What are home loans?
A home loan is money borrowed from the Housing Development Board (HDB) or bank to help finance the purchase of your property.
If you purchase an HDB flat, you may be eligible for a housing loan at a concessionary interest rate. However, this is subject to HDB’s criteria and approval.
Once you have received approval for a home loan, do bear in mind the following:
- Your property will be used as collateral for the loan. This means that if you are unable to pay your loan, the lender (depending on whether it is HDB or the bank) has the right to take back your property
- The loan amount granted to you is based on the eligibility
- The loan is disbursed immediately after the downpayment on the property is made, essentially when you pay the remaining purchase price of the property to the seller.
- Loan interest is charged from the first disbursement
Who is eligible for a home loan?
Getting a home loan is not as straightforward as it seems. HDB and the respective banks each have their own eligibility criteria for those wishing to take a home loan with them.
Some of the eligibility criteria includes:
- Meeting a minimum monthly income
- The home buyer’s minimum and maximum age
- Loan tenure
- Residency status of the home buyer, whether you are Singapore, Permanent Resident or expatriate
If you do not have a steady stream of income or are self-employed, HDB and banks will require you to demonstrate the ability to pay the monthly instalments in order to be eligible for a loan. However, this is again subjected to the respective lender’s assessment and approval.
What are the types of home loans available?
Your home financing options may differ depending on the property you are buying.
HDB Loans
If you are purchasing an HDB, you will have the option of applying for an HDB loan. This is in addition to the option of getting a bank loan. However, one of the key criteria is that at least one buyer must be a Singaporean.
Besides the residency criteria, you must meet the maximum household income and not own any private or commercial properties.
The interest rate on the HDB loan is typically pegged at 0.1% above the CPF Ordinary Account (OA) interest rate. This interest rate will be revised occasionally to ensure alignment with any revisions of the CPF interest rates.
Bank Loans
If you are purchasing a private property, financing this purchase can only be done with a bank loan. A HDB loan will not be applicable for private properties.
Bank home loans typically have a wide array of loan packages at different interest rates. This provides you with the opportunity to borrow at a lower interest rate as compared to taking a HDB loan. This could potentially add up to a substantial amount if your loan amount spread out over a long period of time. However, the trade-off of taking a bank loan is that you must constantly monitor the interest rate as it fluctuates depending on market conditions.
Understanding the terms of a home loan
HDB loans are fairly straightforward, whereby the interest is always fixed at 0.1% higher than the CPF (OA) interest rate.
Bank loans, on the other hand, typically have two types of loan options: Fixed-rate home loan and floating or variable rates home loan.
Fixed-rate
As its name suggests, a fixed interest rate home loan allows you to lock in a fixed interest rate for a certain number of years, typically between two to five years depending on your selected loan tenure. This ensures that your monthly loan repayment instalments will remain the same until the end of your loan tenure or if the lender decides to change the interest rate under certain circumstances.
A fixed-rate home loan is ideal for those who need to budget their finances for monthly instalments as the interest rates are fixed for that specific period of time. However, once your fixed-rate loan tenure ends, your home loan package will automatically change to a floating rate.
Floating or variable rates
In Singapore, there are three different types of floating rates – Singapore Interbank Offered Rate (SIBOR), Board Rate (a rate that is determined by the bank) and the bank’s fixed deposit rate. These variable interest rates can move up or down at any time depending on the prevailing market conditions. This means that if any of these reference rates were to go up, the corresponding interest payable on your home loan will likely increase in tandem.
It is mandatory for banks to inform you in advance, typically 30 days prior, before they make any changes to the interest rate on your housing loan.
How to apply for a home loan?
Know your eligibility
Before applying for a home loan, the first step is to understand which type of loan you are eligible for.
The next step is to then determine how much you can borrow. If you take out a home loan with a bank, the loan amount is typically determined by your Total Debt Servicing Ratio (TDSR) or Mortgage Servicing Ratio (MSR).
