Compare between the best mortgage housing loan rates in Singapore
Found your dream home and ready to look for the best mortgage housing loan in Singapore?
It goes without saying that as homeowners, you want to reduce your home loan repayments as much as possible to get the best mortgage housing loan rates in Singapore. Your housing loan is something that takes 20-30 years to pay off and it is likely one of the largest purchases of your lifetime, and even a small percentage difference in your home loan can make a huge difference over the years!
There are no advantages of paying a home loan with the highest interest rate, and it just means that you are paying more.
This is why we at Your Interest First help you compare between 15 different banks, to bring you the best and cheapest mortgage housing loan rates in Singapore. Making sense of the complicated, we dice up the complicated mortgage housing loan lingos into simple bite sizes that are easy to understand.
120 Home Loans From Over 12 Banks
Why is it cheaper for you to get your mortgage home loan from us?
Are there any fees?
Is the interest rate higher if I engage you, compared to if I go to a bank directly?
No. The interest rate you get from us is the same as what you get from the bank directly.
In fact, sometimes we might even be able to get a slightly cheaper rate than the bank’s shelf rate. This is because we refer bulk volume of businesses to banks. And banks might be more favourable to give us lower housing loan rates so we can continue to refer business to them.
How can engaging Your Interest First help me to get the best rate?
We help you to compare between all the banks, and come up with the best and lowest 2-3 home loan rates in Singapore.
DID YOU KNOW?
Mortgage home loan rates from different banks differ at different points in time. This is attributed to supply and demand during that time. At Your Interest First, we help you get the most updated housing loan rates
There are different types of mortgage home loan rates in Singapore. Ranging from Fixed rates, Sibor rates, SORA rates. Etc. We help you simply all these terms and present you with the cheapest rates.
Besides your credit score, factors such as the number of credit cards and existing loans you have can affect the maximum amount of mortgage home loan you can get. We will advise you on the best steps to take.
Getting a bank mortgage home loan
Your Maximum Loan Amount
Have you wondered how much HDB or Private home loan can you get from the bank? There are 2 ratios you will need to know.
Total Debt Servicing Ratio (TDSR)
Maximum TDSR is 40% of your monthly income.
This means the maximum amount of loan you can take (including all loans such as Vehicle, Personal + your Housing Loan. etc) In total, the repayment for all your loans cannot exceed more than 40% of your income each month.
Mortgage Servicing Ratio (MSR)
Maximum MSR is 30% of your monthly income.
This means that the total monthly repayment for your mortgage home loan, cannot exceed more than 30% of your income. This is meant to reduce the liabilities on our housing loans.
Compare and get the lowest mortgage home loan.
Receive up to $1500 in rebates.
In-Principle Approval (IPA)
Your next step is to get either a HDB Loan Eligibility (HLE) if you are getting a home loan from HDB or An In-Principle Approval (IPA) if you are getting a home loan from a bank. An IPA is an estimate by a bank on the amount of home loan they will extend to you.
It is always advisable to get an IPA first so you know how much mortgage home loan amount you are eligible for, and how much you can afford to pay for your new home. A typical IPA lasts for 30 days.
Option to Purchase (OTP)
Once you have gotten your IPA, you can now pay the Option to Purchase Fee
An Option to Purchase is an agreement between the buyer and seller of a property. It is usually 1% of the property price.
The Option to Purchase is used by the buyer to “reserve” the property. This is because for an agreed period of time, also known as the Option Period (usually 14 days but negotiable) only that buyer can purchase that property, and not anyone else.
Once both parties are favourable with the terms, the buyer will pay the option fee to the seller, and the seller signs the document.
Buyer does not exercise the Option to Purchase
Buyer chooses to exercise the Option to Purchase
If the buyer chooses to exercise the Option to Purchase, basically it means the buyer has decided to purchase the property. The buyer needs to sign an acceptance copy of the Option to Purchase and pay the deposit fee (usually 5% to 10% of the purchase price, less the option fee)
Seller and buyer will both agree on a date of completion of the sale. This is typically around 10 to 12 weeks from the signing of the Option to Purchase.
