Mortgage Interest Rates in Singapore
Planning to purchase a home or an HDB flat in Singapore? Well, Singapore is known to be one of the costliest real estate markets in Asia. So if you’re intending to purchase a new property or construct your own home, you know for a fact that you’ll have to shell out a great deal of money. Taking a loan to finance your property is the best way to realize your dream of owning your own home.
There are many banks and financial institutions in Singapore that offer home loans to foreigners and Singaporean citizens and Permanent Residents. These loans come mostly in two types of interest rate packages – fixed and floating. Under a fixed interest rate regime, your repayments will remain fixed through the tenure of your loan while a floating interest rate will see fluctuations in the amount you pay on a monthly basis.
Home loans in Singapore are provided for new flats, construction of a new home, and purchase of property.
Let’s take a look at the best home loan rates in Singapore. We look at home loans offered by different banks/financial institutions in Singapore and evaluate them.
5 Best Mortgage Interest Rates in Singapore
As mentioned earlier, there are several banks and financial institutions offering home loans in Singapore. Let’s look at the 5 best home loan providers in Singapore. These banks/financial institutions are classified on the basis of the best mortgage rates offered:
- DBS Bank
- OCBC Bank
- UOB Bank
- Standard Chartered
DBS Home Loan
DBS is one of the most popular and largest banks in Singapore with an enormous customer base. The bank is known for its diverse product offering – from various credit products to investment options and insurance products, DBS has several banking products and services to offer.
As far as home loans are concerned, let’s take a look at the most commendable features and benefits of the DBS Home Loan in Singapore:
- As a customer, you have the option of choosing a fixed rate of interest or a floating rate of interest.
- Under a fixed interest rate regime, your repayments will remain fixed throughout the period of your tenure. Floating interest rates are subject to market related fluctuations.
- You have the option to choose a tenure of your choice as well.
- The higher the tenure, the more the amount you’d be paying towards interest. The shorter the tenure, the more the interest rate but lesser the amount you’d be paying towards interest.
- You can get a loan for an HDB flat, to purchase a private property, or construct your new home.
- DBS also allows you to refinance your home loan – i.e. if you already have a home loan with a different bank or financial institution, you can move your loan to DBS at a reduced interest rate.
- Rates are sometimes fixed in accordance with SIBOR. You can choose an interest rate that corresponds to SIBOR as well.
OCBC Home Loan
OCBC is again one of Singapore’s most popular banks and operates through several branches across the Island State. Just like any other bank in Singapore, OCBC offers a host of banking and financial products that range from loans and insurance products to credit cards, savings accounts and investment instruments. Mortgage loans are a popular product that OCBC deals with in Singapore. Let’s take a look at the benefits of applying OCBC Home Loan:
- OCBC, like other banks in Singapore, gives customers the option of choosing an interest rate package depending on their requirements and interest.
- The most commonly available rate packages are fixed and floating interest rate packages.
- The interest rates as affordable and lower in comparison to many top banks in Singapore.
- You can choose a tenure of your choice – the bank lets you do that. Tenures can typically range from 5 years to over 30 years (35 years being the maximum tenure period).
- OCBC keeps launching promotional offers from time to time to help you get the best deal on your home loan.
UOB Home Loan
UOB is another top bank in Singapore that offers home loans. Let’s take a look at the most prominent features and benefits of UOB’s home loan:
- You can choose your interest rate package based on your requirements. Once an interest rate package is chosen, your repayments will accordingly be dependent on that.
- You can choose a tenure from anywhere between 5 years and 35 years. The larger the amount, the longer the tenure you can choose.
- Applying for the loan is seamless – the whole process can be completed online. You will also receive quick approval.
- If you have any queries regarding your loan application, you can contact UOB’s hotline number for assistance.
Citibank Home Loan
Citibank is one of the largest banks in the world, with operations spread across several countries around the globe. In Singapore, Citibank offers a whole range of banking products, including home loans. Let’s take a look at Citibank’s home loan product and evaluate the features and benefits associated with it:
- Just like other banks in Singapore, Citibank gives you the flexibility of choosing your interest rate package. You can typically choose a rate package that’s fixed, floating or a combination of both. SIBOR-adjusted interest rate packages are also available.
- Citibank provides quick approval (Instant In-Principle Approval) on loan applications. You can track the status of your application by visiting the Citibank website and entering details of your application.
- Citibank announces promotional home loan interest rates from time to time. You can get lower-than-usual interest rates during the time these promotional offers are valid. You can visit the Citibank website to get more information on promotional home loan offers.
- Tenures can stretch for periods ranging from 5 years to 35 years.
Standard Chartered Home Loan
Standard Chartered offers home loans at affordable interest rates as well. Let’s take a look at some notable features and benefits of Standard Chartered Bank’s home loan product:
- You can choose your interest rate package. There are three types of packages offered – fixed, floating and a combination of both the packages.
- Your home loan tenure can be determined by you – you can choose a tenure from 5 years to 30 years.
- The interest rate offered is lower in comparison to home loan products offered by many other banks in Singapore. You can also enjoy promotional interest rates from time to time.
- After applying for your home loan, you can track your entire home loan application online.
Compare Best Mortgage Rates in Singapore
|Name of the bank
||Interest Rate (Starting % p.a.)
||5 years to 35 years
||5 years to 35 years
||5 years to 35 years
||5 years to 30 years
||5 years to 35 years
How to choose the ideal home loan in Singapore?
There are various parameters that come into play while selecting a home loan product. Let’s look at some aspects that influence your loan application and give you an idea of how to choose the ideal home loan in Singapore:
- Your credit score: If you have a good credit score, you are sure to get a lower rate of interest on your loan application. Chances of approval are high too.
- Bank’s eligibility criteria: You will be required to meet the bank’s eligibility criteria if your loan application has to come through. You will need to meet the minimum income criteria and other internal norms.
- Choosing a rate package: Choosing an interest rate package is crucial. While fixed rate packages are chosen more often, floating rate packages could mean that you’ll be paying much less in terms of interest.
- Tenure: Choosing the right tenure is important too. Home loan tenures in Singapore usually range from 5 years to 35 years. Depending on your repayment capability, choose a tenure that’s most ideal to suit your financial needs.