We know how heavy this choice can feel. You might be protecting savings, planning retirement income, or aiming to free cash for a new goal. We stand with you to make that process calmer and clearer.
This guide explains today’s local landscape: common pegs like SORA, how banks add spreads, and why an HDB rate of 2.60% (CPF OA 2.50% + 0.1%) matters to your monthly repayment.
We show the practical differences between HDB and bank options, outline LTV up to 75%, and note that TDSR is 55% for purchases. You’ll also see normal fixed periods of 2–5 years and what can change on rate review dates.
Bring documents such as NOA, payslips, and OTP; MyInfo via Singpass can pre-fill many items. Property Equity Loan — Whatsapp us at to get latest deals.
Key Takeaways
- Understand how SORA-based rates and spreads affect repayments over time.
- HDB housing loans at 2.60% offer certainty but switching to a bank is usually irreversible.
- Check LTV (up to 75%) and TDSR (55%) early to gauge borrowing room.
- Fixed terms often last 2–5 years before reverting to a floating peg + spread.
- Prepare NOA, payslips, OTP and use MyInfo to speed approvals.
Why This Buyer’s Guide Matters for Singapore Borrowers Today
Knowing when and how your mortgage rate resets helps you avoid surprise jumps in monthly instalments.
Rates and pegs have shifted in recent years. 1M/3M Compounded SORA is published by MAS at 9 A.M. each business day. Fixed-rate terms typically last 2–5 years before reverting to a floating peg.
We walk you through the trade-offs between fixed periods and floating pegs like SORA. That helps you plan for changes to your monthly repayments and the overall loan interest rate.
Bank credit rules matter. TDSR, LTV and documentation directly affect the loan amount you can access. Refinancing an own-stay may face higher TDSR thresholds (80–100%) versus 55% for purchases.
Follow clear, practical steps to avoid common pitfalls: underestimate a rate review, miss paperwork, or pick a package that locks you into high long-term costs.
For a guided review of bank options and a shortlist in hours, not weeks, Property Equity Loan — Whatsapp us at to get latest deals.
best property loan singapore: How to Choose with Confidence
Match your finances, time horizon and appetite for change before you sign.
We start by matching your profile to the right plan. If your income is steady, a fixed rate period can keep monthly payments predictable. If you expect rates to fall, a SORA‑based mortgage may give you savings over time.
Match your profile to the right loan package
Check tenure, planned holding period and the loan amount you need. Align these to your cash flow and goals.
Prioritize rate stability vs. flexibility
Assess risk tolerance. Stability reduces stress at each review date. Flexibility lets you prepay or switch when markets move.
“Compare spreads, lock‑in terms, prepayment rules and fees — not just the headline interest rate.”
- Look at peg + spread and how installments recalc after each review (1M vs 3M SORA).
- Check features: free switches, partial prepayment, and rate caps.
- Use our checklist to weigh fixed versus floating against your servicing ratio and savings buffer.
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HDB Loan vs. Bank Loan for HDB Flats: Key Differences You Must Know
Selecting HDB versus a bank package determines eligibility, rate structure, and whether you can switch back later.
Eligibility and the HLE letter
Check basic criteria: at least one Singaporean applicant, a recognised family nucleus, household income under S$14,000, and no ownership of a private home.
Obtain an HLE letter before you commit. It confirms how much HDB will allow you to borrow under its rules.
How HDB rates work
HDB’s housing rate is CPF OA 2.50% + 0.1% = 2.60%. It is technically floating but has stayed steady because of the CPF peg and statutory minimums.
There is no lock-in period. That perceived stability can help your cash flow when market rates rise.
Comparing with a bank package on an HDB flat
Banks may offer lower promotional rates at times, but packages often include lock-in periods and different prepayment rules.
You can refinance from HDB to a bank, but you cannot return to an HDB loan later — this is a one-way switch, so timing is important.
“Weigh predictability, fees, and exit rules — a stable HDB rate can protect budgets, while bank offers may save you when rates fall.”
- Check total costs: legal fees, subsidies, and any early redemption charges.
- Align your choice with how long you plan to hold the home and your tolerance for rate moves.
