- FAQ
Frequently Asked Questions
1. Which bank offer the best home loan in Singapore for completed resale properties in 2026?
Choosing the best home loan in Singapore for completed resale properties in 2026 depends on far more than simply selecting the bank with the lowest advertised interest rate. While headline rates are often the first thing buyers look at, they rarely tell the full story. The most suitable home loan varies based on loan size, borrower profile, and the features built into the package, all of which can materially affect the total cost and flexibility of the loan over time.
Loan size plays a significant role in determining which bank offers the best deal. Banks compete more aggressively for larger loan amounts and may extend preferential rates, higher cash rebates, or more flexible features when the loan quantum meets certain thresholds. Smaller loan sizes may not qualify for these promotional packages, which is why two buyers purchasing similar resale properties can receive very different loan offers. As such, the “best” bank for one borrower may not be the best for another.
Beyond interest rates, loan features are critical when evaluating mortgage packages in 2026. Some banks offer free conversion options, allowing borrowers to switch between fixed and floating rates after a certain period without penalty. This can be particularly valuable in a changing interest rate environment. Cash rebates are another important consideration, as they can help offset upfront costs such as legal fees or renovation expenses. Additionally, some loan packages include partial or full waivers of penalties in the event of an early sale or refinancing, which is especially relevant for buyers who may upgrade or restructure their finances within a few years.
Another key factor is how banks apply lending rules such as the Total Debt Servicing Ratio. While all banks must comply with regulatory limits, their internal assessment methods differ. Some banks are more flexible in recognising certain income types or structuring loans within these limits, which can affect both approval outcomes and loan terms. This is why borrowers with similar financial profiles may receive different responses from different banks.
It is also important to recognise that banks adjust their promotions and pricing throughout the year. Market conditions, competition, and internal lending targets influence which packages are most attractive at any given time. As a result, the best home loan in early 2026 may not remain the best option later in the year. Publicly advertised rates often do not reflect limited-time promotions or customised offers that may be available depending on the borrower’s profile.
Ultimately, the best home loan for a completed resale property in 2026 is one that balances competitive pricing with the right features and flexibility for your situation. Rather than focusing solely on the lowest rate, buyers should assess the total value of the loan and how well it aligns with their long-term plans. This is why it is always advisable to secure an In-Principle Approval and compare options across multiple banks. At Fairloan Mortgage Advisory, we monitor bank promotions year-round and guide clients through the differences in policies and packages, helping them identify the most suitable home loan at the right time.
2. How do you choose the best Singapore home loan and what are factors to consider?
Besides rates, there are many other considerations when looking for the best home loans in Singapore:
(1) Lock-in period
Also known as the commitment period, this is the period which you will be committed to servicing the loan without any variance or exit. For most home loans in Singapore, this lock-in period is two years from the date of disbursement of the loan.
Ceteris paribus, the shorter the lock-in the better it is for you not to get stuck with any interest rate structure for too long a time.
(2) Free conversion
Free conversion simply means that the bank will allow you to “convert” to another home loan package within the bank at no costs, ie.waiver of the repricing or conversion fee typically at $300-500, typically at the end of your lock-in period.
However, in recent years, many banks are also offering free conversion within the lock-in period itself for example after 12 months into a mortgage loan with a 2-year lock-in period. This means that you can actually switch to a more favourable home loan package when something new and better comes up, be it fixed home loan rate or floating home loan rate, which wasn’t available at the point when you first commit to the home loan. Speak to our consultants to find out more.
How is that important? In cycle-turning years like what we seen in 2023 to 2024 where fixed rates keep dropping, we can’t overstate the importance of this feature.
(3) Partial repayment
Most floating home loan rate packages allow you to prepay up to a certain percentage of the outstanding loan, for example up to 30% or 50%, whilst still within the lock-in period. Whereas for fixed mortgage rate packages typically that will not be possible as the banks normally hedge the costs to provide a fixed tranche of funds for the promotion.
(4) Waiver of penalty due to sale during the lock-in period
Though you may not be thinking of selling your property at the moment, this is still a good-to-have feature especially for those who favour a fixed mortgage loan package which typically does not come with this waiver.
