A DBS mortgage in 2026 comes down to two choices: lock in a fixed rate from roughly 1.68% p.a. for two years, or float on a SORA package pegged at 3-month Compounded SORA + 0.75% p.a. With 3M Compounded SORA sitting near 1.07% as of June 2026, the floating option works out to roughly 1.8% p.a. all-in, which is why the gap between fixed and floating has narrowed to almost nothing. DBS is the bank most Singaporeans already keep a salary account with, so the convenience is real, but convenience is not a rate. This review puts the actual numbers, the legal subsidy, the lock-in and the prepayment penalty side by side so you can tell whether DBS is genuinely the cheapest home loan for your situation or just the easiest one to click.
DBS sells the same two-flavour menu every Singapore bank does: a fixed-rate package where your rate is frozen for a set number of years, and a floating package pegged to a published benchmark. The benchmark that matters now is 3-month Compounded SORA, the rate the Monetary Authority of Singapore publishes daily. Older pegs like SIBOR are gone, and DBS's own board rate (the FHR, or Fixed Deposit Home Rate) is offered less aggressively than it once was.
What sets DBS apart is the plumbing rather than the price. Its bank loan integrates with the DBS Multiplier account, ties into the iBanking and digibank app most account holders already use, and offers a 'Two-in-One' structure that lets you split one loan into a fixed slice and a floating slice. That hedging trick is genuinely useful if you cannot decide which way rates move next.
The headline DBS product range covers new HDB and private purchases, refinancing, building-under-construction (BUC) properties, a Green Home Loan with preferential rates for Green Mark-certified launches, plus a bridging loan and a cash-out loan. For most readers the decision is narrower: fixed or SORA on a completed flat or condo.
Rates move week to week and the lowest tiers are reserved for larger loans, so treat the table below as a 'from' snapshot dated June 2026, not a quote. DBS does not publish its sharpest fixed rates online; the figures here come from broker rate sheets and DBS's own SORA spread disclosure. Always ask for a written letter of offer before you commit.
The arithmetic on the floating package is the part people miss. A SORA peg of '+0.75%' is not your rate. Your rate is 3M Compounded SORA plus that spread. With SORA around 1.07% as of June 2026, that floating package prices at roughly 1.82% p.a. today, but it resets every three months as SORA moves. Promotional refinancing spreads from brokers have been quoted lower, around +0.60%, which is why shopping the spread matters more than the brand.
| Package | Rate (Years 1-2) | After lock-in | Lock-in | Min. loan |
|---|---|---|---|---|
| 2-year fixed | from ~1.68% p.a. | 3M SORA + ~1.00% | 2 years | S$500,000 |
| 2-year fixed (smaller loan) | from ~1.90% p.a. | 3M SORA + ~1.00% | 2 years | S$200,000 (HDB) |
| 3-year fixed | from ~1.85% p.a. | 3M SORA + ~1.00% | 3 years | S$500,000 |
| 3M SORA floating | 3M SORA + 0.75% (~1.82% p.a.) | Same peg | Usually 2 years | S$100,000 |
| Two-in-One (split fixed + SORA) | Blend of the above | 3M SORA + spread | 2 years | S$100,000 |
| Bridging loan | 4.25% p.a. (DBS Prime) | n/a | None | n/a |
The advertised rate is only half the cost of a mortgage. The clauses below decide whether a 0.1% rate saving is real or gets eaten by penalties later. Read these before the rate.
DBS, like all local banks, attaches a lock-in period (typically two years) during which leaving the loan triggers a penalty. The full-redemption penalty is usually around 1.5% of the outstanding loan if you refinance or sell within that window, though DBS commonly waives the penalty if you sell the property (a '100% waiver due to sale' clause that most banks now match).
DBS can set its own rates, but the borrowing ceiling is set by MAS and applies identically at every bank. Three rules decide how much you can borrow, and they bite before the rate ever matters. Run your own numbers with the mortgage calculator and the stamp duty calculator before you talk to any banker.
