We know this feels big. Deciding how to fund a home can stir pride and worry at once. You want to protect cash flow today and keep options for tomorrow.
At Property Equity Loan, we break down how a home loan is priced. HDB loans track CPF OA at 2.50% plus a tiny spread, behaving like a steady 2.60% benchmark. Banks tie offers to SORA pegs — 1M or 3M compounded — with fixed windows of 2–5 years before they float.
We’ll show you why a headline figure looks attractive today, and what changes monthly payments tomorrow. We explain SORA publication times, lock-ins, and the cash impact of fixed versus floating choices.
If you want a side-by-side quote that reflects current spreads and promos, Whatsapp us at Property Equity Loan and we’ll tailor a comparison for your situation.
Key Takeaways
- HDB offers a steady 2.60% benchmark tied to CPF OA.
- Banks price off SORA pegs; fixed terms usually last 2–5 years.
- Understand lock-ins, prepayment rules, and SORA tenor for cash-flow planning.
- Compare bank packages to match your timeline and flexibility needs.
- Contact us on Whatsapp for a tailored, side-by-side quote.
Today’s property loan interest rate landscape in Singapore (present)
Today’s Singapore market shows clear splits between stable public schemes and bank‑pegged offers.
MAS publishes SORA and compounded 1M/3M figures at 9 a.m. on business days. SIBOR was phased out in 2024, so most banks now price packages off SORA tenors.
What this means for you: banks typically set home loans using 1M or 3M compounded SORA plus a spread. Spreads change with market funding and lender appetite. Fixed windows usually last two to five years, then the package floats to a SORA peg.
HDB remains at a steady 2.60% (CPF OA 2.50% + 0.1%) and can be redeemed anytime without a lock‑in. That stability contrasts with bank packages, which may be lower in some cycles but can move.
Timing matters: promotional pricing windows open and close fast. TDSR stress tests and tenure caps also affect your monthly mortgage outcome.
| Feature | HDB | Bank (SORA‑pegged) | Fixed package |
|---|---|---|---|
| Base | CPF OA + 0.1% | 1M/3M SORA + spread | Fixed % for 2–5 yrs |
| Lock‑in | None | Varies (often 1–3 yrs) | Typically 2–5 yrs |
| When it resets | N/A | On SORA compounding dates | Reverts to floating after term |
Want a lender‑by‑lender snapshot? Whatsapp us at Property Equity Loan for an updated matrix tailored to your profile.
How 3‑month Compounded SORA drives home loan pricing
Understanding the 3‑month compounded SORA helps you read lender offers and plan payments. It is the three‑month compound of daily overnight SORA figures that smooths short‑term swings.
What SORA is and how MAS publishes it
SORA is the interbank overnight rate for SGD cash transactions. MAS publishes the daily SORA and the 1‑month and 3‑month compounded SORA each business day at 9 a.m.
Rate‑setting dates and how monthly repayments reset
For 1M pegged packages, the published number updates monthly on the rate‑setting date and your monthly payment is recalculated. For 3M compounded packages, the published peg is fixed for the coming three months before it resets.
1‑month vs 3‑month compounded SORA: what borrowers should know
- Compounded SORA simply combines daily overnight moves into a monthly or quarterly figure to smooth volatility.
- 1M reacts faster to market moves; 3M gives quarterly stability in your installments.
- Lenders add a spread to the peg—small differences can compound into meaningful savings over time.
- Some banks apply a zero floor to the peg in rare negative scenarios.
“MAS’s daily publication at 9 a.m. makes pricing transparent and predictable for borrowers.”
If you want current spreads and lock‑in options tailored to your profile, Whatsapp us at Property Equity Loan for the latest SORA‑pegged package information and comparisons.
Fixed rate vs floating rate home loan packages
Choosing between a fixed term and a SORA‑pegged option shapes your monthly cash flow and future flexibility.
When fixed packages shine
Fixed terms (typically two to five years in Singapore) give predictable monthly payments. This helps with renovations, maternity leave, or any period where budgeting certainty matters.
Expect a lock‑in and an early repayment fee often around 1.5% of the amount you redeem during that period.
