OCBC Home Loan Review: Complete Rates and Fees Explained
OCBC Bank offers competitive home loan packages for both HDB and private property purchases, with fixed and floating rate options starting from 1M SORA+0.65% for floating rates and fixed rates ranging from 1.65% for 2-year terms on HDB properties.[1] As one of Singapore's largest banks with a dominant position in home financing, OCBC provides comprehensive loan solutions designed to meet diverse borrower needs, though their rates are currently positioned in the mid-to-upper range of Singapore's competitive mortgage market.
This guide provides a detailed breakdown of OCBC's home loan products, current rates, fees, and how to evaluate whether OCBC is the right choice for your property financing needs. At Homejourney, we prioritize your financial safety and trust by providing transparent, verified information to help you make confident borrowing decisions.
OCBC Bank Overview and Market Position
OCBC Bank is one of Southeast Asia's leading financial institutions and Singapore's second-largest bank by assets. The bank serves over 2.5 million customers across the region and has a strong presence in home financing, particularly after integrating POSB's customer base into its operations.[2] This integration significantly expanded OCBC's liquidity and ability to offer competitive rates to home loan customers.
OCBC's home loan business has experienced substantial growth, with the bank reporting a seven-fold increase in customers switching from HDB loans to OCBC bank financing in the first 11 months of 2025.[2] This surge reflects the bank's competitive positioning and the value proposition of bank loans compared to the fixed 2.6% HDB loan rate.
The bank offers a full suite of home financing products including new property purchases, refinancing, repricing, and renovation loans. OCBC's digital banking platform provides online application capabilities and real-time loan tracking, making the borrowing process more convenient for modern homebuyers.
OCBC Home Loan Products and Rate Types
OCBC provides three primary home loan structures: fixed-rate loans, floating-rate loans pegged to SORA, and board rate options. Understanding these products is essential for selecting the right financing solution for your property purchase or refinancing needs.
Fixed-Rate Home Loans
OCBC's fixed-rate packages lock in your interest rate for a predetermined period, typically 2 to 5 years. For HDB properties, OCBC currently offers 2-year fixed rates at 1.65%.[1] Fixed-rate loans provide budgeting certainty as your monthly instalments remain unchanged throughout the lock-in period, making them ideal for borrowers who prefer payment predictability.
According to OCBC's data, four in five customers opted for fixed-rate packages in 2025, demonstrating strong preference for rate stability among Singapore homeowners.[2] Fixed rates are particularly attractive when interest rates are expected to rise, as they protect you from future rate increases.
Floating-Rate Loans (SORA-Based)
OCBC offers floating-rate loans pegged to the 1-month and 3-month SORA (Singapore Overnight Rate Average) with a bank spread of +0.65%.[1] This means your effective rate equals SORA plus 0.65%. As of January 2026, 1M SORA stands at approximately 1.43%, making OCBC's 1M SORA+0.65% effective rate around 2.08%.
Floating-rate loans typically offer lower initial rates compared to fixed packages, but your monthly instalment will fluctuate as SORA changes. SORA has declined significantly from 3% in early January 2025 to approximately 1.2% by December 2025, demonstrating the volatility and potential savings available in floating-rate environments.[2]
Repricing and Refinancing Options
OCBC offers repricing services that allow existing customers to switch from one rate package to another without refinancing with a different bank. This flexibility enables you to adjust your loan structure as market conditions change or your financial situation evolves. Repricing typically involves faster processing than full refinancing and may include cash rebates or reduced processing fees.
Current OCBC Home Loan Rates (January 2026)
The following table presents OCBC's current competitive rates as of January 2026. Please note that actual rates may vary based on loan amount, property type, loan tenure, and individual creditworthiness.
OCBC Home Loan Rates - HDB Properties:
- 2-Year Fixed Rate: 1.65%
- 3-Year Fixed Rate: 1.70%
- 1M SORA + 0.65%: ~2.08% (effective, based on current SORA)
- 3M SORA + 0.65%: ~2.28% (effective, based on current SORA)
OCBC Home Loan Rates - Private Properties:
- 2-Year Fixed Rate: Starting from 1.65% (varies by loan amount)
- 3M SORA + 0.65%: ~2.28% (effective)
OCBC's rates are competitive within the market, though not the absolute lowest available. As of January 2026, promotional rates from some banks start as low as 1.45% for 2-year fixed HDB loans, while OCBC's 1.65% sits in the mid-range of market offerings.[1]
The chart below shows recent SORA trends to help you understand how rates have moved and what this means for floating-rate loans:
As you can see from the chart, SORA has been in a consistent downtrend, which has benefited floating-rate borrowers. However, floating rates carry the risk of future increases if SORA rises.
OCBC Home Loan Fees and Charges
Beyond interest rates, OCBC charges various fees associated with home loans. Understanding these costs is crucial for calculating your true borrowing expense and comparing OCBC against other lenders.
Processing and Application Fees
OCBC typically charges a loan processing fee, though this may be waived during promotional periods. Processing fees generally range from $500 to $1,000 depending on the loan amount and product type. During competitive periods, OCBC frequently waives these fees to attract new customers.
Valuation Fees
Property valuation is mandatory for all home loans. OCBC charges valuation fees that typically range from $300 to $600 depending on property value. Some promotional packages include waived valuation fees.
Legal and Conveyancing Fees
OCBC does not directly charge legal fees, but you are required to engage a lawyer for conveyancing. Typical legal costs range from $800 to $1,500 for HDB purchases and $1,500 to $3,000 for private property transactions. These are separate from OCBC's charges.
Early Repayment and Conversion Penalties
OCBC's fixed-rate packages typically include free conversion options after a specified period (commonly 12, 24, or 36 months). Early repayment penalties vary by product—some packages allow penalty-free repayment, while others may charge 0.25% to 1% of the outstanding loan amount if you repay before the lock-in period expires.
Refinancing Incentives
For customers refinancing from other banks to OCBC, the bank offers cash rebates ranging from $2,000 to $2,800 depending on loan amount, helping offset refinancing costs.[3]
OCBC Home Loan Eligibility Requirements
OCBC has specific eligibility criteria that determine your borrowing capacity and approval likelihood. Understanding these requirements helps you assess your readiness to apply.
Income and Employment Requirements
You must have a stable monthly income to qualify. OCBC typically requires proof of employment and income for the past 2 years. Self-employed individuals need to provide audited financial statements for the past 2-3 years. The bank uses your gross monthly income to calculate maximum borrowing capacity, typically allowing loans up to 5 times your annual income.
Debt Service Ratio (DSR)
OCBC applies a Debt Service Ratio limit, typically capping total monthly debt repayments (including the new home loan) at 60% of gross monthly income. This ensures you maintain sufficient income for living expenses and other obligations.
Credit Profile
A good credit history is essential. OCBC reviews your credit report through the Credit Bureau Singapore (CBS) to assess your repayment track record. Late payments, defaults, or high credit utilization negatively impact approval chances.
