7 Best Home Loan Interest Rates in Singapore

Embarking on the homeownership journey is no small feat. The prospect of having a place to call our own can be thrilling and stressful, especially when it comes to financing it. Fortunately, there are HDB loans and bank loans to help us afford our dream homes.  

On the little red dot of Singapore, 'home loans' and 'mortgage' loans are used interchangeably like two peas in a pod; they are the same thing.

Unless you won a lottery (or are a long-lost descendent of a chaebol family), locals and residents in Singapore would likely have to borrow money from the Housing Development Board (HDB) aka HDB loans, or the banks (called bank loans) to pay for their their homes. HDB loans are for HDB flats only. You won’t be eligible for an HDB loan if you want to purchase an Executive Condominium (EC) or other types of private residence.

Interest rates most important!

If you're new to home loans, the ONE thing you absolutely need to keep your eyes peeled for when checking out home loans is their interest rates. This pretty much determines how much more you have to pay back HDB or your bank over the next few decades. 

Fixed vs Floating interest rates

More importantly, picking the right home loan package depends on what kind of borrower you are. Here’s a comprehensive guide to help you choose the best mortgage home loans in Singapore. There are 2 main types of mortgages in Singapore - home loans with fixed interest rates, and home loans with floating interest rates. Ready? Let's go!

Housing loan rates are driven by several macroeconomic factors, including a high inflationary environment or the raising of the benchmark lending rate by the US Federal Reserve. Housing loan categories can be differentiated into fixed rate housing loans and floating rate housing loans.

This table below displays the fixed-rate home loans from major banks in Singapore. All interest rates are in per annum (p.a.) aka per year in simple terms.

*Information accurate as of time of writing, obtained via enquiry. Listed lowest interest rates per bank we found.

What is a fixed rate mortgage?

Fixed rate packages refer to home loans with interest rates that don't change regardless of market conditions; they maintain the same interest rate for three to five years. You are also “locked-in” to the bank you have chosen to loan from within this period too. 

Generally, fixed interest rate home loans tend to be slightly higher than floating interest rate housing loans - you are paying more for the security! Once the lock-in period lapses, the fixed rate will become a floating rate. 

Fixed rate home loans are great if interest rates are volatile or on the rise and you would want to safeguard yourself, or if you are conservative and want to know how much you are paying for your dream home.

HDB Loan

When you get a HDB loan, you are basically asking the HDB to lend you money to help you pay for your HDB flat first - then you pay HDB back monthly for the next 10 or 20 years. Nothing in life is free!

Interest Rate: 2.6%
Maximum Loan Quantum: 80%
Maximum Repayment Period: 25 Years

HDB lends you money at a cost - HDB loan charges you an interest rate of 2.6% per annum. Why 2.6%? The HDB loan interest rate is always going to be 0.1% above the current CPF Ordinary Account interest rate (now at 2.5%). When you sell your HDB flat, you will need to return the 2.5% interest to your CPF Ordinary Account. If you see it this way, HDB theoretically only earns 0.1% from your HDB loan.

Why do people choose HDB Loan? The HDB loan interest rate is known to be stable since the interest rate hasn't changed since July 1999 - especially when you compare it with commercial banks' mortgage interest rates which typically changes every quarter or with major financial events.

Plus, when you take a HDB loan, you can borrow up to 80% of the price of your property (as opposed to 75% for banks' home loans). So, for example, if your HDB costs $650,000, you can borrow up to $632,600. HDB loan's maximum repayment period is also very long at 25 years. Calculate your HDB loan using this HDB loan calculator.

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POSB/ DBS Home Loan

While POSB/ DBS used to state their home loan interest rates transparently on their website in the past, they stopped doing so in recent years. Again, to get the DBS and POSB home loan interest rates, I requested for quotations from home loan broker websites.