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Understanding Mortgage Pegs in Singapore: SORA, BOARD, and FHR
How your mortgage ties to a peg determines how often your monthly payment can move. Pick a peg that matches your tolerance for change and your planning horizon.
Why 1M/3M Compounded SORA leads the market: SORA is the interbank overnight rate. MAS publishes 1M and 3M compounded SORA at 9 A.M. daily. That transparency is why many banks price home loans as SORA + spread.
How spreads and rate-setting dates work
Your final interest rate equals the peg plus a spread. On each rate-setting date the bank recalculates your monthly instalment over the remaining tenure.
BOARD and FHR explained
BOARD rates are set by the bank and are less transparent. That gives banks discretion and can hide timing risk.
FHR tracks fixed deposit boards. Despite the name, FHR is not a true fixed rate — it can change if banks adjust deposit benchmarks.
- SORA offers market transparency; 1M adjusts monthly, 3M adjusts quarterly.
- Choose 3M if you prefer fewer payment moves; choose 1M to track market shifts more closely.
- Fixed-rate periods generally run 2–5 years before reverting to a floating peg.
“Compare spread, review schedule and any free-switch options — not just the headline rate.”
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Fixed Rate vs. Floating Rate Home Loans
Your choice of a fixed-term or a floating package hinges on whether you prefer steady payments or market-linked savings.
Fixed-period limits in Singapore and post-fixed reversion
Fixed-rate terms commonly run two to five years in local bank offers. After that period, your mortgage typically switches to a peg such as SORA plus a spread. SIBOR was phased out in 2024, and SORA is now the standard benchmark.
Choosing between certainty and potential savings
If you value budgeting certainty, a fixed rate keeps monthly instalments stable during the commitment period. That protects cash flow when rates climb.
Floating SORA packages can deliver savings if market rates fall, but your payment will adjust on each review date. Have a buffer for potential increases.
- Plan for reversion to SORA + spread at the end of the fixed period.
- Watch lock-in rules, prepayment clauses and any free-switch perks.
- Model both fixed and floating paths over your intended holding period.
| Feature | Fixed term | Floating (SORA) |
|---|---|---|
| Payment stability | High | Variable |
| Typical period | 2–5 years | Ongoing |
| Interest setting | Set for period | Peg + spread |
| Best for | Budget certainty | Cost savings if rates fall |
“We balance stability and flexibility to match your income visibility and savings cushion.”
Property Equity Loan — Whatsapp us at to get updated fixed and SORA pricing from leading banks and a recommendation that fits your comfort level.
Total Debt Servicing Ratio and Loan Eligibility
Before any offer, banks test whether your income and assets comfortably cover repayments under stress.
How TDSR and servicing checks work
The debt servicing ratio caps your monthly obligations. For purchases, TDSR is 55% of your qualified income. That helps keep total debt manageable when you take a home or mortgage.
Higher limits for refinancing
When refinancing an own‑stay, banks may use a higher servicing ratio (around 80–100%). This can improve loan eligibility if your income is tight.
Using Eligible Financial Assets (EFA)
You can boost your maximum loan amount with EFA. MAS’s formula counts 30% of eligible funds divided by 48 months as monthly income.
- Eligible assets: cash deposits, and some securities after haircuts.
- Funds must be shown at application and near completion, or pledged for four years.
- Banks stress‑test at a minimum rate of 4% or higher to check repayments.
“Understand TDSR, EFA and stress tests so you can right‑size your maximum loan and tenure.”
We’ll help organise NOA, payslips and statements. Whatsapp us at to pre‑qualify in minutes and estimate your borrowing power before you pay any option fee.
Loan-To-Value, Maximum Loan Amount, and Tenure Considerations
Understand the rules up front so you can plan a repayment path that fits your life stage.
For a first residential purchase, lenders commonly allow up to 75% LTV of the valuation. That applies whether the unit is private property or when you take a bank loan on an HDB flat.
How tenure, age and property type shape what you borrow
The loan amount you receive is the lower of price or valuation multiplied by the LTV cap. Banks then test this against your TDSR and existing liabilities.
Tenure is capped by your age and the property type. Shorter tenures cut total interest but raise monthly instalments. Older borrowers often combine income with Eligible Financial Assets to improve approval odds.
- Private condos and landed homes are assessed differently from HDB; banks may set varied pricing and conditions.
