Best Mortgage Home Loan in Singapore (2022)

A Beginner’s Guide To The Best Home Loan In Singapore This 2022

Purchasing a house is one of the major milestones in your life. After all, it signals stability and security.

However, buying a home in Singapore is notoriously intimidating and confusing, especially if you need to take out a loan to finance this purchase. For beginners, it seems like there are a million things to learn about home mortgages.

If you’re planning to apply for a home mortgage loan in Singapore, good news awaits you. There’s a wide range of mortgage lenders available in the market today so you’ll surely find one that caters to your needs.

Ready to find out the best home mortgage loans in Singapore?

Here At OMY, You Will Discover The Following:

Factors to Consider When Choosing the Best Housing Loan Singapore

Here are some things that will help you assess which housing loan is best for you.

Interest Rate

One of the biggest mistakes of first-time home mortgage loan borrowers is underestimating how expensive interest is.

You may think this only makes up a small percentage of your property price, but this will accumulate in time. This makes home loan interest rate a huge deciding factor in your choice.

Fixed Or Floating Interest

Fixed Deposit Rate SIBOR Board Rate
What is it? Depends on bank’s rates Based on SIBOR (interest rates banks pay when they borrow money from other banks) The bank will decide the board interest rate
Volatility Set by the bank Determined by multiple banks and is highly related to the interest rates set by the US Federal Reserve, which is considered the global benchmark for interest rates. Increases quarterly
Risk appetite Low risk High risk High risk

Housing loan interest rate Singapore is one of the things you should take time to think about. For fixed interest loans, the interest rate will be maintained on the entire period of your mortgage agreement. It’s recommended for people with a low-risk appetite since it can shield them from market fluctuations.

On the other hand, floating interest rates are subject to market conditions and are pegged to Singapore Overnight Rate Average (SORA,) Singapore Internal Offer Rate (SIBOR), and Board Rate or Fixed Deposit Home Rate (FHR).

Lock-In Period

Most bank loans have a lock-in period between 0 to 5 years. This refers to the time when you can be charged a penalty if you make pre-payments or cancel your loan. If you are purchasing a home that is still under construction (known as Building Under Construction or BUC), it is better to take out a loan without any lock-in period. This will enable you to refinance your loan anytime it is completed.

Tips On How To Apply For A Home Loan

Buying a house is one of the biggest financial decisions you’ll ever make. To be successful, you need to approach the process wisely and rationally. Here are some tips on how to go about it.

Always Check The Requirements

Before going out and applying for a home loan, it’s important to know the requirements of your bank.

For example, home loan applicants should be at least 21 years old at the time of their application. Many financial institutions in Singapore now accept applications from Foreigners who meet their requirements.

Prepare And Organise Your Documents Before Application

Don’t just rush into applying for a home loan. You should prepare your documents and organise them beforehand.

Your chosen lender will request additional documents if needed. However, preparing your documents will ensure that you won’t face delays that may lengthen your loan process.

Assess Your Financial Capability

Before you apply for a bank loan for house, you must know what your financial standing is.

An assessment will help you estimate how much you’re able to spend on home ownership. This will help you set realistic expectations for the type of home you can afford. If you have enough savings, a stable income, a good credit score, and favourable employment history, you can start inquiring with a few lenders to find out how much you can borrow.

Purchase A Home That You Can Afford

This is perhaps one of the most important factors that lenders consider. However, people tend to overestimate how much a home loan they can afford.

There’s no point in purchasing a home that you’ll be unable to pay for in the long run. When you’re looking for a home, you should plan to find one that you can comfortably afford. Under the right circumstances, this tip can potentially help you save money in the long run.

A home is a long-term investment. If you can’t afford the payment for your home, it’s better to invest your money elsewhere.

Make Sure You Have A Consistent Stream Of Income

Having a stable source of income is one of the most crucial factors that lenders look at.

If you have a job that’s subject to a lot of ups and downs, it will be difficult for you to secure a home loan since not all lenders will loan money to those who lack a consistent stream of income.

