Best Home Loans in Singapore for 2025
Buying a home is one of the biggest financial commitments you’ll ever make, often taking 2-3 decades to pay off. Naturally, you want to make sure you secure the best home loan in Singapore to maximize savings. Whether you’re refinancing or taking out a new loan, this guide helps you navigate the current best rates for different types of home loans.
Categories of Home Loans:
Home loans are classified based on their rate types, each with its pros and cons. The two main categories are fixed-rate and floating-rate loans. Floating rates include a subcategory of board rates. Additionally, there are separate rates for HDB loans and private property loans. Below, we outline the best rates for each type of home loan in Singapore
Best Fixed Rate Home Loan for HDB:
Fixed-rate home loan packages tend to have higher interest rates than floating-rate loans, but they offer stability during the lock-in period, ensuring you won’t be affected by any economic downturns. After the lock-in period, rates shift to floating, mirroring other floating-rate loans. Fixed-rate home loans have become less common due to rising interest rates and increased borrowing costs.
Best Board Rate Home Loan for HDB:
Board rates, determined internally by banks, can be attractive but are less transparent, as the banks can raise them based on internal factors. Despite this, HLF currently offers the top board rate home loan for HDB properties.
Best SORA-based (Floating) Home Loan for HDB:
SORA (Singapore Overnight Rate Average) has replaced SIBOR and SOR as the benchmark SGD interest rate. It offers a more stable, compounded rate based on daily averages, reducing volatility compared to the old benchmarks. Home loan interest rates tied to SORA will fluctuate in response to changes in the SORA rate. Popular banks offering competitive SORA-based rates for HDB loans include OCBC, SCB, RHB, DBS, and HSBC.
HDB also provides loans directly with more stable interest rates but at a higher cost compared to bank loans, which may offer lower rates in exchange for more competition between banks.
Best Fixed Rate Home Loan for Private Properties:
Private property loans involve higher down payments and larger loan amounts than HDB loans. Banks currently offer fixed-rate home loan packages with interest rates ranging from 2.5% to 4.25%.
Best SORA-based (Floating) Home Loan for Private Properties:
For floating-rate loans on private properties, the loan rates are influenced by recent SORA benchmarks. A 3-month SORA or 1-month SORA is used, with 1-month being more responsive to recent rate changes. This option is suitable for borrowers expecting rates to remain stable or decrease.
Popular banks offering attractive floating-rate loans for private properties include CIMB, Standard Chartered, MB, BOC, and OCBC.
Best Home Loan for Buildings Under Construction (BUC):
Fixed-rate home loans aren’t applicable for properties under construction, as all BUC loans are pegged to floating rates. While BUC loans carry risks due to the property’s incomplete status, developers often offer incentives like discounts, waived stamp duties, or reduced costs. In terms of interest rates, BUC loans are competitive and often not higher than loans for completed properties.
Summary of the Best Home Loans Across Categories:
Fixed-rate and fixed deposit-pegged rate packages are favorable options at the moment. Your choice of bank depends on the conditions and perks that matter most to you. Keep in mind that rates can fluctuate quickly, so for the latest offers, it’s best to contact us to consult your WLP mortgage advisor.