- Prepare your OTP for purchases or your latest mortgage statements for refinancing to speed approval.
| Factor | Typical effect | Practical tip |
|---|---|---|
| LTV cap | Up to 75% for first purchase | Check valuation early |
| Loan tenure | Capped by borrower age & property type | Balance monthly cost vs total interest |
| Maximum loan amount | Lower of price or valuation × LTV | Factor in TDSR and liabilities |
“Model several tenures to see which monthly payment you can live with.”
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Within Lock-In Period: Penalties, Partial Prepayment, and Flexibility
Lock-in terms shape what you can do with your mortgage in the early years. Read the small print so you can act without surprise costs.
Common commitment lengths and fees
Most bank packages carry a typical two-year lock-in period. If you repay the full outstanding loan during that period, banks usually charge a 1.5% redemption penalty.
Fixed-rate contracts often apply the same 1.5% to any early partial prepayment. That means a lump-sum reduction can trigger fees even if you do not close the account.
Practical options while you’re within lock-in
- Some plans allow limited partial prepayments each year; check caps and whether a 1.5% fee applies to the prepaid slice.
- Floating packages tend to be more flexible on partial prepayments — we’ll map savings versus fees to find your break-even.
- If you expect to move or refinance within two years, consider shorter commitment periods or switch clauses when you sign.
“Timing matters: aligning a prepayment just after a rate review can boost savings without hurting cash flow.”
We’ll review your letter of offer to point out notice periods, minimum sums and any fee waivers. Whatsapp us at to analyse whether prepaying now or waiting is better for your home loans and mortgage plan.
Banks in Singapore and Typical Home Loan Packages
Your bank choice and package determine how often payments change and what flexibility you keep. We map common structures so you can compare true costs, not just headline rates.
Common package structures: 3M Compounded SORA and fixed
Major lenders such as DBS, UOB, OCBC, Maybank, Standard Chartered, HSBC, Citibank, CIMB, Bank of China and Hong Leong Finance usually offer either 3M Compounded SORA packages or fixed periods.
3M SORA ties interest to a transparent market peg and adjusts quarterly. Fixed options lock the rate for a set period, giving predictable payments for those years.
Example features: free switch options and prepayment limits
Feature highlights:
- Some banks allow a one‑time free switch after the first year for new loans.
- Prepayment windows may permit up to 50% repayment in the first two years, subject to terms.
- We compare spreads, lock‑in fees and admin charges across lenders to give apples‑to‑apples comparisons.
Beyond price, we weigh service, legal subsidies and repricing pathways you can use after the commitment period. For investors, we examine rental income treatment and vacancy buffers so TDSR stays manageable.
“We curate a shortlist from our bank panel to match your profile and saving horizon.”
Property Equity Loan — Whatsapp us at to get latest deals. Ask for an updated matrix of loan packages and a recommended shortlist within 24 hours.
Applying with MyInfo using Singpass: Faster Approvals
Go digital to shorten approval timelines and reduce paperwork. Applying via MyInfo using singpass pulls verified data—like your NOA—directly from government records. That speeds income checks and cuts manual entry errors.
Digital submissions: NOA, payslips, and OTP
Upload key documents—Notice of Assessment, recent payslips and your Option to Purchase—to give the bank a complete file. A full digital package often moves quicker to credit assessment and valuation.
- Apply digitally via MyInfo using singpass to pre-fill your details and improve data security.
- Banks send the letter offer by email or SMS once checks and valuation finish.
- We guide any extra requests—tenancy agreements, statements or clarifications—to avoid delays.
If an application stalls, we troubleshoot directly with the bank to clear outstanding items. Whatsapp us at for a pre-checklist and to coordinate submissions so your approval progresses cleanly from AIP to the digital letter offer.
“Digital tools reduce friction. They let you focus on choosing the right home loan and checking the rate and terms.”
Review HDB and private purchase guidance as you prepare documents and accept the LO online.
Required Documents and the Letter of Offer
A clear, signed letter of offer turns an approved in-principle application into a binding set of terms you can accept or negotiate.
From AIP to LO: locking in your rate and terms
Move from AIP to a formal letter by completing valuation, credit checks and full documentation. Bring your NOA, recent payslips and the OTP for purchases.