Loan-to-Value (LTV) caps your bank loan at 75% of the property price or valuation, whichever is lower, for a first mortgage. Total Debt Servicing Ratio (TDSR) caps all your monthly debt repayments at 55% of gross monthly income. For HDB flats and ECs bought from a developer, the Mortgage Servicing Ratio (MSR) adds a tighter 30% cap on the housing loan alone.
The sting is the stress test. MAS requires banks to assess your TDSR and MSR using a floor rate of 4% p.a. (or the prevailing rate if higher), not the 1.68% you actually pay. So a DBS officer checks whether you could afford the loan at 4%, which shrinks the maximum loan well below what the teaser rate suggests.
All three local banks price within a whisker of each other and chase the same refinancers with cash rebates. DBS's edge is the Multiplier account ecosystem and a low S$100k floor on SORA loans; its weakness is that its absolute lowest fixed rates often need a larger loan than a rival's promo. The honest answer: get written quotes from at least two banks or a broker, then compare the all-in cost over the lock-in period, not the year-one rate alone.
If you are still deciding between locking a rate and riding SORA down, our breakdown of fixed vs floating mortgages walks through the trade-off with current numbers, and if you have not chosen a bank loan over an HDB concessionary loan yet, start with HDB loan vs bank loan.
| Bank | Fixed from | SORA spread (typical) | Standout feature |
|---|---|---|---|
| DBS | ~1.68% p.a. | +0.60% to +0.75% | Multiplier ecosystem, Two-in-One split, S$100k SORA floor |
| OCBC | ~1.65% p.a. | +0.60% to +0.75% | Eco-Care green loan, OCBC 360 tie-in |
| UOB | ~1.68% p.a. | +0.60% to +0.75% | UOB One account tie-in, frequent rebate promos |
DBS is the safe, sensible default for a borrower who already banks with DBS, wants one app for everything, and values the free repricing option that saves refinancing legal fees down the line. The Two-in-One split is a genuine reason to pick DBS if you want to hedge half your loan at a fixed rate and let the other half float with SORA.
Look elsewhere if your loan is small (under S$500k), where another bank's promo may undercut DBS's best tier, or if you are an aggressive refinancer who chases the lowest spread every two years regardless of brand. In that case the cash rebate and spread, not the logo, should drive the decision.
As of June 2026, DBS fixed-rate packages start from around 1.68% p.a. for a two-year lock-in, while the SORA floating package is pegged at 3-month Compounded SORA plus about 0.75%, which works out to roughly 1.82% p.a. with SORA near 1.07%. Rates change weekly and the lowest tiers need larger loans, so always confirm with a written letter of offer.
With 3-month Compounded SORA around 1.07% in June 2026, the floating package is currently close to the fixed rate, so the choice depends on your view of where rates go. Fixed gives certainty for two years; SORA is cheaper if rates keep falling but resets every three months. If you cannot decide, the DBS Two-in-One loan lets you split the amount across both.
DBS home loans typically carry a two-year lock-in. Fully redeeming the loan by refinancing within that period usually triggers a penalty of around 1.5% of the outstanding amount, though DBS commonly waives it if you are selling the property. Repricing to another DBS package is often free after the first 12 months, which avoids both the penalty and fresh legal fees.
A first bank mortgage is capped at 75% loan-to-value, your total monthly debt cannot exceed 55% of gross income under TDSR, and for HDB flats or ECs from a developer the housing repayment must stay within 30% under MSR. Crucially, banks stress-test your eligibility at a 4% floor rate set by MAS, not your actual rate, which lowers the real maximum.
DBS accepts SORA-pegged home loans from S$100,000, and HDB fixed-rate packages from around S$200,000. However, the sharpest advertised fixed rates are usually reserved for loans of S$500,000 or more, so a smaller loan may not qualify for the lowest headline rate you see quoted.
This is general financial information for Singapore, not personal financial advice. Figures change — verify current rates against the official sources above before acting. See our full disclaimer.