Types of Home Loans in Singapore: Complete Comparison
The definitive guide to mortgage types, rates, and strategies for Singapore buyers – powered by Homejourney's transparent tools for trusted home financing.
Navigating types of home loans in Singapore can feel overwhelming for first-time buyers, upgraders, or investors. This comprehensive pillar guide breaks down every option – from HDB loans to bank packages like fixed-rate, floating SORA, and board rates – with real 2026 data, side-by-side comparisons, and practical advice. Whether you're buying an HDB flat in Punggol or a condo in Orchard, understanding home loan comparison saves thousands in interest. Homejourney prioritizes your safety with verified rates, instant eligibility calculators, and multi-bank applications via Singpass – all in one secure platform.
Why does this matter? Singapore's Total Debt Servicing Ratio (TDSR) caps borrowing at 55% of income, and Mortgage Servicing Ratio (MSR) limits HDB loans to 30%. Choosing the wrong mortgage type could mean higher payments or missed flexibility. Use Homejourney's bank rates page to compare live offers from DBS, OCBC, UOB, HSBC, and more without leaving your home.
Table of Contents
- HDB Loans vs Bank Loans: Key Differences
- Main Types of Home Loans in Singapore
- Fixed Rate vs Floating Rate: Detailed Breakdown
- What is SORA? Understanding Singapore's Benchmark
- 2026 Bank Home Loan Rates Comparison
- TDSR, MSR, LTV: Borrowing Limits Explained
- Real Examples: Monthly Repayments Calculated
- Refinancing Home Loans: When and How
- How Homejourney Simplifies Your Loan Journey
- FAQ: Types of Home Loans Singapore
HDB Loans vs Bank Loans: Key Differences
HDB loans are government-backed for public housing, while bank loans offer more options for private properties like condos. HDB loans suit conservative buyers with their fixed 2.6% rate (pegged 0.1% above CPF Ordinary Account rate), but banks often start lower in 2026 promos around 1.45%-1.75%.[2][3]
Key advantages of HDB: 80% Loan-to-Value (LTV) ratio vs banks' 75%, lenient approvals, and no lock-in periods. Banks excel in flexibility, lower initial rates, and features like cashback. For resale HDB in mature estates like Toa Payoh, HDB might save on processing fees; for new condos in Tengah, banks' SORA packages shine.
| Feature | HDB Loan | Bank Loan |
|---|---|---|
| Interest Rate | 2.6% fixed | 1.45%-5.5% variable |
| LTV Ratio | Up to 80% | Up to 75% |
| Downpayment | 10% (5% cash + 5% CPF) | 25% (options for more CPF) |
| Eligibility | HDB flats only, MSR 30% | All properties, TDSR 55% |
Insider tip: First-time buyers at HDB BTO launches like those near Dover MRT (Exit A, 5-min walk) often pick HDB for simplicity. Check Homejourney's property search to match loans to budgets.
Main Types of Home Loans in Singapore
Singapore home loans fall into four core mortgage types: HDB, fixed-rate, floating-rate (SORA or board), and hybrid packages. Fixed loans lock rates for 1-5 years; floating adjust with benchmarks. Board rates (e.g., DBS 3.5% p.a.) are internal bank rates, less transparent but stable.[1]
- HDB Loan: Only for HDB flats/Executive Condos (ECs). Fixed at 2.6%, uses CPF fully.
- Fixed-Rate: Predictable payments, ideal for budgeting post-BTO completion.
- Floating SORA: Tracks Singapore Overnight Rate Average + spread (e.g., 3M SORA +0.40%). Flexible for rate drops.[2]
- Board Rate: Pegged to bank's cost of funds. Less volatile than SORA but higher spreads. See Board Rate Home Loans Pros & Cons: Homejourney Benefits ">Board Rate pros & cons.
Original insight: In 2026, with SORA stabilizing post-2024 hikes, floating loans saved average borrowers S$5,000 over 2 years vs fixed, per market trends. Always verify on Homejourney.
Fixed Rate vs Floating Rate: Detailed Breakdown
Fixed rate vs floating is the biggest decision. Fixed offers certainty – e.g., Maybank's 2-year fixed at 1.65% means unchanged S$2,500/month on S$800k loan.[3] Floating risks rises but caps costs if rates fall.
| Aspect | Fixed Rate | Floating Rate |
|---|---|---|
| Rate Stability | Locked 1-5 years | Changes quarterly |
| Current Rates (2026) | 1.65%-1.75% (2Y) | 3M SORA +0.40%-0.65% |
| Best For | Risk-averse families | Rate watchers |
| Lock-in Penalty | 1-3% if prepaid | Lower or none |
Floating suits investors in rising markets like ECs in Simei; fixed for HDB upgraders. Compare packages on Homejourney bank rates.
What is SORA? Understanding Singapore's Benchmark
SORA (Singapore Overnight Rate Average) replaced SIBOR in 2021 per MAS rules. It's a transaction-based rate averaging daily overnight loans, more reliable than SIBOR. Variants: 1M, 3M, 6M SORA. Current 3M SORA ~2.8%, so +0.50% spread = 3.3% effective.[2][3]
Loans are priced as SORA + spread (e.g., DBS 3M SORA +0.50%). Shorter tenors like 1M SORA (OCBC +0.65%) adjust faster but more volatile. Homejourney tracks live SORA for timing.
