OCBC Home Loans

The first bank to launch over $1 billion of home loans pegged to the new Singapore Overnight Rate Average (SORA) interest rate benchmark, OCBC has always been at the forefront of providing attractive home loan packages with competitive introductory fixed rates as well as board rates for HDB, private property and executive condominium home loans.

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Why Choose OCBC Home Loans?

OCBC has gained popularity among many property owners as a major lender. Since it launched its SORA-pegged home loan packages in July 2020, homeowners in Singapore have obtained more than S$500 million worth of home loans from OCBC.

Moreover, OCBC is known for offering benefits that come with their Eco-Care Home Loan for HDB, private property and executive condominiums, such as savings on your home loan instalments, quick and hassle-free online application and more.

More than 88 years of credibility

As one of the longest established banks in Singapore with over 88 years of track record, OCBC has the "AA-" and "Aa1 '' credit ratings awarded by Fitch and S&P, which are among the highest in the world. Moreover, it has been ranked consistently as the “World’s Top 50 Safest Banks” by Global Finance.

Eco-Care Home Loan

If you’re signing up as a first-timer for OCBC’s Eco-Care home loans, you’ll get to enjoy special seasonal promotions and other perks such as a one-time S$88 bill rebate when you sign up for Senoko's LifeGreen24 plan by 31 December 2023.

Gain loyalty points for cash vouchers

STACK is OCBC’s digital loyalty platform where you can redeem your OCBC$ (loyalty points) for dining, shopping, travel and other lifestyle deals including cash vouchers, cash gift cards and more. As a new OCBC home loan customer, you’ll be entitled to all these benefits via STACK. You may sign for free either via the OCBC Pay AnyoneTM mobile application or via https://www.stackreward.com/.

OCBC board interest rate

OCBC’s board interest rate is essentially a bank–managed rate that can be revised at any time (30 days’ notice will be given) and each floating-rate package by OCBC has a specific mortgage board rate identified by a unique code in the letter of offer. Note that this board rate and the associated spread may differ from packages offered to other customers or reflected on OCBC’s website from time to time.

Free mortgage calculators online

OCBC mortgage rate calculating tools such as the OCBC OneAdvisor Affordability Calculator can be quite useful for estimating the costs of taking up either fixed or floating-rate home loans. Or you can compare rates offered by other banks first to avoid missing out on better mortgage deals, which can be done via MoneySmart's Home Loan comparison wizard.

OCBC Private Property/Executive Condominium Home Loans

Whether you’re considering getting a private residential property or an executive condominium, OCBC offers both floating and fixed housing loan rates for these properties. 

However, these rates only apply to private residential properties in Singapore with a minimum loan amount of $300,000, if you’re looking for a minimum loan of a lesser amount than this, you can look at what other banks offer via our Home Loans comparison wizard.

OCBC’s SORA-pegged vs fixed-rate packages

OCBC’s SORA-pegged packages are based on the SORA rate which is simply the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market. Given that the 3-month (3M) SORA rate is updated every 3 months, validated and calculated by the Monetary Authority of Singapore (MAS), your OCBC SORA-pegged package and interest rate will update every 3 months as well. 

In addition to the 3-month SORA rate, OCBC also charges a mark-up, which is called a “spread”. Add these 2 components together and they’ll form the total interest rate which determines your monthly payments. 

Here’s an example to help you understand better: You plan to buy a private property (which can be either a landed property or a condominium) costing $1,300,000 while taking up an OCBC housing loan (3M SORA package) with a tenure of 25 years. 

Disclaimer: These computations are for illustration purposes only. Actual interest rates may vary. 

OCBC will need to assess your loan-to-value (LTV) ratio, which is your maximum borrowing capacity (75% of the property price), before you can proceed with your loan application. Let’s say you’re eligible for an OCBC 3M SORA-pegged loan of 975,000 with a tenure of 25 years as a first-time homeowner. Assuming your total monthly income is $20,000, the estimated math will be as follows with the help of MoneySmart’s Mortgage Calculator and the OCBC home loan calculator.

