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PRIVATE PROPERTY (CONDO/LANDED)
HDB FLATS (RESALE/BTO)

Fixed Mortgage Loan Rates for Resale Private Properties (Condo or Landed)

Best Fixed Mortgage Rates for a Resale Condo or Landed Home (April 2025)

BANK	LOAN TYPE	Year 1	Year 2
Promo	3 Yr Fixed	2.35%	2.35%
Promo	2 Yr Fixed	2.35%	2.35%
Promo	1 + 1 Yr Fixed	2.40%	2.40%
SCB	2 Yr Fixed	2.45%	2.45%
Maybank	2 Yr Fixed	2.48%	2.48%
HSBC	2 Yr Fixed	2.48%	2.48%
DBS	2 Yr Fixed	2.50%	2.50%
DBS	3 Yr Fixed	2.55%	2.55%

Floating Mortgage Loan Rates for Resale Private Properties (Condo or Landed)

Best Floating Mortgage Rates for a Resale Condo or Landed Home (April 2025)

BANK	LOAN TYPE	Year 1	Year 2
Promo	3M SORA	+0.20%	+0.20%
Maybank	3M SORA	+0.45%	+0.45%
BOC	3M SORA	+0.50%	+0.50%
DBS	3M SORA	+0.55%	+0.55%
SCB	3M SORA	+0.60%	+0.60%
DBS	FHR6	+0.95%	+0.95%

Which bank offers the best mortgage loan for a resale private property? (Analysis & comparison)

In today’s market, fixed rate private property home loans range from 2 to 5 years, with 2-year and 3-year fixed mortgage packages being popular choices for homeowners looking to enjoy short-term stability while minimising overall interest costs.

While Maybank and Standard Chartered currently offer some of the most competitive fixed rates, other major banks such as DBS, OCBC, UOB, and HSBC also provide attractive options, each with varying lock-in periods, promotional perks, and refinancing flexibility. For example, DBS and UOB regularly feature promotional fixed rate packages, while OCBC and HSBC are known for customised solutions and relationship-based pricing.

When it comes to floating rate home loans for private properties, banks like Maybank, Standard Chartered, and DBS are offering low bank spreads and shorter lock-in periods tied to 3M SORA rates, giving borrowers flexibility to refinance when rates shift. A shorter lock-in period—typically 1 to 2 years—can be beneficial in a rising interest rate environment, allowing you to switch to a better package when the time is right.

At Ace Mortgage, our advisors help you compare and secure the most suitable mortgage package from over 20 major banks in Singapore, ensuring your loan is optimised for both your financial goals and market conditions.

Enquire now to get loan assessment for your resale condo or landed property with lowest mortgage rates.

Fixed Mortgage Loan Rates for Private Property Mortgage Refinancing

Best Fixed Mortgage Rates for Private Property Refinancing (April 2025)

BANK	LOAN TYPE	Year 1	Year 2
Promo	2 Yr Fixed	2.30% (EMI)	2.30% (EMI)
Promo	1+1 Yr Fixed	2.35%	2.35%
OCBC	2 Yr Fixed	2.55%	2.38%
Maybank	2 Yr Fixed	2.48%	2.48%
SCB	2 Yr Fixed	2.50%	2.50%
DBS	2 Yr Fixed	2.50%	2.50%
OCBC	2 Yr Fixed	2.55%	2.55%
DBS	3 Yr Fixed	2.55%	2.55%

Floating Mortgage Loan Rates for Private Property Mortgage Refinancing

Best Floating Mortgage Rates for Private Property Refinancing (April 2025)

BANK	LOAN TYPE	Year 1	Year 2
Promo	3M SORA	+0.20%	+0.20%
Maybank	3M SORA	+0.50%	+0.50%
BOC	3M SORA	+0.50%	+0.50%
DBS	3M SORA	+0.55%	+0.55%
SCB	3M SORA	+0.60%	+0.60%
DBS	FHR6	+0.95%	+0.95%

Which bank offers the best refinancing package? (Analysis & comparison)

If you’re planning to refinance your private property, now is a strategic time to review your mortgage. With interest rates still higher than historical averages, many homeowners are turning to fixed rate home loans for short-term stability—especially options that allow future flexibility.

Several banks in Singapore, including DBS, OCBC, UOB, HSBC, and Bank of China, offer attractive 2-year and 3-year fixed rate refinancing packages. These packages are ideal for borrowers with a lower risk appetite, seeking predictable repayments while keeping the door open for future repricing or refinancing.

One particularly useful feature to look out for is free repricing within the lock-in period—allowing borrowers to switch to a different interest rate package if market conditions improve. Some banks, such as Bank of China, include this in their fixed rate refinancing plans, alongside other perks like 100% penalty waivers in the event of a property sale.

Ultimately, the best mortgage loan for refinancing depends on your financial goals, property timeline, and appetite for interest rate fluctuations. At Ace Mortgage, we provide unbiased comparisons across all major banks to help you secure the most suitable home loan with the lowest interest rates and maximum flexibility.

