Home Loans in Singapore (2025): Best Mortgage Rates To Consider

Whether you're buying your first flat or refinancing your condo, choosing the right home loan can save you thousands in interest payments.

With property prices continuing to climb and interest rates stabilising after a few volatile years, securing the best home loan has never been more important. From private properties to HDB flats, and whether you're a first-time buyer or seasoned homeowner, comparing mortgage packages across banks is key to making the most of your financing options. In this 2025 guide, we break down how home loans work, the differences between fixed and floating rates, and showcase the best mortgage rates available in Singapore right now.

A home loan is a long-term loan provided by a bank or financial institution to help you finance the purchase of a property. You borrow a portion of the property's value and repay it in monthly instalments that cover both the principal (loan amount) and interest. Loan tenures typically range from 5 to 30 years.

Home loans come in two broad types: fixed-rate and floating-rate. The key difference lies in how the interest rate is structured. You'll also need to factor in lock-in periods, penalty fees for early repayment, and whether the loan allows for partial repayment without extra charges.

>> MORE: Can you pay a mortgage with a credit card?

In Singapore, the terms "home loan," "housing loan," and "mortgage" are often used interchangeably. Technically, "mortgage" refers to the legal agreement that secures the loan against the property. However, most banks and consumers treat them as synonymous.

So whether you're applying for a bank loan to buy a condo or an HDB flat, you'll often hear all three terms used. What matters more is the type of property and loan terms you're applying for.

The type of property you’re buying determines the type of home loan you’re eligible for. If you’re buying an HDB flat, you can choose between an HDB concessionary loan or a bank loan. If you’re buying a private property, your only option is a bank loan.

The rules for loan amounts, downpayments, and eligibility differ between the two. Bank loans also apply to properties under construction (BUC) and refinancing packages.

*Please note that the rates provided below are indicative and subject to change. It's advisable to consult with the respective banks or financial institutions for the most current rates and terms.

Private property

If you're buying a resale condo or landed property, your loan eligibility and approval are closely tied to the property's valuation and your personal finances. Most buyers go for bank loans, as HDB loans are not applicable for private property.

Key considerations include:

• A downpayment of at least 25% (of which 5% must be in cash)

• Total Debt Servicing Ratio (TDSR), which limits your total monthly debt obligations to 55% of your gross monthly income

• The condition and age of the property, which may affect loan tenure and valuation

Loan disbursement typically happens around the completion date, and you’ll need to factor in stamp duties, legal fees, and possible renovation costs.

Resale

Best fixed mortgage rates for a resale condo or landed home

Best floating mortgage rates for a resale condo or landed home

Refinancing

Refinancing involves switching your existing home loan to a different bank to secure a better rate or more favourable terms. Most people consider this once their lock-in period ends — typically after 2 to 3 years.

When refinancing:

• Check for hidden costs like legal fees and valuation charges, though many banks offer subsidies to offset these

• Compare the 3-year average rate, not just Year 1

• Be aware of your remaining loan tenure and outstanding amount, as this affects your options

Refinancing can result in significant savings, especially if you switch from a high-rate legacy loan to a lower SORA-pegged floating package.

>> MORE: How to refinance a mortgage in Singapore

Best fixed mortgage rates for a refinancing

Best floating mortgage rates for a refinancing

BUC (Building Under Construction)

A BUC loan is used for properties that are still under development — common for new launches. These loans differ from resale ones in that they’re disbursed progressively as the developer completes each phase of construction.

For BUC loans:

• Most packages are floating-rate, pegged to SORA

• You only pay interest during the construction phase (also called interest-only servicing)

• Legal fees and upfront costs may be slightly lower, but you’ll still need to pay stamp duties early on

Choose a BUC loan package with care — it should ideally offer flexibility to refinance after TOP (Temporary Occupation Permit), when more loan packages become available.

Best BUC home loan rates

HDB

For HDB flats, you have two main financing options: the HDB Concessionary Loan or a bank loan. HDB loans offer a fixed 2.6% rate and more lenient downpayment rules, but bank loans can be cheaper when interest rates are low.

You'll need to decide:

• Whether you qualify for an HDB loan (e.g. income ceiling of S$14,000 for families)

• How much CPF savings vs. cash you’re comfortable using

• Which route gives you more flexibility if you plan to upgrade or refinance later

Resale

When purchasing a resale HDB flat, buyers can choose between an HDB loan and a bank loan. HDB loans are often preferred by first-time buyers due to their smaller upfront cash requirement (as little as 5%) and higher loan-to-value limit of 80%.

