Mon. Oct 14th, 2019

Housing loan Options

4 min read

Best Fixed Rate Home Loan for HDB Flats

We found that the best fixed rate housing loans tend to be offered by banks listed in our table below, which charge interest rates that are around 15-20% lower than the average for fixed rate home loans. Therefore, choosing one of the cheaper options from the list below can save you up to S$30,000 compared to the average loan. Please note that our calculations below assume a loan of S$500,000 with a tenure of 25 years.

Find the best home loan for you through our mortgage broker partner Redbrick by using the links below.

Bank Monthly Instalment 1st Yr Interest Lock-in Period
DBS Fixed S$2,093 1.89% 3 years

UOB Fixed S$2,163 2.18% 2 years

OCBC Fixed S$2,218 2.40% 2 years

OCBC Fixed S$2,243 2.50% 3 years

CITI Fixed S$2,144 2.10% 3 years

When choosing a fixed rate housing loan, it’s important to understand the required monthly payment and the loan’s cost in terms of total interest. You should also be aware of the loan’s flexibility as far as getting refinancing after a few years. For example, some home loans allow you to refinance after just 1 year, while others have a “lock-in” period during which you are unable to renegotiate your terms. Most fixed rate loans in Singapore have fixed interest rates for up to 3 to 5 years, after which interest rates become “floating”.

Comparing total interest cost of home loans with fixed interest rates in Singapore for HDB flats
Total Interest Cost of Fixed Rate Home Loans as of January 2019

Best Floating Rate Home Loan for HDB

Alternatively, you can choose to get a floating rate home loan to finance your HDB flat. Floating rates are pegged to reference rates that continuously move over time. These reference rates are typically designated as SIBOR, SOR, a combination of SIBOR and SOR or another set of rates determined by banks (e.g. board or fixed deposit rates).

Find the best floating rate housing loan for you with our home loan broker partner Redbrick by clicking the links below.

Bank Monthly Instalment 1st Yr Interest Lock-in Period
DBS Board S$2,119 2.00% 2 years

UOB Board S$2,139 2.08% 2 years

DBS Board S$2,139 2.08% 1 year

SCB Board S$2,181 2.25% 2 years

SCB Board S$2,193 2.30% 2 years

We have found that the cheapest floating rate loans for HDB flats were offered by the lenders above, who typically charge interest rates that are 20-30% cheaper than the average lender. Therefore, choosing one of the cheaper options from the list below can help you save up to S$30,000 compared to the average loan. Please note that our calculations assume a loan of S$500,000 with a tenure of 25 years.

Comparing total interest cost of home loans with floating interest rates in Singapore for HDB flats
Total Interest Cost of Floating Rate Home Loans as of January 2019

Best Housing Loans for Private Properties

Private residences account for about 20% of homes in Singapore. These include condos as well as landed properties, and can easily cost millions of dollars. These private residences are quite popular among foreigners and permanent residents. Below, we discuss the best mortgage loan options available in Singapore for these homes.

Best Fixed Rate Home Loan for Private Residences

We found that the best fixed rate home loans for private residences were offered by the banks below, who charge rates that are approximately 20% lower than the market average. Therefore, choosing one of the cheaper options from the list below can help you save up to S$30,000 over the course of your loan. For reference, please note that our calculations assume a loan of S$500,000 with a tenure of 25 years.

Find the best home loan by connecting with our home mortgage broker partner Redbrick using the links below.

Bank Monthly Instalment 1st Yr Interest Lock-in Period
DBS Fixed S$2,093 1.89% 3 years

UOB Fixed S$2,163 2.18% 2 years

OCBC Fixed S$2,218 2.40% 2 years

CITI Fixed S$2,144 2.10% 3 years

CITI Fixed S$2,151 2.13% 3 years

When choosing a fixed rate loan, you want to minimise the total interest cost while keeping your monthly installments manageable. You should also consider the flexibility of a loan in terms of getting a refinancing after a few years, as refinancing can help you reduce your monthly instalments. Fixed rate loans in Singapore typically have fixed interest rates for up to 3-5 years, after which interest rates become “floating”. You can also apply for a home loan using our comparison calculator.

Best Floating Rate Home Loan for Private Residences

As opposed to a fixed rate, you can choose to get a floating rate mortgage loan to fund your private property purchase. These rates are called “floating” as they are tied to reference rates (e.g. SIBOR and SOR) that continually move over time. Typically, you can choose from 1 to 12-month rates, and you should choose based on your expectations on how market rates will move. As a general rule, you should go with a long-term rate in a rising rate environment; in a declining to flat environment, go with a short-term rate.

Get the best floating rate home loan by connecting with Redbrick, our home mortgage broker partner, using the links below.

Bank Monthly Instalment 1st Yr Interest Lock-in Period
DBS Board S$2,119 2.00% 2 years

UOB Board S$2,139 2.08% 2 years

DBS Board S$2,139 2.08% 1 year

SCB Board S$2,181 2.25% 2 years

SCB Board S$2,193 2.30% 2 years

We found that the lenders listed above offer the best floating rate housing loans for private residences. Their interest rates were around 25% lower than the market average. Therefore, choosing one of the cheaper options from our list can help you save at least S$30,000 compared to other offerings available in the market. Please note that our calculations assume a loan of S$500,000 with a tenure of 25 years.

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