Best home loans Singapore 2022 – are you getting the best loan deals?

by Ravi Chandran December 22, 2021, 10:03 pm 506 Views

Best Home Loans Singapore 2022 and 2023 – do you know which ones they are?

We’ve done an analysis of the Best Home Loans in 2022-2023 for you so you do not have to worry about it yourself when you’re thinking of buying property in Singapore. Many times people will ask, “tell me what is the best housing loan” or “tell me which bank has the best housing loan rate?” The definition of Best home loans or best rates is not so simple. There are many categories of Best home loans. There are best home loans for fixed rates or for floating rates. Get the best home loans calculator here.

Amongst floating rates, there are also those pegged to SIBOR Rates and SOR, or those pegged to SIBOR Long term average such as OCBC Home Rate OHR, or those pegged to Fixed deposit rate (DBS Fixed Home Rate FHR, OCBC Fixed Deposit Mortgage Rate FDMR, UOB Fixed deposit pegged rate FDPR, HSBC Time Deposit Mortgage Rate TDMR, Maybank’s Fixed Deposit Rate FDR, etc) and also those pegged to bank’s internal board rate or cost of funds. What is more, there are also best rates without locked in period and best rates with locked in period.

Amongst Fixed rates, there are 1-year fixed rates, 2-year fixed rates and often 3-year fixed rates and from time to time, 5 years fixed rates or longer, depending on what is on offer from the banks and Financial institutions. Fixed rate home loan packages are almost without fail, locked-in. For example, a Fixed Rate home loan of 3 years fixed is almost always also 3 years locked-in. Locked-in is when you are contracted to stay with the bank and failing which, you have to pay a penalty. Floating rates can change and at the discretion of the bank or when the benchmark changes. Floating rates can also be either no locked in or locked in. A floating rate home loan that is locked in means that you are unilaterally tied to the bank and SIBOR ratescannot leave the bank while the bank can still change the interest rate.

SORA Home loan rates in 2021

Starting in 2021, banks in Singapore have been rolling out SORA home loan rates. By 2022, Sibor and SOR will be discontinued. SORA stands for Singapore Overnight Rate Average.What is SORA (1 month, 3 month), etc.

Why is SIBOR and SOR discontinued?

Widespread fraud in market manipulation in LIBOR and US dollar leads to the instability in the SOR pricing.

What create Singapore Overnight Rate Average (SORA) Video.

Best Home Loans for different loan sizes

The size of the outstanding home loan matters. Banks generally like to finance larger loan sizes. Hence for larger home loan sizes, they tend to offer lower rates and better terms such as legal subsidy, or cash rebate and or valuation subsidy, on a case by case basis. Also it cost the banks more administratively to lend out a small loan then a larger size loan. For example, a Best Home Loan for up to $300,000 loan may be Sibor + 0.8%, and one that is above $500,000 is Sibor + 0.75% and above $1,000,000 is Sibor + 0.7% or one that is a jumbo home loan of $2,000,000 and above is Sibor + 0.65%. Very similar to buying one orange for $1 and 1 carton of 100 oranges for $60. The larger home loan you need or want to get refinanced, the lower the potential rate.

Illustration of a 2 Years Fixed and 2 Years Locked in Home Loan Package

You tell your girl friend you love her for 2 years and during this 2 years, your love will never change, this is Fixed and Committed Love and locked in for 2 years. She tells you, she loves you back and will not change her love for 2 years.

This is a analogous to a 2 years Fixed rate where the rate will not change and similarly you are locked in and cannot leave the bank within 2 years.

Illustration of a 2 Years Floating Rate and 2 Years Locked in Home Loan Package

You tell your girl friend that your love for her will not change for 2 years. She says, “Noted”. So during this 2 years, you have committed to her for 2 years and locked in for 2 years, you cannot leave. She can still change her love, to love you less or not love you anymore.

This is analogous to a 2 years locked in home loan package where the borrower (mortgagor) cannot leave the bank for 2 years. But the bank can still raise their interest rate whilst you are in the locked in period and there is nothing you can do about it, unless you break the locked in and pay penalty for it.

