Types of Home Loans Singapore: Complete Comparison via Homejourney
In Singapore, the main types of home loans are HDB loans and bank loans, with bank options split into fixed rate and floating rate (mostly SORA-pegged) mortgages. This complete comparison covers benefits, rates, and why applying through Homejourney ensures a safe, transparent process with multi-bank offers from DBS, OCBC, UOB, and more.
Homejourney prioritizes your safety by verifying all data and letting you compare home loan comparison tools in one trusted platform. For deeper insights, check our pillar guide on Types of Home Loans in Singapore: Complete Comparison | Homejourney .
HDB Loan vs Bank Loans: Key Differences
HDB loans offer stability at a fixed 2.6% p.a. interest rate, with up to 80% loan-to-value (LTV) ratio and lower downpayment requirements—ideal for first-time HDB buyers seeking predictability.[1] Bank loans, however, provide lower initial rates (around 1.3-1.5% fixed for 2-3 years), higher flexibility, and cash rebates up to S$2,800 for refinancing, suiting those comfortable with repricing.[1][2]
Bank loans from partners like DBS (1.50% fixed for loans >$700k), OCBC, and UOB dominate 80% of the market, offering features like free conversion after lock-in and 100% penalty waivers on sale.[2][4] HDB loans are more lenient but cap at 2.6%, while banks tie to SORA post-lock-in for potential savings if rates fall.[1]
| Feature | HDB Loan[1] | Bank Loan[1][2] |
|---|---|---|
| Interest Rate | 2.6% fixed | 1.3-1.5% fixed (2-3yrs), then SORA + margin |
| LTV Ratio | Up to 80% | Up to 75% |
| Downpayment | 10-25% (CPF/cash) | 5-25% cash/CPF |
| Lock-in | None | 2-3 years |
Choose HDB for risk-averse buyers; banks for savers who reprice every 2-3 years. Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator helps assess your fit instantly.
Fixed Rate vs Floating Rate Mortgages
Fixed rate loans lock your rate (e.g., 1.35% for 2 years on $500k+ loans) for budgeting certainty, reverting to SORA after.[2][5] Floating rate (SORA-pegged) adjusts monthly/quarterly—currently 1M SORA +0.25% (~1.36%)—offering lower averages historically but with volatility risk.[2]
SORA replaced SIBOR in 2021 per MAS rules, using actual transaction data for transparency.[1] Fixed suits rising-rate environments; floating benefits falling rates. Compare packages on Homejourney's bank-rates page.
Understanding SORA Loans in Singapore
SORA (Singapore Overnight Rate Average) is the MAS-backed benchmark for floating loans, with 1M/3M/6M compounds. As of 2026, rates hover 2.5-2.75% post-peak, down from 4% in 2022.[3]
The chart below shows recent interest rate trends in Singapore:
Rates have stabilized, making floating attractive now. Track live SORA on Homejourney for timing your lock-in.
Step-by-Step: How to Apply for Home Loans via Homejourney
Applying via Homejourney skips bank queues—submit once via Singpass to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, and more. Receive side-by-side offers securely.
- Check Eligibility: Use our calculator at https://www.homejourney.sg/bank-rates#calculator with TDSR (60% debt cap) and MSR (30% for HDB) to estimate borrowing power.
- Compare Rates: View fixed/floating from 11+ banks on https://www.homejourney.sg/bank-rates.
- Apply via Singpass: Auto-fills income, CPF—takes seconds. One form reaches all partners.
- Track & Choose: Monitor status, pick best offer (e.g., DBS 1.50% fixed + S$2,800 rebate).
- Legal Completion: Homejourney guides to lawyer handover.
Timeline: Pre-approval in 1-3 days; full in 2-4 weeks. Pro tip: Apply 4-6 weeks pre-submission date for HDB/condo buys.
Documentation Checklist & Pro Tips
- NRIC (Singpass verifies)
- Latest payslips (3 months), tax assessment (IRAS)
- CPF statements (CPF portal)
- Employment pass (for foreigners)
- Property option fee receipt
Insider Tips: Boost approval with 20%+ downpayment; avoid new credit apps pre-application. For HDB upgraders, use CPF grants up to S$120k EHG.[3] Homejourney verifies all for trust.
Refinancing? Compare current vs new rates—e.g., switch SIBOR legacy to SORA via Homejourney for rebates.
Why Choose Homejourney for Your Mortgage?
Homejourney builds trust with verified rates, multi-bank apps, and user feedback-driven tools. Unlike solo bank visits, get competing offers fast—saving thousands. Search matching properties at https://www.homejourney.sg/search post-approval. For fixed vs floating deep-dive, see Types of Home Loans Singapore: Fixed vs Floating & Approval Tips .
Disclaimer: Rates as of Jan 2026; subject to bank approval, MAS TDSR/MSR. Consult Homejourney brokers for personalized advice—not financial advice.
FAQ: Types of Home Loans in Singapore
What are the main types of home loans Singapore offers?
HDB (2.6% fixed), bank fixed (1.3-1.5% 2yrs), floating SORA (~1.36%). Bank loans better for rates; HDB for stability.[1][2]
Fixed rate vs floating: Which is better?
Fixed for certainty in rising rates; floating for potential savings. Use Homejourney comparator.
How much rebate for refinancing via Homejourney?
Up to S$2,800 from DBS/OCBC for $1.5m+ loans. Apply multi-bank for best.[4]
Can I apply to multiple banks safely?
Yes, Homejourney's one-click sends to 11+ partners securely via Singpass.
What's the lowest rate in 2026?
1.35% fixed for $500k+; floating 1M SORA+0.25%. Check live at https://www.homejourney.sg/bank-rates.[2]
Ready for the best types of home loans Singapore? Start your safe journey at https://www.homejourney.sg/bank-rates. Link back to pillar: Types of Home Loans in Singapore: Bank Rate Comparison Guide 2026 .
