Which Bank Offers the Lowest Mortgage Rates in Singapore Right Now?

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Introduction

Singapore’s property market remains one of the most robust and resilient in Asia, and as property prices continue to rise, securing a competitive mortgage rate has never been more important. Whether you’re a first-time homeowner applying for a Build-To-Order (BTO) flat, upgrading to a private condominium, or refinancing your existing loan, the interest rate on your mortgage significantly impacts your total loan cost.

With numerous banks offering a variety of mortgage packages, identifying which bank offers the lowest mortgage rate in Singapore right now can be a challenge. Rates fluctuate frequently based on market trends, global interest rate benchmarks, and the banks’ own internal strategies. Furthermore, the lowest rate may not always mean the best package, as other factors such as lock-in periods, fees, and flexibility play a role.

In this article, we break down the current mortgage landscape in Singapore for 2025, highlight which banks typically offer the most competitive home loan rates, and provide guidance on how to choose the most suitable loan package for your needs.

The Current State of Mortgage Rates in Singapore (2025 Overview)

Mortgage interest rates in Singapore are influenced by broader macroeconomic factors, including the U.S. Federal Reserve’s interest rate policies, inflation trends, and domestic monetary policy by the Monetary Authority of Singapore (MAS). In 2022 and 2023, rates rose significantly in response to global inflation, reaching a peak that impacted both fixed and floating rate packages.

By 2024 and into early 2025, rate hikes have moderated, and Singapore’s banks are slowly adjusting their home loan packages accordingly. Most banks currently offer:

  • Fixed Rates: Between 3.30% and 3.85% for 1- to 3-year periods

  • Floating Rates (SORA-pegged): Typically range from 3.10% to 3.60%, depending on the bank and spread

  • Hybrid Packages: A mix of fixed and floating components, becoming more popular among risk-averse borrowers

Major Banks Offering Home Loans in Singapore

Let’s look at the key players in Singapore’s mortgage loan space:

  1. DBS Bank

  2. OCBC Bank

  3. UOB Bank

  4. Maybank

  5. HSBC

  6. Standard Chartered Bank

  7. Citibank

  8. RHB Bank

  9. Bank of China (BOC)

  10. Hong Leong Finance

These banks offer a wide range of loan packages tailored to different needs, including fixed-rate, floating-rate, and SORA-pegged loans.

Which Bank Has the Lowest Mortgage Rate in 2025?

While actual rates change frequently, as of Q2 2025, here is a general comparison of the banks known for consistently offering some of the lowest interest rates:

1. DBS Bank

  • Floating rate (3M SORA + 0.80%)

  • Fixed rate: ~3.35% for 2 years

  • Low legal subsidy cap

  • Online application process

  • Known for stability and competitive spreads

Best for: Those looking for consistent service, digital convenience, and transparent pricing.

2. Maybank

  • Floating rate (3M SORA + 0.75%) — one of the lowest spreads in the market

  • Fixed rate: ~3.30% for 2 years

  • Attractive promotional offers for refinancing

  • Generous legal subsidy for refinancing packages

Best for: Homeowners refinancing for better rates or switching from HDB to bank loan.

3. OCBC Bank

  • Floating rate: 3M SORA + 0.85%

  • Fixed rate: ~3.50% for 2 years

  • Offers free repricing after lock-in

  • Flexible partial prepayment options

Best for: First-time buyers who want the option to reprice and enjoy flexibility.

4. HSBC

  • Floating rate: 3M SORA + 0.78%

  • Fixed rate: ~3.45% for 2 years

  • Excellent customer service and customisation

  • Higher income threshold for premier packages

Best for: High-net-worth individuals or investors with multiple properties.

5. Standard Chartered

  • Floating rate: 3M SORA + 0.88%

  • Fixed rate: ~3.40% for 2 years

  • Allows easy integration with other wealth management tools

Best for: Customers who want banking and loan services under one umbrella.

Note: Exact rates may vary based on loan amount, tenure, property type, and borrower profile.

What’s the Difference Between Low Rate and Best Package?

