UOB vs DBS Mortgage: Which Bank is Right for You? | Homejourney

UOB vs DBS Mortgage: Which Bank Should You Choose?

Both UOB and DBS are among Singapore's Big 3 banks, collectively commanding over 80% of the mortgage market. However, choosing between them depends on your specific financial situation, employment profile, and loan requirements. DBS excels for salary creditors seeking convenience and competitive fixed rates, while UOB stands out with faster approvals, lower valuation fees, and flexible refinancing options. This guide helps you evaluate both banks objectively so you can make an informed decision aligned with your needs.

Understanding the Big 3 Banks and Market Dominance

Singapore's mortgage landscape is dominated by three local banks: DBS, OCBC, and UOB. Together, they control approximately 80% of the residential mortgage market, making them the primary options for most homebuyers and refinancers. This market concentration means understanding the unique strengths of each bank is critical to securing the best loan terms for your situation.

Both DBS and UOB offer comprehensive home loan packages for residential properties, commercial properties under personal names, and commercial properties under company names. Their scale, funding advantages, and established infrastructure give them competitive advantages over regional and international banks operating in Singapore.

Current Mortgage Rates: DBS vs UOB (February 2026)

As of February 2026, both banks offer competitive fixed rates starting from approximately 1.55% for 2-year fixed packages on private property purchases. UOB advertises rates as low as 1.11% for loan amounts exceeding S$500,000, while DBS offers similar competitive pricing through its dominant funding position. However, rates fluctuate based on market conditions, loan tenure, property type (HDB vs private), and whether you're purchasing or refinancing.

The chart below shows recent interest rate trends in Singapore to help you understand how rates have evolved:

To compare the latest rates from both banks instantly and see how they stack against other major lenders, use Homejourney's bank rates comparison tool. This allows you to view real-time rates, calculate your borrowing capacity, and even submit applications to multiple banks simultaneously.

DBS Home Loan: Key Strengths and Features

Market Position and Funding Advantage: DBS holds the largest pool of Singapore dollar funds after absorbing POSB, giving it a structural advantage in offering competitive fixed rates without relying on interbank funding. This translates to better rates, especially for fixed-rate packages.

Salary Crediting Convenience: The primary advantage of DBS is familiarity and convenience. The majority of Singaporeans and residents salary-credit to DBS accounts, making it a natural choice for mortgage management. Your salary deposits can be directly linked to your mortgage account, simplifying cash flow management.

Multiplier Account Benefits: DBS Multiplier Accounts offer significantly higher deposit rates on spare funds, creating a powerful synergy when your mortgage and savings are with the same bank. This becomes increasingly valuable as interest rates decline, allowing you to earn higher returns on emergency funds and investment reserves.

Cash Rebates: DBS offers structured cash rebates based on loan amounts:

• Loan amounts above S$1 million – S$2,500 cash rebate
• Loan amounts above S$1.5 million – S$2,800 cash rebate

Fixed Rate Competitiveness: DBS's dominant funding position enables it to offer competitive fixed rates that often match or beat other banks, particularly important for borrowers seeking rate certainty.

UOB Home Loan: Key Strengths and Features

Lightning-Fast Approvals: UOB's standout feature is rapid processing, particularly for applicants with strong employment income profiles. If you meet basic income and credit criteria with complete documentation, UOB's system delivers "instantly approved" in-principle approvals (IPA) for purchases and loan approvals generally. This speed advantage is invaluable for competitive property markets where quick decision-making matters.

Lowest Valuation Fees in Singapore: UOB charges a flat valuation fee of just S$150 plus GST for condominiums up to S$3 million valuation—significantly lower than the typical S$400-600 charged by other banks. For a S$1 million property, this saves you approximately S$250-450, money that can be redirected to your mortgage or investment.

Flexible Refinancing Options: For refinancing, UOB offers both legal subsidies (for loans under S$450,000) and cash rebates (for loans exceeding S$450,000). This flexibility means you're not locked into one compensation structure.

Penalty Waivers on Sale: UOB offers 50% waivers on early repayment penalties for selected packages when properties are sold, with potential for 100% waivers on other packages. This is crucial for investors or upgraders who may sell within the fixed-rate period.

Southeast Asian Presence: As one of the Big 3 banks with unrivalled Southeast Asian presence and over 500 offices globally, UOB offers advantages for borrowers with regional business interests or family ties across the region.

Feature-by-Feature Comparison Table

To help you evaluate both banks systematically, here's a detailed comparison of key features:

Who Should Choose DBS?