(5) Applying for home equity loan
This is when you need to seek cash-out refinancing or do a gearing up of your existing mortgage, in the form of a home equity loan. The official term used by MAS is Mortgage Withdrawal Equity Loan (MWL), or term loan in short. The best time to seek a home equity loan is during refinancing where not only does the new bank provides legal subsidy to cover administrative costs (legal fee $1,400 + valuation), but both your existing housing loan and the new term loan would then commence around the same time, typically around 4 weeks apart. This is important as it means both portions of your mortgage loan will have their lock-in periods ending approximately at the same time which facilitates rate review and refinancing later.
Plus, when you work with MortgageWise and our partner law firms, we save you even more with the legal fee for the extra disbursement of term loan waived. That’s worth another $200.
(6) (For Refinancing) Legal subsidy or cash rebate
If you are refinancing your home loan, another salient consideration is the net costs involved when making the move, i.e. the total subsidies you get from the new bank less legal/valuation fees. This becomes pertinent when the final interest rate quote coming back from your existing bank is within a whisker of the next best rate out that. Often, you could get $500 more in net value depending on which broker you partner with and that can be translated easily to at least another 0.05% savings on your mortgage costs.
In conclusion, there’s no one best home loan for everyone. Even the interest rate per se differs based on the loan quantum these days. The lowest headline interest rate you see on most broker sites are reserved only for the very big loans like above $1.5m or $2m. For the average loan sizes of between $500,000 to $1m, the interest rate offered might still differ slightly based on “deviations” from the standard rack rates. Hence it’s important you work with established brokers who can get you better overall terms – the lowest rate as well as the best overall terms of a mortgage loan.
3. How would mortgage rates in Singapore move in 2026?
Interest rate conditions in 2026 are expected to remain relatively stable, with only a small gap between fixed and floating home loan packages. Based on current economic signals and bank pricing behaviour, floating rates are likely to ease slightly further before reaching a floor.
Our view is that SORA may hover around the 0.7 to 1.2 percent range in 2026. After adding typical bank spreads, floating home loan packages could be priced close to 1.0 percent at the lower end, depending on loan size and prevailing promotions. This makes floating rates attractive for borrowers who value flexibility or expect to review their loan within a shorter time horizon.
Fixed rates are expected to remain slightly higher, generally within the 1.2 to 1.5 percent range in 2026. Banks price fixed rates with a forward-looking perspective, which explains why fixed packages may not decline as much as floating rates even when short-term rates soften. Fixed loans provide certainty and protection against future rate movements, which remains appealing for some borrowers.
Looking ahead to 2027, interest rates may stabilise or gradually move back towards the 1.5 percent range, rather than falling further. This expectation is already reflected in some banks adjusting longer-tenure fixed rates upward. As a result, choosing between fixed and floating in 2026 should be based on loan structure, holding period, and risk preference rather than headline rates alone.
4. How early should I start to review my home loan?
Singapore home loans generally require a two months’ redemption notice period to your existing mortgagee bank, before you can port the loan over to the new lender.
Hence, the best time to start reviewing your mortgage will be about three months before the expiry date of your lock-in, which gives you just about the right amount of time like a month to source, negotiate and turnaround the application for a new home loan package.
5. Should I reprice or refinance my home loan on expiry of my lock-in?
When your home loan lock-in period expires, reviewing your mortgage is strongly advisable, but whether you should reprice or refinance depends on your loan terms, interest rate environment, and future plans. Simply doing nothing often results in your loan reverting to a higher board rate, which is rarely optimal.
Repricing involves switching to a new package within the same bank. It is usually faster, requires minimal documentation, and may involve a small administrative fee. Repricing works well if your current bank remains competitive and you prefer convenience or want to avoid legal costs. However, repricing options are sometimes limited and may not offer the most competitive rates or features available in the market.
Refinancing means moving your loan to a different bank. This often provides access to lower rates, better features, or cash rebates, especially in competitive market conditions. Refinancing may involve legal fees and valuation costs, but these are often offset by savings or rebates over time. Refinancing is generally more suitable if your loan size is substantial or if your current bank’s offers are no longer competitive.
The right choice depends on factors such as loan size, remaining tenure, and whether you plan to sell or refinance again in the near future. Comparing both options at the point of lock-in expiry ensures you secure the most suitable loan structure and avoid overpaying unnecessarily.