If you are taking out a HDB loan, you will have to apply for a HDB Loan Eligibility (HLE) letter. This will provide you with details on the amount you can borrow, the projected monthly repayments, and the total amount of cash you require.
Obtain your In-Principal Approval (IPA)
Suppose you have decided to proceed with a bank loan. The next step is to get an IPA for your housing loan. This essentially is a document from the bank indicating the loan amount they are willing to lend you. Your TSDR, MSR, annual income and credit score would have already been considered when computing the loan amount.
Apply for home loan
Once you have obtained your IPA, the final step is to go ahead and apply your home loan with your chosen financial institution!
Where to get a home loan in Singapore?
Here are some financial institutions in Singapore that offer home loan packages:
Home Loan Provider |
DBS Bank |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.dbs.com.sg/personal/loans/home-loans/default.page |
| Address | View branch locations here |
| Telephone | 1800 111 1111 |
| Operating Hours | View branch opening hours here |
DBS Bank is Singapore’s best home loan provider thanks to its competitive interest rates, flexible repayment options, and customer-centric approach to loan applications. Over the years, the bank has expanded its home loan packages to suit different needs, such as the two-in-one home loan. It wouldn’t be possible to rein supreme in this niche without its dedicated team of mortgage specialists and intuitive and user-friendly website. You can count on DBS to offer a hassle-free and streamlined home loan experience.
Home Loan Provider |
OCBC Bank |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.ocbc.com/personal-banking/loans/home-loans.page |
| Address | View branch locations here |
| Telephone | 65 6363 3333 |
| Operating Hours | View branch opening hours here |
OCBC Bank is a top-rated home loan provider in Singapore that is best known for offering an array of home loans at competitive interest rates. The home loan packages are competitive and customisable to suit diverse customer needs. The online platform allows clients to apply for a home loan in minutes, manage their home loan accounts, and make payments while on the go. OCBC bank also goes the extra mile to offer personalised advice to help clients make informed decisions.
Home Loan Provider |
Maybank Singapore |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.maybank2u.com.sg/en/personal/loans/property-loans/index.page |
| Address | View branch locations here |
| Telephone | View contact details here |
| Operating Hours | View branch opening hours here |
Maybank Singapore is an excellent choice for those seeking an affordable home. The flexible repayment options, competitive interest rates, and personalized customer service are some highlights that set it apart from other banks. One of the unique features is the Mortgage$aver program which enables customers to sync their home loan account with a savings account to save money on interest repayments. Clients also receive generous cash rebates when refinancing their existing home loan with the bank.
Home Loan Provider |
CIMB Bank |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.cimb.com.sg/en/personal/banking-with-us/loans-financing/property-loan/cimb-hdb-home-loan.html |
| Address | View branch locations here |
| Telephone | View contact details here |
| Operating Hours | View branch opening hours here |
High margin of financing, flexible loan tenure, and competitive interest rates are some attributes synonymous with CIMB Bank. The home loan packages are customisable to meet the interests of different customers. One of the notable features is the “Fixed Deposit Home Rate” (FHR) packages linked with the institution’s fixed deposit rates. This synergy enables the bank to charge low-interest rates. The online application process is hassle-free, thanks to personalised customer support. CIMB Bank is ideal for people seeking a cost-effective and flexible home loan solution.
Home Loan Provider |
POSB Bank |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.posb.com.sg/personal/loans/home-loans/default.page |
| Address | View branch locations here |
| Telephone | 1800 339 6666 |
| Operating Hours | View branch operating hours here |
POSB Bank is another top home loan provider in Singapore with thousands of loyal customers. One of the unique features is its “SmartLoan” option which is tailored to allow customers to make flexible repayments and take full control of their loan account online. The “Cashback” option is another notable feature that makes the bank different. Customers are awarded a cash rebate upon loan approval. The website is intuitive and mobile-friendly, allowing customers to access their loan information while on the go.