When SORA‑pegged floating packages save you more
Floating SORA‑pegged offers can cost less if markets trend down or stay stable after hikes. They reset on 1M or 3M compounding schedules, which can lower total payouts over time.
- Weigh the premium for fixed certainty against potential savings on floating.
- Consider laddering: fix near‑term needs, then switch parts to floating before the fixed window ends.
- Check partial prepayment allowances to avoid penalties while keeping flexibility.
| Feature | Fixed package | SORA‑pegged floating |
|---|---|---|
| Typical term | 2–5 years | Ongoing (resets 1M/3M) |
| Payment predictability | High | Variable |
| Early repayment penalty | About 1.5% during lock‑in | Often lower or none |
| Best for | Budget certainty (maternity, renovations) | When rates are falling or stable |
If undecided, Whatsapp us at Property Equity Loan to compare today’s fixed and SORA‑pegged offers side by side and get a tailored projection.
HDB loan versus bank home loan: key differences that affect interest
When you compare an HDB plan with bank offers, the differences go beyond the headline percentage. The HDB peg is simple and steady, while banks offer variable packages that can be cheaper at times.
Why HDB feels “fixed” at CPF OA + 0.1%
HDB is set at CPF OA 2.50% plus 0.1%, effectively 2.60%. That figure has stayed stable for decades because of CPF policy and a statutory minimum.
This makes repayments predictable and redeemable anytime. There is no lock‑in, so you can clear the account without an early fee.
Pros and cons of switching from HDB to a bank
- HDB: predictable, flexible, no lock‑in—good if you value certainty.
- Bank: potential savings in low cycles but often with lock‑in and fees.
- Switching is generally non‑reversible—consider timing, break costs, and remaining years on your mortgage.
- Practical steps: secure an HLE or a bank offer letter, prepare documents, and plan the timeline to avoid extra holding costs.
“If you want a neutral, numbers‑first comparison, Whatsapp us at Property Equity Loan to estimate savings and check eligibility.”
The major mortgage pegs explained: SORA, BOARD and FHR/FDR
Not all pricing anchors are created equal — some update in public, others change behind the scenes.
SORA (1M/3M compounded SORA) is market‑determined and published by MAS at 9 a.m. daily. This peg is transparent and predictable in its publication schedule, which helps you forecast monthly payments.
Transparency and risks with BOARD rates
BOARD rates are set internally by each bank. They can change without a public timetable, so adjustments may feel sudden.
Risk: less disclosure means higher uncertainty about future mortgage costs and communication timing.
How FHR/FDR differs from “fixed” and why it moved
FHR (Fixed Deposit Home Rate) and similar FDR names track deposit benchmarks. DBS led the move and others followed. Despite the label, these are not truly fixed.
During the 2022 tightening cycle, many banks adjusted FHR/FDR multiple times. That showed how deposit‑linked pegs can shift quickly.
- We define each peg so you can weigh transparency versus short‑term stability.
- Compare spreads, reversion terms and communication clauses before you sign.
“Choose SORA for public disclosure; consider BOARD or FHR/FDR only if the spreads and small print clearly benefit you.”
Whatsapp us at Property Equity Loan to see which peg fits your goals and risk tolerance and to get peg‑by‑peg information and current offers.
Property Equity Loan picks: standout home loan packages to compare
We shortlist standout packages so you can compare real savings quickly.
Below is a compact guide to offers we think deserve attention today. We focus on transparent spreads, clear lock‑in terms and net costs rather than headlines.
Promotional SORA spreads and typical lock‑in terms
Floating packages: most banks price as 1M or 3M compounded SORA plus a spread. Promotional spreads can be small, but you must check the lock‑in and early repayment penalty—commonly around 1.5% during fixed periods.
We highlight offers with clear two‑year lock‑ins and transparent fee schedules. Small spread differences and waived admin fees can add up to significant lifetime savings on your mortgage.
Fixed packages for stability
Fixed terms typically run two to five years before reverting to a SORA peg. These are best when you want predictable monthly outgoings for projects like renovations or retirement budgeting.
We flag fixed home loan package features such as partial prepayment allowances, reversion clauses, and ancillary perks like legal subsidies or valuation rebates. That way you see the real cost, not just the headline rate.