Do note that best home loans for new launch condominiums that are building-under-construction (BUC), generally referred to as BUC home loans by the banks are again different from that of completed properties. Most BUC home loans do not have locked in period, though some do. So the idea of a Best BUC Home Loan may differ from that of a Best completed property home loan.

Home Loans for HDB Flats differ

HDB loans also differ from that of a Private condominium home loan in many cases.

Then there are jumbo loans or bulk home loans that are above 2 million dollars in loan size often will have special rates which iCompareLoan can help you to obtain from the banks. Although Monetary Authority of Singapore (MAS) has a prescribed methodology for home loan affordability such as mortgage servicing ratio (MSR) or monthly servicing ratio, Total debt Servicing Ratio (TDSR), banks often impose stricter rules than those set by MAS. Hence getting a Best Home Loan also defends on your home loan eligibility and Credit standing.

Option to Purchase (OTP) in hand – Buying a completed Resale property

Property buyers with Option to purchase (OTP) in hand have usually paid a 1% deposit to secure the purchase at an agreed date (typically 14 days later) at an agreed price. At the agreed date, which is called the Exercise date, the property buyer will exercise the option to purchase to carry out the property purchase. After Exercising the option, the property purchase by the property buyer is legally binding.

Most home buyers will secure a home loan before exercising the option to purchase as there is a slight danger that a Home Loan may not be granted due to a myriad of reasons. If a Home buyer exercises the Option to purchase with no home loan in hand, he or she will not be able to complete the purchase due to short of funds in case banks reject their home loans. Hence it is best for the Property buyer to start sourcing for an affordability analysis for the home loan as well as do an Approval-in-principle (AIP) or In-principle approval (IPA) for a home loan to make sure that the banks is able to lend prior to placing the Option-to-purchase (OTP).

How to find the Best Home loans Singapore 2022

We can help you to find the best home loans including renovation loans in Singapore

Cut through the data, avoid the hassle of doing your own research, we offer you a stress free way to find the best home loan in Singapore and to give you a flavour of what to expect.

Below, we have provided a comprehensive guide on how to choose the best home loan to save you the hassle, stress and time to research and find the best home loan.

If you want a straight answer you can click on our home loan calculators or home loan wizards. If you want a customised approach, our iCompareLoan Mortgage Brokers , will hand-hold you through the process of getting the best home loan or commercial property loan either for Refinancing or new property purchase.

Click on the link here to compare rates and upon finalising a package, liaise with the Singapore banks directly.

The iCompareLoan advantage for Best Home Loans Singapore 2022

iCompareLoan’s mortgage brokers are highly trained former bankers or people with very strong numerical skills with many years in the wealth and financial planning industry.

Mortgage brokers are expert in understanding the MAS regulations and rules and the ins and outs of the home loan packages. The panel of bankers that iCompareLoan chooses to process the loan applications from their respective banks are carefully selected and filtered throughout the years. They represent the best of the breed bankers who are both knowledgeable, ethical and know the inner workings of bank loan applications to expedite the bank loan process.

iCompareLoan.com continues to monitor the mortgage broker and banker’s performance constantly through customer feedback as well as (from time-to-time, with the agreement of the customer) accompany customers to sit in at the session, where the respective bankers will be graded.

You can consider using iCompareLoan as having a Home Loan Concierge service where our Mortgage brokers will guide you through the various banks and it’s home loan packages, generate detailed Home Loan Report (TM) analysis to give you the data for an informed decision, then this concierge will then usher you towards iCompareloan’s panel of bankers for processing your home loan application smoothly and efficiently.

Mortgage Brokers and Best Home Loans Singapore 2022

For those who are confused what a mortgage broker is, a mortgage broker is someone who helps you to analyse your home loan affordability, your financial situation and choices to find you the best home loan that matches your circumstances. A mortgage broker in Singapore has referral contracts with all the major banks and acts as the bank’s home loan packages distribution channel, hence a Mortgage Broker has the home loan rates and packages from all the major banks and is able to help you to Compare Home Loan Packages across the entire market segment.

Our Picks for Best Home Loans Singapore 2022

Finding the best home loan for you is important as everyone’s situation is unique – your financial position, type of home, family structure, age, nationality, reason for getting a loan, etc. So what suits your friend may not be suitable for you.

