Best Home Loan Rates Singapore Jan 2026 FAQ | Homejourney Guide

The Best Home Loan Rates Singapore January 2026 Comparison: Frequently Asked Questions guide helps you quickly understand how to find the best mortgage rate January 2026, compare fixed and SORA-pegged packages, and avoid common pitfalls when choosing or refinancing your home loan in Singapore.

This cluster article supports our main 2026 mortgage outlook and rate comparison pillar guide: Best Home Loan Rates Singapore January 2026 | Homejourney Comparison Guide Best Home Loan Rates Singapore January 2026 | Homejourney Comparison Guide . For a full market deep-dive and historical trends, read that pillar after this FAQ.

What are the best home loan rates in Singapore in January 2026?

Based on late-2025 trends and MAS-regulated SORA movements, the home loan rates comparison 2026 landscape going into January 2026 is:

Fixed rates: Roughly around 1.4% to 1.8% p.a. for 2–3 year fixed packages for strong profiles and larger loans, significantly lower than the ~3.1% seen at the start of 2025.[3]
Floating (SORA-pegged) rates: Promotional spreads as low as about 1M or 3M SORA + 0.25% to 0.40% were already advertised in late 2025 by mortgage brokers and banks.[1][2]
HDB concessionary loan: Still at 2.6% p.a., pegged at 0.1% above the CPF Ordinary Account (OA) rate, and unchanged for many years.[1][3]

By early 2026, most well-qualified borrowers comparing the lowest mortgage rate Singapore across DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank and others will usually see SORA packages and short-tenor fixed packages clustering in the mid‑1% range, depending on loan size, property type and lock-in period.[1][2][3]

For live, bank-specific numbers, use Homejourney’s real-time bank rate comparison January 2026 on our bank rates page Bank Rates . It pulls updated packages from major banks so you don’t have to visit each bank’s website one by one.

How do I compare home loan rates properly in 2026?

If you only look at the headline interest rate, you may miss hidden costs or better long-term options. A safe, structured way to compare home loans on Homejourney is:

Shortlist by rate type first – fixed vs SORA vs hybrid.
Compare total 3-year cost – monthly instalments plus legal, valuation and any clawback or penalty risk.
Check lock-in period and flexibility – can you refinance or fully repay early without heavy penalties?
Evaluate fees and subsidies – some banks offer legal subsidies or cash rebates for refinancing.[2]
Stress-test at higher rates – ensure you are comfortable if SORA rises 1–2 percentage points.

On Homejourney’s bank rates comparison page Bank Rates , you can:

View current rates across DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and more in a single view.
Use the eligibility and affordability calculator Mortgage Rates to model different rate scenarios and tenures.
Apply to multiple banks with one secure submission, using Singpass/MyInfo to auto-fill your data.

Fixed vs SORA floating: Which is better for January 2026?

By early 2026, Singapore is in a lower-rate environment compared with early 2025, after several US Fed cuts and a broad decline in home loan rates.[3] This creates a common dilemma: lock in a low fixed rate or stay flexible with floating SORA?

Key differences at a glance

Fixed-rate packages
In late 2025, many 2–3 year fixed packages were around 1.4%–1.8% p.a. depending on bank and loan size.[1][2][3] These give payment certainty for the fixed period but may have stricter lock-ins and prepayment penalties.
Floating SORA packages
Promotional spreads such as 1M/3M SORA + 0.25–0.40% were advertised, yielding effective rates close to or slightly below fixed packages when SORA is low.[1][2]

In my experience working with buyers in estates like Punggol, Tampines and Queenstown, I see a pattern:

Young couples buying their first BTO often prefer a 2- or 3-year fixed for peace of mind during the “life transition” years (wedding, renovation, maybe first child).
Seasoned investors owning central area condos near MRT interchanges (e.g. Buona Vista, Bishan, Outram Park) sometimes choose SORA floating, expecting to refinance aggressively if markets move.

There is no single “best mortgage rate January 2026” for everyone. A safe rule of thumb:

Choose fixed if your cashflow is tight, or if a RM200–300 jump in monthly repayment would be stressful.
Choose SORA floating if you:

Have strong savings buffers and stable income, and
Actively monitor interest rates – Homejourney’s real-time SORA tracker on Bank Rates makes this easier.

HDB loan vs bank loan in 2026: Which gives the lowest cost?

The HDB loan interest rate is 2.6% p.a., pegged at 0.1% above the CPF OA rate, and has remained unchanged for many years.[1][3] As of late 2025 and into 2026, most bank home loans are significantly lower, with fixed packages in the 1.4%–1.8% range and floating packages based on SORA plus a small spread.[1][2][3]

Key differences (HDB flat buyers)

HDB concessionary loan (direct from HDB):

Rate: 2.6% p.a., not market-pegged.[1][3]
Downpayment: As low as 10% using CPF for eligible buyers.
Eligibility: Income ceilings, no other property locally or overseas, at least one Singapore Citizen, and other conditions.[1]
Stability: Rate has been very stable, which many families value.

Bank loan for HDB (DBS, OCBC, UOB, etc.):

Rates: Often in the mid‑1% range in 2025–26, below HDB’s 2.6%.[1][2][3]
Downpayment: Minimum 5% in cash plus 20% via CPF/cash, subject to MAS LTV rules.
Risk: Market-based, so your instalments can rise if SORA or fixed rates move up later.

A CNA report in late 2025 highlighted more HDB flat owners refinancing from HDB to bank loans to take advantage of the gap between 2.6% and bank rates around 1.4%–1.8%.[3][8] But once you switch from HDB to bank, you cannot revert to the HDB concessionary loan later.[3]

On Homejourney, many resale HDB owners in towns like Jurong West, Woodlands and Sengkang use our refinancing tools to compare if the savings from a 1.6% bank loan justify legal and valuation fees. Use our guide How to Calculate If Refinancing is Worth It (Singapore) How to Calculate If Refinancing is Worth It (Singapore) | Homejourney for a step-by-step framework.