- Shortlist of strong-value floating packages with clear spreads and lock‑ins.
- Fixed options with defined reversion terms and partial prepayment rules.
- Comparison by borrower profile: refinance soon (1M) vs quarterly stability (3M).
“We always net off known fees and prepayment policies to show you the true outcome.”
Whatsapp us at Property Equity Loan to get a curated shortlist of the best packages for your tenure and comfort with risk.
Spotlight on OCBC home loan options
OCBC combines 3M Compounded SORA packages with borrower-friendly features. You get quarterly peg stability while keeping options to switch or prepay.
3M Compounded SORA packages and free switch features
How it works: OCBC fixes the 3-month compounded SORA on the review date and applies that figure for the next three months.
New loans may switch to another pricing package free after the first year. OCBC also allows prepayment up to 50% in the first two years, which helps manage cash flow.
Fixed packages for completed properties
For completed homes, OCBC offers fixed options that protect your monthly outgoings for a defined term before reversion to a floating peg.
Eco‑Care Home Loan perks and conditions apply
The Eco‑Care package promotes 3M Compounded SORA pricing, needs a THEEA quick assessment, and includes a one‑time S$88 Senoko bill rebate. Eligibility: min S$200,000 for HDB and S$300,000 for private. You can apply online via MyInfo.
“Plan your switch after year one to capture better pricing windows.”
| Feature | 3M Compounded SORA | Fixed package (completed) | Eco‑Care |
|---|---|---|---|
| Switch option | Free after year 1 | Depends on term | Subject to promo |
| Prepayment | Up to 50% in 2 years | Usually limited during lock-in | Aligned with OCBC policy |
| Eligibility | Min S$200k HDB / S$300k private | Completed homes only | THEEA + min thresholds |
Whatsapp us at Property Equity Loan for the latest OCBC quotes, eligibility checks, and a peer comparison that shows true benefits and fees.
Refinance home loan opportunities: when to move to a better rate
Refinancing can unlock real savings when your current mortgage terms no longer match market offers.
Read the Letter of Offer carefully. Check the reversion clauses, spread, lock‑in dates and any early repayment penalty. Fixed periods commonly run two to five years and lock‑ins are often about two years.
Calculate all‑in costs: legal fees, valuation, penalties and any subsidy offsets. We model break‑even months under realistic scenarios so you see when a switch actually saves money.
- We show how to read reversion and lock‑in dates so you can time a refinance.
- Compare partial prepayment or repricing with full refinancing to see true savings.
- Factor in TDSR and your credit profile; prepare docs early to speed approval.
- Follow our timeline: KIV date minus 6–9 months, trigger appraisal, submit files, and activate the new mortgage.
Whatsapp us at Property Equity Loan for a customised refinance home loan savings report and a break‑even audit tailored to your remaining years and borrowing balance.
Loan eligibility, TDSR and LTV: how much loan amount you can get
Before you sign, know exactly how much you can borrow and what limits apply to your profile.
How TDSR works in plain terms: your total monthly debt payments, including the new loan stressed at a notional 4% (or higher), must not exceed 55% of your qualified income for purchases.
Income-based versus assets-based checks
Banks qualify you either by income or by converting eligible assets. For assets, MAS treats 30% of your holdings as income spread over 48 months.
This conversion raises the amount you can claim if your salary alone falls short. Combining incomes or eligible assets across applicants can increase approved value without breaching TDSR.
Stress tests, tenure and monthly payments
Longer tenures lower monthly instalments but raise total interest paid over the years. Stress test assumptions (min 4%) can shrink your approved loan amount compared with a simple affordability check.
- Check your credit conduct and clear small liabilities before applying.
- LTV caps: up to 75% of valuation for a first residential purchase.
- Refinance thresholds often allow higher TDSR limits (80–100%) for owner‑occupied cases.
Want a quick eligibility check? Whatsapp us at Property Equity Loan for a personalised estimate of your maximum loan amount under current TDSR rules.
Documents, fees and timelines: getting your mortgage approved fast
Gathering the right paperwork before you apply speeds approval and cuts avoidable delays.
MyInfo, NOA and other must‑have documents
Start with a MyInfo pull and your latest NOA. These give verifiable personal information that most banks accept without extra checks.