We can help you find the best home loan for you, whether it is for new property or refinancing.

If you are buying property in Singapore, it is important to manage it well as it is a major commitment and investment and will most likely require a home loan from a bank, financial institution or getting a HDB loan. If not managed well, the loan can be a financial burden and weigh you down in even in your personal life.

Our mortgage broker consultants will save you the hassle of visiting each financial institution for their home loan rates, which can be tedious and stressful. Financial institutions also frequently update the home loan rates to be in line with reference rates such as SIBOR and SOR as well as to be competitive. There are also different loan types and structure such as the standard fixed and floating rate home loan as well as fixed deposit pegged home loans. Home loans vary across banks in terms of the structure and fees such as lock-in period, fees relating to breaking the lock-in period or early repayment, restrictions in terms of selection of lawyer, insurer or refinancing.

We are in touch with the latest offerings and have the experience and expertise to analyse and advise you on the best home loan for you.

In the table below, we have compiled the list of banks offering the best home loan for the various categories given some assumptions of the below profile as of Jan 2018.

Loan amount: S$400,000

Loan tenure: 20 years

Both with and without lock-in

Option to Purchase (OTP) in hand

As of Jan 2018	Best Banks*	Best Fixed Rates*	Avg Fixed Rate**	Best Banks*	Best Floating Rates*	Avg Floating Rate**
HDB Home Loan	Hong Leong Finance	1.58%	1.76%	Hong Leong Finance	1.45%	1.82%
Private Property Home Loan	SBI, HSBC, Citibank,Bank of China	1.65% to 1.7%	1.78%	SCB, OCBC	1.50% to 1.6%	1.81%
HDB BUC	None	SCB	1.6%	1.83%
Private Property BUC	None	SCB	1.6%	1.75%
Refinance*** Home Loan -HDB	Hong Leong Finance	1.58%	1.77%	Hong Leong Finance	1.45%	1.80%
Refinance ***Home Loan – Private Property	HSBC	1.65%	1.78%	SCB	1.6%	1.79%

*Our ranking for best home loan is according to total 3 year interest cost, as many people tend to refinance after 2 to 3 years. Those best home loan rates based on entire loan tenure will be useful for smaller loan sizes where it is costly to switch banks (refinance) as any interest cost savings will be small and much savings end up paying for legal conveyancing fees and other fees associated with refinancing.

** Based on first year

*** Based on current home loan rate of 2%

Analysis is correct as at 20th Jan 2018.

Do note that these rates do vary from time to time. To find the best home loan for you currently, please contact us.

Best Home Loans Singapore 2022 – Our Picks for Best home loans for HDB

Buyers of HDB or public housing have the option of borrowing from HDB or a financial institution. The HDB loan is meant to help make homes more affordable, however, in recent years, banks have been offering a lower rate than the HDB loan rate.

The current rate for HDB loan is 2.6% or 0.1% above the prevailing CPF rate. To read more about HDB loan <– click here.

To choose the best home loan for HDB offered by financial instiutions, you can go to our website , where you can input your loan amount and loan tenure to find the best home loan. You can also contact us here for an analysis of the best rates and offers by financial institutions and banks in Singapore.

As an example, below are the best home loans for the stated profile:

Loan amount: S$400,000

Loan tenure: 20 years

Both fixed and floating rate loan

OTP in hand

HDB

As of Jan 2018, the best home loan rate for the first year for a HDB would be 1.45% offered by Hong Leong Finance – 2 year lock in, floating rate loan. This would involve a monthly payment of S$1,921 for the first year, of which $474 is comprised of interest to the bank.

Home loan for HDB	Lock in?	Fixed or floating rate?	Interest Rate over 1^st three years	Monthly Instalments	Total interest over 3 year period
Hong Leong Finance	2 yrs lock-in	Floating	1.45-1.65%	$1,921-1,954	$17,007
SCB 9M Fixed deposit rate	2 years lock-in	floating (Pegged to 9-month FD)	1.6%	$1,949	$17,993
Hong Leong Finance	2 years lock-in	2 years fixed	1.58-1.75%	$1,945-1,974	$18,375

Do note that these rates do vary from time to time. To find the best home loan for you currently, please contact us.

