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How Does a Housing Loan Work in Singapore?

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Housing loans are synonymous with Property and Mortgage loans. In these secured types of loans, your property serves as the collateral for the loan transaction. Generally, such loans are used to purchase residential properties.

According to the Maximum Loan Quantum, financial institutions in Singapore can lend up to 75% of the value of the property for their residential properties.

Moneylender Credit Bureau Singapore

The Moneylenders Credit Bureau, Singapore is an operational credit bureau that helps licensed moneylenders assess whether their borrowers are worthy of credit or not. This association also keeps the borrowers from borrowing a loan amount that is supposedly beyond their capabilities of repaying the loan. All licensed moneylenders in Singapore have to provide the bureau with the details of the loans they have provided to their borrowers, along with the details of the repayment of respective loans. Other licensed moneylenders and their respective borrowers can also access this information during the process of credit application.

With the help of the Moneylender Credit Bureau, Singapore, moneylenders can easily evaluate the credit history of their borrowers and decide whether their borrowers can repay the loan amount in due time or not. The bureau has surely made the credit evaluation process easier, both for the borrower and the lenders.

Where to Apply

There are two options when it comes to housing loans in Singapore – either you can take a loan from the Housing and Development Board (HDB) or any other financial institutions that are being regulated by the Monetary Authority of Singapore. Borrowers should compare the two on the basis of the repayment period, interest rates offered, the Mortgage Servicing Ratio (MSR) and the Total Debt Servicing Ratio (TDSR), and the Loan value rates as well. For example, a loan from the Housing and Development Board would give its borrowers a repayment period of around 25 years or until the applicant has reached the age of 65, depending on whichever is shorter. While on the other hand, financial institutions offer repayment periods of up to 30 years for their applicants.

Interest Rates

For housing loans in Singapore, there are two types of interest rates for the loans offered: Fixed Rate Loans and Floating Rate Loans. At the same time, fixed-rate loans offer a fixed interest rate that does not change over the period of the contract, while floating-rate loans, also called variable-rate housing loans, offer a varying rate that is linked to a reference rate, like the Singapore Interbank Offered Rate (SIBOR). The rate is directly proportional to the reference rate – it increases if the reference increases, and vice versa.

Issues in Housing Loan Work in Singapore

One of the major problems arising from getting a housing loan work in Singapore is that there’s no perpetual fixed-rate home loan in Singapore. It means that the interest rates for housing loan work in Singapore just fluctuate over time. Even the “fixed rate” loans are also fixed for a certain period of time, such as three to five years. There are mainly three problems arising for Singaporeans to get a housing loan work in Singapore. They are as follows:

A large number of housing loan work options in the market – More than 40% of Singaporeans reported that there were too many options for housing loan work loans in the market, and so this became a major confusion for the borrowers to choose the right loan. There are more than ten banks in Singapore that offer housing work loans with great loan packages, and thus the borrowers become overwhelmed with choices and get confused and thus are not able to make the right ideal decision.

Difficulties and problems checking on application status after application – About 20% of the borrowers reported that they faced difficulties in checking the application status after they had applied for their loan. The lenders said that there is paperwork involved during the application phase and so it becomes a bit trickier to check on the application status.

Home Loan Application Process takes too long – The borrowers in Consumer Sentiments Study H1 2021 reported that the most difficult thing about applying for a housing loan work is that its process takes a lot of time. Due to the involvement of paperwork, the bankers or the lenders have to go through the borrower’s information provided, and if any information goes missing or incorrect, then it will only lengthen the process.    

Which money changer has the best rate in Singapore?

Among the several money changers in Singapore, the Arcade Plaza money changer has the best rate in Singapore. They are well known for their low rates and are recommended by Singaporeans. One can find long waiting lines forming at the Arcade Plaza Traders at The Arcade, Raffles Place, but it is for the simple reason that they provide some of the best rates. They easily run out of currencies like the Malaysian Ringgit, which is very popular. Therefore, it is recommended to go to The Arcade as early as possible. It also features some of the best rates for the Euros, US Dollar, British Pound Sterling, Japanese Yen, New Taiwan Dollar, and Thai Baht as well. The Arcade is the only money changer in Singapore that is open 24/7.

According to a recent article published in The Straits Times on 9th October 2022, home loan rates in Singapore are rising gradually. The article also states that fixed housing loan rates in Singapore have hit a new high rate of 3.85 percent. In such a scenario, borrowers should look for a loan that suits them the best, keeping in mind the affordability, their needs, and their financial goals.


Overall, applying for a housing loan in Singapore is a relatively simple process. You will need to do your own research to determine which bank or financial institution offers the best interest rates and terms that fit your needs. The most important thing is to ensure that you are able to make the monthly loan repayments on time, as any late payments will result in additional charges.

Licensed Moneylender Bugis– Singa Credit Pte Ltd

Established in 1992 and previously known as Yong Seng Credit,
Singa Credit Pte Ltd is Licensed Moneylender in Bugis regularly updated with the latest regulations to be in line with the requirements set out by Registry of Moneylenders.

Please feel free to call 66946166 for more info on our lowest interest rate in Singapore or walk in our office 470 North Bridge Road #02-01 Bugis Cube Singapore 188735.

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