Choosing between the different types of home loans in Singapore is one of the biggest financial decisions you will make, whether you are buying a BTO in Punggol, a resale flat in Bishan, or a condo in Queenstown.
This guide gives a complete comparison of key mortgage types (HDB vs bank, fixed rate vs floating, SORA loans) and explains the specific benefits of applying via Homejourney so you can make confident, safe decisions.
This article is a focused cluster within our broader pillar guide: Types of Home Loans in Singapore: Complete Comparison Guide by Homejourney Types of Home Loans in Singapore: Complete Comparison Guide by Homejourney . For a full deep dive into every scenario and regulation, refer back to that main guide after reading this comparison.
Key Types of Home Loans in Singapore (Fast Overview)
In Singapore, most buyers and owners will be choosing between these main home loan types:
- HDB Concessionary Loan – for eligible HDB buyers, with a 2.6% p.a. interest rate pegged at 0.1% above the CPF Ordinary Account (OA) rate and up to 80% Loan-to-Value (LTV).[4]
- Bank Home Loans (HDB or Private) – from banks like DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank, typically up to 75% LTV, with different pricing structures (fixed, floating, SORA-pegged, board-rate).
- Fixed Rate Bank Loans – interest rate fixed for a lock-in period (commonly 2–3 years), then converts to a floating package.[4]
- Floating / SORA-pegged Loans – rate moves with a benchmark such as 1M or 3M SORA plus a bank spread, so instalments can go up or down.[4][1]
- Building-Under-Construction (BUC) Loans – progressive-payment loans for uncompleted condos and ECs, usually on floating or SORA terms.[3]
- Refinancing Loans – switching your existing loan to another bank or package for better rates or terms.
Homejourney’s role is to make comparing all of these loan types safe and simple via its bank rates comparison and multi-bank application tools Bank Rates .
HDB Loan vs Bank Loan: Which Is Safer for You?
If you are buying an HDB flat (BTO or resale), your first big decision is usually: HDB loan vs bank loan.
HDB Concessionary Loan (For HDB Flats)
Key features of the HDB concessionary loan:[4]
- Interest rate: 2.6% p.a., pegged at 0.1% above the CPF OA interest rate (currently 2.5% p.a.).
- Maximum LTV: up to 80% of the purchase price or value (whichever lower), subject to eligibility and MAS limits.
- Downpayment: at least 20%, fully payable with CPF OA, cash, or a mix.
- Flexibility: generally more lenient on late payments and restructuring compared to banks (though penalties may still apply).
For example, a young couple buying a 4-room resale flat in Sengkang at $650,000 might prefer an HDB loan for stability and the ability to use mostly CPF for the 20% downpayment.
Bank Home Loans (For HDB & Private Property)
Key features of bank housing loans:[4]
- Interest rate: usually lower than HDB at the start (e.g., fixed or SORA-pegged packages), but subject to market movements.
- Maximum LTV: up to 75% of valuation or price (whichever is lower), subject to Total Debt Servicing Ratio (TDSR) and loan limits set by MAS.
- Downpayment: at least 25%, with a minimum of 5% in cash and the rest in cash or CPF OA.[4]
- Lock-in period: usually 2–3 years, during which cancellation or refinancing may incur penalties.[2][3]
In my experience working with buyers who purchased private condos near MRT nodes like Tanjong Pagar or Kovan, many chose bank loans because the initial promotional rates were significantly below 2.6% p.a., freeing up cashflow for renovations and furnishings.
For a more detailed breakdown of loan limits, income tests, and MAS rules, refer to our main pillar guide and our HDB vs Bank comparison article: Types of Home Loans in Singapore: Bank vs HDB & Approval Tips | Homejourney Types of Home Loans in Singapore: Bank vs HDB & Approval Tips | Homejourney .
Fixed Rate vs Floating Rate (SORA) Loans
The most important mortgage type choice for bank borrowers is typically fixed rate vs floating (SORA).
Fixed Rate Home Loans
Fixed rate packages from banks like DBS, OCBC, UOB, HSBC, Standard Chartered and Maybank offer:
- Fixed interest for a lock-in period (usually 2–3 years), then revert to a floating or board rate.[4][2]
- Predictable monthly instalments, useful for first-time buyers or families with tighter budgets.
- Protection if rates rise during your fixed period.
For example, a 2-year fixed package at 1.80% p.a. on a $600,000 loan for a condo in Tampines can give you stable repayments while you adjust to your new monthly commitments and renovation costs.
Floating / SORA-pegged Home Loans
Most floating loans today are pegged to SORA (Singapore Overnight Rate Average), the risk-free benchmark administered by MAS, replacing SIBOR and SOR.[1][4]
- Rate structure: e.g., 3M SORA + bank spread (like +0.50%).[3][4]
- Reset frequency: commonly 1-month or 3-month SORA, so your rate adjusts at those intervals.
- Repayments can go up or down with interest rate movements.
- Often slightly lower initial rates than fixed packages, especially in a declining rate environment.[8]
The Monetary Authority of Singapore (MAS) publishes SORA rates, and banks structure SORA home loans accordingly.[4] When US interest rates fall, SORA-based home loans in Singapore have also tended to ease, as seen in recent coverage of home loan rates hitting 3-year lows.[8]
The chart below shows recent interest rate trends in Singapore:
For a deeper tactical discussion on fixed vs floating, read our dedicated guide: Fixed Rate vs Floating Rate Mortgage: Which to Choose via Homejourney Fixed Rate vs Floating Rate Mortgage: Which to Choose via Homejourney .
SORA Home Loans Explained (With Example)
SORA home loans are now the standard benchmark for bank mortgages in Singapore. According to MAS guidelines, SIBOR-based loans are being fully phased out, and banks have shifted to SORA-based packages.[4]
How a typical SORA loan works:
- Bank quotes: 3M SORA + 0.50%.
- If 3M SORA is 1.60% p.a., your all-in rate is 2.10% p.a.
- Every three months, the SORA component resets based on the published rate.
On a $700,000 loan for a resale HDB in Clementi, the difference between 2.10% and 2.60% interest can mean hundreds of dollars a month in instalments, which affects your ability to save for retirement or your child’s education.
Homejourney helps you track live 3M and 6M SORA-based packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB and more via our bank rates comparison tool Bank Rates . This is safer than relying on outdated brochures because rates are updated regularly based on bank feeds and market movements.