The lowest headline rate may not always mean the best mortgage package. Here’s why:

  1. Lock-in Period: A lower rate may come with a 2- or 3-year lock-in period. If you plan to sell or refinance soon, this could cost you in penalty fees.

  2. Legal Subsidy Cap: Some banks offer a legal fee subsidy when refinancing. Packages with lower rates may offer lower subsidies, resulting in higher upfront costs.

  3. Repricing Flexibility: Some banks allow free repricing after the lock-in period, others charge administrative fees.

  4. Prepayment Penalties: If you want to pay off your loan early, be aware of fees attached to early partial or full redemption.

  5. Customer Service & Processing Time: Faster processing, helpful advisors, and a smooth onboarding process matter—especially during tight option-to-purchase (OTP) deadlines.

Should You Go for a Fixed or Floating Rate in 2025?

The answer depends on your financial situation, risk appetite, and interest rate outlook.

Choose a Fixed Rate if:

  • You want stable monthly payments

  • You’re worried about rate increases

  • You’re on a fixed budget and prefer certainty

Choose a Floating Rate if:

  • You expect interest rates to fall or stay flat

  • You plan to refinance or sell within a few years

  • You have flexibility to absorb payment increases

Pro tip: Some borrowers go for hybrid packages—fixed for 2 years and floating thereafter—to enjoy short-term stability with long-term flexibility.

Other Key Considerations When Comparing Mortgage Packages

Beyond interest rates, evaluate these important components:

  1. Loan Tenure

    • Longer tenure = lower monthly instalments but higher total interest

    • MAS limits apply: 30 years for HDB, 35 years for private property

  2. Loan Amount & LTV Limits

    • 75% LTV for first property with bank loan

    • CPF and cash usage rules also apply

  3. Income Type

    • Salaried vs. self-employed may affect eligible rates and banks

  4. Debt-to-Income Ratio

    • TDSR (Total Debt Servicing Ratio) limit is 55% of gross income

    • MSR (Mortgage Servicing Ratio) applies for HDB and EC purchases: max 30% of income

  5. Refinancing Options

    • Some banks allow repricing internally after lock-in

    • Others offer limited time refinancing promos with full legal fee subsidies

How Often Do Mortgage Rates Change?

Floating interest rates may change monthly or quarterly, depending on the benchmark (e.g., 1M or 3M SORA). Banks review their internal spreads periodically, and external economic factors also influence benchmark rate movements.

Fixed rates, on the other hand, remain unchanged for the fixed duration (e.g., 2 years), after which they convert to floating.

Tip: Always monitor your loan terms and set reminders before your lock-in period expires to explore repricing or refinancing opportunities.

Why You Should Use a Mortgage Loan Broker

With so many banks and packages to choose from, working with a mortgage loan broker can save you time and money. Here’s how they help:

  • Provide up-to-date comparisons of all available rates

  • Identify packages with the best overall value (not just the lowest rate)

  • Offer insights into bank policies and credit approval standards

  • Assist with paperwork, bank negotiations, and faster approval timelines

  • Services are usually free, as brokers are paid by banks

How to Lock in the Lowest Rate

  1. Get an Approval in Principle (AIP)

    • Secure your loan eligibility before committing to any property

    • AIPs are usually valid for 30 to 90 days

  2. Monitor Rate Trends

    • Keep track of MAS announcements and SORA trends

    • Watch for limited-time bank promotions

  3. Act Quickly When Rates Drop

    • Banks often offer limited-time packages that change monthly

    • Be ready with required documents to act fast

  4. Bundle With Other Products (Optional)

    • Some banks offer lower rates if you sign up for insurance or invest in their products

Conclusion

The search for the lowest mortgage rate in Singapore in 2025 involves more than simply comparing numbers. While banks like Maybank, DBS, and HSBC are consistently among the top contenders for low interest packages, the best deal depends on your financial profile, loan tenure, cash flow, and flexibility needs.

Rather than chasing just the lowest rate, consider the overall value of the mortgage package—factoring in fees, penalties, and bank reputation. And if you’re unsure where to start or want to save time comparing, consider engaging a professional mortgage loan broker who can help you make a smart, informed, and cost-effective decision.

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