Ideal for DBS if you:

• Salary-credit to DBS: The convenience factor is substantial. Your salary automatically flows into your account, and you can optimize cash flow by linking it directly to your mortgage.
• Value deposit rate optimization: If you maintain significant savings or investment reserves, DBS Multiplier Account rates provide genuine financial advantage, especially in declining rate environments.
• Prioritize rate certainty: You want the most competitive fixed rates available and are willing to commit to a fixed-rate package for the full tenure.
• Seek simplicity: You prefer managing all banking relationships with one institution for consolidated statements and unified customer service.
• Have large loan amounts: The cash rebates (S$2,500-2,800) become meaningful at loan amounts exceeding S$1 million.
• Plan to hold for full tenure: You don't anticipate selling or refinancing within the fixed-rate period, so penalty waivers are less relevant.

Who Should Choose UOB?

Ideal for UOB if you:

• Need fast approval: You're in a competitive property market or have time-sensitive purchasing decisions. UOB's instant IPA capability is a genuine advantage.
• Buying a condominium: The S$150 + GST valuation fee saves you S$250-450 compared to other banks—a meaningful saving on top of your mortgage.
• Plan to refinance or sell: You may refinance within 3-5 years or upgrade to another property. UOB's flexible refinancing options and penalty waivers provide valuable flexibility.
• Have strong employment income: UOB's instant approval system works best for applicants with clear, strong income profiles and complete documentation.
• Have regional business interests: Your work or investments span Southeast Asia, and you value banking relationships across the region.
• Prefer flexibility over optimization: You want options (legal subsidy vs cash rebate, penalty waivers) rather than a single optimized path.

Rate Types: SORA, Fixed, and Board Rates Explained

Both DBS and UOB offer three primary rate structures: SORA-based floating rates, fixed rates, and board rates. Understanding these is critical to choosing the right package.

SORA (Singapore Overnight Rate Average): Most banks now offer SORA-based floating rates (typically 3-month SORA plus a spread of 3.95-4.30%). SORA replaced the old SOR benchmark in 2022 and is now the standard for floating-rate mortgages. Your rate adjusts quarterly based on SORA movements, meaning your monthly payment can fluctuate.

Fixed Rates: Both banks offer fixed rates for 2, 3, or 5-year periods, after which you revert to a floating rate or can refinance. Fixed rates provide payment certainty and are valuable when you expect rates to rise.

Board Rates: Some packages use board rates (the bank's internal rate), which are less common but may offer advantages in specific scenarios.

For current SORA levels and historical trends, check Homejourney's real-time SORA tracking to understand how rate movements affect your borrowing costs.

Application Process and Timeline

DBS Application Timeline: Typically 3-5 working days for full approval after submission of complete documentation. DBS requires standard documents: payslips, tax returns, employment letter, property valuation, and credit checks. The process is straightforward but follows conventional banking timelines.

UOB Application Timeline: For strong profiles with complete documentation, UOB can issue instant IPA. Full approval typically follows within 2-3 working days. UOB's system is optimized for speed, particularly benefiting applicants with clear income profiles.

Simplifying Your Application: Rather than applying separately to DBS and UOB, use Homejourney's multi-bank application system. Submit one application via Singpass (MyInfo integration), and it's automatically forwarded to both banks plus other major lenders. Banks then compete for your business, and you receive the best offers from all. This approach typically results in better rates and terms than applying to individual banks.

Refinancing Considerations

If you're refinancing an existing mortgage, both banks offer competitive incentives. DBS provides cash rebates, while UOB offers legal subsidies or cash rebates depending on loan amount. The key difference: UOB's lower valuation fees save you money upfront, while DBS's Multiplier Account benefits compound over time if you maintain savings with them.

When refinancing, consider the total cost of switching: legal fees, valuation fees, and any early repayment penalties from your current lender. UOB's S$150 valuation fee makes refinancing more economical, particularly for condominium properties.

Calculating Your Borrowing Power

Both DBS and UOB use the same regulatory framework: the Total Debt Servicing Ratio (TDSR) limits your borrowing to approximately 60% of your gross monthly income (accounting for all debts). However, approval criteria and processing may differ slightly between banks.

Rather than estimating manually, use Homejourney's mortgage eligibility calculator. Input your income, existing debts, and desired loan tenure to instantly see how much you can borrow from DBS, UOB, and other major banks. This eliminates guesswork and helps you focus on properties within your genuine budget.

Making Your Final Decision: A Practical Framework