Your downpayment:

$260,000 by CPF + $65,000 in Cash = $325,000

(at least 5% of the property price to be paid in cash which comprise of the option fee & option exercise fee, and 20% to be paid in CPF)

Your estimated interest to pay for the first month:

OCBC’s spread = 0.98%

3-month Compounded SORA = 3.6501%

3.6501% (3M Compounded SORA) + 0.98% (bank’s spread) = approx. 4.63%

4.63% x $975,000 = $45,142.50

$45,142.50 ÷ 12 months = $3,761.88

(based on the 3M SORA rate at 3.6501% as of 20 June 2023)

Your estimated monthly instalment:

It’ll range from $5,492 to $5,503

(based on the increasing interest rate 3M SORA + up to 1.00% p.a. from Year 3 and thereafter)

Other one-time payments*:

$52,000 (buyer’s stamp duties) + $3,000 (legal fee) + $400 (valuation fee) = $55,400

Estimated total payment over 20 years:

$1,300,000 + $55,400 = $1,355,400    

*Buyer’s stamp duties fee is usually about 3% to 4% of the purchase price of the private property - a form of tax payable to the government for registration of purchase of the property. Legal fees are often paid to property lawyers for the processing of the private property’s home loan. Banks will usually have their own panel of licensed valuers and the valuation fee for a private property can range from $200-$400 due to the valuation report required. 

MoneySmart tip: Note that if it is your second property purchase, your BSD will be 20% instead of 3%-4% as per the Ministry of Finance latest update, thus you will be charged 20% for the second property purchase and 30% for the third & subsequent property purchase. To make things easier, you may use our Stamp Duty Calculator to help you out!

OCBC HDB Home Loans

If you’re shopping for home loans to finance a HDB flat, you can opt for the HDB loan or a bank mortgage loan such as an OCBC fixed or floating-rate home loan package for HDBs. 

You can choose from 2 types of packages including the 3-month (3M) Compounded SIBOR rate, and the OCBC Fixed rate, which are alternatives to the HDB loan.

OCBC mortgage rates may often be much lower compared to HDB loan, but taking up an OCBC housing loan package requires a much higher downpayment of 25% (of which at least 5% must be in cash) than the HDB loan which is only 10% (can be fully paid with CPF).

For example, if you and your partner decided to take up a $300,000 OCBC Fixed rate (3.65% p.a.) loan with 2 years lock-in period for a resale HDB flat and the tenure is over 20 years, the estimated calculations will be as follows.

Disclaimer: These computations are for illustration purposes only. Actual interest rates may vary. 

Your downpayment:

$60,000 by CPF + $15,000 in Cash = $75,000

(20% of the total loan among paid with your CPF and a minimum 5% of the total loan amount paid in cash)

Your estimated interest to pay for the first month:

OCBC’s spread = 1.00%

OCBC’s fixed rate = 3.65%

3.65% (board rate) + 1.00% (spread) = approx. 4.65%

4.65% x $300,000 = $13,950

$13,950 ÷ 12 months = $1,162.50

(based on the OCBC fixed rate at 3.65% p.a. as of 20 June 2023, which will change over time)

Other one-time payments:

$1,000 + $4,000 (option fee + option exercise fee) = $5,000

(this $5,000 is considered a deposit which forms part of the downpayment paid in cash i.e. $15,000)

Estimated total payment over 20 years:

$300,000 (principal amount) + $161,357.93 (in interest) = $461,357.93 (based on the fluctuating interest rate of 3M SORA + up to 1.00% p.a. bank spread from Year 3 and thereafter)

*All above calculations are estimated using MoneySmart’s Mortgage Calculator.

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OCBC Home Loans Refinancing

When should you refinance or reprice your home loan?

Take a look at your existing mortgage package again. If it charges you more than 3.65% interest, you’re probably paying more than what you really need to. Then maybe, it’s about time to consider refinancing or repricing your home loan. But do remember to refinance only after your lock-in period expires, otherwise you may incur penalties.

So what’s the difference between refinancing and repricing? Refinancing involves switching to another bank — that’s financing your current home with another bank instead of the current bank you’re with. On the other hand, repricing simply means picking a new home loan package offered by the same bank that you’re currently financing your home with.

Refinancing your home loan with OCBC may help you reduce your monthly repayment amount by switching to a lower interest rate. Find out more about these rates and how you can go about refinancing your home loan at our OCBC Home Loans Refinancing page.

How To Apply For Your OCBC Home Loan

Applying for your housing loan can get a little daunting at times, especially if it’s your first time doing it. But don’t you worry, we’re here to make it much easier for you.

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OCBC Home Loan Application Process and Fees

Here are 5 steps to the OCBC Home Loan application process

Step 1

Prepare your application documents

Fret not if you’re unsure of what to do at the beginning, get in touch with our mortgage team and we’ll advise you on the necessary steps as soon as possible.

First, we’ll liaise with OCBC’s Mortgage Specialists team on your behalf and collate a list of recommended OCBC Home Loan packages for you to choose from, depending on your loan-to-value (LTV) ratio.

