Singapore mortgage quote: 8.13% fixed for 10 years

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FriendlyInk

Property investor
I’ve received a mortgage quote at 8.13% fixed for 10 years on a property purchase of around S$1,910,000. The advertised rate looked lower, but the arrangement fees and applicable loan-to-value tier changed the comparison. On the headline rate it seems competitive; on total cash cost it does not.

For anyone comparing Singapore loans, which figure would you prioritise: APR, interest paid during the fixed period, or all cash costs including fees? I’m also looking closely at portability and early-repayment terms because ten years is a long commitment.
 
I would not choose between APR and a short expected holding period as though either gives the full answer. APR can blur the effect of timing, but assuming you will refinance early can make the 8.13% ten-year fix look safer than it is.

My compromise would be to treat keeping the loan for ten years as the baseline, then add separate five-year refinance and sale cases. Each column should include interest, arrangement charges, early-repayment costs and the remaining balance. Keep the monthly payment as a separate affordability check. Portability belongs in the comparison only if the conditions match a move you could realistically make.
 
What loan amount, repayment term and loan-to-value tier are behind the quote? The S$1,910,000 purchase price alone is not enough to compare monthly cost. I’d also ask for side-by-side figures showing the balance remaining after five and ten years. A cheaper monthly payment can simply reflect a longer overall repayment schedule.
 
One caveat to the holding-period approach: assuming an early refinance can make an expensive fixed loan look better on paper, even though future rates and eligibility are unknown. I would model at least three cases—keeping it for ten years, refinancing earlier, and selling. Portability only has value if its conditions actually fit the property move you might make.
 
That’s helpful. The missing piece is indeed the financed amount under the applicable loan-to-value tier, so I’ll get the comparison rebuilt using the same loan amount and repayment term for every lender. I’ll also ask for cash-cost tables at several exit points rather than relying on the advertised rate or one refinance assumption. The early-repayment wording may end up deciding this.
 
Also stress-test the payment after the fixed period rather than stopping the spreadsheet at year ten. You do not need to predict the reset rate precisely; use a few higher and lower scenarios and see whether the household budget still works. For each quote, keep one row for upfront fees, one for monthly payments, one for exit costs, and one for the remaining balance. That should expose where the apparent saving comes from.
 
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