Always check out the latest rate for a better understanding of the current market.
6 Should I be working with a mortgage broker or approach the banks directly?
More and more people now see the value of working with a mortgage broker rather than going direct to the bank.
It’s about being a smart consumer and benefit from the workings of free markets, not to mention all the seamless service under one roof.
Look for and work with a trusted partner in mortgages as it will save you much work and effort in the long run since mortgage is a life-long commitment:
- The home loan package is the same be it via a broker or direct to the bank, otherwise we will tell you.
- We help you compare the various packages with the most accurate and updated rates, and using a very comprehensive format in our Rates report.Check it out.
- You get expert advice on what important considerations to mull over, and not speak to 5-6 different sales persons from the various banks and get all confused with numerous rates and features some which serve only to distract.
- You get additional perks from brokers like preferential legal fees from our partner law firms. The legal fee to process a request for additional home equity loan (term loan) on a private property mortgage is even waived when you work with us.
- You can tap into the full resource of our network with some of the best and most senior bankers, lawyers, and even financial advisor (for your mortgage insurance needs).That is certainly much better than calling the banks’ hotlines and get randomly assigned to some new mortgage specialist recruits, and that’s provided you don’t mind all the waiting to start with.
- The ultimate benefit of working with MortgageWise’s team of mortgage strategist – we will show you how to become mortgage-free in 6 years!
7. I am a first-time buyer for new launched property. What should I look out for in a mortgage?
Mortgage may seem deceptively simple but there are pitfalls to avoid especially for new homebuyers who are not familiar with all the concepts and terminologies and the practices of the mortgage industry.
This is especially true for mortgages on properties under construction are known as BUC loans (building under construction) in the industry. Local banks are known to be fiercely-keen to compete for market share in BUC loans evident from the many bankers present at property show flats and launch events. This is because the banks will then be assured of a certain pipeline of drawdowns of the loan over the next few years which protects their profitability and market share. Typically, as property launch events can sell out in the hundreds over just a weekend, losing out such a big chunk of sign-ups could spell trouble later on.
Many first-time buyers may not be aware of what to look out in BUC loans as they are often thrown with bankers by property agents at the show flats. Typically, agents and bankers jostle to get the final signature and will waste no time to hurry buyers to quickly sign for their loan. Each banker will claim that their home loan package is the best when the reality is – there is often very little differentiation between the various banks who try to match one another in this competitive segment.
First-time buyers new to the mortgage game need to understand the following:
- As BUC home loans are drawn down progressively, starting at 5% (on purchase price) on completion of foundation works about one year after the launch until the maximum of 60% (again on purchase price) at T.O.P. (temporary occupation permit) which is 3 years down the road, the interest rate in the initial years is less important.
- Even though all BUC loans come with no lock-in period, the cancellation fee typically 1% becomes a “pseudo lock-in” and hence no one will refinance a BUC home loan at least during the construction phase.
- Even at the point of T.O.P., there’s still a 15% of the loan yet to be disbursed and any attempt to refinance to another bank will attract the 1% cancellation.And there’s usually a minimum $1,000 of cancellation fee to be paid even if 1% on undisbursed loan works out to be a lower amount. This fee is also applicable if you sell the property at T.O.P.
- How would you know if interest rate environment will change or become very different during the construction period and at T.O.P.? Yet a BUC home loan effectively has a “pseudo lock-in” on you that is much longer than the lock-in for completed properties. The irony then is – many homeowners have woken up to the value-add from consulting with a professional mortgage broker on the refinancing for a completed property, whereas first-time buyers for BUC properties are relying on their own encounters with their agents to make this decision.
New home loan borrowers may also not be familiar with the regulatory requirements on applying for mortgages like loan-to-value (LTV) limits for first and second mortgages, Total Debt Servicing Ratio (TDSR) requirements, and how they could get higher loan quantum by applying both income assessment and eligible financial assets assessment. A professional mortgage broker will be able to hand-hold you throughout the whole application process.