Enquire now to get refinancing loan assessment with lowest mortgage rates.

Floating Mortgage Loan Rates for New Launch Condo (BUC Condo)

Best Mortgage Rates for a BUC Condo (April 2025)

BANK	LOAN TYPE	Year 1 to 4
Promo	3M SORA	+0.28%
Maybank	3M SORA	+0.30%
DBS	3M SORA	+0.30%
SCB	3M SORA	+0.30%
DBS	FHR6	+0.90%

Which bank offers the best mortgage loan for a New Launch (BUC) condo?

Choosing the best mortgage loan for a BUC condo requires careful consideration, as these properties follow a progressive payment schedule and involve different financing terms from completed homes. Because BUC loans are disbursed in stages, the structure of your mortgage package—especially its flexibility—can significantly impact your total cost and future options.

Among the various lenders, DBS currently offers one of the most attractive BUC mortgage packages, particularly for buyers seeking a competitive floating rate with built-in flexibility. One standout feature is the ability to switch to a different interest rate package up to two times, from the point of first disbursement to six months after TOP (Temporary Occupation Permit)—a valuable option if market rates shift or if fixed rates become more appealing.

Another key advantage is DBS’s waiver of penalties on unreleased loan amounts if the property is sold before the full loan is disbursed. This is especially relevant for homeowners or investors who plan to sell their unit shortly after collecting keys, which is a common strategy given the typical appreciation in value by the time a BUC property reaches completion. Without such a waiver, sellers may face early repayment penalties on the undisbursed loan portion—potentially costing thousands.

While DBS is currently a strong contender, other banks such as UOB, OCBC, Standard Chartered, and HSBC also offer competitive floating rate BUC home loans, each with their own strengths such as lower spreads, shorter lock-ins, or repricing options.

Because BUC home loans require a different planning approach, it’s crucial to evaluate the full picture—not just the interest rate, but also the flexibility, fees, and exit clauses. At Ace Mortgage, our experienced advisors compare across all major banks in Singapore to help you find the best home loan package for your BUC property, tailored to your long-term financial goals.

Enquire now to get loan assessment for your new launch condo with lowest mortgage rates.

What is the Progressive Payment Schedule for a New Launch Condominium in Singapore?

Progressive Payment Schedule for a New Launch Condominium in Singapore

Stage of Payment	Percentage of Purchase Price	Notes
Option to Purchase (OTP) Fee	5% (Cash)	Payable upon booking the unit.
Upon Signing the Sale & Purchase Agreement (S&PA) (Within 8 weeks of OTP)	15% (Cash or CPF)	This completes the downpayment, totaling 20% of the purchase price.
Completion of Foundation Work	5% (Cash or CPF to fulfil 75% LTV) + 5%	Payment due upon completion of foundation.
Completion of Reinforced Concrete Framework	10%	Payment due when the structural framework is completed.
Completion of Partition Walls	5%	Payment due upon completion of partition walls.
Completion of Roofing/Ceiling	5%	Payment due when roofing/ceiling is completed.
Completion of Door and Window Frames, Electrical Wiring, Internal Plastering, and Plumbing	5%	Payment due upon completion of these installations.
Completion of Car Parks, Roads, and Drains	5%	Payment due when these external works are completed.
Upon Receipt of Temporary Occupation Permit (TOP)	25%	At this stage, the property is typically ready for occupancy.
Upon Receipt of Certificate of Statutory Completion (CSC)	15%	Final payment upon full completion and certification of the property.
Total	100%

What is the SORA Rate today?

Understanding the Singapore Overnight Rate Average (SORA) is crucial for mortgage borrowers in Singapore, as it serves as the primary benchmark for determining home loan interest rates.

What is SORA?

SORA represents the volume-weighted average rate of unsecured overnight interbank Singapore Dollar (SGD) transactions in Singapore. Unlike its predecessor, the Singapore Interbank Offered Rate (SIBOR), which was based on estimated borrowing costs, SORA is derived from actual transaction data, enhancing its transparency and reliability.

How Does SORA Affect Mortgage Borrowers?

Mortgage loans pegged to SORA typically reference the 3-month Compounded SORA rate. This rate is calculated by compounding the daily SORA rates over a three-month period, providing a more stable and less volatile benchmark compared to single-day rates. Lenders add a fixed margin, known as the spread, to this benchmark to determine the effective interest rate for borrowers.