The documents required for application include:

  • Your SingPass MyInfo login
  • NRIC
  • Option to Purchase
  • Proof of income (CPF contribution history up to the last 12 months, latest Income Tax Notice of Assessment, latest computerised payslip)
  • Latest available statement for all existing credit facilities)
  • HDB flat information and financial information value confirmed by HDB / Private property information

Step 2

Get your Letter of Offer after application

Once you’ve picked your preferred OCBC housing loan, your application will be processed by our mortgage specialist team. If you’re applying for any of the Eco-Care Home Loan packages, you’ll need to complete and pass THEEA, then provide the assessment reference number in your application.

Thereafter, you’ll sign the Letter of Offer, OTP and other related documents, and your home loan approval will be done at this stage. Also, you’ll need to pick an agreed time with the seller to submit the resale application (if you’re getting a resale flat or private property).

Step 3

Make payment of fees and charges

Set aside an amount to pay the Option fee to the seller (or pay both the Option fee and Option Exercise fee to the seller, as well as the relevant buyer’s stamp duties fee, if you’re getting a private property).

Keep in mind that cancellation of the loan after signing the Letter of Offer will incur extra costs as you’re required to pay 1.50% of the undisbursed loan amount.

Step 4

Set your appointment dates

You’ll be informed by our mortgage specialist team and HDB (if you’re purchasing a HDB flat) of your property purchase completion appointment date.

If you’re buying a private property, your/OCBC’s lawyer will inform you to pay the remaining downpayment in cash or CPF if you have not done so and set a date to sign mortgage documents at the lawyer’s office.

Step 5

Complete your new home or resale purchase

Finally, sign all the legal documents for the transfer of property, and paying of legal fees, valuation fees (if applicable). And you’re ready to collect the keys from the seller!

OCBC will also send you the bank letter stating your loan disbursement and monthly instalment amount.

Why Get Your OCBC Home Loan Through Us?

Simple, fast, convenient

Leave your home loan research to us and we’ll break it down for you in simple terms. Our Mortgage Specialist will contact you directly so you can save time for other important things in life.

Get better deals

Feeling so spoilt for choice you can't decide? Settling for the first option is like being forced to marry the first person you come across on a dating app. Don’t feel pressured. We compare across all housing loan packages offered by OCBC, as well as different banks in Singapore. By doing so, we ensure that you get only the best OCBC mortgage rates.

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Our service to you is free. But, of course we’re not doing this for charity! All banks pay us a standard referral fee for our services and our awesome job done. We don’t take sides or give biased advice.

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Learn More

OCBC Home Loan Review Singapore 2019 – Which Mortgage to Choose from OCBC

Best Home Loans in Singapore (2020) — How to Pick the Best Mortgage for Your Property

How to Refinance Your Home Loan in Singapore & Save Money on Your Mortgage

Frequently Asked Questions

What is OCBC’s fixed interest rate for home loans?

It is a bank–managed rate that can be revised at any time (30 days’ notice will be given). The current OCBC fixed mortgage rate is at 3.65%.

What is the difference between refinancing and repricing?

Refinancing involves financing your current home with another bank instead of the current bank you’re with. Repricing means switching to a new home loan package offered by the same bank that you’re currently financing your home with.

Will refinancing be a better choice?

Yes and no. It depends on how much you’re currently paying for your home loan. If you see that other banks offer lower interest rates for home loans, refinancing your home loan with another bank may be a good decision to help you reduce your monthly repayment amount by switching to a lower interest rate. However, if your current home loan interest rate is relatively low, then it probably isn’t a good decision to switch to another bank’s home loan package.

What is my Loan-to-value (LTV) ratio?

Your Loan-to-value (LTV) ratio is the amount that OCBC allows you to borrow from them to finance your home after OCBC’s assessment on your total monthly income and other ongoing loans or financial liabilities you may have.

What is the Buyer's stamp duties (BSD) fee?

Note that if it is your second property purchase, your BSD will be 20% instead of 3%-4% as per the Ministry of Finance latest update, thus you will be charged 20% for the second property purchase and 30% for the third & subsequent property purchase.

Do I need to pay legal fees for my property purchase?

Yes. Legal fees are necessary if you’re getting a private property or refinancing (HDB or private property or executive condominium) your home loan. You’re required to pay legal fees to property lawyers for the processing of your private property’s home loan or for the refinancing process.

Can I make a repayment to my currency OCBC home loan to reduce the loan amount?

Yes, you will be able to make a full or partial repayment to your loan only if it is outside of the lock-in period. The minimum partial repayment amount is S$5,000. However, if you make the repayment during the lock-in period, a prepayment fee of 1.50% of the amount repaid may apply. Please refer to your current Letter of Offer/Supplemental Letter of Offer to find out more.