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I want to borrow for 30 years

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years

Showing 14 results
Interest Rate 1.62%
Lock In Period 3 years
Monthly Repayment S$2,105

HSBC TDMR 24

Variable Rate

Interest Rate 1.65%
Lock In Period 2 years
Monthly Repayment S$2,114

SCB 36M FDR

Variable Rate

Interest Rate 1.65%
Lock In Period 2 years
Monthly Repayment S$2,114

OCBC SIBOR

Variable Rate

Interest Rate 1.67%
Lock In Period None
Monthly Repayment S$2,120

UOB Mortgage Rate

Variable Rate

Interest Rate 1.70%
Lock In Period 2 years
Monthly Repayment S$2,129

DBS Fixed Deposit

Variable Rate

Interest Rate 1.75%
Lock In Period 2 years
Monthly Repayment S$2,143
Interest Rate 1.80%
Lock In Period 2 years
Monthly Repayment S$2,158
Interest Rate 1.85%
Lock In Period 2 years
Monthly Repayment S$2,173
Interest Rate 1.95%
Lock In Period 1 years
Monthly Repayment S$2,203

HSBC 2-Years Fixed

Variable Rate

Interest Rate 1.95%
Lock In Period 2 years
Monthly Repayment S$2,203

MBB 2-Year Fixed

Fixed Rate

Interest Rate 1.95%
Lock In Period 2 years
Monthly Repayment S$2,203
Interest Rate 2.00%
Lock In Period 3 years
Monthly Repayment S$2,218

Citi 1M SIBOR

Variable Rate

Interest Rate 1.89%
Lock In Period 2 years
Monthly Repayment S$2,185
Interest Rate 2.33%
Lock In Period 2 years
Monthly Repayment S$2,318

How Do Home Loans In Singapore Work?

Firstly, the amount of money you can loan from banks or credit union is depending on several aspects. Generally depending on the Loan-to-Value (LTV) ratio, Mortgage Servicing Ratio (MSR) and salary.

To choose the best home loan can be a nightmare. One needs to consider factors like interest rate, monthly installments, loan size, and maturity period before taking up a new home loan.

There is a simple tool that can make your life easier. With iMoney Home Loan Calculator, your decision-making process is now simplified.

What is a Home Loan?

Home loan is also known as housing loan or mortgage loan, a financing from bank or credit union offers to individual for the purpose of purchasing a property. Mortgage interest rates are usually being quoted in a floating or fixed rate basis which an individual can opt for.

How to Use a Housing Loan Calculator?

iMoney created a housing loan calculator that makes calculating monthly repayments easy for you. To use the mortgage loan calculator, key in the loan amount and loan tenure. You will able to see and compare the best home loan rates for the loan amount you want. It will do all the calculations and show you the packages that suit your requirements best.

Types of Home Loan Interest Rates

Fixed Interest Rate:

Fixed interest rate housing loan in Singapore maintain the same interest rate over a set period of time. For instance, if you choose the period of time for 5 years, your mortgage repayments and interest rate will be fixed and remain the same for the specific period of time.

Floating Interest Rate:

In Singapore, floating interest rate can also be called variable rate home loan. Floating-rate housing loans fluctuate depend on the SIBOR rates on a monthly basis. Thus, your interest rate and loan repayments may change every 1 to 3 months.

What is the Mortgage Loan Application Process in Singapore?

  • Apply for housing loan by approaching bank to check on your Loan Eligibility Check.
  • Bank will notify whether your home loan application is approved or rejected.
  • Credit assessment check using proof of regular income (in the form of Income Tax Notice of Assessment, latest computerized payslip or 12-month CPF contribution statement)
  • Credit Bureau (Singapore) check on your history of good credit card payments, any existing loans or bankruptcy.

How Do Banks Assess My Eligibility?

In the process to determine whether to approve or reject your loan application, the bank will perform assessments using the following two criteria:

1. Financial Commitment to Income ratio

This ratio is used to evaluate your ability to repay debt obligations by dividing your total monthly debt obligation with your total monthly gross income. As a general rule, your total financial commitment per month must not exceed 60% of your total household income.

2. Loan-to-Value (LTV) ratio

This ratio expresses the ratio of a loan to the value of the property purchased in the form of a percentage. It is affected by several factors such as the loan tenure, age of borrower, and the existence of other outstanding housing loans in the name of the borrower. Generally to the bank, the higher the LTV ratio the riskier it is to lend money to the borrower.

In Singapore, the maximum LTV ratio by default is 80%.

What is SIBOR and SOR?

SIBOR (Singapore Interbank Offered Rate):

The most common reference rate for home loans which the information can be viewed publicly and regulated by the Singapore government. SIBOR is set by the Association of Banks in Singapore (ABS) as a daily rate based on the interest rate which banks offer to lend unsecured funds in between them.

SOR (Swap Offer Rate):

Based on foreign exchange rates which refers to Singapore Dollar (SGD) and US Dollar (USD). Another reference rate set by the ABS by the rate at which the same loan amount is borrowed in US dollars and is heavily influenced by the US Fed rate.

Should I Opt for Refinancing?

Refinancing your home is a good option when interest rates favour the home buyer. By refinancing, you as a borrower can redeem your existing home loan by taking up a new home loan at a lower interest rate.

Before you decide to refinance, it is important to weigh the costs of exiting your existing home loan against the potential benefits of your new loan. Do expect to incur these following fees and penalties when you go for refinancing:

  • Prepayment Penalty: A penalty imposed by the bank for settling your home loan in full before the stipulated contract period (i.e. loan tenure).
  • Legal Fee: The cost for legal services to draw up property purchase and mortgage documentation.
  • Availed Cash Rebate: Recovery of any cash rebates that has granted to you upon taking up your existing home loan.
  • Property Valuation Fee: The costs to evaluate the current value of your property to determine the maximum amount you can borrow from refinancing.
  • Loan Cancellation Fee: Also known as an exit fee that is imposed by your current bank when you redeem your existing home loan.
  • Fire Insurance Policy: When you refinance, you are required to terminate your existing fire insurance policy that is tied to your current home loan and will have to take up a new one with the bank that is providing you with a new home loan.
  • The Interest Cost of Refinancing: You are required to give your current bank three months written notice of your intention to fully settle your existing home loan or pay a sum equivalent to three months interest in lieu of such notice.