Our Picks for Best Home Loans Singapore 2022 for private properties

Private properties include condominiums, private apartments and landed property. They are typically more expensive than public housing but are not constrained by HDB rules such as the minimum occupation period. Private property owners can’t take a home loan from HDB.

To choose the best home loan for private properties, you can go to our website , where you can input your loan amount and loan tenure to find the best home loan. You can also contact us for an analysis of the best rates and offers by financial institutions and banks in Singapore.

As an example, below are the best home loans for the stated profile:

Loan amount: S$400,000

Loan tenure: 20 years

Both floating and fixed rate loan

OTP in hand

Private property

As of Jan 2018, the best home loan rate for a private property would be 1.6% offered by Standard Chartered Bank. This would involve a monthly payment of S$1,949 for first year, of which $523 is comprised of interest to the bank. Total interest over 3 years is estimated at S$17,993.

Home loan for Private Properties	Lock-in?	Fixed or floating?	Interest Rate over 1^st three years	Monthly Installments	Total interest over 1^st 3 years
SCB 9M Fixed deposit rate	2 year lock-in	Floating	1.6%	$1,949	$17,993
CIMB SIBOR 1M	2 year lock-in	Floating	1.55-1.65%	$1,940-1,957	$18,011
OCBC	No lock in	Floating	1.6%-1.7%	$1,949-1,966	$18,541

Do note that these rates do vary more from time to time. Talk to our consultants.

Best Home Loans Singapore 2022 for building under construction (BUC) property

For BUC properties, banks typically view them as higher risk as the property is not built yet. This means you don’t really know how it will turn out. This can work against borrowers who are facing cash flow problems as the property is not as easily sold and can’t generate rental income to help in your finances.

To choose the best home loan for BUC HDB BTO, you can go to our website , where you can input your loan amount and loan tenure to find the best home loan. You can also contact us for an analysis of the best rates and offers by financial institutions and banks in Singapore.

Best Home Loans Singapore 2022 – Our Picks for Best Home Loan for Building-under-construction HDB BTO

If you want to find the best home loan for building-under-construction (BUC) HDB BTO, it is highly likely you are a first-time home buyer. Buying your first home and finding the best home loan can be a daunting experience. We can help walk you through this process. Apart from taking a home loan from HDB, you can also look at what financial institutions are offering.

As an example, below are the best home loans from financial institutions for the stated profile:

Loan amount: S$400,000

Loan tenure: 20 years

Both with and without lock in

OTP in hand

Both fixed and floating rate loan

HDB BUC

As of Jan 2018, the best home loan rate for a BUC HDB would be the fixed deposit pegged loan offered by Standard Chartered bank, estimated at 1.6%, flat for three years. This would involve a monthly payment of S$1,949, of which $523 is comprised of interest to the bank for the first year. Total interest over 3 years is estimated at S$17,993.

Home loan for HDB under construction	Lock-in?	Fixed or floating?	Interest Rate	Monthly Installments	Total interest over 20 year period
SCB 9M Fixed Deposit Rate BUC	No	Floating	1.6%	$1,949	$17,993
OCBC Home Rate BUC	No	Floating	1.6%-1.7%	$1,949-1,966	S$18,541
Maybank BUC Board Rate	No	Floating	1.62% – 1.68%	$1,952-1,963	S$18,549

Do note that these rates do vary from time to time. To find the best home loan for you currently, please contact us to get you the best rates.

Our Picks for Best Home Loans Singapore 2022 for Building-under-construction private properties

One of the advantages of buying a BUC private property is that you pay for the property in installments. This means that for the first and second year, your loan and loan installments are quite minimal and grow over time along with the percentage of construction completion.

As an example, below are the best home loans for the stated profile:

Loan amount: S$400,000

Loan tenure: 20 years

Both with and without lock in

OTP in hand

Both fixed and floating rate loan

BUC Private Property

As of Jan 2018, the best home loan rate for a BUC private property is similar as that for a BUC HDB: the fixed deposit pegged loan offered by Standard Chartered bank, estimated at 1.6%. This would involve a monthly payment of S$1,949, of which $523 is comprised of interest to the bank for the first year. Total interest over 3 years is estimated at S$17,993.

