What is the current best housing loan

As of January 2025, the best housing loan options in Singapore vary depending on several factors, including the type of property, loan amount, and personal preferences. Here are some of the most competitive home loan packages currently available:

Fixed Rate Loans

• DBS Home Loan: Offers a 3-year fixed mortgage rate with rates of 2.55% for the first three years, followed by 3-month SORA + 1.00% thereafter. This package comes with a 3-year lock-in period, free conversion after the lock-in, and a minimum loan amount of $700,000. There is also a cash rebate of $2,000-$2,800.
• OCBC Home Loan: Provides a 2-year fixed mortgage rate at 2.65% for the first two years, then 3-month SORA + 0.50% in the third year and 3-month SORA + 1.00% thereafter. This package has a 2-year lock-in period, free conversion after the lock-in, and a minimum loan amount of $400,000 for private properties. There is also a cash rebate of $2,000-$2,800.

Lowest Fixed Rate

• A package offering a 3-year fixed rate at 2.40% for the first two years and 2.45% in the third year, followed by 3-month SORA + 1.00% thereafter. This comes with a 3-year lock-in period, free conversion after the lock-in, and a minimum loan amount of $500,000. There is also a legal subsidy of $2,000.

Floating Rate Loans

• DBS Home Loan: DBS offers a floating rate package pegged to the 3-month SORA rate, with spreads as low as 0.55% in some packages. DBS also has a unique fixed deposit home loan package (FHR6) which is pegged to a fixed deposit rate rather than the 3-month SORA rate.

When choosing the best home loan, it's important to consider not just the headline interest rate but also other factors such as the lock-in period, interest spreads after the lock-in, waiver for sale and prepayment, legal subsidies, and the bank's overall loan features and track record in the mortgage market.