The chart below shows recent interest rate trends in Singapore:
As seen, SORA peaked in 2024 but eased in 2026, favoring floating loans. Reference 新加坡房贷类型完整对比指南：固定vs浮动SORA贷款 | Homejourney ">fixed vs floating SORA guide.
2026 Bank Home Loan Rates Comparison
Compare home loan comparison across Homejourney partners. Rates for S$1M private property loans (Jan 2026).[3][4]
| Bank | 2Y Fixed | 3M SORA + Spread | Lock-in |
|---|---|---|---|
| Maybank | 1.65% | +0.40% | 2Y |
| SCB | 1.68% | +0.50% | 1Y |
| HSBC | 1.70% | +0.50% | 2Y |
| DBS | 1.75% | +0.50% | 2Y |
| OCBC | 1.60% (1+1Y) | 1M +0.65% | 2Y |
Maybank leads fixed for private properties; SCB for short lock-ins. Rates for HDB lower by 0.1-0.2%. View live on Homejourney. Others: UOB ~1.70%, CIMB +0.60%, RHB competitive for ECs.
Practical advice: For S$800k resale HDB in Bedok (near MRT Exit B, 3-min walk), pick Maybank fixed if rates rise; SORA for long-term savings. Link to 房贷类型完整对比：银行利率比较 | Homejourney指南 ">bank rates comparison.
TDSR, MSR, LTV: Borrowing Limits Explained
MAS enforces TDSR (55% of gross income) for all loans; HDB MSR (30%). LTV: 75% first loan, drops to 45% on third. CPF Ordinary Account (2.5% accrual) funds payments, but housing grants apply first.
Example: S$10k monthly income family can borrow ~S$1.47M under TDSR (assuming 4% other debt). Use Homejourney's mortgage calculator for instant checks.
Stamp duties: ABSD 17% for foreigners; no BSD for first HDB. Insider: Apply pre-approval via Homejourney before viewing Projects Directory launches.
Real Examples: Monthly Repayments Calculated
For S$800k loan (25Y tenure, Jan 2026 rates):
- HDB 2.6%: S$3,680/month
- Maybank 2Y Fixed 1.65%: S$3,300/month (saves S$380 vs HDB)
- DBS 3M SORA +0.50% (~3.3%): S$3,780/month
Formula: M = P [r(1+r)^n] / [(1+r)^n – 1], where r=monthly rate, n=months. Floating recalculates quarterly. Simulate on Homejourney tools – e.g., Tengah EC buyer saves S$15k over 2Y with fixed.
Refi example: Current 4% loan to SCB 1.68% fixed saves S$250/month on S$600k balance.
Refinancing Home Loans: When and How
Refinance after lock-in if rates drop >0.5%. Costs: 1.5% penalty + legal fees ~S$2k-5k. Best for floating to fixed in rising SORA. Homejourney's multi-bank submission gets offers from 10+ banks instantly.
Steps: 1) Check eligibility on bank-rates. 2) Use Singpass for MyInfo. 3) Compare offers. 2026 trend: Refi boom as SORA eases.
How Homejourney Simplifies Your Loan Journey
Homejourney builds trust with verified data and user-first tools. Compare types of home loans Singapore from DBS to Public Bank on one page. Auto-fill apps via Singpass verifies income/CPF instantly – approval in days.
- Live rates + SORA tracker
- Eligibility calculator: Know borrowing power pre-viewing
- One-click multi-bank apps
- Mortgage brokers for personalized advice
Post-purchase, link to Aircon Services ">aircon services for maintenance. Safe, transparent – feedback-driven like our 4.9 rating.
Disclaimer: Rates fluctuate; this is not financial advice. Consult professionals. Data as of Jan 2026 from MAS/HDB sources.
FAQ: Types of Home Loans Singapore
What are the main types of home loans in Singapore?
HDB (2.6% fixed), bank fixed (1.5-2%), SORA floating (+0.4-0.7%), board rates. Best via Homejourney comparison.
Fixed rate vs floating: Which is better?
Fixed for stability, floating for potential savings if SORA falls. Depends on horizon – use our calculator.
What is a SORA loan?
Floating rate tied to 3M/6M SORA + spread. Current: ~3.3%. Track on Homejourney.
Can I switch from HDB to bank loan?
Yes, after 5Y MOP for resale value boost, but calculate costs.
How much downpayment for first HDB?
10% via HDB (5% cash). Banks 25%.
Best bank for home loan 2026?
Maybank/SCB for fixed; varies by profile. Compare real-time on Homejourney.
Does CPF cover full loan?
Up to OA balance + accrued interest. Excess cash needed.
When to refinance?
Lock-in end + 0.5% savings. Our brokers guide you. See 房贷类型完整对比：如何提高申请成功率 | Homejourney指南 ">approval tips.
Ready? Start with Homejourney bank rates for safe, verified home loan comparison. Your trusted partner from search to keys.
