UOB vs DBS Mortgage: Which Bank Should You Choose?
When securing a home loan in Singapore, choosing between DBS and UOB comes down to your specific financial situation, loan type, and long-term banking needs. Both are among Singapore's Big 3 local banks that command approximately 80% of the mortgage market[1], but they serve different borrower profiles with distinct advantages.
DBS typically offers better rates for borrowers with salary crediting accounts and those seeking longer fixed-rate periods, while UOB excels for those prioritizing flexibility and competitive floating rates on resale properties[2]. This guide helps you evaluate both banks objectively so you can make an informed decision—or compare them against all major lenders instantly on Homejourney's bank rates comparison platform.
Understanding the Singapore Mortgage Market Context
Singapore's mortgage landscape has shifted significantly in 2025. Interest rates have stabilized after reaching near all-time highs, and most banks now offer rates pegged to the 3-Month Singapore Overnight Rate Average (3M SORA) rather than traditional Board Rates[2]. This means your actual interest rate fluctuates with market conditions, though many banks still offer fixed-rate options for those seeking payment certainty.
The Big 3 banks—DBS, OCBC, and UOB—control the majority of Singapore's mortgage originations, giving them advantages in funding costs and product innovation[1]. Understanding how each bank leverages these advantages helps you identify which aligns with your borrowing strategy.
DBS Home Loan: Strengths and Best Use Cases
Why DBS Dominates the Market
DBS's primary advantage is its unrivalled deposit base. Because the majority of Singaporeans salary-credit to DBS accounts, the bank has access to Singapore's largest pool of Singapore dollar deposits[1]. This gives DBS a structural cost advantage in funding mortgages, which translates to competitive rates—particularly for longer fixed-rate periods.
DBS pioneered the Fixed Deposit Home Rate (FHR), pegging mortgage rates to its fixed deposit rates rather than SORA[1]. This innovation offers borrowers an alternative pricing mechanism that can be advantageous when fixed deposit rates are attractive.
Current DBS Rates (December 2025)
For completed residential properties, DBS offers:
- 2-Year Fixed: 1.65% - 1.75%[2][5]
- 3-Year Fixed: 1.70% - 1.78%[2][5]
- Floating (3M SORA): SORA + 0.50%[2][5]
For HDB refinancing, DBS offers cash rebates up to $2,800 for loans above $1.5 million, which can offset upfront refinancing fees entirely[2][5].
Who Should Choose DBS?
DBS is optimal for:
- Salary creditors: If you already salary-credit to DBS, you unlock convenience and potentially higher deposit rates through the DBS Multiplier Account, allowing you to earn better returns on spare funds[1]
- Fixed-rate seekers: Those wanting 3-year fixed rates without premium pricing—DBS's deposit advantage makes longer fixed periods affordable[1]
- Large loan amounts: Borrowers financing above $1.5 million benefit from maximum cash rebates ($2,800) that fully cover refinancing costs[2]
- BUC property buyers: DBS offers competitive floating rates and flexibility for Build-to-Order condo financing[2]
- Refinancers: The combination of competitive rates and substantial cash rebates makes DBS particularly attractive for refinancing existing mortgages[2]
UOB Home Loan: Strengths and Best Use Cases
UOB's Competitive Positioning
UOB differentiates itself through aggressive rate competition and product flexibility. While UOB doesn't have DBS's deposit advantage, the bank competes fiercely on floating rates, particularly for resale HDB flats and private property refinancing[2]. UOB also emphasizes customer service and digital banking innovation.
As one of Singapore's Big 3, UOB maintains a substantial mortgage portfolio and offers competitive terms across all property types, from HDB resale to new launch condominiums.
Current UOB Rates (December 2025)
While specific UOB rates vary by product and promotion, current market data shows:
- Floating rates: Competitive 3M SORA spreads, often 0.28% - 0.40% above SORA for qualified borrowers[9]
- Fixed rates: 2-year and 3-year fixed options available, competitively priced against DBS and OCBC
- Promotional rates: Frequent promotional offerings for new customers and refinancers
For the most current UOB rates and to compare against all major banks instantly, use Homejourney's real-time bank rates comparison tool, which updates daily with the latest offerings from UOB, DBS, OCBC, HSBC, Standard Chartered, and more.
Who Should Choose UOB?
UOB is optimal for:
- Floating rate borrowers: Those comfortable with variable rates and wanting competitive SORA spreads, especially for short-term financing
- Resale HDB buyers: UOB offers competitive floating rates for HDB resale properties with 5-year Minimum Occupancy Periods[2]
- Refinancers seeking flexibility: UOB's promotional refinancing rates can be attractive for existing borrowers switching banks
- Non-salary creditors: If you don't salary-credit to DBS, UOB removes the convenience disadvantage while offering competitive terms
- Borrowers valuing customer service: Those prioritizing responsive support and digital banking features
Direct Comparison: DBS vs UOB
| Factor | DBS | UOB |
|---|---|---|
| Fixed Rates (2-3 Year) | 1.65%-1.78% (Best for longer terms) | Competitive, varies by promotion |
| Floating Rates (SORA) | SORA + 0.50% | SORA + 0.28%-0.40% (More competitive) |
| Refinancing Rebates | Up to $2,800 (Best-in-class) | Varies, typically $1,400-$1,800 |
