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Best Home Loan Rates Singapore 2026 — Compare DBS, OCBC, UOB, SCB & HSBC

Last updated & verified: 5 June 2026

Your home loan is likely the single biggest financial commitment you will ever make. A 0.5% difference in interest rate on a $500,000 loan over 25 years means roughly $35,000 more or less in total interest. This guide compares home loan rates from every major bank in Singapore, explains fixed vs floating, and shows you exactly how to get the lowest rate possible.

Best home loan rates in Singapore 2026 — compare bank rates

TL;DR

Best fixed rates: from 2.60% p.a. (2-year lock-in) — DBS and SCB lead
Best floating rates: from 2.50% p.a. (SORA-pegged) — OCBC and HSBC competitive
HDB loan rate is 2.60% (pegged at CPF+0.1%) — stable but no longer cheapest
Refinancing can save $10,000–$50,000 — check after your lock-in period ends
Always compare at least 3 banks and negotiate — published rates are not final

Home Loan Rates Compared (June 2026)

Here is a snapshot of the most competitive home loan packages from Singapore's major banks as of June 2026. Rates shown are for new purchases with 75–80% LTV. Actual rates depend on your loan amount, property type, and credit profile.

DBS Fixed Rate Package

2.60% p.a. for Year 1–2 (fixed), then 3M SORA + 0.80% thereafter. Lock-in: 2 years. Legal subsidy available for loans above $500,000. Free fire insurance for first year. One of the most competitive fixed-rate packages in the market.

OCBC Fixed Rate Package

2.65% p.a. for Year 1–2 (fixed), 2.75% p.a. for Year 3 (fixed), then 3M SORA + 0.78% thereafter. Lock-in: 3 years. 3-year fixed option gives longer certainty. Legal subsidy for loans above $400,000.

UOB Fixed Rate Package

2.68% p.a. for Year 1–2 (fixed), then 3M SORA + 0.85% thereafter. Lock-in: 2 years. UOB offers attractive refinancing packages and may waive legal/valuation fees for larger loans. Competitive for HDB purchases.

Standard Chartered Fixed Rate Package

2.60% p.a. for Year 1–2 (fixed), then 3M SORA + 0.75% thereafter. Lock-in: 2 years. SCB consistently offers some of the lowest post lock-in spreads. Full legal subsidy for loans above $500,000. Strong option for private properties.

HSBC Fixed Rate Package

2.65% p.a. for Year 1–2 (fixed), then 1M SORA + 0.75% thereafter. Lock-in: 2 years. HSBC uses 1-month SORA (more responsive) vs 3-month at most banks. Complimentary home valuation. Good for borrowers who want faster rate adjustments.

Floating Rate (SORA-Pegged) Packages

OCBC SORA Floating Package

3M SORA + 0.55% (currently ~2.50% p.a.). No lock-in or 1-year lock-in options available. Rate adjusts quarterly based on 3-month compounded SORA. Best for borrowers who want flexibility and believe rates will stay low or fall.

DBS SORA Floating Package

3M SORA + 0.60% (currently ~2.55% p.a.). 2-year lock-in. Rate adjusts quarterly. DBS offers a hybrid option: first year fixed at 2.60%, then switches to SORA + 0.60%. Good middle ground between certainty and flexibility.

HSBC SORA Floating Package

1M SORA + 0.55% (currently ~2.50% p.a.). No lock-in. Uses 1-month SORA for faster rate transmission. HSBC's floating package is among the cheapest in the market with zero lock-in, ideal for those planning to sell or refinance soon.

Note: Home loan rates change frequently. The rates above are indicative as of June 2026 and may differ from what banks offer you. Always request a formal rate quote from at least 3 banks before deciding — you can compare home loan rates on SingSaver to see the latest packages side by side. Mortgage brokers can also negotiate better rates on your behalf at no cost to you.

Fixed vs Floating Rate — Which to Choose

This is the most important decision when choosing a home loan. Both have clear advantages depending on your situation and market outlook.

