Pay Off Mortgage Faster: 2026 Bank Rates Comparison | Homejourney
Paying off your mortgage faster in Singapore starts with comparing current bank rates and making strategic extra payments or refinancing to lower rates like the 1.30%-1.60% fixed packages available in 2026. Homejourney's bank rates tool lets you compare DBS, OCBC, UOB, HSBC and more instantly, helping you accelerate mortgage payment while prioritizing safety and transparency.
This cluster article dives into bank rate comparisons as a key strategy to pay off mortgage faster, linking back to our pillar guide How to Pay Off Your Mortgage Faster: Homejourney Singapore Guide. With SORA rates easing and fixed loans at 3-year lows, now's the time to act.
Why Bank Rate Comparison Accelerates Mortgage Payoff
Lower rates mean less interest paid over time, freeing up cash for extra principal payments that reduce loan tenure. For a S$500,000 loan, switching to a 1.6% fixed rate from 3% saves ~S$500 monthly, as seen in recent DBS repricing cases. This extra cash can fund lump-sum prepayments, cutting years off your loan.
Homejourney verifies real-time rates from partner banks, ensuring you get accurate data in a trusted environment. Use our bank rates page to compare and apply via Singpass for faster approvals.
Current 2026 Singapore Home Loan Rates Overview
In January 2026, fixed-rate loans start at 1.30% (e.g., select packages from DBS/OCBC), while floating SORA+ options hover at 1.42% (1M SORA +0.25%). Fixed loans dominate, with 80% of OCBC customers choosing them for repayment stability. Market averages: 2-3 year fixed at 1.5-1.8%, 5-year at 1.9-2.2%.
Rates have hit 3-year lows due to US Fed easing, per CNA reports. The chart below shows recent interest rate trends in Singapore:
As shown, SORA has trended down, making 2026 ideal for refinancing to accelerate mortgage payment.
Top Banks Compared: Rates, Features & Prepayment Options
Here's a side-by-side of Homejourney partner banks for early mortgage payoff. Focus on prepayment flexibility (key for extra payments) and low rates.
| Bank | Best Fixed Rate (2026) | Lock-in | Prepayment Allowance | Best For |
|---|---|---|---|---|
| DBS | 1.60% (2-yr) | 2 yrs | 20% p.a. penalty-free | New buyers seeking stability |
| OCBC | 1.50% (5-yr) | 2-5 yrs | 25% p.a. within lock-in | Refinancers saving S$4,100/yr |
| UOB | 1.55% (3-yr) | 2-3 yrs | 30% p.a. flexible | High prepayers |
| HSBC | 1.45% (2-yr) | 2 yrs | Offset account option | Cash-rich borrowers |
| Standard Chartered | 1.50% (3-yr) | 3 yrs | 20% p.a. | Investors |
Data from bank sites & market scans (Jan 2026). Others like Maybank (1.65%), CIMB (1.70%) offer competitive SORA floats. Compare all on Homejourney bank-rates.
DBS vs OCBC: Deep Dive
DBS suits HDB upgraders with strong fixed packages and CPF integration. OCBC excels in longer fixed terms, ideal for extra payment mortgage strategies—savings up to S$4,100 annually on S$500k loans. Both allow 20-25% annual prepayments penalty-free post-lock-in.
5 Actionable Steps to Pay Off Faster Using Rate Comparison
- Compare Rates Now: Visit Homejourney bank-rates for live DBS/OCBC/UOB comparisons. Use our calculator at mortgage calculator to see savings.
- Time Refinancing: Act 3 months before lock-in ends to avoid penalties. E.g., reprice to 1.6% fixed like Ms. Chan's DBS switch, saving S$500/mth.
- Make Extra Payments: Round up monthly (e.g., S$1,950 to S$2,000) or use bonuses for lumpsums—saves >S$30k interest, pays off 2+ years early.
- Leverage Offset Accounts: HSBC-style offsets reduce effective interest on cash parked (e.g., S$100k offsets S$500k loan to S$400k interest base).
- Apply Multi-Bank: Submit once on Homejourney—banks compete with best offers via Singpass. Link to properties in budget via property search.
These steps, backed by MAS prudent borrowing rules, can reduce loan tenure by years. See related: Pay Off Mortgage Faster: 4 Proven Strategies.
Singapore-Specific Tips for HDB & Private Properties
HDB loans cap at 30% income (TDSR), but banks offer flexibility for ECs/condos up to 75% LTV. Use CPF for extras (non-withdrawable post-payoff), but compare vs cash arbitrage (e.g., 2.5% CPF vs 1.5% loan). Insider tip: Post-Budget 2026, check URA for cooling measures impacting rates. Homejourney verifies all data for your confident decisions.
Refinance wisely—factor legal fees (~S$2-3k). For maintenance post-payoff, explore aircon services.
FAQ: Paying Off Mortgage Faster in Singapore
Q: How much extra should I pay monthly to pay off faster?
A: For S$500k@2.5%/25yrs, S$200 extra/mth saves S$30k interest, finishes 26 months early.
Q: Can I prepay during lock-in?
A: Yes, 20-30% p.a. penalty-free at most banks like UOB/OCBC; check terms.
Q: Fixed or floating for faster payoff?
A: Fixed (1.5%) for certainty; floating SORA for potential drops. 80% choose fixed per OCBC.
Q: How to compare banks safely?
A: Use Homejourney's verified bank-rates—one app, multiple offers, Singpass speed.
Q: CPF vs cash for extras?
A: CPF first for HDB (2.5% offset), but refund post-payoff for liquidity. Details in CPF vs Cash Guide.
Disclaimer: Rates fluctuate; not financial advice. Consult professionals. Homejourney prioritizes your safety with verified info.
Start comparing today on Homejourney to pay off mortgage faster. Connect with our mortgage brokers for personalized guidance and link back to the full pillar for more strategies.
