When it comes to buying your home, it goes without saying that we want to (and should) rack in as much savings as humanly possible and get the best home loan in Singapore. We are talking about something that takes 2-3 decades to pay off after all! It is possibly the biggest purchase of our lifetime. Whether you are refinancing your home loan or taking a new loan, this guide provides you with the current best rates.
Resources on the best home loan topic typically withhold vital information (such as rates from 2nd year onwards or minimum loan amount etc), but not this guide. Here, we have gathered and analyzed over 100 mortgage loan packages across 16 banks in Singapore to help you find one that tailors to your situation best.
This article only has one aim: to equip you with the information you need to make an informed decision as a savvy consumer. If you would like to clarify your doubts with a professional mortgage advisor at any point, feel free to click on any of the buttons to fill in the form.List of all home loan packages in Singapore
The table below provides the raw data which includes all the housing loan interest rates in Singapore, updated almost real-time. You can click on the topmost row to sort it by interest rate, from the cheapest home loan to the most expensive one. However, as savvy consumers, we know that the cheapest may not be the best. Since you are here because you are looking for the best home loan in Singapore, we are not going to leave you at this. Scroll down further or refer to the table of contents above to help you navigate your way through. Each table provides Property Loan advisory Singapore the breakdown of the bits and pieces of each home loan package that you need to take note of. Remember to consider your own needs as you go along.
*Monthly instalment below based on $100,000 loan amount over 30 years loan tenor A major factor
A home loan is very different from the typical unsecured loans you see, such as personal or renovation loan where the calculation is based on a flat add-on method.
Instead of looking at interest rate first (like most people do), it will be wise to shift your attention to ‘rate type’ instead.
You wouldn’t look at airfares and exclaim, “Why is this business class ticket so much more expensive than this economy class ticket!?”, would you? You understand that business class is more premium and understandably commands a higher rate. Likewise, the type of home loan you are getting determines the interest rate you should expect.
Fixed-rate bank loan packages come with higher interest rates than floating rates packages. SIBOR, SOR and the other unfamiliar looking names all belong to the category of floating rates. In a nutshell, there are 2 main categories: fixed-rate and floating rates home loans.
Here, we zoom into the best rates for each of the different types of property and homeowners.Best Fixed-rate home loan for HDB
This table shows the best-fixed rates during the current period. In this category, the 5 banks that emerge as winners are Standard Chartered Bank, SBI, OCBC, HSBC, and Citibank.
Fixed rates home loan packages are popular because they provide the stability and security to hedge against other financial risks we may carry. The take-up rate is especially high during uncertain economic times. The security a fixed-rate mortgage offers is offset by the higher premiums it commands. Fixed rates are usually more expensive than floating rates by about 0.3% annual interest. For a loan of $500,000, this translates to approximately $1500 a year. Fixed rates mortgages have interest rates that can be fixed for a period of 1 to 5 years, though in recent years, 5-years fixed rates have become a rare sight.
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