Understanding Mortgage Amortization Schedule: Bank Rate Comparison Guide
A mortgage amortization schedule is a detailed table showing your monthly payments broken down into principal and interest over the loan term, helping Singapore buyers track principal reduction and interest payment timeline. This Bank Rate Comparison Guide equips you to compare rates from DBS, OCBC, UOB and others, optimizing your loan payoff schedule for HDB or private properties.
At Homejourney, we prioritize your safety and trust by verifying real-time bank data, so you make confident decisions. This cluster article dives deeper into amortization specifics, linking back to our pillar Understanding Mortgage Amortization Schedule: Complete 2026 Guide for Singapore Buyers for full coverage.
What is a Mortgage Amortization Schedule?
The amortization schedule, or mortgage repayment schedule, outlines each payment's split: early payments mostly cover interest, while later ones accelerate principal reduction. For a S$500,000 HDB loan at 3% over 25 years, your first monthly payment might be S$2,370, with S$1,250 interest and S$1,120 principal[1][5].
This timeline reveals the interest payment timeline, where total interest could exceed S$200,000. Singapore's Total Debt Servicing Ratio (TDSR) and Loan-to-Value (LTV) limits make understanding this essential—use Homejourney's mortgage calculator to generate your personalized loan payoff schedule.
How Amortization Works in Singapore Mortgages
Payments follow the formula: M = P [r(1+r)^n] / [(1+r)^n - 1], where M is monthly payment, P principal, r monthly rate, n periods[3]. In year 1 of a 30-year loan, ~70% goes to interest; by year 20, it's mostly principal[1].
HDB flats cap tenures at 30 years, private properties at 35[5]. With SORA at ~1.19% (Jan 2026), effective rates start at 1.64% p.a. for Citi's package[2]. Track your progress to refinance when principal drops significantly.
Current Singapore Bank Rates (Feb 2026)
Compare top banks' SORA-pegged rates (3M Compounded SORA ~1.19% + spread). DBS offers 1.64% Year 1 (0.45% spread), OCBC similar at 1.65%, UOB 1.62%. Fixed rates: HSBC 2.2% for 2 years, Standard Chartered 2.15%[2][5].
Maybank and CIMB suit investors with flexible lock-ins; RHB and Public Bank for competitive refinancing. Homejourney aggregates these at bank-rates—see real-time updates from all partners like DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank.
The chart below shows recent interest rate trends in Singapore:
SORA has stabilized post-2025 peaks, aiding predictable amortization[2].
Bank-by-Bank Comparison for Amortization Impact
DBS Bank: Market leader with SORA +0.45% (EIR 1.64% Y1). Short 2-year lock-in; pros: top app for tracking schedules; cons: higher penalties. Best for HDB buyers[5].
OCBC Bank: SORA +0.50% (1.69%). Strong refinancing; offset accounts reduce effective interest early. Ideal for upgraders.
UOB: Lowest Y1 at SORA +0.43% (1.62%). Flexible tenures; excellent for investors eyeing quick principal paydown.
HSBC/Standard Chartered: Fixed 2.2%/2.15%; stable for amortization planning. Suits risk-averse first-timers.
Maybank/CIMB/RHB/Public/Hong Leong/Citibank: Competitive spreads 0.45-0.60%; Citi's offset saves ~S$50k interest on S$1M loan[2]. Compare all on Homejourney to minimize total interest.
Amortization Example: S$800,000 Loan
At DBS 1.64% (25 years): Monthly S$3,815; Year 1 interest S$12,800, principal S$33,000. UOB 1.62%: Saves S$500/year initially. Use Homejourney bank-rates to simulate[1][5].
Actionable Steps to Optimize Your Schedule
- Generate Schedule: Input loan details on Homejourney's calculator at bank-rates#calculator. Set first payment post-closing (e.g., Jan 2026 close, Mar payment)[1].
- Compare Rates: View DBS vs OCBC spreads; pick lowest for faster principal reduction.
- Apply Multi-Bank: Submit once via Singpass on Homejourney—get offers from all banks, fastest approvals.
- Track SORA: Monitor live rates; refinance at 20% principal paid (Year 7-10 typically).
- Extra Payments: Boost principal early—S$500/month extra shaves 5 years off 25-year loan[1].
Link LTV limits via LTV Ratio Singapore: Limits, Down Payments & Bank Rates Guide | Homejourney ">LTV Ratio Singapore Guide. Search budgeted properties at property search.
Homejourney: Your Trusted Mortgage Partner
Homejourney verifies bank data for transparency, using Singpass for secure apps. Calculate eligibility, compare amortization across banks, and let lenders compete—saving you time and money. Our brokers guide post-application.
Read related: Mortgage Amortization Schedule: Boost Singapore Loan Approval Odds | Homejourney ">Boost Loan Approval with Amortization.
FAQ: Mortgage Amortization Schedule
Q: How do I read my amortization schedule?
A: Columns show date, payment, interest, principal, balance. Early: high interest; later: principal focus[1].
Q: Does extra payment speed up amortization?
A: Yes—applies to principal, reducing future interest. Check bank penalties first[5].
Q: Best bank for low-interest amortization in 2026?
A: UOB/HSBC for starters; compare on Homejourney[2].
Q: HDB vs Private amortization differences?
A: HDB max 30 years, lower LTV; use CPF OA. Private up to 35 years[6].
Q: When to refinance based on schedule?
A: After 20-30% principal paid, if rates drop 0.5%+[5].
Disclaimer: Rates as of Feb 2026; consult professionals. Homejourney provides tools, not advice. Start at bank-rates for your Understanding Mortgage Amortization Schedule: Bank Rate Comparison Guide.
