Mortgage Term

Understanding Mortgages in Singapore

A mortgage is a loan used to purchase property. In Singapore, you can borrow up to 75% of the property value (or 55% if you have existing loans), with loan terms typically ranging from 25 to 30 years.

Types of Home Loans

Fixed Rate

Interest rate stays the same for a fixed period (2-5 years). Predictable monthly payments.

Floating Rate

Interest rate moves with market rates (SORA, board rate). Can be lower but unpredictable.

HDB Loan

Government loan at 2.6% interest. Only for HDB flats purchased by eligible buyers.

Bank Loan

Private financing with competitive rates. More flexibility but subject to TDSR.

Key Mortgage Terms

Loan-to-Value (LTV) - Maximum loan amount as percentage of property value
Total Debt Servicing Ratio (TDSR) - Monthly debt payments cannot exceed 55% of income
Mortgage Servicing Ratio (MSR) - For HDB, max 30% of income on mortgage
Lock-in Period - Period where early repayment incurs penalty
Clawback Period - Period where full loan discharge incurs fees

Why Refinance?

Refinancing means switching your existing mortgage to a new one, usually for better rates. You should consider refinancing when:

Your lock-in period has ended
Current market rates are significantly lower
You want to change from floating to fixed rate (or vice versa)
You need cash out for renovations or other purposes

Our Mortgage Referral Service

We work with over 10 major banks in Singapore to help you compare and find the best mortgage rates. Our service is complimentary - we help you navigate the paperwork and negotiate the best terms.