Compare and get the lowest mortgage home loan.
Receive up to $1500 in rebates.
Types of Mortgage Housing Loan Singapore has
HDB VS Bank Loan
Private
HDB
4 main types of Mortgage housing loan singapore has
Fixed Rate Home Loan.
A fixed rate means that the interest you pay for your housing loan is fixed throughout a period of time of 2-3 years (depending on your lock-in period). During this period, your monthly repayments remain the same.
After your lock-in period ends, the bank may change the interest rate. At this point, it is advisable to reprice or refinance to a cheaper housing loan. Fixed rate home loans allow you to better manage your finances since the payments are fixed.
In summary, we recommend this if stability is what you seek.
Advantage:
Disadvantage:
May be slightly more expensive as you are paying for stability. They also do not stay fixed forever, and become floating rates after 2 to 3 years
Floating Rate Home Loan.
A floating rate home loan’s interest rate is not fixed, and will change. How is this change decided? The interest rates are tagged to:
- SIBOR (Singapore Interbank Offer Rate) This will be phased out in Singapore by end of 2024. And to be replaced by SORA.
- SORA (Singapore Overnight Average Rate)
- SOR (Swap Offer Rate)
Advantage:
Disadvantage:
Very volatile. Fluctuates, and may not be the cheapest for long.
Fixed Deposit Linked Rate
Fixed Deposit home loan rates are tagged to the bank’s fixed deposit interest rates. Although it is believed that banks are not incentivized to increase these rates too much as it also means they have to pay out more on their fixed deposits too, this is now believed to be false.
This is because there are other factors that compete with them to push them up. And most of the time banks do not use their most attractive Fixed Deposit rates to tag to your mortgage home loan rate anyway.
Advantage:
Disadvantage:
Board Rates
Typically expensive. Volatile. And not transparent.
Board rates basically mean that the bank itself decides on the interest rate internally.
These are the least preferred type of home loan rates. As it means that the banks can change the rates at their own discretion, no justification is needed. You may find yourself paying as much as 0.7% more on your housing loan with only 1 months’ notice!
Advantage:
Disadvantage:
Compare and get the lowest mortgage home loan.
Receive up to $1500 in rebates.
Testimonials
Why engage us for your mortgage home loan?
It's Free for you!
Our services are free and there are absolutely no charges or fees when you engage our services.
When you engage us as your mortgage broker, we get paid by the banks a referral fee.
Easily compare from 16 over banks
Instead of individually comparing between over 16 banks, we consolidate all the information in one place to present you with the 2-3 best mortgage housing loan rates in Singapore.
Fuss-free and Convenient
Leave the complicated jargon and matters to us! Our mortgage specialist will contact you directly, so you can spend your precious time on more important matters.
FAQ
DBS, UOB, Standard Chartered are some of the most popular banks that people engage for mortgage loans in Singapore. Other banks include. Citibank. HSBC, CIMB, Maybank, ANZ, Bank of China, OCBC, POSB, Singapura Finance. As rates change constantly, what is the cheapest will always change. Compare rates here
Simply put, we help you get the best mortgage interest rate in Singapore at the current moment at no additional cost. Our services are free and you do not pay us, nor pay a higher amount of loan by engaging us.
We compare from over 12 banks to get you the lowest rate, and the bank pays us a referral fee. Which means the rates you pay are exactly the same as what you get from the bank directly. Compare rates here
You should not spend more than 30% of your gross monthly income on your housing loan in Singapore. Which means if you earn $5000 a month, $1500 per month is the maximum amount you can spend on your monthly home loan repayment. Mortgage Servicing Ratio (MSR) stipulates that no more than 30% of your monthly income can be used for monthly repayments on your housing loan. This is a limit imposed by the Monetary Authority of Singapore (MAS).
Documents required when applying for a home loan are:
- A copy of NRIC / Passport
- Latest payslips (3 months)
- Latest Income Tax Notice Assessment (2 years if you are self-employed)
- CPF Contribution History
- OTP (Option to Purchase) or Sales & Purchase Agreement
Compare rates here