Also include recent payslips, a letter of employment if you changed jobs, tenancy agreements with e‑Stamping for rental income, credit card or line statements, and recent mortgage statements if you are refinancing.
Common fees, early repayment penalties and fine print
Typical fees include valuation, legal fees and admin charges. Some lenders offer legal subsidies that cut out‑of‑pocket costs.
Early redemption penalties are commonly around 1.5% during commitment periods. Letters of Offer usually lapse if not accepted within seven days, so watch those deadlines.
| Item | What to prepare | Timing |
|---|---|---|
| Verification | MyInfo pull, NOA | Immediate |
| Income proof | Payslips, employment letter, tenancy (if rental) | Within 1–2 weeks |
| Costs | Valuation, legal, admin; subsidies may apply | Before completion |
“A complete file shortens processing and reduces last‑minute surprises.”
We give a short checklist and a quick review to check your documents and fees before submission. Whatsapp us at Property Equity Loan for a pre‑checklist and document review to help you meet timelines and secure approval faster.
Commercial property loans and home equity loan options
Structuring a purchase under a company can widen your lender options and simplify tax flows.
Buying under a private limited company vs in your name
Banks in Singapore commonly lend to private limited companies, including operating firms and newly formed investment‑holding companies (IHC). This often gives you more lender choices and marginally better terms.
As an individual, some industrial units face stricter eligibility and fewer banks will finance them directly. Directors’ declared income and corporate cash flow help banks approve corporate deals.
When an IHC makes sense
- Broader bank appetite for corporate borrowers and cleaner credit boxes.
- Potentially slightly better pricing and clearer documentation paths.
- GST pre‑registration refunds from IRAS may be available within six months of incorporation.
Using a home equity loan to free up cash
A home equity loan can unlock liquidity from your residential asset while you keep ownership. That cash can fund a deposit, fit‑out or working capital for your business.
We can map the structure and estimate cash‑out value for your situation.
Whatsapp us at Property Equity Loan to compare business financing, check lender appetites, and explore cash‑out via a home equity loan today.
Tools to compare interest rates and calculate your savings
Interactive tools turn complex offers into clear, usable numbers. Use calculators to test monthly payments, tenure effects, and total savings before you decide.
Affordability and mortgage calculators you can use today
Practical tools and how to use them
Start with lender widgets and third‑party calculators to get live figures. Karl’s Mortgage Calculator helps reverse‑engineer the maximum amount you can borrow under TDSR. The ABS consumer guide has helpful background information and local details.
- Estimate monthly instalments and total payments for the full tenure.
- Reverse‑calculate your maximum borrowable amount using your income inputs and TDSR rules.
- Compare offers apples‑to‑apples by aligning tenure, peg, spread, and lock‑in.
- Model partial prepayments and refinance scenarios to see real savings.
| Tool | Primary use | Best for |
|---|---|---|
| Karl’s Mortgage Calculator | Reverse max amount by TDSR | Eligibility checks |
| Lender widgets | Live monthly & total figures | Quick comparisons |
| Third‑party amortiser | Prepayment & refinance modelling | Savings scenarios |
“Use a live sheet to capture today’s rates and see the true value over your chosen tenure.”
Whatsapp us at Property Equity Loan for a live comparison sheet and customized affordability figures tailored to your home and borrowing needs.
Property loan interest rate: what to watch before you apply
Before you sign, check how the package’s reset dates and lock‑in will affect your monthly bill.
Fixed periods here usually last two to five years, then revert to a floating peg. Note the exact reset dates that define when the SORA‑based rates update.
Watch these key items:
- Lock‑in length, reversion mechanics and the specific reset dates that can change your installment.
- Why a small spread difference compounds: minor gaps today may add thousands over the mortgage term.
- Fee waivers, subsidies and admin credits—these lower the true cost more than a headline figure.
Rates can shift between your AIP and Letter of Offer acceptance. Secure pricing quickly where possible and read the acceptance window.
Check partial prepayment rules and repricing clauses so you keep flexibility without surprise penalties, which are often around 1.5% during lock‑in.
“A short pre‑application review prevents long, costly mistakes.”
