All banks on this page are licensed by the Monetary Authority of Singapore (MAS). Your property and data are protected under strict regulatory guidelines.
A home loan is likely the largest financial commitment most people will ever make and getting it right
can save home buyers tens of thousands of dollars over the life of a mortgage.
This page covers everything there is to know about home loans in Singapore. How to choose between an HDB
concessionary loan and a bank loan, understanding the critical TDSR & MSR limits that determine
borrowing capacity, LTV rules for different property types and whether a fixed or floating rate makes
more sense. It also explains SORA, the benchmark for floating rates, breaks down the true cost of buying
a property and shares expert tips to improve approval chances. Whether you are a first time buyer or a
property investor this page provides the information needed to make an informed decision before
comparing rates.
A home loan or mortgage is a secured loan from a bank used to buy property. The property itself serves as collateral allowing banks to offer much lower interest rates than unsecured loans. In Singapore, home loans typically have tenures of 15 to 30 years with interest rates ranging from 1.50% to 3.50% p.a. depending on whether you choose a fixed or floating rate and the current SORA benchmark.
Your CBS credit score affects approval and the interest rate offered
Undischarged bankrupts not eligible
Get IPA before property hunting to confirm your budget
All banks on this page are licensed by the Monetary Authority of Singapore (MAS). Your property and data are protected under strict regulatory guidelines.
Bank loan rates range from 1.50% to 2.50% p.a. HDB concessionary loan remains fixed at 2.6% p.a. (pegged to CPF OA rate + 0.1%).
Compare home loans from DBS, OCBC, Standard Chartered, HSBC, Maybank, Citibank, Bank of China and more.
Borrow up to 75% of property value with a bank loan) or 80% with an HDB loan. Your down payment can be paid using CPF and/or cash
SORA rates are updated daily
Pegged to CPF OA + 0.1% (Stable)
Up to 80% Loan-to-Value (LTV) No lock-in period (Refinance anytime) Down payment 100% from CPF Only for Singapore Citizens
Fixed rates from 1.50% p.a., floating from
SORA+0.25% Up to 75% Loan-to-Value (LTV) 2 to 3 year lock-in period with 1.5% early
redemption penalty Down payment requires 5% in cash remaining
can
be CPF Available to Citizens, PRs, and some
foreigners| HDB Concessionary Loan | Bank Loan | |
|---|---|---|
| Interest Rate | 2.6% p.a. (fixed, pegged to CPF OA + 0.1%) | From 1.50% p.a. (fixed) or SORA+0.25% (floating) |
| Rate Stability | Unchanged for 20+ years | Fixed rates are stable for 2 to 5 years. floating rates move with SORA monthly |
| Loan-to-Value (LTV) | Up to 80% | Up to 75% |
| Down Payment | 20% (can be 100% CPF, no cash required) | 25% (5% must be cash, 20% can be CPF) |
| Lock-In Period | None | 2 to 5 years |
| Early Repayment Penalty | None | 1.5% of amount redeemed (during lock-in) |
| Partial Prepayment | Allowed anytime, no penalty | Limited during lock-in (30% to 50% max for some packages) |
| Eligibility | Singapore Citizens only, must form family nucleus, income ceiling $14,000/month for new flats | Citizens, PRs, some foreigners; no income ceiling |
| Credit Check | Basic eligibility check by HDB | Full credit assessment by bank (CBS score matters) |
| MSR Applies? | Yes, ≤30% of gross income | Yes, ≤30% of gross income |
| TDSR Applies? | No (HDB loans are exempt from TDSR) | Yes, ≤55% of gross income |
| Refinancing | Can refinance to bank anytime | Can refinance to another bank after lock-in |
| Can Switch Back? | N/A | Cannot switch from bank loan to HDB loan |
| Maximum Tenure | 25 years or until age 65 | 30 years (HDB flat) or 35 years (private) |
| Legal Fees | Included in HDB process | $1,800 to $2,500 (often subsidised by bank) |
| Interest Rate | Monthly Repayment | Total Interest | Total Repayment | |
|---|---|---|---|---|
| HDB Loan | 2.6% p.a. | $2,275 | $182,500 | $682,500 |
| Bank Loan (Fixed) | 1.75% p.a. | $2,054 | $116,200 | $616,200 |
| Bank Loan (Floating) | 1.50% p.a. | $1,999 | $99,700 | $599,700 |
Potential savings with bank loan: $66,300 to $82,800 over 25 years Bank rates can change. If SORA rises significantly, floating rate loans
will
cost more
You value rate stability and don't want to worry about SORA movements
You have limited cash and need 80% LTV
You want to make partial prepayments without any penalty
You might sell or refinance within 2 to 3 years
You prefer predictable monthly payments regardless of market conditions
You're risk averse and value peace of mind over potential savings
You want the lowest possible interest rate
You have stable income and can handle potential rate fluctuations You can afford 25% down payment (5% cash + 20% CPF)
You're comfortable with a 2 year lock-in period
You want to save $50,000 to $80,000+ over 25 years
You're financially savy and will refinance when lock-in ends In 2026 and with SORA at around 1.1% to 1.2%, bank loans are significantly cheaper than HDB loans. A 1% rate difference on a $500,000 loan saves you about $220/month or $2,640/year, that's nearly $70,000 over 25 years.
