Mortgage from a commercial bank. Rates are typically 3% – 4.5%, can be fixed or floating (SORA-pegged). Max tenure 30 years (private) or 25 years (HDB). Min 5% cash downpayment.
A bank loan is a mortgage from a commercial bank used to finance the purchase of a property in Singapore. Unlike HDB concessionary loans, bank loans are available to all eligible buyers — citizens, PRs, and foreigners — and can be used for both HDB and private property.
Bank loans are the only mortgage option for private property (condos, landed) and become attractive for HDB buyers who don't qualify for the HDB concessionary loan or who want a longer tenure.
Interest rate: typically 3% – 4.5%, with both fixed-rate and floating-rate options. Floating rates are usually pegged to SORA (Singapore Overnight Rate Average).
Maximum tenure: 30 years for private property, 25 years for HDB. Tenure capped at age 75 minus current age.
Maximum LTV: 75% on a first housing loan (versus 80% for HDB).
Minimum cash downpayment: 5% of property price, then up to 20% from CPF OA or cash.
Fixed rate: typically locked for 2 – 5 years at a slight premium over the floating equivalent. Predictable monthly payments. Good when rates are rising.
Floating rate (SORA-pegged): typically 3-month SORA + a bank spread. Resets every 3 months. Lower in falling-rate environments.
Hybrid options: some banks offer a 2-year fixed + floating thereafter, giving short-term certainty with long-term flexibility.
Most Singapore borrowers refinance every 2 – 3 years to capture cheaper rates as their lock-in expires. Refinancing typically costs S$2,000 – S$3,000 in legal and valuation fees, often subsidised by the new bank.
Before refinancing, model the break-even: divide refinancing costs by monthly savings to see how many months it takes to recoup the costs.
Use the Mortgage Calculator to compare scenarios with different rates and tenures.
3.0% – 4.5% as of 2025. Fixed-rate packages run 0.3% – 0.7% above floating SORA-pegged rates. Rates vary by bank, package, and loan size.
30 years for private property, 25 years for HDB flats. Tenure also caps at age 75 minus your current age. Tenures past these caps trigger a lower LTV (55% instead of 75%).
No. Once you've taken a bank loan for an HDB flat, the HDB loan option is permanently closed for that property. You can refinance the bank loan to another bank, but never back to HDB.
Every 2 – 3 years, timed with the end of your lock-in period. Banks compete aggressively for new customers, and existing borrowers often pay materially above market unless they shop. Refinancing fees are typically S$1,800 – S$3,000, often subsidised by the new bank.