Types of Home Loans Singapore: Complete Comparison & FAQs | Homejourney
Types of home loans in Singapore include HDB loans at a fixed 2.6% rate and bank loans featuring fixed-rate, floating SORA-pegged, or hybrid options with rates starting from 1.35% for fixed packages.
Homejourney prioritizes your safety by verifying rates from trusted banks like DBS, OCBC, and UOB, helping you compare types of home loans Singapore transparently. This cluster dives into a complete comparison of mortgage types, fixed vs floating rates, and SORA loans, linking back to our pillar guide on Singapore home financing for deeper insights.
H2: HDB Loan vs Bank Loans: Key Differences
HDB loans offer stability with a fixed 2.6% interest rate (pegged 0.1% above CPF Ordinary Account rate) and up to 80% loan-to-value (LTV) ratio for HDB flats.[1] Bank loans provide more flexibility for both HDB and private properties, with LTV up to 75% and competitive rates like Maybank's 2-year fixed at 1.65%.[2]
Choose HDB loans for lower risk if buying resale HDB flats or BTO units; they're lenient on repayments but processing takes longer. Bank loans suit private property buyers seeking promo rates, as seen with Standard Chartered's 3M SORA +0.50% for floating options.[2]
Quick Comparison Table:
At Homejourney, view live rates from DBS, OCBC, UOB, HSBC, and more on our bank rates page to find the best fit safely.
H2: Fixed Rate vs Floating Rate Mortgages in Singapore
Fixed rate vs floating is a core debate in home loan comparison. Fixed-rate loans lock your rate (e.g., DBS 2-year fixed at 1.75%) for 2-5 years, ideal amid rising rates for predictable payments.[3][2]
Floating rates, pegged to SORA (Singapore Overnight Rate Average), fluctuate with market conditions—currently 3M SORA +0.40% at Maybank.[2] They often start lower but risk increases if SORA rises.
Hybrid mortgages split your loan: part fixed, part floating, offered by banks like OCBC for balanced risk.
H2: Understanding SORA Loans and Current Trends
SORA replaced SIBOR in 2021 per MAS guidelines, using daily overnight rates averaged monthly.[1] Most floating SORA loans add a bank spread (e.g., +0.50% for DBS 3M SORA).[5]
The chart below shows recent interest rate trends in Singapore:
As shown, SORA has stabilized around 3% in 2026, making floating rates attractive short-term but fixed safer long-term.[2] Track live 3M/6M SORA on Homejourney's bank rates page.
H2: Board Rate Loans: Pros and Cons
Board rate loans peg to a bank's internal rate (e.g., DBS Board Rate), less volatile than SORA but typically higher spreads (+1.00% post-lock-in).[5] Pros: Predictable adjustments; cons: Less competitive than SORA promos.
For BUC condos, DBS excels with flexible floating packages and 100% penalty waivers on sale.[2] Compare via Board Rate Home Loans Pros & Cons: Bank Comparison Guide | Homejourney for details.
H2: Singapore Regulations Impacting Home Loan Choices
Total Debt Servicing Ratio (TDSR) caps repayments at 55% of income; Mortgage Servicing Ratio (MSR) at 30% for HDB.[3] Use CPF for downpayments (up to 80% LTV), but watch Ordinary Account rates.
Example: For a S$500,000 HDB flat, HDB loan covers S$400,000 at 2.6%; bank loan S$375,000. Calculate affordability instantly on Homejourney's mortgage calculator.
ABSD applies for second properties (20%+), limiting LTV to 45%.[3] Insider tip: First-timers, maximize CPF grants like EHG up to S$120,000 for resale HDB.
H2: Actionable Steps for Home Loan Comparison on Homejourney
- Visit Homejourney bank rates to compare DBS, OCBC, UOB, HSBC rates side-by-side.
- Use Singpass/MyInfo for instant eligibility checks—auto-fills income/CPF data.
- Submit one application to multiple banks; receive offers from Maybank, Standard Chartered, etc.
- Refinance easily: Check lock-in penalties (e.g., 1.5% for 2-year fixed) before switching.[2]
- Search budget-matched properties on Homejourney property search.
Our multi-bank system ensures transparency, verified data, and user safety—perfect for HDB upgraders or condo investors.
H2: Frequently Asked Questions (FAQs)
Q1: What are the main types of home loans in Singapore?
A: HDB fixed at 2.6%, bank fixed (1.35%-1.75% promo), floating SORA (+0.40%-0.65%), board rate, and hybrids. Compare on Homejourney for latest.[1][2]
Q2: Fixed rate vs floating—which is better in 2026?
A: Fixed for certainty if rates rise; floating for potential savings if SORA falls. Maybank's 2Y fixed at 1.65% leads promos.[2] Use our calculator to simulate.
Q3: Can I switch from HDB to bank loan?
A: Yes, after Minimum Occupation Period. Expect legal fees; Homejourney simplifies with multi-bank apps and rate comparisons.
Q4: What's the best home loan for resale HDB?
A: HDB for stability or banks like DBS for lower initial rates. Factor MSR/TDSR; verify on bank-rates.
Q5: How does Homejourney make loan applications safe?
A: Singpass integration verifies data instantly, multi-bank submissions compare offers transparently, prioritizing your trust and security.
Disclaimer: Rates as of Jan 2026; consult Homejourney Mortgage Brokers for personalized advice. Not financial advice.
Master types of home loans Singapore with this complete comparison, then explore our pillar on Types of Home Loans in Singapore: Complete Comparison | Homejourney for full strategies. Start comparing safely today on Homejourney bank rates.