Current SORA Rates Today ( April 2025)

Compounded SORA Tenor	Rate
1-Month Compounded SORA	2.36%
3-Month Compounded SORA	2.55%
6-Month Compounded SORA	2.77%

Fixed Mortgage Loan Rates for Resale HDB Flat

Best Fixed Mortgage Rates for a Resale HDB Flat (April 2025)

BANK	LOAN TYPE	Year 1	Year 2
Promo	2 Yr Fixed	2.44%	2.44%
Promo	1 + 1 Yr Fixed	2.50%	2.50%
OCBC	2 Yr Fixed	2.60%	2.38%
DBS	2 Yr Fixed	2.55%	2.55%

Floating Mortgage Loan Rates for Resale HDB Flat

Best Floating Mortgage Rates for a Resale HDB Flat (April 2025)

BANK	LOAN TYPE	Year 1	Year 2
DBS	CHR	+0.10%	+0.10%
Maybank	3M SORA	+0.55%	+0.55%
DBS	3M SORA	+0.60%	+0.60%
DBS	FHR6	+0.95%	+0.95%

Pros & Cons of Fixed vs Floating Rates for HDB Resale Flats (Quick Comparison)

Fixed vs Floating Rate HDB Home Loans: A Quick Comparison

Feature	🏠 Fixed Rate Loan	🌊 Floating Rate Loan
Stability	✅ High – Monthly payments remain constant	❌ Variable – Changes with market rates (e.g. SORA)
Rate Predictability	✅ Locked in for 2–5 years	❌ Subject to fluctuations every 1–3 months
Best for	Buyers who value stability over potential savings	Borrowers seeking to benefit from potential rate drops
Example Rates	~3.00–3.30% (2 or 3-year fixed)	~2.85–3.10% (3M SORA or FHR-based)
Lock-in Period	Typically 2 years	1–2 years (some offer no lock-in after initial period)
Flexibility	❌ Repricing possible only after lock-in	✅ Often allows repricing or switching after 1 year
Penalty on Sale	✅ Waivers may apply, depending on bank	✅ Waivers may apply on unreleased loan (e.g. BUC sale)
Best Banks (Currently)	DBS, UOB, OCBC, Maybank	DBS (FHR), Standard Chartered, OCBC, HSBC
Ideal Loan Size	Any size – especially stable for <$500k loans	Larger loans (>$600k) benefit more from floating rates

When purchasing an HDB flat—especially a resale unit with a 5-year Minimum Occupation Period (MOP)—many homeowners prefer the stability of a fixed interest rate throughout this mandatory holding period, without overpaying in the current high-rate environment.

With interest rates nearing their highest point in nearly a decade, choosing a 2-year or 3-year fixed rate home loan offers peace of mind, while keeping your total borrowing costs manageable. Several banks, including DBS, OCBC, UOB, and Maybank, offer competitive fixed rate packages tailored for HDB purchases.

At the same time, for larger HDB loan amounts above $600,000, a floating rate home loan may be worth considering. In a declining interest rate environment, floating packages could provide significant interest savings, especially over the first few years. For example, DBS’s Fixed Deposit Home Rate (FHR) loan—pegged to a fixed deposit rate instead of the standard 3M SORA—offers a unique hedge against rate fluctuations and is attractive for certain borrower profiles.

Ultimately, choosing between a fixed or floating rate bank loan for HDB depends on your financial goals, risk appetite, and long-term property plans. Some homeowners may even benefit from hybrid loan structures or packages that offer repricing flexibility after a lock-in period.

At Ace Mortgage, our expert advisors compare real-time interest rates and promotions from all major banks to help you secure the best HDB housing loan—whether you’re buying your first BTO, upgrading to a resale flat, or considering refinancing. We stay up to date on monthly rate revisions and hidden perks to ensure you don’t just settle for what’s published online—but get a truly better deal.

Fixed Mortgage Loan Rates for Resale HDB Loan Refinancing

Best Fixed Mortgage Rates for a HDB Refinancing (April 2025)

BANK	LOAN TYPE	Year 1	Year 2
Promo	2 Yr Fixed	2.50%	2.38%
Maybank	2 Yr Fixed	2.48%	2.48%
DBS	2 Yr Fixed	2.50%	2.50%
DBS	3 Yr Fixed	2.55%	2.55%

Floating Mortgage Loan Rates for Resale HDB Loan Refinancing

Best Floating Mortgage Rates for a HDB Refinancing (April 2025)

BANK	LOAN TYPE	Year 1	Year 2
DBS	CHR	+0.10%	+0.10%
Maybank	3M SORA	+0.55%	+0.55%
DBS	3M SORA	+0.60%	+0.60%
DBS	FHR6	+0.95%	+0.95%

Which bank offers the best mortgage loan for a Resale HDB flat? (Analysis & comparison)

When financing a resale HDB flat, selecting the right mortgage is crucial for optimizing your financial commitments. While the HDB Concessionary Loan offers a stable interest rate of 2.6% per annum, bank loans can provide more competitive rates, potentially leading to significant savings over time.

Current Bank Loan Interest Rates for Resale HDB Flats (April 2025)

Bank	Loan Package	Interest Rate (Year 1)	Monthly Instalment	Lock-in Period	Notes
Standard Chartered	2-Year Fixed	2.42%	S$13,338	2 years	Free package conversion
DBS	2-Year Fixed Package	2.50%	S$13,459	2 years
OCBC	2-Year Fixed	2.75%	Not specified	2 years
Maybank	1+1 Year Fixed	2.70%	Not specified	2 years
HSBC	1-Year Fixed	2.70%	Not specified	1 year

Considerations:

When choosing a mortgage for your resale HDB flat, consider the following factors:

Interest Rates: Lower rates can lead to substantial savings over the loan tenure.
Lock-in Period: Understand the duration you’re committed to the bank before you can refinance without penalties.
Flexibility: Look for features like free package conversions or prepayment options.
Eligibility: Ensure you meet the bank’s criteria for loan approval.
Additional Fees: Be aware of any processing fees, legal fees, or other charges that may apply.