Interest Rate: Year 1 to 3 at 2.85% p.a.
From Year 4: 3M SORA + 1.00% p.a.
Maximum Loan Quantum: 75%

I found the cheapest POSB/ DBS mortgage interest rate to be 2.85% pa for 3 years. This trends up to 3.10% pa. - more expensive than Standard Chartered mortgages (see next section). The most expensive DBS/ POSB home loan stands at a floating 4.94% pa. with 2-year lock in, based on 3M SORA. Of course, I didn’t include this in the table above since it’s unrealistic and unadvisable to take such an expensive mortgage.

Check out DBS Home Loan here. Check out POSB Home Loan here. 

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Standard Chartered Home Loan

If you were to check out Standard Chartered’s home loan on their website, the home loan interest rate is a mystery. It’s set at the bank’s 36-month fixed deposit interest rate PLUS an (unknown) margin for the bank to earn from. According to the Standard Chartered Bank website, the current 36-month fixed deposit rate is 0.72% per annum (year). So, your home loan interest rate will be 0.72% + bank’s profit margin%.

To get a more accurate SCB mortgage interest rate, I requested quotes from home loan broker websites online. The lowest Standard Chartered home loan quote I got was a fixed 2.50% for 3 years, then 3M SORA + 0.55% for the 4th year, and 3M SORA + 1.00% for the 5th year onwards if you don’t (or forget to) refinance after your 3-year lock-in period.

Interest Rate: Year 1 to 3 at 2.50% p.a.
Year 4: 3M SORA + 0.55% p.a.
From Year 5: 3M SORA + 1.00% p.a.
Maximum Loan Quantum: 75%

Subsequently, I also got higher SCB mortgage interest rates at 2.6% for 3 years, then 3M SORA + 0.500% for year 4, and 3M SORA + 1.00% from year 5 onwards. There’s another variant at 2.75%, and 2.80% as you’ll see in the table above. I have listed the 5 cheapest SCB mortgage interest rates here. The most “expensive” SCB home loan with the highest interest rate stands at a floating 4.74% pa. with no lock-in, all based solely on 3M SORA - of course I didn’t include these home loan packages.

If you're applying for HDB, you'll be looking at StanChart's HBD Home Suite mortgage. For private properties, you can choose from the Home Suite and MortgageOne.

Check out Standard Chartered HDB Home Suite here. 

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OCBC Home Loan

If you’re pressed for time, OCBC promises home loan approvals within 60 minutes when you apply online. That said, the minimum loan amount for a HDB home loan starts from $200,000, and $300,000 for private properties which may deter those seeking to borrow less. OCBC’s repricing and refinancing system is also reputed to be seamless and easy.

As usual, the OCBC website doesn’t state their fixed interest rates. You’ll have to obtain OCBC home loan interest rates on request. Here’s what I found:

Interest Rate: Year 1 to 3 at 3.00% p.a.
From Year 4: 3M SORA + 1.00% p.a.
Maximum Loan Quantum: 75%

The cheapest OCBC mortgage is currently 3.00% pa. for 3 years, followed by 3M SORA + 1.00% from the 4th year onwards if you forget to refinance. The interest rate trends up to 3.05% pa. - higher than Standard Chartered and DBS’ home loans. The most expensive OCBC home loan interest rate stands at 4.74% pa for 2 years based on 3M SORA rates (not included in the above table).

Check out OCBC HDB Home Loans here. 

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Maybank Home Loan

As one of the first banks to offer Islamic banking services, such as Shariah-compliant property loan, Maybank is a reputable bank with roots from Kuala Lumpur, Malaysia. It offers a relatively lower fixed interest rate (at 3.30%) during the lock-in period. 

Interest Rate: Year 1 to 2 at 3.30% p.a.
From Year 3: 1M SORA + 1.00% p.a.
Maximum Loan Quantum: 75%

That said, keep in mind that while you get a 3.30% in the first 2 years, Maybank will charge you different interest rates from year 3 onwards if you forget to refinance. The interest rates trend up to a very expensive 3.69% for 2 years (shown in table above). The most expensive Maybank mortgage rate is a fixed 4.88% for 1 year - not included in the above table.

