Borrowing is still cheap by recent standards. The lowest package we track starts at 1.35% in the first year. That is far below the 4% rate the bank must still use when it works out how big a loan you qualify for, which our TDSR guide explains.
The gap between the cheapest and priciest package on the same day was 1.03 percentage points. Here is what that is worth. On a $1.35 million loan, 1.03% of $1,350,000 is $13,905 of extra interest in the first year, or about $1,159 a month. Choosing a package is not a rounding error.
The five terms on your loan offer, in plain words
- SORA — the average rate banks charge each other for overnight loans, published daily by MAS. A floating loan uses this average plus the bank's own margin.
- 1M and 3M SORA — how far back that average is taken: the past one month, or the past three months.
- Board rate — the bank's own internal number instead of a public benchmark. The bank decides when it moves.
- Free conversion (FC) — the right to switch to another package from the same bank without paying a fee.
- Interest offset (IO) — a savings account linked to the loan. Money in it cancels interest on the same amount of loan, and stays withdrawable.
What are the cheapest home loan rates right now?
This is the full set of 16 packages we compiled on 6 July 2026, not a selection from it. Board rate packages hold the top two spots at 1.35%. The cheapest package tied to a published benchmark is OCBC's 3-month SORA at 1.39%. Rates change often, so treat this as a map of the market on that date rather than a live quote.
| Lender | Reference | Year 1 | Year 2 | Year 3 | Key features |
|---|---|---|---|---|---|
| DBS | Board | 1.35% | 1.35% | 1.35% | Switch to SORA before TOPFC at TOPCW |
| DBS | Board | 1.35% | 1.35% | 1.38% | Switch to SORA before TOPFC at TOPCW |
| OCBC | 3M SORA | 1.39% | 1.39% | 1.39% | 2× FC — disbursement / TOPCW |
| DBS | 3M SORA | 1.41% | 1.41% | 1.41% | 2× FC — disbursement / TOPCW |
| DBS | 3M SORA | 1.46% | 1.46% | 1.46% | 2× FC — disbursement / TOPCW |
| RHB | 1M SORA | 1.46% | 1.46% | 1.46% | FC anytime after disbursementCW |
| OCBC | 1M SORA | 1.46% | 1.46% | 1.46% | 2× FC — disbursement / TOPCW |
| Bank of China | 3M SORA | 1.51% | 1.51% | 1.71% | FC at TOP |
| HSBC | 3M SORA | 1.61% | 1.61% | 1.61% | FC anytime after disbursementCWIO — SmartMortgage |
| HSBC | 1M SORA | 1.68% | 1.68% | 1.68% | FC anytime after disbursementCWIO — SmartMortgage |
| DBS | 3M SORA | 1.71% | 1.71% | 1.71% | 2× FC — disbursement / TOPCW |
| Standard Chartered | 3M SORA | 1.71% | 1.71% | 1.71% | FC after 1st disbursementIO — MortgageOne (private only) |
| HSBC | 3M SORA | 1.86% | 1.86% | 1.86% | FC anytime after disbursementCWIO — SmartMortgage |
| Standard Chartered | 3M SORA | 1.91% | 1.91% | 1.91% | FC after 1st disbursementIO — MortgageOne (private only) |
| HSBC | 1M SORA | 1.93% | 1.93% | 1.93% | FC anytime after disbursementCWIO — SmartMortgage |
| Hong Leong Finance | Board | 2.38% | 2.38% | 3.50% | 1st drawdown within 9 mths of offerFC within 6 mths of TOP |
How do you read the table?
Board rate or SORA?
The two cheapest packages here are board rate ones. They cost between 0.04 and 0.35 percentage points less in year one than the SORA packages. What you give up is the ability to check the bank's working. A SORA package moves with a number MAS publishes every day, so you can always see why your rate changed. A board rate moves when the bank says so.
The current board packages soften that trade-off. They come with an agreed right to switch to SORA pricing before the home is finished. In effect they offer a cheap rate for the building years, then a transparent one afterwards.
1-month or 3-month SORA?
This decides how quickly the market reaches your instalment. A 1-month package passes changes on within weeks. A 3-month package spreads them over a quarter. If you think rates will fall, 1-month gets you the savings sooner. If you would rather your instalment stayed still, pick 3-month. Neither is safer in the long run; they simply arrive at the same place at different speeds.
Which features matter if you are buying a new launch?
On a home still being built, the bank releases your loan in stages over three to four years. Our new launch payment guide maps every stage. Because of that, two features are worth more than a small rate discount.
The first is a free conversion when you collect keys. Your loan only reaches full size at that point. Being able to switch to a better package right then, without paying a fee or refinancing to another bank, is worth real money if rates have moved.