Consulting with a mortgage advisor can provide personalized insights to help you make an informed decision.

Should I take up a HDB Housing Loan (HDB Concessionary Loan) or a Bank Loan? (Analysis & comparison)

Should You Take an HDB Concessionary Loan or a Bank Loan for a Resale HDB Flat?

Factor	🏦 HDB Housing Loan	🏛️ Bank Housing Loan
Interest Rate	Fixed at 2.6% p.a. (CPF OA + 0.1%)	Typically 2.1%–2.5% p.a. (fixed rate)
Loan-to-Value (LTV)	Up to 80-90% of property price or valuation	Up to 75%
Down Payment	10-20% (Full CPF accepted)	5% in cash + 20% CPF or cash
Flexibility	✅ High – early repayment with no penalty	❌ Early repayment may incur penalties (within lock-in)
Approval Criteria	More lenient – ideal for first-time buyers	Stricter – based on income, credit score, TDSR
Switching Option	✅ Can switch to bank loan later	❌ Cannot switch back to HDB loan once bank loan is chosen
Loan Tenure	Up to 65 years of age, max 25 years	Up to 75 years of age, max 30 years (subject to age)
Monthly Repayment	Slightly higher due to higher interest	Lower initially (if floating), but subject to rate changes
Repricing / Refinancing	❌ Not applicable	✅ Available – can reprice or refinance anytime
Ideal For	First-time buyers, stable income, CPF-heavy buyers	Buyers with strong financials, cash-rich profiles, or rate-savvy investors

🧠 Ace Mortgage Tip:

Choose an HDB loan if you value flexibility, predictability, and want to maximise CPF usage with low cash outlay.
Choose a bank loan if you’re financially stable, prefer lower interest rates, and are comfortable managing refinancing or interest rate changes.

Still unsure? Our Ace Mortgage consultants can help you compare real-time interest rates from all major banks and determine if you’ll save more with an HDB or bank loan.

What type of Housing Loan should I take for my HDB BTO? (Quick Guide)

Choosing between an HDB Concessionary Loan and a Bank Loan is one of the most important financial decisions you’ll make when buying your Build-To-Order (BTO) flat in Singapore.

Each loan type has its pros and cons, but for many first-time buyers, the HDB loan offers greater peace of mind, flexibility, and lower upfront cash requirements — making it a strong choice, especially during uncertain economic conditions.

🔍 HDB Loan vs Bank Loan for HDB BTO Flats – A Comparison

Factor	🏦 HDB Concessionary Loan	🏛️ Bank Housing Loan
Interest Rate	Fixed at 2.6% p.a. (pegged at CPF OA + 0.1%)	Varies; typically lower than HDB rates but subject to market fluctuations
Loan-to-Value (LTV)	Up to 75%	Up to 75%
Down Payment	25% (can be fully paid using CPF savings; no cash required)	5% cash + 20% (can be paid using CPF savings or cash)
Maximum Loan Tenure	Up to 25 years	Up to 30 years for HDB flats
Penalty for Early Repayment	❌ None	✅ Possible (within lock-in period)
Eligibility Criteria	Must be a Singapore Citizen; income ceiling applies	Open to Singapore Citizens, PRs, and Foreigners; no income ceiling
Switching Option	✅ Can switch to bank loan later	❌ Cannot switch back to HDB loan once bank loan is chosen

📌 Key Takeaways:

The HDB loan is more forgiving, especially for young couples and first-time buyers who may not yet have strong cash flow or credit profiles.
The bank loan can offer lower interest costs over time — but it comes with more complexity, and repayments begin much earlier.
You cannot switch from a bank loan to an HDB loan later, but you can switch from an HDB loan to a bank loan.

Compare Housing Loans Packages in Singapore

Compare housing loan packages in Singapore to find the best rates, lowest fees, and most flexible terms. A thorough home loan comparison helps you save thousands in interest, choose the right bank, and secure a mortgage that suits your financial goals—whether for HDB, private, or refinancing purposes.

Save thousands in interest payments by securing the lowest rates
Enjoy greater flexibility by choosing a loan package tailored to your property and financial goals
Get impartial, expert advice on bank loan packages
Hassle-free application process with a dedicated mortgage specialist

Housing Loan for Private Properties (Condos & Landed Homes)

Buying a private property in Singapore? Whether it's a condo or landed home, choosing the right housing loan is key to maximising savings and affordability. We help you compare interest rates, understand loan options, and make informed decisions tailored to your financial goals—so you can own your dream home with confidence.