Home loan for private property under construction	Lock-in?	Fixed or floating?	Interest Rate	Monthly Installments	Total interest over 20 year period
SCB 9M Fixed Deposit Rate BUC	No	Floating	1.6%	$1,949	$17,993
OCBC Home Rate BUC	No	Floating	1.6%-1.7%	$1,949-1,966	$18,541
Maybank BUC Board Rate	No	Floating	1.62% – 1.68%	$1,952-1,963	$18,549

Do note that these rates do vary from time to time. To find the best home loan for you currently, please contact us.

Our Picks for Best Refinance Home Loans

Refinancing occurs when the borrower switches from the current home loan mortgage, before the end of its tenure, to another mortgage package offered by a different financial institution. It is not to be confused with repricing, which is to switch to a cheaper package with the current financier.

To read more on Guide to refinancing <— click here.

To find the best home loan packages, use our refinance home loan calculator.

As an example, below are the best home loans for the stated profile:

Loan amount: S$400,000

Remaining loan tenure: 20 years

HDB

Current financial institution: Others

Current interest rate: 2%

Our Picks for Best Refinance Home Loans for HDB

As of Jan 2018, the best home loan refinance rate for HDB would be 1.45% offered by Hong Leong Finance – 2 year lock in, floating rate loan. This would involve a monthly payment of S$1,921 for the first year and interest savings of $180 for first year.

Refinance Home loan for HDB	Lock in?	Fixed or floating rate?	Interest Rate over 1^st three years	Monthly Installments	Total interest over 3 year period
Hong Leong Finance	2 yrs lock-in	Floating	1.45-1.65%	$1,921-1,954	$17,007
SCB 9M Fixed deposit rate	2 years lock-in	floating	1.6%	$1,949	$17,993
Hong Leong Finance	2 years lock-in	2 years fixed	1.58-1.75%	$1,945-1,974	$18,375

Our Picks for Best Refinance Home Loans for Private properties

As of Jan 2018, the best refinance home loan rate for a private property would be 1.6% offered by Standard Chartered Bank. This would involve a monthly payment of $1,949 for first 3 years. Interest saving is $131 for first year.

Refinance Home loan for Private Properties	Lock-in?	Fixed or floating?	Interest Rate over 1^st three years	Monthly Installments	Total interest over 1^st 3 years
SCB 9M Fixed deposit rate	2 year lock-in	Floating	1.6%	$1,949	$17,993
CIMB SIBOR 1M	2 year lock-in	Floating	1.55-1.65%	$1,940-1,957	$18,011
OCBC	No lock in	Floating	1.6%-1.7%	$1,949-1,966	$18,541

Do note that these rates do vary from time to time. To find the best home loan for you currently, please contact us.

Singapore best home loans – Our Picks for Best Fixed Rate Home Loans

A fixed rate home loan is where the rates are fixed for the first 3 to 5 years of the loan tenure. There are no perpetual fixed rate packages in Singapore.

Fixed rate home loans are typically higher than floating rate home loans though borrowers benefit from this stability over the short term as well as in an increasing rate environment as the rate remains fixed for the first few years.

To read more on fixed rate home loan, click here.

As an example, below are the best home loans for the stated profile:

Loan amount: S$400,000

Loan tenure: 20 years

Both with and without lock in

Completed property

OTP in hand

Fixed rate

As of Jan 2018, the best fixed rate home loan rate for a HDB would be 1.58% offered by Hong Leong Finance. This would involve a monthly payment of S$1,945, of which $516 is comprised of interest to the bank for first year.

Fixed Rate Home loan for HDB	Lock in?	Years rate is fixed	Fixed interest Rate	Monthly Installments over 3 years	Total interest over 3 year period
Hong Leong Finance	2 yrs lock-in	Two years	1.58%	$1,945-1,974	$18,375
SBI	2 years lock-in	Two years	1.65%	$1,958-2,009	$19,638
HSBC	2 years lock-in	Two years	1.65-2.00%	$1,958-2,018	$19,830

Do note that these rates do vary from time to time. To find the best home loan for you currently, please contact us.

