Best Mortgage Rates in Singapore (Updated 2024)
Finding the best mortgage rates in Singapore can save you thousands over your loan tenure. Whether you're buying a new HDB flat, private condo, or refinancing an existing loan, comparing rates from top banks like DBS, UOB, OCBC, and HSBC is crucial.
This guide covers:
- Current fixed vs floating mortgage rates (SORA-pegged, board rates)
- How to choose between HDB loans (2.6% flat) vs bank loans
- Tips to secure the lowest interest rate for your home loan
- When to refinance your mortgage for better savings
📊 Latest Singapore Mortgage Rates (2024)
Below are the best home loan rates from major banks (as of June 2024). Rates fluctuate weekly—always verify with the bank before committing.
| Bank | Loan Type | Interest Rate (Year 1) | Lock-in Period | Min. Loan Amount |
|---|---|---|---|---|
| DBS | SORA + 0.80% | ~3.80% p.a. | 2 years | $200,000 |
| UOB | Fixed (2 Years) | 4.05% p.a. | 2 years | $100,000 |
| OCBC | SORA + 0.75% | ~3.75% p.a. | 1 year | $250,000 |
| HSBC | Fixed (3 Years) | 4.10% p.a. | 3 years | $300,000 |
| Maybank | Board Rate - 1.50% | ~3.90% p.a. | None | $150,000 |
Note: Rates are illustrative. Actual rates depend on loan amount, LTV ratio, and creditworthiness. SORA (Singapore Overnight Rate Average) is the benchmark for most floating-rate loans.
⚖️ HDB Loan vs Bank Loan: Which is Better?
Singaporeans buying HDB flats can choose between:
1. HDB Concessionary Loan (2.6% p.a. flat)
- ✅ Fixed rate (no fluctuations)
- ✅ No early repayment penalty
- ✅ Lower downpayment (10% cash/CPF)
- ❌ Higher interest than bank loans (currently)
- ❌ Only for HDB flats (not private properties)
2. Bank Loan (Floating/Fixed Rates)
- ✅ Lower rates (currently ~3.7%–4.1%)
- ✅ Flexible repayment options
- ✅ Can be used for private properties
- ❌ Rates may rise (if floating)
- ❌ Early repayment penalties (if within lock-in)
Verdict: If bank rates are <2.6%, choose a bank loan. Otherwise, HDB’s loan may be safer for risk-averse buyers.
💡 5 Tips to Get the Best Mortgage Rate in Singapore
- Improve Your Credit Score: A score >2000 (CBS) helps secure better rates.
- Compare Multiple Banks: Use tools like PropertyGuru Finance or MoneySmart.
- Negotiate with Your Bank: Loyal customers may get rate discounts.
- Opt for Shorter Lock-ins: Avoid long lock-ins (e.g., 3 years) if rates may drop.
- Refinance Every 2–3 Years: Switch loans when rates become uncompetitive.
🔄 When Should You Refinance Your Mortgage?
Refinancing can save you money if:
- Your current rate is >0.75% higher than market rates.
- You’re past the lock-in period (no penalties).
- You plan to stay in the property long-term (5+ years).
- Your loan amount is large (>$500K), making savings significant.
Costs to Consider: Legal fees (~$2,000–$3,000), valuation fees (~$200–$500), and potential clawbacks.
❓ FAQ: Singapore Mortgage Rates
Q: Are mortgage rates expected to rise in 2024?
A: The US Federal Reserve may cut rates in late 2024, which could lower SORA-pegged rates. However, geopolitical risks may cause volatility.
Q: Can foreigners get a mortgage in Singapore?
A: Yes, but with stricter rules: max 75% LTV (vs 80% for citizens) and higher interest rates (~0.25–0.5% more).
Q: What’s the difference between SORA and fixed rates?
A: SORA (floating) changes with market conditions, while fixed rates stay constant for 1–5 years. Fixed rates offer stability but may be higher initially.
Q: How much can I borrow for a mortgage?
A: Use the MAS loan limits:
- First home loan: Up to 75% LTV (25% downpayment).
- Second home loan: Up to 45% LTV (55% downpayment).
- Loan tenure: Max 30 years (or until age 65 for HDB).
📌 Final Advice
Always:
- ✅ Check the Effective Interest Rate (EIR), not just the advertised rate.
- ✅ Read the fine print (e.g., lock-in clauses, prepayment penalties).
- ✅ Consult a mortgage broker for tailored advice.
For real-time comparisons, use bank websites or aggregators like iCompareLoan.