Best Home Mortgage Loans In Singapore You Can Apply For

Best Home Mortgage Loans In Singapore You Can Apply For

Whether you’re buying a private property or HDB, here are the best loans in Singapore for you. Take a look at this table below to examine the highlights of different loan providers side by side:

Bank Loan highlights
Maybank
  • Competitive interest rates on first year
  • Great for those planning to refinance their loans frequently
Standard Chartered
  • Offers a competitive total cost of borrowing
HSBC
  • High competitive interest rates for housing when it comes to interest rate and total interest cost
DBS
  • Competitive rates
  • Lock in periods of up to 5 years
OCBC
  • Competitive fixed rate loans
Citibank
  • Competitive introductory rates
UOB
  • Offers some of the best home loan interest rates in Singapore
  • Loans available for foreigners

1. Maybank

Maybank offers loans with competitive interests that start to increase after 1-3 years. This makes it a great option for people who are planning to refinance their loan after some time. Keep in mind that despite the competitive starting interest rates of Maybank’s fixed and floating loans, it can still get expensive because of its lock-in period.

Take a look at this table to examine Maybank’s HDB Home Loans.

Loan Interest (first year) Lock-in period
MayBank 3M SORA 1.48% 1 year
MayBank 1M SORA 1.61% 1 year

This financial institution’s introductory rates for BTO loans also have the same set-up, which means that while it has a competitive housing loan interest rate in the first year, it becomes less competitive in the succeeding years of tenure.

Here’s MayBank’s offer for BTO loans.

Loan Interest (first year) Lock-in period
MayBank 3M SORA 1.48% none
MayBank 1M SORA 1.61% none

For its fixed and floating rates for private home loans, Maybank’s home loan interest rate Singapore is also low. That being said, prepare to handle an interest increase after the first few years of your loan.

Because of this, it’s only recommended for people who are planning to refinance constantly instead of those who plan on keeping their original loan terms throughout the duration of their loan.

Take a look at Maybank’s private home loan rates below

Loan Interest (first year) Lock-in period
MayBank 3M SORA 1.48% 1 year
MayBank 1M SORA 1.61% 1 year

The same things can be said for Maybank loans for private homes under construction. Once again, Maybank offers competitive introductory home loan rates Singapore which become more expensive in the later years. Here’s Maybank’s first-year interest rates for individuals planning to take out the best housing loan for private buildings under construction.

Loan Interest (first year) Lock-in period
MayBank 3M SORA 1.48% none
MayBank 1M SORA 1.61% none

Here are Maybank’s fees among home lenders that you should consider when applying for a loan.

Loan type Partial repayment fee Cancellation fee Full redemption penalty
Tracker 1.5% 0.75% 1.5%
BUC n/a 0.75% 0.75%

Eligibility:

  • Singaporean citizen or Singapore Permanent Resident.
  • Applicant(s) must be at least 21 years old.
  • For foreigners, please download and complete this form 

Requirements:

  • Photocopy of NRIC / Passport
  • Latest CPF Statement of Account
  • Latest computerised payslip
  • Latest Income Tax Notice of Assessment (for 2 years for self-employed/commission-based individuals)
  • Option to Purchase/Sale and Purchase AgreementApply here 

2. Standard Chartered

This home mortgage Singapore loan is popular with home lenders for a reason. Thanks to their competitive home loan rates with low total costs of borrowing, it should be on your list of loans to consider.

While its first-year interest rates are not appealing, it’s still an incredible option for people who plan on refinancing their loans frequently.

Standard Chartered also offers Mortgage One, which is a deposit account in which two-thirds of your deposit earns the same interest that you mortgage gets, while the other third earns 0.25 annually. However, this account is only available to those who take out private home loans.

Take a look at Standard Chartered Interest Rates below.

Loan Interest (first year) Lock-in period
SCB 3M SORA 1.43% 1 year
SCB 3M SORA 1.68% 1 year

For private home loans, Standard Chartered offers competitive floating interest rates. As with other loans, make sure to monitor rates because it changes frequently. Check out this table below for more information.

Loan Interest (first year) Lock-in period
SCB 3M SORA 1.43% 1 year
SCB 3M SORA 1.68% 1 year

For private residences under construction, here are their floating rates.

Loan Interest (first year) Lock-in period
SCB 3M SORA 1.53% none
SCB 3M SORA 1.68% none

Here are the fees you should consider when applying for a Standard Chartered loan.

Loan type Partial repayment fee Cancellation fee Full redemption penalty
SCB 3M SORA n/a n/a 1.5%
SCB 3M SORA n/a n/a 1.0%
Completed 1.5% 1.5% 1.5%

Eligibility:

  • 21 to 65 years old
  • Valid Singapore mobile number
  • Monthly income of at least S$2,500

Apply here.

