Choose the Right Loan Type for Long-Term Savings

Understand Mortgage Rates Before You Sign

Fixed, floating, or board rate? Each home loan type comes with trade-offs — and the wrong choice could cost you thousands. At Property Wealth Planner, we break down the different mortgage rate structures so you can borrow smarter and save more.

Let us help you make an informed, confident decision.

Mortgage Rates in Singapore: What You Should Know

Choosing the right mortgage rate type can significantly impact your long-term savings.
Whether it’s fixed, floating, or board rates, each has its advantages — and trade-offs.

✅ Key Things to Know About Mortgage Rates

Fixed Rates offer stability with consistent repayments, ideal for those who prefer predictable budgeting.
Floating Rates move with the market and may start lower — great if you’re comfortable with risk and want to save during low-rate periods.
Board Rates are set internally by banks and can be less transparent, but may offer competitive entry rates.

❓ Fixed or Floating: Which Is Better?

That depends on your financial goals.
✔️ Choose fixed if you want peace of mind and stable cash flow.
✔️ Choose floating if you can handle some fluctuation and want to benefit from potential rate drops.
✔️ Not sure? A mortgage advisor can help you compare based on your income, loan amount, and market trends.

❓ Are All Floating Rates the Same?

No — floating packages may be pegged to benchmarks like SORA, FHR (Fixed Deposit Home Rate), or internal Board Rates. Each comes with different risks and revision timelines. We help you understand how these rate types affect your monthly repayments — now and in the future.

❓ Why Does This Matter for HDB vs Private Loans?

Different banks may offer different rates depending on whether you’re financing an HDB flat or a private condo. Understanding how your property type impacts your loan structure and interest rate can help you avoid hidden costs and maximise CPF usage.

Make Informed Financing Decisions — With Expert Guidance

Why Understanding Mortgage Rates Helps You

For Every Buyer, Every Stage

From first-time HDB buyers to private property investors, understanding mortgage rates is key to long-term success. Our advisory walks with you from comparison to commitment — ensuring clarity at every step.

Refinance to Smarter Rate Packages

If you’re already paying a mortgage, it may be time to switch. We assess your current rate, explain what it will revert to, and help you refinance to a more cost-effective plan based on today’s market.

Save Time with Expert Comparisons

Our team monitors rate changes across 16+ banks, saving you hours of research. We shortlist the best packages — tailored to your financial goals — and guide you through the decision-making process.

Pick the Rate That Matches Your Lifestyle

Fixed rates offer certainty. Floating rates offer flexibility. Board rates may seem attractive but require caution. We help you match your risk tolerance, income profile, and future plans to the most suitable rate type.

Understand What You’re Signing Up For

Confused by terms like SORA, FHR, and board rate? You’re not alone. We break down complex rate structures, revision schedules, and repayment projections so you can make a fully informed decision before locking in a loan.

Choose the Right Rate, Pay Less Over Time

Whether fixed, floating, or board rate, the mortgage structure you choose directly impacts your monthly repayments and total loan cost. We help you compare the latest rates across banks and understand how each type works — so you borrow smarter, not just cheaper.

Start Making Smarter Financing Decisions Today

Common Misconceptions About Mortgage Rates

❌ "Fixed Rates Are Always Safer"

Fixed rates provide stability, but they’re not always the best choice. If interest rates are expected to fall or you plan to sell or refinance within a few years, a floating rate may actually save you more.

❌ "All Floating Rates Are the Same"

Not true. Floating rates can be pegged to different benchmarks like SORA, FHR, or board rates. Each comes with different revision intervals, volatility, and transparency. Knowing the difference can help you avoid surprise increases.

❌ "I Should Only Choose the Lowest Interest Rate"

A low rate looks attractive — but it may come with high fees, short lock-in periods, or sudden rate hikes after the first year. Always consider the total cost of the loan, not just the headline rate.

Types of Mortgage Rates We Offer

At Property Wealth Planner, we help you understand and choose the right mortgage rate structure for your financial goals.

Fixed-Rate Mortgages

A Fixed Rate Mortgage locks in your interest rate for a specific period — typically 2 to 5 years — giving you predictable monthly repayments during that time. After the fixed term, the loan usually converts to a floating rate.

Who is it for?
-Ideal for homebuyers who value stability and prefer predictable monthly payments.
-Great during periods of rising interest rates or for those with fixed incomes.

Floating Rate Mortgage

A Floating Rate Mortgage has interest rates that adjust periodically, based on a benchmark like SORA or Fixed Deposit Home Rate (FHR). Your monthly repayments may go up or down as the market changes.

Who is it for?
-Suitable for those who are comfortable with some fluctuation in payments.
-Ideal if you expect interest rates to fall or plan to sell/refinance within a few years.

Board Rate Mortgage (Subcategory of Floating)

A Board Rate Mortgage is a type of floating loan where the rate is set internally by the bank and isn’t pegged to an external benchmark like SORA. The bank can revise it at their discretion.