As of Jan 2018, the best fixed rate home loan rate for a Private Property would be 1.58% offered by SBI. This would involve a monthly payment of S$1,958, of which $539 is comprised of interest to the bank for first year.

Fixed Rate Home loan for Private Property	Years rate is fixed	Fixed interest Rate	Monthly Installments over 3 years	Total interest over 3 year period
SBI	Two years	1.58%	$1,958-2,009	$19,638
HSBC	Two years	1.65%	$1,958-2,018	$19,830
Maybank	Two years	1.7-1.75%	$1,967-1,993	$19,858

Do note that these rates do vary from time to time. To find the best home loan for you currently, please contact us.

Best Home Loans Singapore 2022 – Our Picks for Best Floating Rate Home Loan

Floating rate home loan is where the interest rate is pegged to financing institution’s board rate or floating rate, which is based on SIBOR or SOR.

Floating rate home loans are preferable in a low interest rate environment as the rate is typically lower than a fixed rate loan.

However, borrowers are exposed to the risk of interest rate rising and having to pay higher interest as compared to a fixed rate loan.

To read more on floating rate home loan, click here.

As of Jan 2018, the best floating rate home loan rate for a HDB would be 1.45% offered by Hong Leong Finance. This would involve a monthly payment of S$1,921, of which $474 is comprised of interest to the bank for first year.

Floating Rate Home loan for HDB	Interest Rate over 1^st three years	Monthly Installments	Total interest over 3 year period
Hong Leong Finance	1.45-1.65%	$1,921-1,954	$17,007
SCB 9M Fixed deposit rate	1.6%	$1,949	$17,993
OCBC	1.58-1.75%	$1,949-1,966	$18,541

Do note that these rates do vary from time to time. To find the best home loan for you currently, please contact us.

Floating Rate Home loan for Private Property	Interest Rate over 1^st three years	Monthly Installments	Total interest over 3 year period
SCB 9M Fixed deposit rate	1.6%	$1,949	$17,993
CIMB SIBOR 1M	1.55-1.65%	$1,940-1,957	$18,011
OCBC	1.6%-1.7%	$1,949-1,966	$18,541

As of Jan 2018, the best floating rate home loan rate for a private property would be 1.6% by Standard Charted Bank. This would involve a monthly payment of S$1,949, of which $523 is comprised of interest to the bank for first year.

Do note that these rates do vary from time to time. To find the best home loan for you currently, please contact us.

Best Home Loans Singapore 2022 – Fixed versus Floating Rate home loan

Should you take up a fixed or floating rate home loan? Which is better?

Well, it all depends on a range of factors from the borrowers’ profile to the interest rate environment to loan packages offered by banks.

Typically, fixed rate packages have interest rates that are higher than a floating rate loan. But they offer stability and are preferred by borrowers who have tight finances and can’t afford to take the risk of having to pay more if interest rates go up. Fixed rates are also preferred by people who are of the view that an impending series of rate hikes are coming and hence take cover with Fixed Rate home loans.

In the mid-term though, typically after about three years, a fixed rate home loan will also become a floating rate loan as there is no perpetual fixed rate home loan in Singapore. Further, borrowers have the option to refinance their loan and choose to switch to another loan type.

To read more on fixed vs floating rate home loan, click here.

Property Type	Average Fixed Rate	Average Floating Rate
HDB	1.76%	1.82%
Private Property	1.78%	1.81%

Based on the state profile, our data shows that for HDB, the average fixed rate is 1.76% is lower than the average floating rate of 1.81%. The best fixed rate of 1.58% is lower than the best floating rate of 1.6%. The loan offerings for floating rate is more and varied.

For private property, our data shows that the average fixed rate is 1.78% which is lower than the average floating rate of % though the best fixed rate of 1.65% is higher than the best floating rate of %. This is because the loan offerings for floating rate is more and varied.

History of how home loans are structured

History of Home loans packages from dbs

History of home loan packages from ocbc

History of home loan packages from uob

History of home loan packages from bank of china

History of home loan packages from Citibank

History of home loan packages from scb

History of home loan packages from hsbc

History of home loan packages from rhb

History of home loan packages from Singapura Finance

History of home loan packages from Hong Leong Finance HLF

History of home loan packages from State bank of india (SBI)