What is involved in a home equity loan

Q: What is the process of an equity loan?

Once youre approved for a home equity loan, youll receive your money in a single lump sum payment. You then pay the loan back with a set interest rate over a certain period of years. The number of years this will take depends on the loan term you agreed to when taking out your home equity loan.

Q: What do you need for a home equity?

To borrow from your homes equity, you need to have enough equity in your home. To qualify, you should have already paid down at least 15% to 20% of your homes value — so, for example, $100,000 if your home is valued at $500,000.

Get the maximum home equity loan

Maximise your home equity loan in Singapore by securing the highest property valuation from across 21 Banks. Our mortgage consultants also provide strategies on cash out refinancing and advice on the best bank for an application.

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Get the maximum home equity loan
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Home Equity loan rates (March 2022)
how we get you the maximum Home equity loan
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Common Questions for a Home Equity loan
NEED HELP WITH YOUR EQUITY LOAN?
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What is the downside to a home equity loan?
What is the process of an equity loan?
What are the terms on a home equity loan?
What do you need for a home equity?

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Home Equity loan rates (March 2022)

Home equity loans and cashout refinancing in Singapore are slightly different from a conventional housing loan application. Various factors such as outstanding loan amount, accrued CPF usage, property valuation and Total Debt Servicing Ration (TDSR) play a crucial role to determine the highest loan amount you can remortgage with.

Mortgage interest rates for an equity home loan is the same as a refinancing or new property purchase. Therefore, with our access to the lowest promotional packages and negotiations for special terms, you can be assured that our mortgage consultants will always be able to get best packages.

Do note that equity cashout loans are only applicable for private properties and not HDB units.

*Do note that there are lower rates available which we are unable to advertise publicly in the table below.

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for lower rates and rewards!

Updated As Of

Friday, Nov. 25, 2022

BANK	LOAN TYPE	YEAR 1	YEAR 2	YEAR 3	3 YEAR AVG	YEAR 4	YEAR 5	YEAR 6
Limited Promo*	Hybrid	1.32% Hybrid	1.32% Hybrid	1.28% Floating	1.31%	1.28% Floating	1.28% Floating	1.28% Floating

Limited Promo*	1 Year Fixed	1.35% Fixed	1.30% Floating	1.50% Floating	1.38%	1.50% Floating	1.50% Floating	1.50% Floating

Limited Promo*	1 Year Fixed	1.40% Fixed	1.30% Floating	1.50% Floating	1.40%	1.90% Floating	1.90% Floating	1.90% Floating

OCBC	1 Year Fixed	1.55% Fixed	1.30% Floating	1.50% Floating	1.45%	1.90% Floating	1.90% Floating	1.90% Floating

DBS	5 Year Fixed	1.65% Fixed	1.65% Fixed	1.65% Fixed	1.65%	1.65% Fixed	1.65% Fixed	1.80% Fixed Deposit

Limited Promo*	2 Year Fixed	1.55% Fixed	1.55% Fixed	2.10% Floating	1.73%	2.10% Floating	2.10% Floating	2.10% Floating

Bank of China	2 Year Fixed	1.93% Fixed	1.93% Fixed	1.60% 3M SORA	1.82%	1.60% 3M SORA	1.60% 3M SORA	1.60% 3M SORA

DBS	5 Year Fixed	1.85% Fixed	1.85% Fixed	1.85% Fixed	1.85%	1.85% Fixed	1.85% Fixed	1.80% Fixed Deposit

Limited Promo*	3 Year Fixed	2.00% Fixed	2.00% Fixed	2.00% Fixed	2.00%	1.90% Floating	1.90% Floating	1.90% Floating

Bank of China	3 Year Fixed	2.13% Fixed	2.13% Fixed	2.13% Fixed	2.13%	1.90% 3M SORA	1.90% 3M SORA	1.90% 3M SORA

Limited Promo*	3 Year Fixed	2.15% Fixed	2.15% Fixed	2.15% Fixed	2.15%	1.80% Floating	1.80% Floating	1.80% Floating

DBS	3 Year Fixed	2.25% Fixed	2.25% Fixed	2.25% Fixed	2.25%	1.90% 3M SORA	1.90% 3M SORA	1.90% 3M SORA

BANK	LOAN TYPE	YEAR 1	YEAR 2	YEAR 3	3 YEAR AVG	YEAR 4	YEAR 5	YEAR 6
Limited Promo*	3-month SORA	0.83%	0.83%	0.83%	0.83%	1.35%	1.35%	1.35%