Home Loan Provider |
Standard Charted Bank |
| Speciality |
|
| Pricing | Contact company for loan amount & interest rates |
| Website | https://www.sc.com/sg/borrow/ |
| Address | View branch locations here |
| Contact | View branch contact details here |
| Operating Hours | View branch operating hours here |
Standard Chartered Bank is a top choice for Singaporeans seeking a home loan that doesn’t charge exorbitant interest rates. The team customises the repayment plan to suit the financial capability and preferences of the customer. The “Home Suite” package is one of the notable features; it allows customers to twerk their home loan with different options, such as a fixed interest rate or a loan repayment holiday. Like other home loan providers, Standard Chartered Bank provides personalised mortgage advisory services and an online platform for easy loan account management.
Home Loan Provider |
State Bank of India |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.sbising.com/home-loans |
| Address | View branch locations here |
| Contact | 1800-724 7464 / 65 6228 1116
contactus@sbising.com / helpdesk@sbising.com |
| Operating Hours | Monday to Friday: 09:30 AM – 05:45 PM |
State Bank of India (SBI) is a renowned home loan provider in Singapore, offering competitive interest rates and various home loan packages. The dedicated support team is always available and ready to help customers select the ideal home loan package. One of its unique features is the “FlexiPay Home Loan” program which allows customers to only pay the interest component of the home loan for the first few years. This program reduces the initial burden of monthly repayments, thus safeguarding customers’ financial stability.
Home Loan Provider |
UOB Bank |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.uob.com.sg/personal/borrow/property/mortgage-options/hdb-home-loan.page |
| Address | View branch locations here |
| Telephone | View contact details here |
| Operating Hours | View branch operating hours here |
UOB Bank is a reliable home loan provider in Singapore that many prefer due to its range of customisable home loan packages. The “Smart Home Loan” program set it apart from other home loan providers. This program enables the bank to offer flexible repayment schemes and allows customers to redraw their excess funds if need arises. With their personalised home loan advisory services, you can be sure that the loan application and repayment process will be stress-free and transparent.
Home Loan Provider |
Bank of China |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.bankofchina.com/sg/pbservice/pb2/201001/t20100120_955824.html |
| Address | View branch locations here |
| Contact | 1800 669 5566
enquiry.sg@bankofchina.com |
| Operating Hours | View branch operating hours here |
Are you looking for a home loan in Singapore with a competitive interest rate and dedicated customer support? Bank of China is the perfect option for you. The bank offers a series of customisable home loan packages to customers. One loan package that many prefer is the “Fixed Deposit Home Rate” package (FHR). This package is linked to the bank’s fixed deposit rates and provides reduced interest rates, thus saving customers thousands of dollars. The loan application process is efficient, and the repayment options are customisable.
Home Loan Provider |
Citibank |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.citibank.com.sg/gcb/loans/home-loan/home-loan.htm |
| Address | View branch locations here |
| Telephone | View branch contact details here |
| Operating Hours | View branch operating hours here |
Citibank is a legit home loan service provider that has been operating for more than a decade now. Apart from personalized mortgage advisory services, Citibank has a unique program dubbed “Citibank Home Saver,” which is structured to combine a mortgage loan with a savings account. The goal is to help save on interest costs and meet their monthly repayment obligations. The support team is available on call, and you can request the repayment schedule to be adjusted upwards or downwards to match your current financial situation.
Home Loan Provider |
HSBC Bank |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.hsbc.com.sg/loans/products/home/ |
| Address | View branch locations here |
| Telephone | View contact details here |
| Operating Hours | View branch opening hours here |
Gone are the days when owning a home was a luxury for a select number of people. HSBC Bank changed this by providing an array of home loans at competitive interest rates and flexible repayment plans. Take advantage of the many programs meant to help you own a home conveniently, such as the “HomeSmart” program, which allows customers to combine their home loan with a current account to save on interest costs. You can apply for the loan online and schedule an appointment with the support team through the official HSBC website.
