Best Home Loan Rates Singapore February 2026: FAQs & Homejourney Comparison

Best Home Loan Rates Singapore February 2026: Your Complete FAQ Guide

As of February 2026, Singapore's home loan rates have reached 3-year lows, with promotional fixed rates starting from as low as 1.35% and floating rates from 1M SORA+0.25% (currently 1.36%).[1][2] Whether you're a first-time buyer, refinancing your existing mortgage, or upgrading from an HDB flat, understanding the current rate landscape is crucial to making informed financial decisions. This guide answers the most common questions Singapore homeowners and buyers ask about mortgage rates in 2026.

What Are the Lowest Home Loan Rates Available Right Now?

The lowest advertised fixed rates in February 2026 are promotional offerings starting at 1.35% for loans above $2 million, though most borrowers will qualify for rates between 1.45% and 1.75% depending on loan amount and bank.[1][2] For floating-rate mortgages, the lowest spreads are 1M SORA+0.25% (equivalent to 1.36% as of February 2, 2026).[8]

It's important to note that banks typically don't publish their best rates online—these ultra-competitive rates are reserved for larger loan amounts (usually $1-2 million and above) and borrowers with excellent credit profiles.[2] To discover your personalized rate, you can compare current rates from all major Singapore banks on Homejourney's bank rates page, where we display real-time offerings from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and other partners.

For context, these rates represent a dramatic drop from January 2025, when rates hovered around 3%—meaning borrowers who refinance today could save approximately S$500 monthly on a typical mortgage.[3]

Fixed vs. Floating Rates: Which Should You Choose?

This decision depends on your risk tolerance and market outlook. Fixed-rate mortgages lock in your interest rate for a set period (typically 2-3 years), providing payment certainty regardless of market movements. Floating-rate mortgages are tied to SORA (Singapore Overnight Rate Average) and fluctuate with market conditions.

Current market data shows fixed mortgages still dominate borrower preferences in Singapore, with most buyers choosing 2-year fixed rates between 1.48% and 1.75%.[1][5] However, floating rates are gaining attention as borrowers anticipate further rate decreases.[9] Here's how to decide:

Choose fixed rates if: You prefer payment predictability, plan to stay in your home long-term, or believe rates will rise. Current 2-year fixed rates start from 1.48%.
Choose floating rates if: You're comfortable with payment fluctuations, expect rates to continue falling, or plan to refinance within 2-3 years. Current 1M SORA+0.25% offers the lowest spreads.

The chart below shows recent interest rate trends in Singapore to help you understand how SORA has moved and inform your decision:

How Much Can I Borrow? Understanding Your Loan Eligibility

Your borrowing capacity depends on several factors: income, existing debt, property value, and your Debt Service Ratio (DSR). In Singapore, most banks cap your monthly loan repayment at 30% of your gross monthly income (the DSR limit).[4]

For example, if you earn S$5,000 monthly, your maximum monthly mortgage payment would be S$1,500. At a 1.50% interest rate on a 25-year loan, this translates to a borrowing capacity of approximately S$450,000.

Calculate your exact borrowing power instantly with Homejourney's mortgage eligibility calculator, which factors in your income, CPF balance, existing debts, and property price to show your maximum loan amount and recommended monthly payments. This tool uses verified data inputs to ensure accuracy and helps you understand what price range to target when searching for properties.

Should I Refinance My Existing Mortgage?

With rates at 3-year lows, refinancing has become attractive for many homeowners. A borrower who refinanced with DBS last month moved from a 3% rate to 1.6%—saving approximately S$500 monthly.[3] However, refinancing involves costs: legal fees (S$800-1,500), valuation fees (S$300-600), and potential early repayment penalties from your current lender.

Refinancing makes financial sense if your monthly savings exceed these costs within 12-18 months. Most borrowers benefit from refinancing when the rate difference exceeds 0.75-1.0%.[3] Before proceeding, consider:

Your remaining loan tenure (shorter tenures mean less total savings)
Your current lock-in period and any early repayment penalties
Your employment stability and credit score
Whether you plan to stay in the property for at least 2-3 more years

Make refinancing easier with Homejourney's step-by-step process, where you can compare offers from multiple banks simultaneously and understand exactly how much you'll save before committing to any application.

HDB Loan vs. Bank Loan: What's the Difference?

HDB loans are government-subsidized mortgages with a fixed interest rate of 2.6%, while bank loans vary based on market conditions.[1][4] At first glance, the HDB rate seems attractive, but bank loans are now significantly cheaper.

Feature	Bank Loan	HDB Loan
Interest Rate (Feb 2026)	1.45%-1.75% (fixed)	2.6% (fixed)
Loan-to-Value Ratio	75%	80%
Can Switch Back?	No	N/A
Early Repayment Penalty	Varies by bank	None (for POSB HDB)

Many HDB flat owners are now switching to bank loans to capitalize on the rate advantage. DBS's POSB HDB loan saw a 13-fold increase in take-up from January to November 2025, with rates as low as 1.55% for 3-year fixed terms and no early repayment penalties.[3]

Important consideration: Once you switch from an HDB loan to a bank loan, you cannot return to HDB financing in the future. Ensure you're comfortable with this decision and understand the implications for future property transactions.[3]

What Are SORA Rates and How Do They Affect My Mortgage?

