What is the interest for a $1.4 million house loan for 3 years on a normal completed unit?

For a completed unit with a house loan of $1.4 million, the interest rates in Singapore as of 2025 are relatively favorable. Here are some general rates and how they might apply:

Fixed Rate Loans

• Fixed rate loans are currently hovering around 2.35% to 2.50% for the first few years. For example, DBS offers a 2.50% fixed rate for the first two years for loans above $800,000. However, since your loan is $1.4 million, you would likely qualify for these rates.
  • For the first two years, the interest would be approximately 2.50% per annum.
  • After the lock-in period, the rate typically reverts to a floating rate, such as 3M SORA (Singapore Overnight Rate Average) plus a spread. As of January 2025, the 3M SORA rate is around 3.0227%, so the total interest rate could be around 3.0227% + 0.50% to 1.00% (depending on the bank's spread), which is roughly 3.52% to 4.02%.

Floating Rate Loans

• Floating rate loans are often pegged to the 3M SORA rate plus a bank spread. For instance, rates are currently around 3M SORA + 0.50% to 0.65%.
  • As of January 2025, the 3M SORA rate is 3.0227%, so the total interest rate would be around 3.5227% to 3.6727%.

Interest Calculation for 3 Years

Assuming a fixed rate of 2.50% for the first two years and then a floating rate of around 3.5% to 4% thereafter:

- First Two Years:
- Interest = $1,400,000 * 2.50% * 2 years = $70,000
- Third Year:
- Assuming an average floating rate of 3.75% (a midpoint of the range), the interest would be $1,400,000 * 3.75% = $52,500

Total interest for the three years would be approximately $70,000 (first two years) + $52,500 (third year) = $122,500.

This is a rough estimate and actual rates may vary depending on the specific loan package and bank you choose. It's always a good idea to check the latest rates and terms with the banks or use EdgeProp's tools to get a more accurate calculation.