However, rates can change and If you choose a floating rate, your payments could increase if SORA rises. My advice, if you're buying now and want certainty consider a 2-3 year fixed rate package to lock in low rates. You can always refinance when the lock-in ends.
One more thing once you switch from HDB loan to bank loan, you cannot switch back. So you
might
want to start with an HDB loan to keep your options open.
| Debt Type | Monthly Payment |
|---|---|
| New home loan (applying) | $3,000 |
| Car loan | $800 |
| Personal loan | $300 |
| Credit card (3.5% of $5,000 balance) | $175 |
| Total Monthly Debt | $4,275 |
TDSR is below 55%, so home buyer qualifies.
Even
if TDSR is exempt, the bank's credit assessment needs to be met.
| MSR | TDSR | |
|---|---|---|
| What it covers | Home loan payment only | All monthly debt payments |
| Limit | ≤30% of gross income | ≤55% of gross income |
| Applies to | HDB flats, ECs from developer | All property loans |
| Stress test rate | 4% p.a. minimum | 4% p.a. minimum |
Gross Monthly Income | Max Monthly Payment (MSR 30%) | Approx. Max Loan (25 yrs) |
|---|---|---|
| $5,000 | $1,500 | ~$285,000 |
| $6,000 | $1,800 | ~$340,000 |
| $8,000 | $2,400 | ~$455,000 |
| $10,000 | $3,000 | ~$570,000 |
| $12,000 | $3,600 | ~$680,000 |
| $15,000 | $4,500 | ~$855,000 |
| $15,000 | $4,500 | ~$855,000 |
These are estimates using a 4% stress test rate actual loan depends on full
profile.Borrower Age + Loan Tenure | LTV Limit (1st Loan) |
|---|---|
| ≤65 years | 75% (bank) / 80% (HDB) |
| >65 years but ≤75 years | 55% |
| >75 years | Case-by-case |
Factor | Fixed Rate | Floating Rate (SORA) |
|---|---|---|
| Current rates | 1.50% to 1.80% p.a. | SORA + 0.25% to 0.50% |
| Rate stability | Locked for 2 to 5 years | Changes monthly with SORA |
| Best when | Rates expected to rise | Rates expected to stay low or fall |
| Risk level | Low | Higher |
| Monthly payment | Fixed during promo period | Variable |
| Lock-in period | Usually matches fixed period | 2 years typical |
| Who it suits | Risk averse and first-time buyers | Rate watchers and investors |
These are estimates using a 4% stress test rate actual loan depends on full
profile. 1-Month Compounded SORA | 3-Month Compounded SORA | |
|---|---|---|
| Adjustment frequency | Monthly | Quarterly |
| Responsiveness | More responsive to rate changes | Smoother, less volatile |
| Best for | Those who want quick benefit from rate drops | Those who prefer stability |
With bank rates now significantly lower than HDB's 2.6% we're seeing a 7x increase in HDB to bank loan switches. Here's my advice for different buyer profiles:
For first-time HDB buyers: Start with an HDB loan if you want flexibility. You can refinance to a bank later without penalty but if you're confident in your finances, a bank loan at 1.55% to 1.75% saves you $200 per month on a $400k loan.
For private property buyers: Bank loan is your only option. Consider a 2-year fixed rate at 1.55% to 1.65% if you want certainty. After lock-in, refinance or reprice to the best rate available.
For those refinancing: Start comparing 3 months before your lock-in ends. With rates at historic lows you could save thousands by switching. Most banks offer $2,000 to $2,800 in legal subsidies so switching costs you almost nothing.
One thing I always tell clients: Don't just look at Year 1 rates. Check the spread after lock-in (e.g., SORA+1.00% vs SORA+0.60%) that's when you'll need to refinance and a
lower spread gives you a buffer .
| Property Value | BSD Rate |
|---|---|
| First $180,000 | 1% |
| Next $180,000 | 2% |
| Next $640,000 | 3% |
| Next $500,000 | 4% |
| Next $1,500,000 | 5% |
| Above $3,000,000 | 6% |
| Buyer Profile | 1st Property | 2nd Property | 3rd+ Property |
|---|---|---|---|
| Singapore Citizen | 0% | 20% | 30% |
| Permanent Resident | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
Aya Medel 
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