SORA (Singapore Overnight Rate Average) is the benchmark interest rate that most Singapore banks use for floating-rate mortgages. Instead of paying a fixed rate, you pay SORA plus a bank spread (typically +0.25% to +0.40%).[1][8]

For example, if 1M SORA is 1.11% and your bank's spread is +0.25%, your total mortgage rate would be 1.36%. When SORA changes, your rate changes immediately (or at the next interest review date, depending on your loan terms).

Floating rates are attractive when you expect rates to fall, but they carry risk if rates rise. Currently, many experts believe SORA will remain stable or decrease slightly in 2026, making floating rates appealing for rate-sensitive borrowers.[9] Track live 3M SORA and 6M SORA rates on Homejourney to time your refinancing decisions perfectly and understand exactly how rate changes will affect your monthly payments.

What Fees and Costs Should I Expect?

Beyond your interest rate, several costs apply to home loans:

Legal fees: S$800-1,500 (for loan documentation and property transfer)
Valuation fees: S$300-600 (bank assesses property value)
Appraisal fees: S$200-400 (some banks charge separately)
Stamp duty: 0.2% of loan amount (for loan documentation)
Refinancing costs: S$1,500-3,000 (legal + valuation for existing property)
Cash rebates: S$2,000-2,800 (many banks offer these for refinancing loans above S$1 million)

Some banks waive legal and valuation fees as promotional incentives, so always ask about fee waivers when comparing offers. When you submit applications through Homejourney, our mortgage brokers help you understand all associated costs upfront, ensuring no surprises during the approval process.

Which Banks Offer the Best Rates Right Now?

Based on February 2026 data, here are the most competitive banks for different loan types:[1][2]

Best Fixed Rates (Resale Condos/Landed Properties): Promotional offerings start at 1.48% for 2-year fixed terms, with DBS, OCBC, and HSBC offering competitive rates between 1.65%-1.75%. For HDB refinancing, rates start from 1.55% for 2-year fixed terms.

Best Floating Rates: 1M SORA+0.25% is the lowest spread available, with 3M SORA+0.25% to +0.40% also competitive. Maybank and DBS offer attractive floating-rate packages.

Best for Large Loans (>$2M): Banks offer promotional rates as low as 1.35% fixed, though these require direct negotiation.

Compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and other major banks on Homejourney's bank rates page, where you can see real-time offerings, filter by loan type, and understand the specific features of each package (lock-in periods, free conversion options, early repayment terms).

How Do I Apply for a Home Loan?

The traditional process involves visiting multiple banks, submitting applications separately, and waiting weeks for decisions. Homejourney simplifies this:

Calculate your eligibility: Use our mortgage calculator to understand your borrowing capacity based on income, CPF, and existing debts.
Compare rates: View current offerings from all major banks on our bank rates page, filtered by property type and loan amount.
Submit one application: Apply through Homejourney to submit your details to multiple banks simultaneously.
Use Singpass/MyInfo: Auto-fill your application in seconds—your income, employment, and CPF data are verified instantly for faster approval.
Receive multiple offers: Banks respond with personalized rates and terms within days.
Connect with our brokers: Our Homejourney Mortgage Brokers provide personalized guidance to help you choose the best package.

Submit one application and receive offers from all major banks through Homejourney's loan application system. This eliminates the hassle of multiple applications and ensures you get the most competitive rates available.

Frequently Asked Questions

Q1: Is now a good time to buy a property with rates at 3-year lows?

Yes, for most buyers. Current rates of 1.45%-1.75% are historically low, and monthly mortgage payments are significantly cheaper than even 12 months ago. However, property prices matter too—ensure you're buying within your budget and not overextending based solely on low rates. Use Homejourney's mortgage calculator to understand your true affordability before searching for properties.

Q2: Should I lock in a fixed rate now or wait for rates to drop further?

Rates are already at 3-year lows, and further significant decreases are unlikely. If you're planning to buy or refinance within the next 6 months, locking in now is prudent. Waiting for marginal rate decreases (0.1-0.2%) often isn't worth the risk of rates rising instead. Mortgage advisers recommend acting when your current lock-in period ends to avoid penalties.[3]

Q3: What's the difference between a 2-year and 3-year fixed rate?

A 2-year fixed rate locks your rate for 24 months, after which it typically converts to a floating rate (unless you refinance). A 3-year fixed rate locks it for 36 months. Three-year rates are usually 0.1-0.3% higher than 2-year rates, but they offer longer payment certainty. Choose based on your refinancing plans—if you expect to refinance within 2 years, a 2-year fixed is fine; if you prefer stability, choose 3-year.