Compared to other banks, Maybank’s mortgage interest rates are currently on the expensive side. If you can, you should consider another bank with lower rates.

Check out Maybank HDB Home Loans here.

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Bank of China Home Loan

Bank of China may not be your regular choice for a home loan - we often think of the local banks first. Yet, if you are a fixed deposit user, you’ll most definitely be familiar with Bank of China’s attractive interest rates.

Bank of China’s home loans are eligible for Singaporeans Permanent Residents, and foreigners alike aged between 21 to 65 years old. You will need a minimum income of S$24,000 yearly, and have the usual CPF contribution statement, pay slips, income tax, property purchase documents (same as other banks).

While BOC doesn’t state its mortgage interest rates online, here’s what I found via quotation enquiry:

Interest Rate: Year 1 to 3 at 2.60% p.a. fixed
From Year 4: 3M SORA + 1.00% p.a.

The lowest BOC mortgage interest rate currently is 2.60% p.a. - matching that of HDB loan’s interest rate. The only other bank that is currently offering anything cheaper is Standard Chartered Bank at 2.50% pa. for 3-year lock in.

View the Bank of China mortgage website here.

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RHB Home Loan

RHB Bank, also known as RHB Banking Group, traces its origins back to 1913 when it was established as Kwong Yik (Selangor) Banking Corporation in Malaysia. It was one of the first local banks founded in Malaysia and played a significant role in supporting the local Chinese business community.

Following a merger, with 2 other banks in 1997, RHB Bank was formed and expanded its operations across Southeast Asia and beyond, establishing a presence in countries like Singapore, Brunei, Cambodia, Thailand, and more.

Interest Rate: 2.85% for 2 years.
3M SORA + 0.60% for 2nd year. 3M SORA + 0.65% for 3rd year. 3M SORA + 1.00% from 4th year
Maximum Loan Quantum: Up to 75% for HDB, up to 80% for private & commercial properties
Maximum Loan Tenure: 25 years for HDB, 30 years for private properties (or up to age 65)

The cheapest RHB mortgage interest rate I found via quotation was 2.85% for 2 years, subsequently 3M SORA + 0.60% for 2nd year, and 3M SORA + 0.65% for 3rd year if you forget to refinance. Its interest rates trend up to 2.90%. The most expensive RHB mortgage is a floating 4.64% for 2 years based on 3M SORA.

At 2.85%, RHB’s mortgage interest rate is on par with most major banks’ rates of 2.80% to 2.90% on the market right now.

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What is a floating rate interest mortgage?

Floating rate packages have interest rates that fluctuate daily. If you are borrowing, you must be prepared for any changes in the reference interest rates. Floating rate packages can come with or without lock-in periods. 

Singapore’s floating-rate housing loan is pegged to the Singapore Overnight Rate Average (SORA). The 3-month Compounded SORA for a given Singapore business day is published by 9 am on the next Singapore business day on MAS’ website. 

Floating Rate on a Decline

3-Month compounded SORA has been on a decline from January to August 2025, which means home loan interest rates for 3-month SORA floating packages have been on a decline too. While customers have expressed more interest in floating rate home loans, local banks reported in the news that the majority of customers are still opting for stable fixed rate home loan packages.

Floating rate mortgages are great for those who can withstand market volatility and are ideal when interest rates are set to fall. This also means knowledge of the housing market is necessary, and you may need to monitor the SORA rate occasionally.

Whether you end up choosing a fixed or floating interest rate home loans, you have first got to assess your risk appetite. If you have a larger risk appetite, opt for the floating interest rate home loan (when market interest rate falls, you get to save more money every month). Otherwise, it is crucial to understand that interest rates are always changing which is why it is best to check with the banks before signing up for a loan to get their latest rates.

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