For bank loans:

• A 25% downpayment is required, of which 5% must be in cash

• Legal and valuation fees apply

• You can use CPF to cover monthly repayments

Keep in mind that HDB resale buyers also have to budget for the Cash Over Valuation (COV), which cannot be paid using CPF or loan proceeds.

Best fixed mortgage rates for a resale HDB flat

Best floating mortgage rates for a resale HDB flat

Refinancing

If you’re currently on an HDB loan, switching to a bank loan through refinancing could lower your monthly repayments. However, once you refinance to a bank loan, you can’t switch back to an HDB loan in the future.

Important points to consider:

• You’ll need to meet TDSR and credit requirements, just like private loan borrowers

• There is no lock-in period with HDB loans, so you can refinance anytime

• Legal and valuation fees apply, but banks often offer subsidies for refinancing

It’s especially worthwhile to refinance if current bank rates are 0.5% to 1% lower than the HDB concessionary rate.

Best floating mortgage rates for HDB loan refinancing 

Best fixed mortgage rates for HDB refinancing

A fixed-rate loan offers the certainty of a locked-in interest rate for a set period (typically 2 to 5 years), after which it reverts to a floating rate. This is great for those who value stability and predictability in repayments.

Floating-rate loans, on the other hand, are pegged to market benchmarks like SORA. Your interest rate – and monthly repayment – can change every month or quarter. These are suitable for borrowers who can tolerate some fluctuation in exchange for potentially lower rates.

What is SORA?

SORA, or the Singapore Overnight Rate Average, is the benchmark used for most floating-rate home loans in Singapore today. Replacing SIBOR, SORA reflects the volume-weighted average rate of overnight borrowing transactions in Singapore’s financial markets. Most floating home loans are structured as 3M SORA + spread. For example, if 3M SORA is 2.5% and your bank’s spread is 0.8%, your interest rate becomes 3.3%.

You might consider a SORA-pegged floating loan if you’re comfortable with rate fluctuations and want to benefit from potentially lower interest rates in the future. However, if you prefer stability and predictable monthly payments — especially during times of interest rate volatility — a fixed-rate loan may suit you better. 

To qualify for a home loan, banks assess factors such as:

• Age (usually between 21 and 65)

• Citizenship or PR status

• Income level and employment stability

• Credit score and existing debt

• Loan-to-Value (LTV) ratio: up to 75% for bank loans

• Total Debt Servicing Ratio (TDSR): must not exceed 55% of gross monthly income

For HDB loans, there are additional criteria:

• Monthly household income cap (S$14,000 for families)

• Must not own private property

• Must not have taken more than 2 previous HDB loans

Here are some practical tips to help you evaluate and choose the most suitable mortgage for your needs.

Compare interest rates over a 3-year average, not just Year 1 teaser rates

Many banks advertise attractive Year 1 rates to lure borrowers, but these often jump in subsequent years. Always look at the average effective rate over the first 2 to 3 years — this gives you a more realistic picture of your repayment costs.

Check the lock-in period and early repayment penalties

Some home loans come with lock-in periods (typically 1 to 3 years) during which you may face penalties for refinancing or full repayment. If you think you might sell or refinance soon, consider loans with shorter lock-in periods or no lock-in at all.

Consider how long you plan to keep the property

If you plan to stay long-term, a fixed-rate loan could offer peace of mind through stable monthly repayments. On the other hand, if you're planning to upgrade, downsize, or sell in a few years, a floating-rate loan might offer more flexibility and potential savings.

Use mortgage calculators or speak to a broker to simulate your monthly repayment

Online calculators let you test different scenarios — fixed vs floating, different loan tenures, and interest rates — to see how they affect your monthly cash flow. Alternatively, a mortgage broker can give you a clearer view of the options that suit your financial profile.

Applying for a home loan typically involves:

1. Getting an In-Principle Approval (IPA): This gives you a loan amount estimate from the bank.

2. Securing the Option to Purchase (OTP): Once you find a property.

3. Submitting your home loan application: Include documents like payslips, CPF contribution history, and Notice of Assessment.

4. Receiving the Letter of Offer: Review terms, lock-in period, and legal fees.

5. Legal Process: Appoint a lawyer to handle conveyancing.

Many banks now support MyInfo-based applications, making the process faster and paperless.