3. HSBC

HSBC offers high competitive interest rates for housing loans, especially when it comes to interest rate and total interest cost. This makes it one of the best mortgage rates in Singapore. HSBC also offers SmartMortgage, which is an interest-offset amount to aid borrowers pay their loans
faster.

The HDB loans for HSBC stand out. Check out this table to learn more about it.

Loan Interest (first year) Lock-in period
HSBC 3M Sora 1.51% 2 years
HSBC 3M Sora 1.68% 2 years

For loans for private residences, this bank also offers competitive rates. However, always do a home loan comparison Singapore to make more informed decisions.

Here’s a table that shows HSBC’s offer for private housing loans.

Loan Interest (first year) Lock-in period
HSBC Greenmark Fixed 2.55% 2 years
HSBC 3M SORA 1.68% 2 years
HSBC 1M SORA 1.51% 2 years
HSBC Greenmark SORA 1.53% 2 years
HSBC Greenmark SORA 1.41% 2 years

Here’s HSBC’s interest rates for private residences under construction.

Loan Interest (first year) Lock-in period
HSBC Greenmark SORA 1.41% none
HSBC Greenmark SORA 1.53% None
HSBC 1M SORA 1.51% None
HSBC 3M SORA 1.68% none

For the fees, HSBC charges partial repayment, full redemption, and cancellation. Check out this table below to know more about it.

Home type Partial repayment fee Cancellation fee Full redemption penalty
Completed homes 1.5% 1.5% 1.5%
BUC none 1.5% None

Requirements:

  • Photocopy of NRIC / Passport
  • Employment pass (foreigners)
  • Latest Notice of Assessment
  • Latest credit facilities statements
  • Option to Purchase / Sale and Purchase Agreement (new purchase)
  • Last 12 months loan account statement (refinance)
  • Computerised payslips (salaried applicants)
  • CPF Contribution History (Singaporeans/Permanent Residents)
  • Proof of other income or assets

Apply here.

4. DBS

It comes as no surprise that DBS offers competitive rates for borrowers thanks to its status as one of the most experienced lenders in the country. However, keep in mind that its interest rate changes frequently so always monitor this to remain updated.

For those applying for a housing loan for HDB flats, here are the interest rates of DBS

Loan Interest (first year) Lock-in period
DBS 3M SORA 1.48% 2 years
DBS 3M SORA 1.38% 2 years
DBS Board 2.05% 3 years
DBS Board 2.05% 2 years
DBS Fixed 2.05% 5 years

For BTO units, DBS loans are also a great choice. Check out this table below to see the current costs of this loan.

Loan Interest (first year) Lock-in period
DBS 3M SORA 1.53% none
DBS 3M SORA 1.43% none
DBS 3M SORA 2.63% none

Meanwhile, here are the private home loan interest rates you should know.

Loan Interest (first year) Lock-in period
DBS 3M SORA 1.48% 2 years
DBS 3M SORA 1.38% 2 years
DBS Board 2.05% 3 years
DBS Board 2.05% 2 years
DBS Board 2.50% None

If you are planning to take out a loan for private properties under construction, DBS may not be the right choice because their rates are not as competitive as other banks.

Loan Interest (first year) Lock-in period
DBS 3M SORA 1.53% none
DBS 3M SORA 1.43% none
DBS 3M SORA 1.43% none

Here are the fees associated with DBS housing loans.

Loan type Partial repayment fee Cancellation fee Full redemption penalty
BUC n/a 0.75% n/a
Fixed rate 1.5% 1.5% 1.5%
Board rate (no lock in) n/a 1.5% n/a
Board rate (lock in) 1.5% 1.5% 1.5%
Private tracker 1.5% 1.5% 1.5%
HDB tracker n/a 1.5% n/a

Requirements:

  • NRIC or Passport (for foreigners)
  • HDB Flat & Financial Information
  • Latest 3 months payslip
  • Latest 3 months salary crediting account statements (additional documents required for customers working overseas)
  • Latest Notice of Assessment or 12 months CPF Contribution History
  • Latest credit card & credit line statements with outstanding balances
  • Latest credit facilities statements (e.g. existing home loans, credit card, car loan, personal loan facilities or others)

Apply here.