The second is a waiver of the cancellation fee on money not yet released. If you sell before the building is finished, the bank never lent you most of the loan. This waiver stops you being charged a penalty on it.
An interest offset account is a different kind of feature. It suits buyers sitting on six figures of cash. It costs about 0.2 to 0.5 percentage points more, and in exchange your idle cash cancels loan interest while remaining available to withdraw. If you do not hold that much spare cash, it is not worth the premium.
The short version
What to take away
- On 6 July 2026, first-year rates across 16 packages ran from 1.35% to 2.38% a year.
- That 1.03 percentage point gap is about $1,159 a month on a $1.35 million loan.
- Board rate packages were cheapest, but the bank alone decides when they move.
- SORA packages cost a little more and let you check why your rate changed.
- 1-month SORA moves faster than 3-month SORA, in both directions.
- Buying a new launch? Free conversion at key collection is worth more than a small discount.
- An interest offset account only pays off if you hold a large cash buffer.
- Whatever rate you get, the bank still sizes your loan using 4%.
So what should you do with this?
Compare the whole lock-in period, not just year one. Ask each bank for the rate in years one, two and three, the lock-in length, the penalty for leaving early, and whether free conversion is included and when it can be used. Then ask one more question: what happens to my instalment if SORA rises by one percentage point? If the answer breaks your budget, you are borrowing too much, not choosing the wrong package.
Common questions
What is SORA?
SORA stands for Singapore Overnight Rate Average. It is the average rate at which banks actually lend money to each other overnight, and MAS publishes it every day. A floating rate home loan charges you that average over the past one or three months, plus the bank's own margin. It replaced SIBOR as the standard benchmark.
What is the difference between 1M SORA and 3M SORA?
It is how far back the average is taken. A 1M package uses the past month, so your instalment follows the market within weeks. A 3M package uses the past three months, so changes reach you more slowly and more smoothly. If rates are falling, 1M passes the savings on sooner. If rates rise, 1M also hurts sooner.
What is a board rate home loan?
A board rate package is priced off the bank's own internal number instead of a public benchmark. The bank can move that number when it chooses, after giving notice. Board packages are sometimes the cheapest on offer, as they are in our July 2026 table at 1.35% a year. The trade-off is that you cannot check why your rate moved.
What does free conversion mean on a home loan?
It is the right to switch to another of the same bank's current packages without paying a fee. It is usually allowed when the loan is first released or when the home is finished and keys are handed over. On a home still being built this matters, because rates can move a lot in the three or four years before you collect keys.
What is an interest offset account?
It is a savings account linked to your home loan. Money sitting in it cancels the interest on the same amount of loan, while the cash stays yours to withdraw. It suits people holding a large cash buffer. Packages with this feature usually cost about 0.2 to 0.5 percentage points more than the cheapest ones.
Why did my bank quote a different rate from this table?
Pricing changes with how much you borrow, how long you lock in, whether the home is finished or still being built, and whatever promotion is running that week. Banks also reprice often. Use this table to see where the market sits, then confirm live terms with the bank or a licensed mortgage broker.
How much does picking the wrong home loan package cost?
In our 6 July 2026 compilation the gap between the cheapest and priciest first-year rate was 1.03 percentage points, from 1.35% to 2.38%. On a $1.35 million loan that is $13,905 of extra interest in the first year, or about $1,159 a month. Package choice is not a rounding error.
Update history
- Rewritten in plain English. Added a glossary of the five terms that appear on a loan offer, the working behind the $1,159 a month figure, a short-version summary and a list of questions to put to each bank. Headings are now the questions readers ask.
- Rates table compiled: 16 packages across 7 lenders, first-year rates 1.35–2.38%.
How we checked this. Packages were compiled from bank and mortgage broker quotes on 6 July 2026. Where a bank offers several versions at different rates, each is listed on its own row; the versions usually differ by lock-in length and by how much you borrow. The $1,159 a month figure is our own calculation: 1.03% of $1,350,000 is $13,905 a year, divided by twelve. It is the difference in interest, not the difference in instalment. Next update when the rates table is recompiled.
Disclaimer. Rates are indicative only and change without notice. Nothing on this page is financial advice or a recommendation of any lender or package. Verify all terms with the relevant bank and seek advice from a licensed professional before committing to any loan.
Talk it through with an advisor
Our research tells you what the data says. If you want to work through what it means for your own situation — budget, ABSD position, timing an HDB sale, or comparing launches against resale options — you can request a one-to-one consultation.
- No obligation. The first conversation is about your goals.
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