If you claim rental income, include the tenancy agreement with eStamping. For refinancing, add your latest mortgage statement and confirm redemption timelines with your current bank.
The letter offer will state the rate, spread, lock-in period and fees. It typically needs acceptance within about seven days, or the terms may lapse.
- We review LO clauses with you — prepayment rules, subsidy clawbacks and conditions precedent before disbursement.
- For fixed packages, note the reversion to a floating peg plus spread after the fixed period ends.
- We coordinate with the law firm to align disbursement dates and avoid overlapping interest or late fees.
Keep digital copies of all documents. They simplify future repricing or refinancing exercises.
“Whatsapp us at to schedule a quick LO walkthrough before you sign — lock in the right terms at the right time.”
Refinancing Home Loan Strategies in the Current Rate Cycle
Refinancing becomes valuable when your current package reverts to a floating peg and your instalment no longer fits your budget.
As fixed periods end and the mortgage reverts to a peg plus spread, your monthly payment can jump. We review your remaining tenure, outstanding balance and the current SORA curve to decide whether to fix, float, or wait.
- Compare total switching costs — legal fees, valuation and any subsidy clawbacks — against projected savings.
- For owner‑occupied refinancing, higher TDSR thresholds (around 80–100%) may ease approvals if income has changed.
- Time applications 3–6 months ahead of reversion to secure terms and avoid short‑term rate exposure.
“We balance timing and costs so refinancing reduces risk and improves cash flow.”
| Situation | Likely action | Key check |
|---|---|---|
| Fixed period ending | Refinance to reset spread or fix again | Projected instalment vs current budget |
| Owner‑occupied with income change | Use higher TDSR threshold | Affordability under stress test |
| Lock‑in nearly over | Apply early (3–6 months) | Compare bank repricing vs external refinance |
If you expect to sell soon, we may prioritise flexibility over the lowest headline rate. Property Equity Loan — Whatsapp us at to get latest deals. We include stress tests at higher interest rates and clear break‑even timelines in every savings analysis.
Private Property and Commercial Property Financing Nuances
How you hold an asset affects which lenders will underwrite it and on what terms. Buying in your name or through a private limited company changes underwriting, tax treatment, and flexibility. Banks assess different risk factors for commercial uses and for residential investment.
Buying under a private limited company vs. personal name
When you buy as an individual, banks often rely on your payslips and personal TDSR. That can limit options for certain industrial units.
If you buy via a company, lenders may underwrite based on directors’ income and corporate accounts. That can widen access to more banks and different loan structures.
Advantages of IHC for commercial properties
Investment-holding companies (IHCs) can open additional bank panels and, in some cases, secure slightly better mortgage rates. An IHC may also enable a GST pre-registration refund if you incorporate and claim within six months.
- We compare personal vs corporate borrowing to optimise tax and flexibility.
- Expect different covenants, valuation approaches, and tenancy stress tests for commercial deals.
- If you hold multiple assets, we structure debt to protect cash flow and preserve borrowing capacity.
“Choose the right ownership route to match your cash flow, tax plan and lender appetite.”
Property Equity Loan — Whatsapp us at to get latest deals.
Mortgage Calculators, Affordability Checks, and Rate Reviews
Use simple tools to see how payments change and to reverse‑engineer what you can borrow. Interactive calculators give clear monthly figures for any outstanding balance and remaining term. They help you plan and keep cash flow steady.
Real-time repayment vs. reverse-calculating maximum loan
Run a real-time model to compute your monthly repayment on a given balance and interest path. Or reverse-calculate the maximum loan by entering your income, existing debts and the TDSR stress rate.
- Use calculators to check exact monthly instalments and remaining years.
- Enter NOA and debts to estimate the maximum loan you may qualify for.
- Compare scenarios: higher rate now vs. lower later to see total interest paid.
How rate review dates reset your monthly installment
Know your review cycle: 1M SORA resets monthly and 3M SORA resets quarterly. On each reset your bank recalculates the instalment and will notify you.
We’ll model best‑ and worst‑case paths and compare home loan packages to show true cost over time. Keep a small buffer in your budget for rate moves. Property Equity Loan — Whatsapp us at to get latest deals.
