• Best Home Loan in Singapore

    Home Loan BYTES FROM OUR KITCHEN

    Home loans are an absolute necessity in Singapore, where housing costs are quite high. An executive condominium won’t come at anything less than S$350,000, an HDB flat could cost upwards of S$210,000, and a landed property would be around S$300,000 or more. To buy a house, we would surely have to opt for a home loan. If you’re going for an HDB flat, you can either get a loan from the Housing and Development Board (HDB) or from a bank, and if you’re buying private flats or property, then you need to resort to the bank alone.

    Banks in Singapore offer different kinds of home loan packages to their customers. There are various kinds of loans, based on the interest rates, such as fixed-rate home loans, floating-rate home loans and variable-rate home loans. Here we shall look at the best home loans for private property from Singaporean banks.

    Banks Offering Best Home Loans in Singapore

    Maybank Home Loan

    Maybank’s home loan is created to allow you to buy a new house with as little stress as possible.

    Advantages of the Maybank Home Loan These are the advantages of going for this financing option:

    • You can choose between fixed and floating interest (SIBOR-linked) packages for your loan.
    • The interest rates are as low as 1.28% p.a.
    • You will get legal subsidy if you refinance your home loan with Maybank.

    Disadvantages of the Maybank Home Loan – The following are the disadvantages of the loan product:

    • You can only get up to 80% of the cost of the house through this loan. The other 20% will have to be financed on your own.
    • There is a lock-in period of 1 to 3 years during which you cannot refinance your loan with another bank.

    Citibank New Home Purchase Financing

    Citibank being an international bank, offers housing finance products with a global outlook.

    Advantages of the Citibank New Home Purchase Financing Here is why Citibank home loan product is great for Singaporeans:

    • You can obtain In-Principle Approval (IPA) very quickly.
    • The bank offers both fixed and floating rate packages. You can switch between the packages with the least of hassles.
    • There are attractive promotional offers that allow you to get rewards when taking a home from Citibank.

    UOB Private Home Loan

    UOB, with its long-term understanding of Singapore and its market, has customized its products to meet the country’s needs. The UOB Private Home Loan comes with competitive interest rates and lucrative promotions.

    Advantages of the UOB Private Home Loan – Here’s why you should go for this loan:

    • You can get 3 kinds of interest rate packages with UOB – fixed, floating or a combination of both.
    • The interest rate is as low as 1.58% p.a.
    • UOB periodically runs promotional campaigns that you can benefit from.

    DBS Private Property Loan

    DBS, the region’s own bank, has many types of home loans for people in Singapore.

    Advantages of the DBS Private Property Loan – The positives of this loan are:

    • The bank offers 3 kinds of interest rate packages – fixed-rate, floating-rate limited, and floating-rate package.
    • You can experience holistic DBS Digital Banking.
    • The interest rate is as low as 1.68% p.a.

    OCBC New Home Loan

    OCBC, with its long-time functioning in Singapore, understands its needs better. OCBC Home Loans come with attractive promotional interest rates, various interest rate packages and excellent flexibility.

    Advantages of the OCBC New Home Loan – Here are the best features of this loan:

    • OCBC offers 4 kinds of home loan packages for you to buy a new house. These are: Fixed Deposit-linked rates, short-term fixed interest rates, SIBOR-dependent rates, and variable interest rates.
    • There is no switching fee to transfer your package from one type of interest to another.
    • The interest rates start from 1.75% p.a.
    • You can buy both private property and an HDB flat under this loan.

    Compare & Review Best Home Loans in Singapore

    The table below lists the key highlights of the top home loans in Singapore:

    Product Loan amount Interest rate Loan tenure Other benefits
    Maybank Home Loan Contact the bank for details Starting from 1.28% p.a. 5 to 35 years Higher interest rate on the Maybank SaveUp Account
    Citibank New Home Purchase Financing S$100,000 to 80% of the cost Starting from 1.46% p.a. 5 to 35 years Bonus interest on the Citibank InterestPlus Savings Account
    UOB Property Loan S$300,000 to 80% of the cost Starting from 1.58% p.a. 5 to 35 years Easy access to a Bridging Loan
    DBS Private Property Loan S$200,000 to 80% of the cost Starting from 1.68% p.a. 5 to 35 years Earn extra interest on saving account balance under DBS Multiplier Programme
    OCBC New Home Loan S$200,000 to 80% of the cost Starting from 1.75% p.a. 5 to 35 years Option to choose from 4 interest rate packages

    How to choose the best home loan

    Before you decide which home loan to apply for, you need to consider a few points, such as:

    • Ensure you have down payment: Almost all Singaporean banks give you only 80% of the cost of the property as loan. The rest has to be arranged by you. You can either take a Bridging Loan or build up your savings over time for this. Home purchase needs a lot of planning.
    • Buy within your means: Plan your house purchase according to what you can afford to pay as monthly instalment. Remember that a home loan can go on for as long as 35 years. You need to be sure that you can afford a repayment amount before you choose the total loan amount and tenure.
    • Check your eligibility: Do not apply for a loan package that you are not eligible for. Check the home loan eligibility like minimum income requirement and the minimum loan the bank gives you. A rejection will hurt your credit score.
    • Check the interest rate packages: Home loans in Singapore come in a variety of interest rate packages – fixed, floating, or a combination of the two. So you need to first find out which of the interest rate types suits your financial condition the best. You must not go merely for the cheapest package, but for a package that will levy low interest throughout the tenure.
    • Relationship with bank: If you already have a personal banking relationship with a bank, it is best to check home loan packages offered by them first. You might be able to negotiate lower interest rates if you already have long-standing dealings with a bank.
    • Research and enquire: Even if you have a good relationship with one bank, it doesn’t mean you should not check out other products. If any other bank is offering a better deal, go for it.
    • Ensure good credit score: If you want to get the interest rate of your choice, you need to have a negotiating power. In the world of lending, that power lies in your credit score. The higher your score, the more the chances of the bank offering you a good package.   
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