rate or proprietary reference rate that they can revise at their discretion. These are generally less transparent than SORA-based packages because the benchmark is not published by MAS.
How this affects your EMI: your monthly payment depends on a rate fully controlled by the bank. While such packages sometimes come with short-term promotional rates, Homejourney typically recommends that less-experienced buyers favour transparent benchmarks like SORA or clearly defined fixed rates for better predictability and safety.
Comparing current bank rates: what really changes your monthly payment?
Singapore’s mortgage market is highly competitive. As of Q4 2025, independent rate trackers show some of the lowest:
- Fixed rates for private properties and HDBs from around 1.35%–1.50% p.a. for large loans (S$500k and above)[2]
- Floating SORA-based rates from about 1M SORA + 0.25%–0.40%, translating to indicative all-in rates near 1.36%–1.55% p.a. depending on SORA levels[1][2]
Even a small rate difference of 0.20% can change your EMI significantly on a large loan. For example, on a S$800,000 loan over 25 years:
- At 1.50% p.a., EMI might be around S$3,200+
- At 1.70% p.a., EMI could be closer to S$3,300+
That S$100+ per month difference adds up to more than S$30,000 over the full tenure. This is why Homejourney’s
- Bank rates comparison
References