Finding the best home loan rates in Singapore in January 2026 can easily save you tens of thousands of dollars over your loan tenure. In a market where fixed packages are hovering around 1.4%–1.8% and SORA-pegged loans have fallen sharply from their 2023–2024 peaks, making an informed decision has never been more important.[2][1]
This definitive Homejourney guide gives you a clear, practical home loan rates comparison 2026, explains how SORA-based packages work, and shows how to safely choose the lowest mortgage rate Singapore that fits your risk profile. It is written from the perspective of a local who has navigated HDB and private loans personally, and who regularly tracks MAS, HDB and bank updates for clients.
Table of Contents
- 1. Executive Summary: Singapore Home Loan Rates in January 2026
- 2. Key Concepts: Fixed, Floating, SORA and How Rates Are Set
- 3. Best Home Loan Rates Singapore January 2026: Side-by-Side Comparison
- 4. HDB Loan vs Bank Loan in 2026: Which Is Better Now?
- 5. How Much You Can Borrow: TDSR, MSR, CPF and Cash
- 6. Practical Scenarios: First-Time Buyer, Refinancing, Investor
- 7. Step-by-Step: How to Use Homejourney to Secure the Best Rate
- 8. Risk Management: Lock-in, Penalties, and Rate Outlook for 2026
- 9. FAQs: Best Mortgage Rate January 2026 and Common Questions
- 10. Next Steps: Safe, Trusted Financing with Homejourney
1. Executive Summary: Singapore Home Loan Rates in January 2026
After two years of elevated mortgage costs, home loan rates in Singapore have fallen to around three-year lows by late 2025 and into January 2026.[2] The benchmark 3M compounded SORA has dropped from about 3% in early 2025 to roughly 1.2% by December 2025, pulling both fixed and floating housing packages down with it.[2]
According to market rate tables for early 2026, many banks are now offering promotional fixed packages for private properties in the 1.45%–1.75% p.a. range, with floating loans priced at modest spreads above 1M or 3M SORA.[1][6] These levels are significantly below the HDB concessionary rate of 2.6% p.a., which has remained unchanged because it is pegged to the CPF Ordinary Account interest rate.[2]
In practice, this means:
- For an average S$600,000 loan on a 25-year tenure, the difference between 1.6% and 2.6% interest can easily exceed S$300–S$400 per month in instalments in the first few years.
- Many HDB owners are switching from HDB loans to bank loans, and many borrowers with older 3%+ packages are refinancing to lock in much lower rates.[2]
- The gap between the best mortgage rate January 2026 and older packages is wide enough that most owners should at least review their options.
Homejourney aggregates bank packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank so you can see real-time bank rate comparison January 2026 in one place via our bank rates page: Bank Rates .
2. Key Concepts: Fixed, Floating, SORA and How Rates Are Set
2.1 Fixed vs Floating: Simple Definitions
Fixed-rate home loan: The interest rate is locked for a fixed period (usually 2–5 years). For example, DBS and other banks have offered 2- or 3-year fixed packages in the 1.55%–1.80% range as rates fell in late 2025 and early 2026.[1][2] Your monthly instalment is predictable during that lock-in period.
Floating-rate home loan: The rate moves based on a reference benchmark plus a fixed spread. In Singapore today this is usually 1M or 3M compounded SORA, published by MAS, plus a margin such as +0.25% to +0.8%.[4][1] Your instalments can go up or down every 1 or 3 months, depending on the package.