5. OCBC

Another best home mortgage loan you should consider is from OCBC. With its solid track record and competitive interest rates, home lenders can take advantage of it. OBCB’s fixed interest rates can be a great option for people who plan on refinancing their loans regularly.

Check out this table to find out OCBC’s mortgage interest rates Singapore below.

Loan Interest (first year) Lock-in period
OCBC 3M SORA 1.58% 2 years
OCBC 1M SORA 1.71% 2 years
OCBC Fixed 2.50% 2 years

For private home loans, check out this table.

Loan Interest (first year) Lock-in period
OCBC 3M SORA 1.58% 2 years
OCBC 1M SORA 1.71% 2 years
OCBC Fixed 2.50% 2 years

Meanwhile, here are the application fees you should consider when applying for an OCBC housing loan.

Loan type Partial repayment fee Cancellation fee Full redemption penalty
BUC n/a 1.5% n/a
Fixed rate 1.5% 1.5% 1.5%
Tracker Up to 50% of loan principal (no penalty during lock-in period) 1.5% 1.5%
Board rate No fee if outstanding balance is above 50% of loan principal; otherwise 1.5% 1.5% 1.5%

Requirements:

  • NRIC
  • Monthly credit card bills
  • Loan statements
  • Income documentation

Apply here.

6. Citibank

Although Citibank’s total loan costs are not competitive, lenders can still get savings thanks to its competitive introductory rates that rise only after 2-3 years.

For home loans, the bank offers great floating and fixed rates, which makes it a good option for those who want to refinance their loan every few years. Check out this table below to know more about their loans:

Loan
BUC Home Loans 3M SORA BUC Package Min. S$750,000
Fixed rate home loans 2- and 3-year fixed rate
Floating rate home loans 1M/3M SORA Package

For fixed rate loans for HDB flats, take a look at this table.

Loan Interest rate (first year) Lock in period
Citibank loan 1.23% 2 years
Citibank loan 1.25% 3 years

Meanwhile, here are the details for floating loans for HDB flats.

Loan Interest rate (first year) Lock in period
Citibank SIBOR 1.10% 2 years
Citibank SORA 1.11% 2 years

Looking to buy a private property? Take a look at the fixed home loan details here.

Loan Interest rate (first year) Lock in period
Citibank loan 1.23% 2 years
Citibank loan 1.25% 3 years

For floating home loans for private properties, here are the details.

Loan Interest rate (first year) Lock in period
Citibank SIBOR 1.10% 2 years
Citibank SORA 1.11% 2 years

Here are the fees associated with the Citibank mortgage loan.

Loan type Partial repayment fee Cancellation fee Full redemption penalty
Completed 1.5% 1.5% 1.5%
Completed (CITIGOLD clients) n/a 1.5% 1.5%
BUC n/a 0.75% 0.75%

Apply here. 

7. UOB

UOB Singapore offers competitive interest rates, which makes it a top choice among many Singaporeans. It is also available for foreigners. Just like other banks, UOB offers various loan options depending on what property you’re getting.

For fixed home loans for HDB flats, here are the details.

Loan Interest rate (first year) Lock in period
UOB loan 1.86% 3 years

Meanwhile, here’s UOB’s loan details for HDB flats with floating interest.

Loan Interest rate (first year) Lock in period
UOB 3M SORA 0.14% + 1.20% 2 years

For fixed home loans for private property, take a look at this table.

Loan Interest rate (first year) Lock in period
UOB loan 1.86% 3 years

Lastly, here are the floating interest rate loan details for private properties.

Loan Interest rate (first year) Lock in period
UOB 3M SORA 0.14% + 1.20% 2 years

Here are the fees associated with the UOB home mortgage loans:

Loan type Partial repayment fee Cancellation fee Full redemption penalty
BUC n/a 0.75% n/a
Fixed rate 1.5% 1.5% 1.5%
Tracker rate n/a 1.5% n/a
Board rate No fee (minimum S$200,000 outstanding balance is maintained); otherwise 1.5% 1.5% 1.5%

Apply here.

A Word From OMY

As a first-time borrower, you may be stumped by the number of home mortgage loan options you have.

When you’re choosing a home mortgage loan, always be thorough in your research. The data in this article should make it easier to help you identify the best home mortgage loans for you.

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