Compare fixed vs floating interest rates for condos and landed homes
Understand key loan criteria and TDSR limits for private properties
Explore exclusive mortgage packages from leading banks
We can help you get home loans using pledge funds or show-cash method

Housing Loan for HDB BTO or Resale Flats

Looking to finance your HDB flat? Whether you're a first-time buyer or refinancing, understanding your housing loan options is crucial. We guide you through HDB vs bank loans, explain eligibility and CPF usage, and help you compare the best HDB loan rates—so you can choose the right loan with confidence.

Compare HDB loan vs bank loan to find the best fit
Learn HDB financing rules, MSR, CPF usage, and eligibility criteria
Access the lowest HDB loan interest rates from top banks
Receive expert, unbiased advice tailored to your HDB purchase or refinance

Get Expert Mortgage Advice, Tailored to You

Let our experienced consultants guide you to the lowest rates and best home loan package — whether you’re buying, refinancing, or planning ahead.

All You Need to Know About Mortgage Loans

Types of Properties in Singapore & How They Affect Your Home Loan

Singapore offers a diverse range of property types, each with unique financing criteria and loan structures. Knowing the differences helps determine the right mortgage for your needs.

🏠 HDB Resale Flat
These are government-subsidised homes sold on the open market. Buyers can choose between an HDB concessionary loan (subject to eligibility) or a bank loan (both up to 75% LTV). MSR (Mortgage Servicing Ratio) of 30% and TDSR (Total Debt Servicing Ratio) of 55% apply.

🧱 HDB BTO Flat
Build-To-Order flats are new public housing booked directly from HDB. Similar to HDB Resale flats, buyers can choose between HDB concessionary loan or bank loan. An option fee of $500-$2,000 is payable upon booking the flat. For signing the lease agreement, a downpayment of 10-20% of the purchase price is payable. Finally, upon key collection, the remaining downpayment of 5-15% is payable. MSR and TDSR apply.

🏘️Executive Condominiums (ECs)
Executive Condominiums (ECs) are a hybrid between public and private housing, developed and sold by private developers but regulated by HDB for the first 10 years. Buyers can only use bank loans (no HDB concessionary loan is allowed). EC purchases follow the progressive payment scheme (like private condos under construction). MSR and TDSR both apply.

🏙️ New Launch Condominium
Private condos under construction follow the progressive payment scheme. Only floating rates are available during construction. TDSR applies (no MSR). LTV is capped at 75%.

🏢 Resale Condominium
Completed private properties purchased from current owners. Both fixed and floating rate loans are available. TDSR applies. LTV capped at 75%.

🏡 Landed Property
Includes terrace, semi-Ds, and bungalows. Higher purchase prices and unique structural elements make these more complex. TDSR applies. LTV capped at 75%.

🏬 Commercial Property
Includes shophouses and offices. These require commercial mortgage loans with lower or higher LTVs (~60-90%) and higher interest rates. TDSR and other commercial criteria apply.

🟢💬 Get Free Advice via WhatsApp

💰 Understanding Your Maximum Loan Amount in Singapore

Before shopping for your dream home, it’s crucial to know how much the bank is willing to lend you. This is known as your maximum loan amount, and it’s determined by a few key regulatory frameworks in Singapore: Loan-to-Value (LTV), Total Debt Servicing Ratio (TDSR), and Mortgage Servicing Ratio (MSR).

Let’s break each one down so you can plan your property purchase wisely.

🧮 1. Loan-to-Value (LTV) Ratio – How Much Can You Borrow?

The LTV ratio determines how much of the property price a bank can finance.

Loan Details	LTV Limit
No existing housing loans	Up to 75%
1 existing housing loan	Up to 45%
2 or more existing housing loans	Up to 35%
Buyer Age + Remaining Tenure > 65	55% LTV or Lower
Remaining Tenure < 30 years	55% LTV or Lower

Example:
Buying a $1,000,000 condo with no existing home loans = max loan of $750,000 (75%).

Important:

The remaining 25% is your downpayment:
- At least 5% must be in cash
- The rest (20%) can be CPF or cash

💼 2. Total Debt Servicing Ratio (TDSR) – Can You Afford the Monthly Repayments?

TDSR limits your total monthly debt (including home loan, car loans, credit cards, etc.) to 55% of your gross monthly income.

Formula:
(Total Monthly Debt Obligations ÷ Gross Monthly Income) ≤ 55%

Example:
If your gross income is $8,000/month, max debt servicing = $4,400/month

This figure must cover:

Your new home loan
Car instalments
Personal loans
Credit card balances

📌 TDSR applies to all private properties, commercial properties, and HDB flats financed via bank loans.

🏠 3. Mortgage Servicing Ratio (MSR) – For HDB & EC Properties Only

If you’re buying an HDB flat (BTO or resale) or an Executive Condominium, the MSR also applies.

MSR caps your monthly mortgage repayment to 30% of your gross monthly income
This is more restrictive than TDSR and is meant to ensure affordability of public housing

Example:

If you earn $6,000/month, your mortgage instalment must be ≤ $1,800/month under MSR.

🟢💬 Get Free Advice via WhatsApp

💼 Understanding Income Assessment & Income Ceilings

When applying for a home loan, your income plays a central role in determining how much you can borrow. While most people focus on interest rates and property prices, your income structure (and how the bank calculates it) can make or break your mortgage eligibility.