In neighbourhoods like Sengkang, Punggol or Jurong West, where many young families are servicing S$300,000–S$500,000 HDB loans, this difference in loan type can translate into S$150–S$300 variation in monthly cashflow. As a local, the most common regret I hear from friends who took floating packages in 2021–2022 is not anticipating how quickly rates could spike, which is why many are now locking in 2–3 year fixed rates around 1.6%–1.7%.[2]
2.2 What Is SORA and Why It Matters in 2026
SORA (Singapore Overnight Rate Average) is MAS' volume‑weighted measure of overnight interbank SGD funding costs. It replaced SOR and SIBOR as the main benchmark for new retail home loans. Banks typically offer packages like "3M SORA + 0.70%" where the SORA component resets every 3 months.[4]
By December 2025, 3M SORA has fallen from around 3% in early 2025 to about 1.2%, its lowest point since August 2022.[2] That drop is why you now see promotional SORA packages with very low all‑in rates, sometimes near or below 1.5% p.a. in the first two years.[1][6]
The chart below shows recent interest rate trends in Singapore:
From the chart, you can see how sharply SORA has come off its peak, and why late 2025 and early 2026 have become a key refinancing window for many owners.[2][8]
2.3 Regulatory Framework: MAS, HDB and Bank Rules
Monetary Authority of Singapore (MAS) sets the macroprudential rules that cap borrowing, such as the Total Debt Servicing Ratio (TDSR) and loan tenor limits. MAS also administratively manages SORA’s publication and transparency.[4]
HDB sets policies on the HDB concessionary loan, including eligibility, income and ownership criteria, and links the interest rate to the CPF OA rate (2.5% p.a. + 0.1% = 2.6% p.a.).[2] HDB also limits how you can use CPF for housing and enforces rules like the Minimum Occupation Period (MOP).
Banks are regulated by MAS and must underwrite home loans using TDSR and, for HDB homes and ECs, the Mortgage Servicing Ratio (MSR). They also have to use a prescribed interest rate floor (often 3.5% or more) when assessing affordability, even if current market rates are below 2%.[4]
3. Best Home Loan Rates Singapore January 2026: Side-by-Side Comparison
Exact rates change frequently, but publicly available rate tables for January 2026 show typical ranges across major banks.[1][6] Homejourney’s Bank Rates page pulls live rates directly from bank partners, but the snapshot below gives a sense of where the market is for private property loans.
3.1 Snapshot: Fixed vs Floating Packages (Private Property, Jan 2026)
Approximate promotional ranges (new purchase / refinancing, ≥S$500k, 20–30Y tenure):
These indicative ranges are based on market-wide rate tables and bank disclosures as of January 2026, where lowest fixed packages for condos and landed properties were around 1.45%–1.55% and typical packages from DBS, OCBC, UOB, HSBC, Standard Chartered and Maybank clustered between 1.55%–1.80%.[1][6]
3.2 Best Rates for HDB Home Loans (Bank Packages, Jan 2026)
For HDB flats, bank rates are usually very close to private property packages, sometimes with slightly different spreads. January 2026 tables show promotional fixed rates for HDB resale flats around 1.55%–1.70% and SORA-based packages at SORA + 0.30%–0.40%.[1]
Given HDB’s own rate is 2.6% p.a., this widening gap explains why banks have reported a surge in HDB owners refinancing or switching from HDB loans to bank loans in late 2025, with some owners saving over S$4,000 per year in interest on S$500,000 loans.[2]
3.3 Featured Snippet Table: Quick Comparison – HDB vs Bank Loan (Jan 2026)
This table often appears in search as a quick answer for "HDB loan vs bank loan 2026" and is designed for featured snippet potential.
4. HDB Loan vs Bank Loan in 2026: Which Is Better Now?
4.1 When HDB Loan Still Makes Sense
Even though bank rates are lower right now, HDB loans still have advantages for certain buyers:
- Lower cash outlay upfront: Only 10% downpayment (all via CPF) for eligible HDB purchases, versus at least 5% cash + 20% CPF/cash for bank loans.
- Greater stability: The 2.6% rate has been unchanged for years because it is pegged to the CPF OA rate, not to SORA or global interest cycles.[2]
- More forgiving for borderline borrowers: Some lower-income households may qualify for HDB loans but be more constrained by bank TDSR assessments.
In practice, if you are a young couple buying your first 4-room HDB in non-mature estates like Punggol North or Tengah and are stretched on cash, the lower cash requirement and stability of HDB loans can still be attractive, especially if you plan to hold the flat for the full 5-year MOP before any refinancing decision.
4.2 Why Many Are Switching to Bank Loans in 2026
Banks currently offer significantly lower rates than the HDB concessionary 2.6%.[2][1] For a typical S$400,000 outstanding HDB loan over 20 years, dropping from 2.6% to around 1.6%–1.7% can reduce monthly instalments by S$200–S$250.
Real example (rounded):
- Loan: S$400,000 balance, 20 years remaining
- At 2.6% p.a.: Monthly ≈ S$2,143
- At 1.6% p.a.: Monthly ≈ S$1,942
- Savings: ≈ S$200 per month, or ≈ S$2,400 per year (before legal/valuation fees)
