A "low interest" loan shouldn't mean you have very little interest in paying it back!

    POSB Home Loan Singapore

    POSB Bank Singapore offers a range of home loan options for you to choose from. Regardless of whether it is for buying a private property, an HDB flat, or an executive condominium, a POSB home loan can help realize your dream with the convenience of flexible repayment options and competitive interest rates. POSB also offers mortgage loans that you can use for refinancing your HDB loan, executive condominium, or private property loan.

    Home Loans Offered by POSB

    POSB offers home loans for the following purposes:

    • Buying a private property
    • Buying an executive condominium
    • Buying an HDB flat
    • Refinancing your private property loan
    • Refinancing your executive condominium
    • Refinancing your HDB loan

    In addition to this, you can opt for two other home loan products from POSB namely:

    Interest Rates for POSB Housing Loans 

    Fixed Rate Package (2-year)

    1st year 2nd year 3rd year
    2.60% p.a. 2.60% p.a. FHR8 + 1.925% p.a.
    4th year 5th year After 5th year
    FHR8 + 1.925% p.a. FHR8 + 1.925% p.a. FHR8 + 1.925% p.a.

    Floating Rate Package (2-year lock-in)

    1st year 2nd year 3rd year
    FHR8 + 1.45% p.a. FHR8 + 1.45% p.a. FHR8 + 1.45% p.a.
    4th year 5th year After 5th year
    FHR8 + 1.45% p.a. FHR8 + 1.45% p.a. FHR8 + 1.45% p.a.

    Here, FHR8 implies the current 8 months SGD fixed deposit rate (for amounts ranging from S$1,000 to S$9,999 or as specified) at POSB bank. The current FHR8 is 0.675% p.a.

    Fees and Charges

    For a POSB Renovation Loan you are required to pay the following fees and charges:

    • 1% of the loan amount (approved) as insurance premium
    • 1% of the loan amount (approved) as handling fee

    Types of Home Loans Offered by POSB

    DBS Bridging Loan: This home loan product by POSB offers a short-term loan (up to a maximum of 6 months). You can use this loan to purchase all types of properties. The loan amount helps fund the down payment for a new property while you await the sales proceeds from an existing property. You are required to repay the interest component during the loan tenure. The full payment is to be made when you receive the sales proceeds from the existing property.

    POSB Renovation Loan: With this home loan product, you can borrow as much as S$30,000 or 6x your monthly salary (whichever is lower) for a fixed interest rate of 2.31% p.a. You can choose from 1 to 5 years of loan repayment tenure. You can use this product for your basic bathroom fittings, tiling and flooring, structural alterations, redecorating and painting, built-in cabinets, electrical and wiring works, and external works within the compound of the house.

    Why Take POSB Home Loan?

    • POSB offers an entire range of home loan products that have been designed to cater to your unique needs.
    • The interest rates for POSB home loans are pegged to the Singapore dollar fixed deposit interest rates.
    • You get the provision of signing up for a Multiplier account wherein you can earn as much as 3.5% p.a. on your savings. You don’t need to have a minimum credit card spend or minimum salary to be eligible for this account.

    Eligibility Criteria 

    POSB Renovation Loan

    • If you take the loan for your HDB flat, the renovation work must be carried out only by HDB Licensed Renovation Contractors.
    • You must be between 21 and 65 years of age.
    • You must be a Permanent Resident or citizen of Singapore.
    • You must be a related family owner who has the owner’s permission or the property owner.
    • In case of a single application, your income must be S$24,000 p.a.
    • If you are submitting a joint application, the main applicant must have a minimum annual income of S$24,000 and the joint applicant must earn at least S$12,000 p.a. The joint applicant must be a sibling, child, spouse, or parent of the applicant.


    Documents Required 

    For purchase of a residential property:

    • HDB Flat & Financial Information
    • Value as confirmed by HDB (for resale of an HDB flat)/Valuation report (for executive condominium and private property)
    • Passport (for foreigners)/NRIC (for PR and Singaporeans)
    • Sales & Purchase agreement or Option to Purchase.

    For refinance of an HDB flat or private property from other financial institutions:

    • Latest credit facilities statements (for personal loan, credit card, car loan, existing home loan, and so on)
    • Latest salary crediting account statements (3 months) (additional documents will be required for applicants who work overseas)
    • Latest payslips (3 months) (submit your employment contract and latest payslip if you have been employed for less than 3 months)
    • CPF Contribution History (12 months) or latest Notice of Assessment
    • Latest CPF Property Withdrawal Statement (if you are applying for a new term loan or have an existing term loan)
    • IRAS My Property Portfolio (if occupied by the owner)
    • Latest loan repayment history (last six months)
    • Letter of Offer from your financial institution
    • HDB flat information and financial information
    • Passport (for foreigners)/NRIC (for PR and Singaporeans)

    Application Process 

    • Start by checking whether or not you are eligible for taking a home loan.
    • Study the various home loan products available to you and then select a package that aligns with your need.
    • Upload the required documents for approval.
    • Once your loan application is approved, you can go ahead with signing the letter of offer.

    Repayment Options  

    • You need to pay your repayment instalments every month from your loan servicing account. The instalment will be contributed toward the repayment of both your interest and principal components.
    • The monthly repayment for private properties is due on the 1st of every month.
    • The monthly repayment for HDB flats is due on the 15th of every month.
    • If the due date is a gazetted public holiday or a Sunday, the instalment will be debited from your account on the subsequent working day.
    • You can also use your CPF account to make your monthly repayments by applying on the official website of CPF with your SingPass.
    • Monthly repayments for private property will be due by the 20th of every month (for deduction in the subsequent month)
    • For an HDB flat, the amount will be due seven days before the deduction between 10th and 13th of the month.

    With POSB home loans, you can make the most of the flexible repayment options and also manage your multiple loans more efficiently.

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