Let’s explore how income is assessed, what “income ceiling” means, and what you can do if your income doesn’t qualify.

🔍 What is an Income Ceiling?

The term “income ceiling” generally refers to government-imposed income limits that affect eligibility for HDB loans or CPF housing grants — it does not apply to bank loans.

Scheme	Monthly Household Income Ceiling
HDB Concessionary Loan	$14,000 (family) / $7,000 (single)
CPF Housing Grant (BTO/Resale)	$14,000 (family), varies by grant type
Bank Loans (any property type)	❌ No ceiling, but subject to TDSR/MSR

If your household income exceeds the HDB loan income ceiling, you’ll need to take a bank loan instead.

💡 How Banks Assess Your Income

For bank loans, income is assessed for affordability and risk using the Total Debt Servicing Ratio (TDSR) and, for HDB/ECs, the Mortgage Servicing Ratio (MSR).

Banks will assess your income based on type and consistency:

Fixed Income (e.g. salaried employment)

100% of your gross monthly salary is considered.
CPF contributions are used to verify consistency.

Variable Income (e.g. commission, freelance, bonuses)

Subject to a 30% haircut (only 70% is considered).

Example: If you earn $10,000/month in commissions, only $7,000/month is assessed.

Requires 6–12 months of income history (e.g. payslips, Notice of Assessment)

Self-Employed / Director Income

Based on average income over 2 years

Documents: NOA, bank statements, company financials

💳 What If Your Income Is Not Enough?

If your income is insufficient to support your desired loan amount, you can:

✅ Add a Co-Borrower

Combine income with a spouse, parent, or sibling to boost eligibility.
Useful for joint property purchases.

✅ Pledge Funds

“Park” a sum of money (e.g. $50k–$200k) in a fixed deposit with the bank for 2–4 years.
Improves your loan profile without inflating your monthly income.

✅ Show Unpledged Funds

Submit bank statements showing large cash savings or investments.
Less effective than pledging but can still support your application.

✅ Extend Loan Tenure

Reduces monthly repayments and improves TDSR compliance.

✅ Apply with Specialist Brokers (like Ace Mortgage)

We know which banks are more flexible with income types and can match you accordingly.

🧠 Ace Mortgage Pro Tip:

Don’t assume your “monthly pay” equals your assessed income — especially if you have bonuses, commissions, or self-employed income. Our team can calculate your TDSR accurately before you apply and avoid unnecessary rejections.

🟢💬 Get Free Advice via WhatsApp

CPF Usage for Home Loans in Singapore

Your CPF Ordinary Account (OA) funds can be a powerful tool in financing your property — but it’s important to understand how much you can use, and the long-term implications.

CPF Ordinary Account (OA) funds can be used for:

Down payment
Monthly instalments
Legal fees and stamp duties

🏠 How Much CPF Can You Use?

For HDB Concessionary Loans, you can pay the downpayment fully using your CPF. However for bank loans, 5% of the purchase price must be in cash.

Do take note of the property’s Valuation Limit (VL) and Withdrawal Limit (WL), which may affect the total amount of CPF you can use for your downpayment and mortgage payments.

When buying an older leasehold hdb or private property, do take note that the remaining lease should cover you till age 95, or the amount of CPF that you can use will be reduced. This also means the older you are, it may affect your CPF usage, LTV and loan tenure allowed.

📌 Important Rule: CPF Refund Upon Sale

When selling, you must return used CPF plus accrued interest (~2.5% p.a.). This reduces your net cash proceeds.

For example, you used $120k of your CPF OA in 2005 for your flat, and sell your flat in 2025, you will need to return accrued interest to your CPF OA of the $120k + your OA’s interest %/year for the past 20 years, which may be something like $200k.

Therefore, use CPF wisely—reserving OA funds for retirement may be beneficial depending on your cash flow.

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Fixed vs Floating Interest Rates – What Homeowners in Singapore Should Know

Choosing between a fixed or floating home loan interest rate can significantly affect your mortgage repayments and long-term financial stability. Here’s a comprehensive breakdown to help you decide what’s right for your needs.

🔒 What is a Fixed Interest Rate?

A fixed rate home loan offers an interest rate that remains unchanged for a specified lock-in period, usually 2 to 5 years.

✅ Pros:

Predictable repayments — you know exactly what you’re paying monthly.
Stability — protects you from rising interest rates during your lock-in.
Good for budgeting — especially for new homeowners or families with tight cash flow.

❌ Cons:

Less flexibility — you may incur penalties for refinancing during the lock-in period.
Once the fixed rate period ends, the loan usually reverts to a higher floating rate (e.g., board rate or SORA + spread).

💹 What is a Floating Interest Rate?

A floating rate (also called variable rate) changes based on a market benchmark — usually SORA (Singapore Overnight Rate Average) — plus a bank-defined spread.

✅ Pros:

More flexibility — many packages come with shorter lock-in periods or free repricing.
Opportunity to refinance or switch if market conditions improve.