Key Terms You’ll See in a Letter of Offer
Your letter offer is the legal snapshot of the deal. It lists the exact rate, spreads, commitments and any fees you must accept to get the loan. Read it line by line—definitions matter.
Core items to check:
- Spread — the bank’s margin above the peg. It directly affects what you pay during and after any fixed period.
- Peg — SORA, BOARD or FHR. The peg determines when and how your mortgage rate can change.
- Commitment period — often two years. This is your lock-in period; early exit usually triggers a 1.5% fee.
- Early repayment rules — whether partial prepayments are allowed and which penalties apply.
Also check reversion terms (the peg + spread after any fixed term) and subsidy or clawback clauses, which can erase advertised savings if you refinance early.
“LO validity is short—often about seven days. We coordinate valuation and documents so you can accept in time.”
Property Equity Loan — Whatsapp us at to review your letter offer line by line and confirm every definition before you sign.
About Property Equity Loan: Your Next Step
We help you turn complex rate schedules and eligibility rules into a simple action plan.
Property Equity Loan — Whatsapp us at to get latest deals.
Start with a quick eligibility scan. We check TDSR (55% for purchases), LTV (up to 75% for a first residential purchase), and whether higher thresholds apply for own‑stay refinancing. That shows your borrowing room before you pay any fee.
We compare offers across major banks in Singapore to find practical loan packages that fit your cash flow. Our team explains pegs like 1M/3M Compounded SORA, typical spreads, review schedules and the likely reversion rate.
Whatsapp us at to get latest deals.
Personalized guidance on loan eligibility and package selection
- We clarify TDSR, LTV and EFA so you know eligibility early.
- We tailor recommendations to income stability, holding years and prepayment plans.
- Expect transparent notes on lock‑ins, fees, and reversion so you never feel rushed.
- For refinancing, we net savings against fees and coordinate timing near lock‑in expiry.
“Our mission is to help you keep control—clear choices, fair terms, and dependable service.”
We coordinate valuation, documents and LO acceptance so timelines stay predictable. Property Equity Loan — Whatsapp us at to get latest deals.
Conclusion
,
Keep decisions simple and timing deliberate.
This guide gives practical checks so you can keep monthly payments manageable when a fixed term ends and the mortgage reverts to a SORA peg.
Remember: HDB’s 2.60% offers stability but switching to a bank is one‑way. LTV (up to 75%) and TDSR (55% for purchases) set your borrowing room. Refinancing an own‑stay may allow higher servicing thresholds.
Before you sign any letter of offer, confirm lock‑in rules, early‑repayment fees and the reversion rate. Good timing and clear comparisons can save thousands over the next few years.
Property Equity Loan — Whatsapp us at to get latest deals.
FAQ
What is the difference between an HDB loan and a bank loan for HDB flats?
HDB loans are offered by the Housing & Development Board with a concessionary rate and specific eligibility rules, including income ceilings and the need for an HLE letter before purchase. Bank loans usually offer lower initial rates or tied pegs like SORA but require banks’ credit checks and different TDSR treatment. Switching from an HDB loan to a bank loan is possible but is generally one-way and should be planned carefully.
How do SORA, BOARD, and FHR mortgage pegs differ?
SORA (compounded 1M/3M) is market-standard and transparent, based on actual interbank rates. BOARD rates are set internally by banks and can be less transparent. FHR-based loans use a bank’s fixed historical reference and are not true fixed rates — they can reset according to the bank’s terms. Spreads are added above these pegs to set your final interest rate.
What is the role of spreads above SORA and how do rate-setting dates work?
The spread is the fixed percentage added to the peg (e.g., SORA) that determines your loan’s interest rate. Rate-setting or review dates are the scheduled moments when a bank recalculates your repayment based on the current peg plus spread. Knowing these dates helps you predict when monthly instalments might change.
Should I choose a fixed-rate package or a floating-rate package?
Choose fixed if you want payment certainty for a set period (often 1–5 years), and floating if you prioritise long-term potential savings and flexibility. Fixed periods in the market are limited; after the fixed window ends, the loan typically reverts to a floating peg at the prevailing spread and peg rate.
What is the Total Debt Servicing Ratio (TDSR) and how does it affect eligibility?