Who is it for?
-Typically for experienced borrowers who are comfortable with internal rate reviews.
-May appeal to those seeking customised loan structures or flexible repayment terms — but transparency is key.

Get in Touch to Learn More About Our Mortgage Rates

How Choosing the Right Mortgage Rate Can Save You More

Scenario 1: Fixed Rate Stability for a Young Family

Scenario:
A young couple purchasing their first BTO flat were anxious about rising interest rates and tight monthly cash flow. Unsure of what “floating” meant, they initially leaned toward the cheapest rate they could find online.

Outcome:
After consulting with an advisor, they learned that a fixed rate loan would lock in their monthly payments for the first 3 years — allowing them to plan their expenses confidently while adjusting to new homeownership costs. The peace of mind outweighed the slightly higher initial rate.

Key Takeaway:
Sometimes a fixed rate, while not the lowest, is the smarter choice — especially for new homeowners seeking budget certainty.

Scenario 2: Floating Rate Advantage for a Short-Term Owner

Scenario:
A single homeowner planning to live in their condo for only 3–4 years before upgrading was quoted a 3-year fixed package. But they were concerned about overpaying if they sold early.

Outcome:
They chose a floating rate loan pegged to 1M SORA, which started lower and came with no lock-in period. This saved them interest while giving flexibility to exit without penalty once they sold the unit.

Key Takeaway:
Floating rates can be ideal if you don’t plan to hold the property long-term or expect to refinance.

Scenario 3: The Risks of a Board Rate Misunderstood

Scenario:
An investor refinancing a second property was attracted to a very low board rate loan from a lesser-known bank. But they didn’t realise board rates were not tied to public benchmarks and could change at the bank’s discretion.

Outcome:
An advisor explained the lack of transparency and helped them switch to a floating rate pegged to 3M SORA with predictable review intervals. This gave the investor greater control and fewer surprises down the road.

Key Takeaway:
A low board rate might sound attractive — but without transparency, it can bring unexpected cost hikes.

Comparison of Mortgage Rates

Fixed Rate

✅ Stable monthly repayments

✅ Easier to budget

✅ Protection against rising rates

❌ Higher initial rates

❌ Less flexible

❌ Reverts to floating after lock-in

Floating Rate

✅ Lower starting rates

✅ Benefit when market rates fall

✅ More options available

❌ Rates fluctuate

❌ Harder to budget

❌ Requires active monitoring

Board Rate

✅ May start low

✅ Flexible structure

✅ Exclusive Promotions Possible

❌ Not transparent

❌ Can change anytime

❌ Hard to compare across banks

Frequently Asked Questions

❓ What’s the difference between fixed and floating mortgage rates?

A fixed rate stays the same for a set period (usually 2–5 years), giving you stable monthly payments. A floating rate changes based on market conditions, which means your repayments can go up or down depending on the benchmark it’s pegged to.

❓ What is a board rate, and is it risky?

A board rate is a type of floating rate set internally by the bank. It’s not pegged to public benchmarks like SORA, which makes it less transparent. Rates can change at the bank’s discretion, so it may carry more uncertainty than other floating rate types.

❓ How do I know which rate type is right for me?

It depends on your goals and risk tolerance. Choose fixed if you want stability, floating if you’re comfortable with changes and expect rates to drop, and board rate if you’re getting a promotional deal — but always assess the long-term cost.

❓ Can I switch from a fixed rate to a floating rate later?

Yes, after your fixed-rate period ends, your loan usually converts to a floating rate automatically. You can also refinance to a new loan package with another bank if you find better terms.

❓ Is the lowest interest rate always the best option?

Not always. A low headline rate may come with higher fees, short lock-in periods, or less flexibility. It’s important to look at the total cost of the loan, including any hidden charges or future rate hikes.

❓ How often do floating rates change?

It depends on the benchmark. For example, SORA-based loans may revise monthly or quarterly, while board rates can change anytime at the bank’s discretion. Always check the review frequency before choosing a package.

Testimonials

“We were overwhelmed by all the different loan types at first. The team at Property Wealth Planner explained everything clearly, and thanks to their advice, we secured a fixed-rate mortgage just before rates increased. It gave us peace of mind and stable monthly payments.”

— Jason & Clarice Tan, First-Time Homebuyers

“I wasn’t sure if floating rates were risky, but they helped me understand how SORA works and forecasted upcoming trends. I went with a floating package that started lower — and now I’m saving more than I expected on my monthly repayments.”

— Marcus Lim, Property Investor

Make the Right Mortgage Rate Choice with Confidence

Understanding your loan rate can make a big difference.
Whether you’re buying your first home or planning to refinance, we’ll help you choose the rate structure that fits your goals.

Ready to Understand Your Mortgage Options?

Latest News & Articles on Mortgage Rates

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