Home Loan Provider |
Hong Leong Finance |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.hlf.com.sg/personal/loans/hdb-home-loan.html |
| Address | View branch locations here |
| Telephone | 65 6579 6777 |
| Operating Hours | Mon – Fri: 9am – 4.30pm
Sat: 9am – 12nn |
Hong Leong Finance is a legally accredited home loan provider in Singapore, offering competitive interest rates and a range of customisable home loan packages. One of the programs meant to make owning a home in Singapore a breeze is the “Fixed Deposit Home Rate “(FHR) program. Customers leverage the bank’s fixed deposit rates and reduced interest rates through this program. Hong Leong Finance also provides several repayment options and personalised mortgage advisory services to help customers make the right financial decisions and stay on track with their repayments.
Home Loan Provider |
Bank of East Asia |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.hkbea.com.sg/html/en/beasg-personal-banking-loan.html |
| Address | BEA Building, 60 Robinson Road, Singapore 068892 |
| info@hkbea.com.sg | |
| Operating Hours | Monday – Friday (9:00 am – 3:30 pm) |
Bank of East Asia (BEA) is a legal home loan provider in Singapore that is preferred by thousands of people due to its range of flexible home loan packages. One program designed to make loan repayment easy is the “Step-up” loan program, which allows customers to start repaying the loan at a low-interest rate. Through this program, the interest rate gradually increases as their income grows. The online loan application process is straightforward, and the customer-centric approach makes the Bank of East Asia the best home loan provider in Singapore.
Home Loan Provider |
RHB Singapore |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://rhbgroup.com.sg/personal/loans/home-and-property |
| Address | View branch locations here |
| Telephone | View contact details here |
| Operating Hours | Monday – Friday: 9am to 4pm Saturday: 9am to 12pm Sunday & Public Holiday: Closed |
RHB Singapore is another legit home loan provider in Singapore that takes pride in providing flexible home loan packages that are based on specific customers’ needs and preferences. One of the unique features is the “Home Harmony” loan package which allows customers to combine their home loan with a renovation loan. The main objective of this program is to make it easy for customers to undertake home improvement projects without plunging into financial turmoil. The mortgage advisory services are personalised to suit every customer’s financial capability and plans.
Home Loan Provider |
Singapura Finance |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.singapurafinance.com.sg/mortgage_loan.php |
| Address | View branch locations here |
| Telephone | 65 6880 0688 |
| Operating Hours | Mon to Fri: 0900h-1630h Sat: 0900h-1200h |
Singapura Finance is a trusted home loan provider based in Singapore. It offers competitive interest rates and a number of home loan packages. These packages are customisable based on customers’ plans and financial capability. The “Smart Home Loan” is one of the facility’s programs that gives it a higher market cutting edge. Through this program, customers can file for a review of the repayment terms to match their financial capability and needs. For example, you can decide the loan tenure and repayment frequency.
Home Loan Provider |
Sing Investments & Finance Limited |
| Speciality |
|
| Pricing | Contact bank for loan amount & interest rates |
| Website | https://www.sif.com.sg/housing-loan/ |
| Address | View branch locations here |
| Contact | 65 6438 7060
enquires@sif.com.sg |
| Operating Hours | Mon – Fri: 9am – 4pm |
Sing Investments & Finance is a reputable home loan provider in Singapore that offers flexible home loan solutions at competitive interest rates. The rates and packages suit the current market and customer needs. One of the unique packages is the “Premium Housing Loan” package which offers extended repayment periods and flexible loan tenure to customers with a high loan amount. The customer service team is always available and responsive. You can apply for a home loan today at Sing Investments & Finance’s official website.
Editor’s Note:
While every precaution has been made to ensure the accuracy and fairness of this listing, we acknowledge that they may be inaccuracies. Therefore, we urge you to contact the service provider above for the correct information and/or contact us with the right information.
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