❌ Cons:

Monthly repayments fluctuate — harder to budget long-term.
Rates can increase — especially in a rising interest rate environment.
Requires active monitoring of market trends.

📊 Fixed vs Floating Mortgage Interest Rate Comparison

Feature	Fixed Rate	Floating Rate
Rate Stability	✅ Locked for 2–5 years	❌ Changes quarterly (e.g. 3M SORA)
Initial Interest	🔺 Usually lower	🔻 Slightly higher
Monthly Repayment	🚫 No change during lock-in	🔄 Can increase or decrease
Lock-In Period	🔒 2 to 3 years typically	🔓 Some with 1-year lock-in or none
Repricing Flexibility	❌ Limited	✅ Often includes free repricing
Suitable For	Risk-averse, stable income buyers	Rate-savvy or short-term owners

🔀 What is a Hybrid Mortgage Package?

A hybrid home loan offers the best of both worlds by combining fixed and floating components. These packages may work in one of two ways:

Staggered Fixed-to-Floating
- Fixed rate for the first 1–2 years
- Automatically switches to floating (e.g., SORA + spread) after the fixed period
- Great for buyers who want near-term stability and long-term flexibility
Split Loan Structure
- Split into two loan parts, e.g.:
  - 50% fixed
  - 50% floating
- Useful for hedging — you get some protection from rate hikes while also enjoying possible floating rate dips

🧠 How to Decide?

If you value stability and are planning to stay in the property long-term:
→ Consider a fixed rate loan.
If you believe interest rates will drop or remain low:
→ Consider a floating rate loan.
If you want some peace of mind and flexibility:
→ Consider a hybrid mortgage package.

💬 Ace Mortgage Tip: Some banks offer free conversions or repricing options after your lock-in ends. We help you negotiate for these benefits upfront — at no cost to you.

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Understanding the Lock-In Period in Mortgage Loans

The lock-in period is one of the most overlooked but important factors when choosing a mortgage loan. It affects your flexibility, refinancing options, and potential penalties — and understanding it could save you thousands of dollars in the long run.

💡 What is a Lock-In Period?

A lock-in period refers to the minimum time (usually 1 to 3 years) that you must stay with your chosen bank or financial institution after taking up a home loan. If you refinance, fully redeem the loan, or sell your property during this period, the bank will typically charge an early repayment penalty, usually 1.5% of the redeemed loan amount.

📌 Why Do Banks Impose Lock-In Periods?

To recover costs associated with setting up the mortgage (admin, legal, valuation, etc.)
To retain you as a customer during the initial years
Because fixed-rate loans are a “guarantee” for the borrower, banks offset the risk by requiring a lock-in

📊 Typical Lock-In Period by Loan Type

Loan Type	Typical Lock-In Period	Penalty if Broken
Fixed Rate Loan	2 to 3 years	~1.5% of loan amount
Floating Rate (SORA)	1 to 2 years	~1.5% of loan amount
No Lock-In Packages	0 years	None (but higher rates)

⚠️ What Happens If You Break the Lock-In?

If you sell or refinance your property before the lock-in ends:

You may pay a penalty of 1.5% of your outstanding loan.
You may forfeit subsidies (e.g. legal fee reimbursements).
Some banks may also charge clawback fees for subsidies if the loan is terminated prematurely.

💬 Example: If your outstanding loan is $500,000, a 1.5% penalty = $7,500.

🔓 Are There Any Exceptions?

Yes! Some banks allow waivers of the lock-in penalty, such as:

Waiver upon sale of property (must be stated in the loan agreement)
Partial repayment up to 50% without penalty
Free conversion/repricing after the first year

Ace Mortgage can help you negotiate for these clauses when securing your loan.

🧠 Key Considerations Before Choosing a Lock-In Period

Are you planning to sell the property within the next 2–3 years?
- If yes, consider shorter lock-in or waiver-on-sale packages.
Do you expect interest rates to drop?
- You may want flexibility to refinance — so avoid long lock-in periods.
Do you plan to make lump-sum repayments early?
- Look for packages that allow partial repayments without penalty.

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Understanding Loan Tenure: How Long Should You Repay Your Home Loan?

When choosing a home loan, one of the most critical decisions you’ll make is your loan tenure — the number of years you’ll take to fully repay your mortgage. Loan tenure affects your monthly instalments, total interest paid, and your loan eligibility.

💡 What is Loan Tenure?

Loan tenure refers to the duration over which you agree to repay your mortgage loan. In Singapore, tenures typically range from 5 to 30 years, depending on your age, property type, and loan amount.

📋 MAS Guidelines & Maximum Loan Tenures in Singapore

Property Type	Maximum Loan Tenure (Bank Loan)	Maximum Loan Tenure (HDB Loan)
HDB Flats (BTO/Resale)	25 years	30 years
Executive Condominiums	30 years	Not eligible
Private Property (Condo/Landed)	30 years	Not eligible
Commercial Property	Usually up to 25 years	Not eligible

🧠 Note: If your age + loan tenure exceeds 65 years, MAS imposes stricter Loan-to-Value (LTV) and Total Debt Servicing Ratio (TDSR) limits.