Whatsapp us at Property Equity Loan for a pre‑application review of risks, timelines, and the small print that matters.
Whatsapp us at Property Equity Loan to get the latest deals
Reach out for a same-day snapshot of the best home offers that match your financial needs.
Message us to get curated home loan packages across major banks, reflecting today’s actual spreads and incentives.
We’ll align offers to your needs—whether you want budget certainty, simple exit plans, or maximum benefits from subsidies and switch features.
- You’ll receive a clear side-by-side comparison that highlights total cost, flexibility and the benefits that matter to you.
- We handle the paperwork end-to-end so you can focus on your home and timeline, not chasing updates.
- Your advisor will monitor repricing windows and periodic check-ins so you keep saving after approval.
OCBC offers digital applications via MyInfo and many banks provide fixed or SORA-pegged packages with thresholds (HDB S$200k, private S$300k). HDB loans remain at 2.60% (CPF OA + 0.1%).
“Send us a message for same-day quotes, tailored comparisons, and application support end-to-end.”
Conclusion
You can turn today’s market signals into a plan that protects cash flow and long-term value. We showed how pegs, spreads and fixed windows (typically two to five years) shape what you pay over the years.
Key takeaways: HDB stays at 2.60% and SORA is published daily by MAS. LTV can reach 75% for first-time buyers and TDSR uses a 55% cap. Assets convert at 30% over 48 months to help qualify.
With these details clear, choose a lender that matches your goals for flexibility and value. We simplify the moving parts, keep you informed, and act on your behalf.
Whatsapp us at Property Equity Loan to finalise your shortlist and secure a competitive approval with minimal hassle.
FAQ
What is the current lowest property loan interest rate available in Singapore?
Rates vary by bank and borrower profile. Typical promotional spreads for 3‑month compounded SORA packages can be competitively low for high LTV and strong credit. Check specific packages from OCBC, DBS, UOB and other banks for up‑to‑date offers and any lock‑in or switch fees.
How does the 3‑month compounded SORA affect my home loan repayments?
3‑month compounded SORA is a benchmark that compounds daily published SORA values every three months. Your monthly repayment resets according to the bank’s rate‑setting dates, so payments may change less frequently than 1‑month SORA but still reflect market moves over the quarter.
What is SORA and how is it published by MAS?
SORA (Singapore Overnight Rate Average) is the volume‑weighted average of overnight interbank rates. The Monetary Authority of Singapore (MAS) publishes the official SORA daily, which banks use to construct compounded SORA tenors like 1‑month and 3‑month.
When do lenders reset repayments under SORA‑pegged packages?
Each bank sets its own rate‑setting dates. For 3‑month compounded SORA, lenders typically recalc payments quarterly on predetermined dates. Your offer letter shows the exact schedule and how monthly repayments will update.
Should I pick 1‑month or 3‑month compounded SORA?
1‑month SORA adjusts faster and can track short‑term dips or spikes more closely. 3‑month SORA smooths short-term volatility and may suit those who prefer fewer payment changes. Your choice depends on cash‑flow tolerance and market outlook.
When does a fixed rate package make more sense?
Choose a fixed package if you want predictable monthly payments and protection from short‑term rate rises, especially during a rising‑rate cycle or if you have a tight budget. Fixed deals often come with a defined lock‑in period and early repayment charges.
When can a SORA‑pegged floating package save you money?
Floating packages can be cheaper when market rates fall or remain stable. SORA‑pegged offers often have lower initial spreads and greater flexibility for partial prepayments, making them attractive if you expect rates to ease or you plan to refinance later.
How does an HDB loan compare to a bank home loan?
HDB loans use CPF OA balance plus a low margin (commonly 0.1%), giving a fixed‑like cost that’s usually lower than many bank offers. Banks provide more product choice, higher LTV in some cases, and faster processing, but rates change with market benchmarks like SORA.
What are the pros and cons of switching from an HDB loan to a bank loan?
Pros: potential savings when bank promos are low, more flexible features, and cash‑out options. Cons: exposure to market moves, possible break‑costs, and the need to top up CPF if LTV rules differ. Run a break‑even analysis before switching.
What are BOARD and FHR/FDR and how do they differ from SORA?