Limited Promo*	Fixed Deposit	1.00%	1.00%	1.00%	1.00%	1.72%	1.72%	1.72%

DBS	3-month SORA	0.96%	0.96%	1.16%	1.03%	1.16%	1.16%	1.16%

HSBC	1-month SORA	0.92%	0.92%	1.35%	1.06%	1.35%	1.35%	1.35%

Citibank	1-month SORA	0.92%	0.92%	1.35%	1.06%	1.35%	1.35%	1.35%

Standard Chartered	3-month SORA	0.92%	0.92%	1.37%	1.07%	1.37%	1.37%	1.37%

Standard Chartered	Fixed Deposit	1.10%	1.10%	1.10%	1.10%	1.40%	1.40%	1.40%

UOB	3-month SIBOR	1.25%	1.25%	1.25%	1.25%	1.25%	1.25%	1.25%

HSBC	1-month SIBOR	1.25%	1.25%	1.25%	1.25%	1.25%	1.25%	1.25%

Maybank	3-month SIBOR	1.05%	1.05%	1.90%	1.33%	1.90%	1.90%	1.90%

OCBC	3-month SORA	1.41%	1.41%	1.41%	1.41%	1.41%	1.41%	1.41%

DBS	Fixed Deposit	1.50%	1.50%	1.80%	1.60%	1.80%	1.80%	1.80%

how we get you the maximum Home equity loan

Know Your Equity Loan Eligibility

Our mortgage consultants can provide a comprehensive breakdown on your equity loan eligibility over a quick phone consultation all within a few hours.

Maximise Chances Of Approval

Different banks have varying internal approval processes for an equity loan. Our mortgage consultants will be able to select a specific bank with the highest approval probability as well as the best mortgage package available for your needs.

Increase Equity Loan Amount

All equity loans through DollarBack Mortgage enjoy cash rewards above the rebates provided by banks. Since your upfront costs are fully covered with the bank rebates, you can think of the additional cash rewards as a bonus that increases your equity loan amount.

No tricks, no gimmicks. up to $3,300 in cash rewards from us to you!

Common Questions for a Home Equity loan

What are the fees applicable for a home equity loan?

Legal fees ranging from $1,800 to $2,000 nett as well as valuation fees depending on the market value of the property are applicable for a equity home loan.

Can I use CPF funds to pay for my home equity loan instalments?

No. All home equity loan instalments cannot be paid via CPF and only cash is allowed.

Can I refinance my existing home equity loan?

Yes of course. A existing home equity loan can be refinanced to enjoy a lower interest rate package. Cash rewards and rebates are also offered by all banks for an existing home equity loan refinancing.

What is a home equity loan & cashout refinancing?

A home equity loan and cashout refinancing are theoretically taking out paid up equity from your property as lump sum and servicing the monthly installments with a specific bank. You can take a equity loan from your fully paid up private property from any bank in Singapore or refinance your existing property and apply for an additional equity loan with your existing bank or a different bank altogether. Home equity loans function the same way as any other home loan where the monthly installments are paid in a proportion of interest and principal. While interest only home equity loans used to be available previously, there are no longer allowed by major banks in Singapore.

How to calculate a home equity loan?

There are a few factors involved in calculating a home equity loan amount but the most crucial determinant is the market value of the property. Having a high market value of your property allows for the maximum equity to be taken out. For example, your current property has a market value of $2,000,000, an outstanding loan amount of $800,000 and CPF usage to date by all owners of $200,000. The corresponding equity loan amount is then 75% (maximum financing quantum allowed in Singapore) of the market value (0.75 x 2mil = 1.5mil) subtracted by the outstanding loan amount and CPF usage (1.5mil - 800k - 200k = 500k). Therefore, the maximum equity loan that can be taken is up to $500,000. Do note that equity loans are also subjected to TDSR requirements as well as income and debt obligations. Having a high market value of your property even though important, is not sufficient for a bank to grant a equity loan.

Can I take a equity loan from my HDB property?

No you can't, it also does not matter if your HDB is fully paid up or not. Equity loans are only allowed for private properties.

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What is the downside to a home equity loan?

Home Equity Loan Disadvantages Higher Interest Rate Than a HELOC: Home equity loans tend to have a higher interest rate than home equity lines of credit, so you may pay more interest over the life of the loan. Your Home Will Be Used As Collateral: Failure to make on-time monthly payments will hurt your credit score.

What is the process of an equity loan?

Once you're approved for a home equity loan, you'll receive your money in a single lump sum payment. You then pay the loan back with a set interest rate over a certain period of years. The number of years this will take depends on the loan term you agreed to when taking out your home equity loan.

What are the terms on a home equity loan?

A home equity loan term can range anywhere from 5-30 years. HELOCs generally allow up to 10 years to withdraw funds, and up to 20 years to repay. A cash-out refinance term can be up to 30 years.

What do you need for a home equity?

To borrow from your home's equity, you need to have enough equity in your home. To qualify, you should have already paid down at least 15% to 20% of your home's value — so, for example, $100,000 if your home is valued at $500,000.