Fixed Rate Loans

How it works: Your rate is locked for 2–3 years (typically 2.60–2.95% p.a. in 2026). After the fixed period, it reverts to a floating rate (SORA + spread).
Best for: First-time buyers who want payment certainty. Borrowers who expect interest rates to rise. Anyone who values a predictable monthly budget.
Downside: You pay a premium for certainty — fixed rates are usually 0.10–0.20% higher than floating. Early repayment during lock-in incurs a penalty (typically 1.5% of the redeemed amount).
Current market view: With SORA relatively stable in the 1.8–2.0% range, fixed rates at 2.60% represent a modest premium for peace of mind.

Floating Rate Loans (SORA-Pegged)

How it works: Your rate = SORA (3-month or 1-month compounded) + bank spread (0.55–0.85%). Rate adjusts monthly or quarterly. Current effective rate: ~2.50–2.80% p.a.
Best for: Borrowers comfortable with rate fluctuations. Those who expect rates to stay stable or fall. Anyone planning to sell or refinance within 2–3 years.
Downside: Your monthly repayment can increase if SORA rises. A 1% SORA increase on a $500,000 loan adds roughly $250/month to your repayment.
Current market view: SORA floating packages are currently 0.05–0.15% cheaper than fixed. If rates remain stable, you save over the loan tenure.

Our take: For most Singapore homeowners in 2026, a 2-year fixed rate package offers the best balance of cost and certainty. The premium over floating is small (0.10–0.15%), and you get 2 years of predictable payments. After the lock-in period, you can always refinance to the best available rate.

HDB Loan vs Bank Loan

If you are buying an HDB flat, you have a choice between an HDB concessionary loan and a bank loan. Here is how they compare:

HDB Concessionary Loan

Rate: 2.60% p.a. (pegged at CPF OA rate + 0.1% = 2.5% + 0.1%). LTV: Up to 80%. Down payment: Minimum 20% (can use CPF entirely). Lock-in: None — you can refinance to a bank loan anytime with no penalty. Key advantage: Stability and no lock-in. Rate only changes when CPF OA rate changes (rare). Key disadvantage: At 2.60%, it is no longer the cheapest option. Bank fixed rates now match or beat it.

Bank Loan (for HDB)

Rate: From 2.50% (floating) to 2.68% (fixed) p.a. LTV: Up to 75%. Down payment: Minimum 25% (5% must be cash). Lock-in: Typically 2–3 years. Key advantage: Potentially lower interest rate, especially with floating packages. Key disadvantage: 5% cash down payment required. Lock-in penalties if you sell or refinance early. Rate volatility with floating packages.

Rule of thumb: If you can comfortably afford the 5% cash down payment and are comfortable with rate changes, a bank loan is likely cheaper. If you prefer maximum flexibility (no lock-in, fully CPF-funded down payment), the HDB loan is the safer choice. Many buyers start with an HDB loan and refinance to a bank loan after 2–3 years when they have more cash reserves.

Top Bank Packages Breakdown

Here is a closer look at what each major bank offers beyond just the headline rate.

DBS / POSB

Strength: Largest bank in Singapore with the most competitive rates. DBS Home Loan is often the price leader.
Fixed: 2.60% (Year 1–2), then SORA + 0.80%
Floating: SORA + 0.60% (~2.55%)
Perks: Legal subsidy for loans above $500K. Free fire insurance (Year 1). DBS Rewards points on mortgage payments for DBS Treasures clients.
Best for: Existing DBS/POSB customers. Those who want the security of Singapore's largest bank.

OCBC

Strength: Best 3-year fixed package and competitive floating rates.
Fixed: 2.65% (Year 1–2), 2.75% (Year 3), then SORA + 0.78%
Floating: SORA + 0.55% (~2.50%)
Perks: Legal subsidy for loans above $400K. OCBC Home Loan Protect (discounted MRTA). Attractive for refinancing with fee waivers.
Best for: Those wanting longer fixed-rate certainty (3 years). Refinancers looking for the lowest floating rate.

