Housing loan interest rates in Sri Lanka
Published home loan rates, fees and early settlement charges, read from each bank’s own website.
Rates checked 14 October 2026 on each bank’s own website
In short
- First-home buyers: NSB from 9.50% a year, up to Rs. 5 million, fixed for three years.
- General housing loans: NSB 11.00–11.50%; BOC 12.00% up to Rs. 7.5 million for up to 10 years.
- BOC charges a 0.8% processing fee (Rs. 1,000–25,000) and 1–3% of the balance if you settle early.
- On Rs. 10 million over 20 years, 11.50% instead of 14.00% saves about Rs. 4,250,188 in interest.
Rates compared
| Bank | Loan | Rate a year | Terms | Source |
|---|---|---|---|---|
| National Savings Bank (NSB) | First home owner loan, up to Rs. 5 Mn | 9.50% | fixed 3 years, then variable | Bank’s site effective 2 June 2026 |
| First home owner loan, Rs. 5–10 Mn | 10.50% | fixed 3 years, then variable | ||
| Housing loan, up to Rs. 3 Mn | 11.00% | fixed 2 years, then variable | ||
| Housing loan, above Rs. 3 Mn | 11.50% | fixed 2 years, then variable | ||
| Housing loan, fixed for the full term | 13.00% | up to 10 years (14.00% above 10 years) | ||
| Bank of Ceylon (BOC) | Housing loan, aggregate up to Rs. 7.5 Mn | 12.00% | fixed; up to 10 years (14.00% above 10 years) | Bank’s site |
| BOC Housing Loan, above Rs. 7.5 Mn | 13.50% | fixed; up to 10 years (14.50% to 15 years, 15.00% above) |
Fixed or variable?
NSB fixes its general housing loan rates for two years (three for first-home owner loans) and then reviews them every six months. It also offers a rate fixed for the whole term: 13.00% up to 10 years, 14.00% above. BOC lists its housing loan rates as fixed.
Fees and early settlement
- Processing (BOC): 0.8% of the loan (minimum Rs. 1,000, maximum Rs. 25,000) for BOC housing loans, plus valuation and title costs.
- Settling early (BOC): 3% of the balance within 3 years, 2% from 3 to 5 years and 1% after 5 years (housing, personal and government pensioners’ loans).
- Late payment (NSB): NSB charges 2% a year penal interest on a monthly instalment only after a 30-day grace period.
What the rate means for your instalment
Rs. 10,000,000 over 20 years: at 11.50% about Rs. 106,643 a month (Rs. 15,594,311 interest in total); at 14.00% about Rs. 124,352 (Rs. 19,844,499).
A bank loan or an online loan?
Bank loans like these cost around 11–15% a year. Online loans are faster but cost from 190% APR to over 800% a year, so use them only for small, short, urgent needs. Compare bank personal loan rates.
Frequently asked questions
Which bank has the lowest housing loan rate in Sri Lanka?
Of the rates we could read, NSB’s first home owner loan is lowest at 9.50% a year for up to Rs. 5 million, fixed for three years and then reviewed every six months.
Are housing loan rates fixed?
NSB fixes its general rates for two or three years and then reviews them every six months, or offers 13.00–14.00% fixed for the whole term. BOC lists its housing loan rates as fixed.
What does it cost to settle a BOC housing loan early?
BOC charges 3% of the outstanding balance within three years, 2% from three to five years, and 1% after five years.
What is the monthly instalment on a Rs. 10 million housing loan?
Over 20 years, about Rs. 106,643 a month at 11.50% or Rs. 124,352 at 14.00%, on a reducing balance.