Home Loans & Mortgages
Purchasing a home is one of the most significant financial decisions you will make. Whether you're a first-time buyer, upgrading to a larger property, or refinancing an existing mortgage, understanding your home loan options is essential to making a sound financial choice. This guide covers our home loan products, interest rate options, the application process, and key considerations to help you plan your property purchase with confidence.
Home Loan Products
We offer three main types of home loan packages, each designed for different financial preferences and risk appetites.
Fixed Rate Home Loan
A fixed rate home loan locks in your interest rate for a specified period, typically 1 to 5 years. During the fixed rate period, your monthly repayment remains constant regardless of market interest rate movements. This provides certainty and makes budgeting easier. After the fixed rate period ends, the loan converts to a variable rate unless you choose to re-fix.
| Fixed Period | Interest Rate |
|---|---|
| 1 year | 2.80% p.a. |
| 2 years | 3.00% p.a. |
| 3 years | 3.15% p.a. |
| 5 years | 3.40% p.a. |
Variable Rate Home Loan
A variable rate home loan has an interest rate that moves in line with a reference rate, such as the bank's internal board rate or an external benchmark like the overnight interbank rate. Your monthly repayment may increase or decrease over time as interest rates change. This option suits borrowers who are comfortable with some rate variability and want to benefit if rates fall.
Current variable rate: Board rate (currently 3.50% p.a.) minus 0.50% = 3.00% p.a.
Split Rate Home Loan
A split rate option allows you to divide your loan into two portions — one at a fixed rate and one at a variable rate. This provides partial certainty while still allowing you to benefit from potential rate decreases. You can choose the proportion allocated to each, for example 50/50 or 70/30.
Key Loan Features
| Feature | Details |
|---|---|
| Loan-to-value ratio (LTV) | Up to 75% for first residential property / Up to 45% for second property |
| Maximum loan tenure | Up to 30 years (or up to age 65, whichever is earlier) |
| Minimum loan amount | $100,000 |
| Repayment type | Principal and interest (standard) or interest-only for up to 3 years |
| Redraw facility | Available — access extra repayments made ahead of schedule |
| Offset account | Available on variable rate loans — reduces interest by offsetting your savings balance against your loan |
Eligibility Requirements
- Age: 21 to 65 years old (loan fully repaid by age 65 or 70 depending on product)
- Residency: Citizens, permanent residents, and eligible foreign nationals
- Income: Minimum gross monthly income of $3,500 for salaried applicants
- Total Debt Servicing Ratio (TDSR): Monthly debt obligations must not exceed 55% of gross monthly income
- Property type: Completed residential properties, under-construction properties from approved developers, and refinancing of existing mortgages
How to Apply
- Get an in-principle approval (IPA): Before committing to a property, apply for an IPA through internet banking, the mobile app, or at a branch. An IPA provides a conditional loan amount based on your income and financial profile, giving you confidence on your borrowing capacity. An IPA is typically valid for 30 days.
- Submit formal application: Once you have identified a property and signed the Option to Purchase (OTP) or Sale and Purchase Agreement (SPA), submit a formal loan application with supporting documents.
- Valuation: We will arrange for an independent property valuation to determine the market value of the property.
- Approval and offer: Upon satisfactory assessment, we will issue a formal Letter of Offer detailing the loan amount, interest rate, tenure, and conditions. Review the offer carefully before signing.
- Legal completion: Our panel solicitors will handle the legal documentation for the mortgage. Disbursement occurs upon completion of legal processes, typically aligned with your property settlement date.
Documents Required
- Government-issued identification document
- Latest 3 months' payslips (salaried) or latest 2 years' tax assessments (self-employed)
- Latest 6 months' bank statements showing salary credits
- Signed Option to Purchase or Sale and Purchase Agreement
- Property details including address, floor plan, and title information
- CPF or provident fund statements (if using retirement savings for downpayment)
Refinancing Your Existing Mortgage
If your existing home loan is with another bank or if your current fixed rate period has ended, refinancing to a new loan package may help you secure a lower interest rate and reduce your monthly repayments. When evaluating whether to refinance, consider the potential interest savings against any costs involved, including legal fees (typically $2,000 to $3,000), valuation fees ($300 to $500), and any early redemption penalties from your current lender.
We offer a complimentary refinancing assessment where our mortgage specialists will compare your current loan terms with our available packages and provide a detailed savings analysis. To request a refinancing assessment, contact our mortgage team or submit an enquiry through internet banking.
Additional Repayment Options
You can make additional repayments towards your home loan at any time to reduce your outstanding principal and save on interest. For variable rate loans, there is no penalty for additional repayments and you can access overpaid amounts through the redraw facility. For fixed rate loans, additional repayments may be subject to a prepayment penalty if they exceed a certain threshold within the fixed period — refer to your loan agreement for specific terms.
For home loan enquiries, refinancing assessments, or to schedule a consultation with our mortgage specialists, call us at 1800-XXX-XXXX or book an appointment through our website.