UOB

Strength: Strong refinancing packages and HDB-focused deals.
Fixed: 2.68% (Year 1–2), then SORA + 0.85%
Floating: SORA + 0.65% (~2.60%)
Perks: May waive legal and valuation fees for larger loans. UOB One Account integration for higher effective savings rate.
Best for: HDB buyers. UOB One Account holders who want to combine mortgage with savings.

Standard Chartered

Strength: Lowest post lock-in spreads and aggressive fixed rates.
Fixed: 2.60% (Year 1–2), then SORA + 0.75%
Floating: SORA + 0.60% (~2.55%)
Perks: Full legal subsidy above $500K. The lowest reversion rate (SORA + 0.75%) means your rate after lock-in stays competitive without needing to refinance immediately.
Best for: Private property buyers. Borrowers who plan to stay beyond the lock-in period (best reversion rate).

HSBC

Strength: Uses 1-month SORA (faster rate transmission) and no lock-in floating option.
Fixed: 2.65% (Year 1–2), then 1M SORA + 0.75%
Floating: 1M SORA + 0.55% (~2.50%), no lock-in available
Perks: Complimentary home valuation. No lock-in floating option gives maximum flexibility.
Best for: Borrowers who want maximum flexibility with no lock-in. Those who prefer 1-month SORA responsiveness over 3-month.

Refinancing — When & How to Save

Refinancing means switching your existing home loan to a new bank for a better rate. It is one of the most effective ways to save money on your mortgage, yet many homeowners never do it.

When to Refinance

After your lock-in period ends. This is the most common trigger. Once your 2–3 year lock-in expires, your rate reverts to a higher floating rate (SORA + 0.75–0.85%). Refinancing to a new fixed package can save significantly.
When rates have dropped significantly. If market rates are 0.3% or more below your current rate and you have no lock-in penalty, refinancing is likely worthwhile.
3–6 months before lock-in ends. Start comparing rates early. The refinancing process takes 2–3 months, so plan ahead.

Refinancing Costs

Legal fees: $2,500–$3,500 (often subsidised by the new bank for loans above $400K–$500K)
Valuation fee: $300–$500 (sometimes waived by the new bank)
Clawback penalty: If refinancing before the subsidy clawback period (usually same as lock-in), you must return any legal/valuation subsidies received from the current bank
Total out-of-pocket: Often $0 if the new bank covers legal and valuation fees. Budget $3,000–$4,000 if not subsidised.

Savings Calculator Example

Scenario: $500,000 outstanding, 20 years remaining

Current rate: 3.20% (post lock-in reversion) → Monthly: $2,823
New rate: 2.60% (new 2-year fixed) → Monthly: $2,662
Monthly savings: $161
2-year savings: $3,864 (before refinancing again)
Total interest saved over 20 years (if you refinance every 2–3 years to stay competitive): $25,000–$40,000

Use a mortgage refinancing calculator to work out your exact savings. Tools like the MoneySmart home loan calculator let you input your outstanding balance, remaining tenure, current rate, and the new rate to see your monthly and total interest savings.

Mortgage Calculator Tips

Before committing to a home loan, run the numbers carefully. Here are the key calculations every borrower should do:

Monthly Repayment Calculator

Use the formula: M = P[r(1+r)^n]/[(1+r)^n-1] where P = loan amount, r = monthly interest rate, n = total months. For a $500,000 loan at 2.60% over 25 years: monthly repayment = $2,271. At 3.10%: $2,413. That 0.5% difference = $142/month or $42,600 over 25 years.

Total Interest Cost

Multiply your monthly repayment by total months, then subtract the loan amount. $500,000 at 2.60% for 25 years: total repayment = $681,300. Total interest = $181,300. At 3.10%: total interest = $223,900. Choosing the right rate saves you $42,600.