TDSR caps total monthly debt obligations at 55% of your gross monthly income for property purchases; it can be higher in some refinancing cases. Lenders use TDSR to calculate your maximum loan amount and to check affordability. Including Eligible Financial Assets (EFA) can increase your effective borrowing capacity.
How do Eligible Financial Assets (EFA) boost my maximum loan?
EFA lets you use 30% of eligible assets held for at least 48 months as effective income to raise your loan capacity. This can improve your TDSR position and allow a higher maximum bank loan, subject to bank rules and documentation.
What is Loan-To-Value (LTV) and how much can I borrow?
LTV is the percentage of the property value a bank will lend. First-time private purchases or a bank loan on an HDB can offer up to 75% LTV, but the final amount depends on tenure, your age, income, and the property type. LTV controls the maximum loan amount available.
How do tenure and borrower age affect the maximum loan and monthly instalments?
Longer tenures lower monthly instalments but increase total interest paid and may be limited by the borrower’s retirement age. Banks cap loan tenure based on age and can reduce maximum loan amounts for older borrowers. Choose a tenure that balances monthly cash flow and overall cost.
What are common lock-in terms and penalties for early redemption?
Typical bank lock-in periods are two years, with redemption penalties commonly around 1.5% of the outstanding balance if you repay fully within that period. Some packages allow partial prepayments during lock-in subject to limits; check your letter of offer for specific terms.
Can I make partial prepayments during the lock-in period?
Some packages permit partial prepayments during lock-in, often capped and subject to notice or fees. Others prohibit any prepayment without penalty. Confirm the policy in your loan agreement or letter of offer before making payments.
What loan package structures do banks typically offer today?
Common structures include 1M or 3M compounded SORA with a spread, board-rate packages, and short fixed-rate windows. Features may include free switch options, specified prepayment limits, and fixed-period guarantees. Each bank’s package blends rate certainty, flexibility, and conversion options differently.
How does applying with MyInfo using Singpass speed up approvals?
MyInfo via Singpass allows digital submission of verified documents like NOA and payslips, cutting manual paperwork and verification time. This often leads to faster approval decisions and a smoother application experience.
What documents do I need from IPA/AIP to the Letter of Offer?
Typical documents include the IPA or AIP, salary payslips, NOA (Notice of Assessment), CPF statements if applicable, proof of cash and EFA holdings, and identification. The Letter of Offer (LO) locks in your rate, spread, commitment period, and conditions — read it closely before accepting.
When should I consider refinancing my home loan in the current rate cycle?
Consider refinancing if you can secure a lower effective rate after costs, need more flexible features, or want to extend/shorten tenure for cashflow reasons. Compare break fees, lock-in penalties, and the new package’s long-term cost before switching.
How does buying under a private limited company differ from buying in a personal name?
Financing through a private limited company often has stricter lending criteria, different tax implications, and may offer limited LTV and higher rates. Personal-name borrowing typically allows higher LTV and more conventional mortgage terms. Seek specialist advice for commercial or corporate purchases.
What is an interest-rate review date and how does it affect my repayments?
The review date is when the bank recalculates your monthly repayment based on the current peg rate plus spread. If the peg rises, your monthly instalment typically increases; if it falls, instalments may reduce. Knowing the schedule helps you plan cash flow.
What key terms should I check in my Letter of Offer?
Look for the peg (SORA/BOARD/FHR), the spread, commitment or lock-in period, early repayment fees, permitted partial prepayment rules, and any one-time charges. These items determine true cost and flexibility.
How can I use mortgage calculators effectively when planning a purchase or refinance?
Use calculators to compare real-time repayment amounts and to reverse-calculate the maximum loan you can afford under TDSR and LTV limits. Run scenarios with different pegs, spreads, tenures, and review dates to see long-term cost and monthly impact.
How do banks treat commercial property financing versus private residential financing?
Commercial financing often has lower LTV, shorter tenures, higher rates, and stricter income verification. If buying via a company, expect different underwriting, collateral requirements, and possible higher charges compared with residential mortgages.
How do I contact Property Equity Loan for personalised guidance and the latest deals?
You can reach Property Equity Loan via WhatsApp for timely deal updates and tailored advice on loan eligibility and package selection. Provide basic details and they’ll guide you through suitable options and required documents.