📉 Loan Tenure vs Monthly Repayment: A Comparison Table

Loan Amount: $500,000 @ 3% p.a. interest

Tenure	Monthly Repayment	Total Interest Paid
15 Years	~$3,452	~$121,000
20 Years	~$2,775	~$166,000
25 Years	~$2,372	~$211,000
30 Years	~$2,108	~$259,000

✅ Longer Tenure = Lower Monthly Instalment
❌ Longer Tenure = More Interest Paid Over Time

🧠 What Affects Your Eligible Loan Tenure?

Your Age:
- Most banks require the loan to be repaid before age 65.
- Some banks allow up to age 75 with additional conditions (e.g. using joint borrowers or pledging assets).
Loan Type:
- HDB loans allow longer tenure (30 years max) but have stricter MSR rules.
- Bank loans may offer more flexibility but are capped based on age and TDSR.
Loan Structure:
- If you choose a loan tenure above 30 years or your age + tenure exceeds 65, your LTV may be reduced to 55%.

💬 Tips for Choosing the Right Loan Tenure

✅ Go for longer tenure if:

You want lower monthly repayments for better cash flow
You’re young and qualify for a full tenure
You want the option to make early repayments later (many packages allow this without penalty)

✅ Go for shorter tenure if:

You want to save on interest over the loan duration
You have a stable, high income and can manage higher monthly payments
You’re planning to pay off your mortgage early

🔁 Can I Change My Loan Tenure Later?

Yes — through:

Repricing (with the same bank), or
Refinancing (with a different bank)

You can renegotiate your loan terms, including tenure, depending on your age and outstanding balance. This can help you reduce monthly repayments or shorten your loan duration.

🔐 Pro Tip from Ace Mortgage:

When in doubt, opt for a longer tenure to keep your monthly commitments manageable. You can always make partial repayments along the way if your finances improve — but you can’t reduce tenure once you’ve locked in a shorter one.

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⚠️ Understanding Penalties in Mortgage Loans: What Every Homeowner Should Know

When taking up a home loan, many borrowers focus on interest rates and tenure — but penalties are just as important. If you’re unaware of these hidden costs, you could easily incur thousands in unexpected charges when selling, refinancing, or making lump sum repayments.

💡 What Are Mortgage Penalties?

Mortgage penalties are fees imposed by the bank when you take certain actions before the end of your lock-in period or outside your loan’s agreed terms. They’re designed to protect the bank’s interest — but if you’re not careful, they can eat into your cash flow or sale proceeds.

🧾 Common Types of Mortgage Loan Penalties

Penalty Type	Description
Early Redemption / Full Prepayment	Charged if you fully repay your loan before the lock-in period ends. Usually 1.5% of outstanding loan.
Partial Prepayment Penalty	Charged if you make a lump sum repayment exceeding the free limit. May be 0.75%–1.5%.
Sale Within Lock-In Period	Same as early redemption. Even if you sell your property, the bank may still charge 1.5%.
Cancellation Fee	If you cancel your loan before the first disbursement (e.g. project not completed), usually 0.75–1.5% of loan.
Clawback Fee	If the bank gave you subsidies (e.g. legal/valuation fees), they may “claw back” the amount if the loan ends early.

💬 Real Example:

You sell your condo during the 2nd year of a 3-year lock-in period with a remaining loan of $600,000.
Penalty (1.5%) = $9,000, plus possible clawback of $2,000 legal subsidy.
That’s $11,000 in unexpected costs if you’re unprepared.

🛡️ How to Avoid or Minimize These Penalties

Negotiate a Waiver on Sale Clause
- Many banks offer this: no penalty if you sell your property (not refinance).
- Ace Mortgage can help secure this on your behalf.
Understand Your Partial Prepayment Allowance
- Some banks allow you to prepay up to 20% annually with no fee.
- Great for borrowers expecting bonuses or lump sums.
Check for Free Repricing or Conversion Options
- Certain packages allow internal switching to a new rate after 1–2 years.
Time Your Exit Wisely
- Plan to refinance or sell after the lock-in period ends to avoid fees.
Review Your Subsidies Agreement
- If you received legal or valuation fee subsidies, understand the clawback period — often 3 years.

🔁 Common Scenarios Where Penalties Apply

Scenario	Penalty Applies?	Workaround
Selling during lock-in	✅ Yes	Negotiate “waiver on sale” clause
Refinancing before lock-in ends	✅ Yes	Wait until lock-in ends, or pay penalty
Refinancing with same bank (repricing)	❌ Often no	Ask about repricing options
Making a lump sum repayment	✅ Maybe	Check if it exceeds annual free limit
Cancelling loan before disbursement	✅ Yes	Commit only when sure about property purchase

🧠 Ace Mortgage Pro Tip:

Many banks don’t highlight penalties unless you ask.
We help you review the fine print, negotiate waivers, and compare real total cost — not just the headline interest rate.

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