8. The Big 3 banks command 80% of the mortgage market. What are the benefits of a DBS home loan?
The no.1 benefit for picking DBS home loan is definitely the familiarity and convenience since majority of Singaporeans and residents here do salary-crediting to a DBS bank account. With interest rate heading south in the coming year, it also makes sense to “position” your mortgage there, so that you can earn much higher deposit rates with your spare funds in a DBS Multiplier Account (see below):
Fast Approval
Being conferred accolades as the “World’s Best Digital Bank”, you can expect to sail through the entire whole application with approval sometimes within the same day! Generating of the LO (letter of offer) takes another business day and you’re done with immediate acceptance digitally. This is especially meaningful for those who are late in reviewing their mortgage and face higher thereafter interest rates due to the need to serve a minimum 2-month redemption notice to his or her existing bank.
Multiplier Account
This is a high-yielding savings account which pays you much higher interest that the typical board rates, up to the first S$100,000 of your funds in the account, when you do salary-crediting to the account and also conduct more “transactions” with the bank like servicing a DBS home loan and charging to a DBS credit card, etc. More details on the DBS’s website.
Generous Cash Rebate
For those looking to refinance your home loan, the bank offers generous cash rebate especially for loans above S$1 million which covers all your transaction costs in remortgaging from another bank, with excess:
Loan amount above S$500,000 – Cash rebate S$2,000
Loan amount above S$1 million – Cash rebate S$2,500
Loan amount above S$1.5 million – Cash rebate S$2,800
Competitive Fixed Home Loan Rate
With its dominant position with the biggest pool of Sing dollar funds after absorbing POSB into its fray, DBS is able to offer competitive fixed rates unlike banks who need to go to interbank for funding.
Waiver Due To Sale
For the same reason as above, DBS is also consistently the bank that can allow borrowers to break their contract for free due to a sale of the property (hence the need to redeem the loan in full), even whilst still within a 2-year or 3-year lock-in period. This is especially rare for those who sign for fixed rate mortgages where most banks will not offer this waiver due to sale during the commitment period.
9. The Big 3 banks command 80% of the mortgage market. What are the benefits of a OCBC home loan?
OCBC is one of the Big 3 local banks in Singapore with long history since 1932 with the tagline “Different loans for different homes”. It has the full suite of home loans to offer homeowners in Singapore be it fixed or floating mortgage rates, along with sone of the most aggressive pricing in terms of the spreads (mark-up above SORA) in the market consistently.
Competitive Spreads
OCBC has been known in the industry to price its spreads competitively which means existing mortgage customers tend to still competitive on their interest rate even after their lock-in expires.
Generous Cash Rebate
Just like the other two local banks, OCBC also offers generous cash rebate for refinancing up to S$2,800 for bigger loans of above S$1.5 million. This helps to defray the costs involved when remortgaging to OCBC.
Waiver of Fire Insurance for Condos
One unique feature of OCBC home loans is how they bank waives the need for borrowers to purchase a fire insurance for those staying in condominiums or where their MCST already had a master coverage for all units in the condo. This means homeowners could save a further $100-250 per annum depending the size of the unit. Though the savings may be small at first, it adds up if you stay put with OCBC for a good five years or longer.
10. The Big 3 banks command 80% of the mortgage market. What are the benefits of a UOB home loan?
UOB is one of the top mortgage loan issuers in Singapore giving some of the most competitive rates in the market. Just the other two local banks, they have the full range of mortgages on offer from fixed home loan rates to variable mortgage rates pegged to SORA or BOARD.
UOB home loan is notable for the following unique selling points:
Fast Approval
Applicants with employment income and a strong credit profile could get almost instant (same day) approval, sometimes within a few hours like applying in the morning and getting the formal approval by the evening.
Lowest Valuation Cost (For Condos)
For condominiums up to a market valuation of $3 million, UOB requires just a valuation certificate instead of the full valuation report from its appointed panel of valuers. This drives the costs down drastically to just $150 excluding gst, from the usual $400 to $500 charged by most other banks.
However, this valuation certificate does not apply to landed houses or HDB properties.
Generous Cash Rebate
The bank offers competitive cash rebate just like the other two local banks, and for private properties with smaller loans of below $500,000, the bank also offers legal subsidy pegged to percentage of the loan.
Strong in Commercial Property Lending
SMEs in the commercial property space knows the competitiveness, flexibility and fast approval from UOB bank when it comes to financing their purchase of shophouses, retail and office units. It is also one of the few banks catering even to industrial B1 units for individuals buying in their own names.