BOARD was a bank‑reported benchmark with less transparency than SORA. FHR/FDR (fixed‑deposit or funding reference rates) reflect banks’ funding costs and behave differently from truly fixed offers. SORA is market‑based and generally more transparent.
Are BOARD‑pegged offers less transparent or riskier?
BOARD relied on individual bank inputs and could lack consistency. SORA is published centrally by MAS, so it offers clearer pricing signals. BOARD‑pegged packages may hide wider spread movements compared with SORA‑linked ones.
What promotional features should I look for in a home equity loan package?
Look for competitive SORA spreads, low upfront fees, flexible partial prepayment options, and reasonable lock‑in terms. Also check any free switch or waiver features and whether the package supports cash‑out for renovations or investments.
Which fixed packages suit completed properties?
Fixed offers for completed units often provide stability for buyers who prefer certainty in their monthly obligations. Compare lock‑in length, breakage fees and the fixed period’s end terms to know your options at expiry.
What OCBC 3‑month compounded SORA options are available?
OCBC typically offers competitive 3M compounded SORA spreads with features like free switch options and conversion privileges. Check the latest OCBC home loan page or contact their mortgage team for current spreads and terms.
Does OCBC have fixed packages for completed homes?
Yes. OCBC provides fixed rate home loan packages designed for completed properties. These often include fixed monthly payments for the chosen period and clear break‑cost terms if you repay early.
What are the Eco‑Care Home Loan perks and conditions?
Eco‑Care style offers reward borrowers for green improvements, such as lower spreads or fee waivers for energy‑efficient upgrades. Terms vary—confirm eligible items, documentation and any tenure conditions with the bank.
When should I refinance to secure a better deal?
Refinance when your expected savings exceed all switching costs and break fees over a reasonable horizon. Typical triggers are significantly lower market spreads, nearing an offer expiry, or a change in your income or LTV that unlocks better pricing.
How do I read my letter of offer and assess lock‑in timing?
Look for the effective interest peg, spread, lock‑in period, early repayment fee formula and scheduled rate‑setting dates. These items tell you when you can switch and what costs apply if you repay early.
What documents do I need for quick approval?
Prepare your MyInfo authorization, Notice of Assessment (NOA), bank statements, employment proof, proof of CPF balances and ID. Lenders may request valuation papers for the property and company documents for commercial purchases.
What common fees and penalties should I expect?
Expect valuation fees, processing fees, legal charges, and possible early repayment penalties or break costs during lock‑in. Some promos waive certain fees—verify which charges are non‑waivable in your offer letter.
How do stress‑test rates and TDSR affect my maximum borrowing amount?
MAS rules require lenders to apply stress‑test rates and Total Debt Servicing Ratio (TDSR) checks. These assess whether your income can cover repayments at a higher assumed rate, which limits the amount you can borrow and the loan tenure allowed.
How do income‑based and assets‑based assessments differ?
Income‑based assessments focus on verified salary and variable income, while assets‑based considers net worth such as savings, investments and CPF balances. The chosen method affects eligible loan amount and LTV calculations under MAS guidelines.
Can I use a home equity loan for cash‑out needs?
Yes. Home equity loans let you borrow against your property value for renovations, investments, or debt consolidation. Compare spreads, tenure and cash‑out limits to ensure it meets your financial goals.
What changes when buying a commercial property under a company name?
Commercial purchases under a company may face different LTV limits, higher interest spreads and additional documentation. Banks also assess the company’s credit profile and cash flow rather than personal income alone.
Which tools help compare offers and calculate savings?
Use affordability calculators, mortgage comparison tools, and break‑even calculators to model fees, spreads and tenure. Banks and financial portals provide calculators—run scenarios for fixed vs SORA pegs and different tenures.
What should I watch for before applying?
Check the effective peg (3M SORA or fixed), spread, lock‑in rules, early repayment formula, promotional expiry, and whether fees apply. Also confirm your eligibility under TDSR and the required documents to avoid delays.
How can I get the latest deals or ask questions directly?
Whatsapp the mortgage team at Property Equity Loan or contact banks like OCBC, DBS and UOB for live offers. Provide basic details—loan amount, tenure and property status—to get tailored quotes and comparison advice.