Affordability Check (TDSR & MSR)

TDSR (Total Debt Servicing Ratio): Your total monthly debt repayments must not exceed 55% of gross monthly income. Include car loans, credit card minimums, and student loans. MSR (Mortgage Servicing Ratio): For HDB/EC only — mortgage repayment must not exceed 30% of gross monthly income. Banks use a stress-test rate of 4.0% (not your actual rate) for these calculations.

Partial Prepayment Strategy

Making partial prepayments reduces your principal and total interest. On a $500,000 loan at 2.60% for 25 years, a one-time $50,000 prepayment in Year 5 saves approximately $28,000 in interest and shortens your loan by ~3 years. Check your bank's partial prepayment policy — some allow free prepayments up to a certain percentage annually.

5 Common Mistakes to Avoid

1. Only comparing headline rates

The headline rate (Year 1–2 fixed) is not the full picture. Check the reversion rate (what you pay after lock-in), the spread over SORA, and any conditions like minimum deposit requirements. A package with 2.60% fixed but SORA + 0.90% reversion may cost more long-term than 2.65% fixed with SORA + 0.75% reversion.

2. Ignoring the lock-in period

A 3-year lock-in means you pay a penalty (typically 1.5% of outstanding balance) if you refinance, sell, or make large prepayments within 3 years. On a $500,000 loan, that is a $7,500 penalty. If there is any chance you will sell or refinance within 2–3 years, choose a shorter lock-in or a no lock-in floating package.

3. Maxing out your borrowing limit

Just because you qualify for a $1 million loan does not mean you should take it. Banks stress-test at 4.0%, but actual rates could go higher. Leave a buffer — aim for monthly repayments at 25–30% of gross income, not the maximum 55% TDSR.

4. Not refinancing after lock-in

After your lock-in expires, your rate jumps to the reversion rate. Many homeowners let inertia keep them on expensive packages for years. Set a calendar reminder 3–6 months before your lock-in ends and start comparing home loan rates.

5. Skipping the mortgage broker

Mortgage brokers in Singapore are free for borrowers (they earn a commission from the bank). A good broker compares rates across all banks, negotiates on your behalf, and handles the paperwork. They often secure rates 0.05–0.10% lower than what you would get walking into a bank directly.

Frequently Asked Questions

What is the lowest home loan rate in Singapore in 2026?

As of June 2026, the lowest home loan rates start from around 2.60% p.a. for fixed-rate packages (2-year lock-in) and 2.50% p.a. for floating-rate packages pegged to SORA. DBS, OCBC, and Standard Chartered are consistently among the most competitive lenders.

Should I choose a fixed or floating rate?

Fixed rates (2.60–2.95% p.a.) give you payment certainty for 2–3 years. Floating rates (from 2.50% p.a.) are currently cheaper but can change quarterly. Most borrowers prefer fixed rates for the peace of mind. Choose floating if you plan to sell or refinance within 2–3 years, or if you are comfortable with rate fluctuations.

How much can I save by refinancing?

On a $500,000 loan with 20 years remaining, reducing your rate by 0.5% saves approximately $27,000 in total interest. Factor in legal fees ($2,500–$3,500) and valuation fees ($300–$500). Refinancing is generally worthwhile if the rate difference is 0.3% or more.

What is SORA and how does it affect my home loan?

SORA (Singapore Overnight Rate Average) replaced SIBOR as the benchmark rate for home loans in Singapore. It reflects the daily average rate of overnight borrowing between banks. Most floating-rate home loans are pegged to 3-month compounded SORA (currently around 1.95%). Your effective rate = SORA + bank spread (0.55–0.85%). When SORA rises, your mortgage repayment increases; when it falls, you pay less.

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Sources

Home loan rates are indicative and based on publicly available bank rate sheets. Actual rates vary based on credit profile, loan amount, and tenure. Always confirm with the bank directly.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Home loan rates are indicative and subject to change. Always consult a qualified financial advisor or mortgage broker before making mortgage decisions. WhyNotDeals is not a licensed financial advisor and does not receive commissions from any bank mentioned in this article.

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