Mortgage lending in Singapore grew at 5.2% in 2Q2025 to $284.3 billion, outpacing 2Q2024's level of 2.1% and faster than the 2024 and 2023's average growth rate of 3% and 2% respectively. This contrasts to broader banking sector loan growth of 3.5% in 2Q.
Singapore banks' mortgage growth in 2025 may hit mid-single digits with defaults remaining limited. This is supported by resilient jobs data and easing rates that help debt servicing, bolstering the resilience of their bonds. Their share of fixed-rate mortgages is expected to rise in 2H to lift earnings. DBS mortgages appear appears to face the least risk among peers. Financially sound households and lower rates are keeping home demand resilient.
Mortgages Grew at a Faster Pace in 2025
