For buyers comparing the Best Home Loan Rates Singapore January 2026 Comparison: Frequently Asked Questions, the best mortgage rate in January 2026 for most owner-occupiers is typically in the 1.4%–1.8% p.a. range for fixed packages, and SORA-based floating packages around 3M SORA + 0.25%–0.80%, depending on property type, loan size and bank promotions.[1][4][2]
Because rates change every few days, the safest way to find the best mortgage rate January 2026 for your profile is to use Homejourney’s verified bank rate comparison January 2026 tools on the bank rates page Bank Rates , then confirm details with our mortgage brokers before you sign anything.
How this FAQ fits into Homejourney’s 2026 mortgage pillar
This article is a focused companion to our main 2026 home loan pillar guide Best Home Loan Rates in Singapore January 2026: Expert Comparison by Homejourney .
The pillar gives you the full market overview and deep strategy; this home loan rates comparison 2026 FAQ zooms in on the very specific questions Singapore buyers ask right before they choose a package or refinance. Homejourney’s goal is to make that last step safe, transparent and data-driven, so you never commit to a loan you don’t fully understand.
1. What is the lowest mortgage rate in Singapore in January 2026?
Based on published packages and market monitoring, the lowest mortgage rate Singapore in January 2026 for typical owner-occupier loans generally falls in these bands:[1][2][5][8]
- New private home loans (condo/landed): Promotional fixed packages around 1.40%–1.75% p.a. in years 1–2, depending on bank and loan quantum.[1][5][8]
- New HDB bank loans: Fixed packages roughly 1.55%–1.75% p.a. for the first 2–3 years; floating packages at about 1M / 3M SORA + 0.25%–0.40%.[1][2][6][8]
- Refinancing from existing bank loans: Promotional fixed packages from about 1.45% p.a. in year 1 for certain loan sizes and LTV profiles.[1][2]
Note that SORA itself has fallen sharply from around 3% to close to 1.2% by end-2025, which is what allows banks to price both fixed and floating packages much lower than in 2023–2024.[2][6]
Because each bank’s tiers differ by loan amount, LTV, and whether the property is owner-occupied or an investment unit, the absolute lowest headline rate may not be the lowest total cost for you once legal subsidies, lock-in and fees are included. This is where Homejourney’s bank rates comparison January 2026 tool helps you see effective costs across DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank in one place Bank Rates .
2. Fixed vs floating in January 2026 – which is safer now?
In early 2026, both fixed and SORA-pegged floating packages are attractive because SORA has dropped to multi-year lows and banks are aggressively competing for market share.[1][2][6]
In simple terms:
- Fixed rate (e.g. 1.55%–1.75% for 2–3 years)
Better if you prioritise certainty. Your monthly instalment stays the same during the lock-in, which is useful for young families budgeting childcare, renovations and car payments. - Floating rate (e.g. 3M SORA + 0.25%–0.80%)
Better if you are comfortable with rate movement and want to potentially ride rates down further, or you expect to sell or refinance again within a short horizon.
SORA (Singapore Overnight Rate Average) is the key reference rate set and published by MAS. Most floating packages now peg your loan to the 3‑month compounded SORA, plus a fixed bank spread.[6][4]
The chart below shows recent interest rate trends in Singapore:
When I meet buyers at showflats near Jurong East MRT or Redhill MRT, many are surprised to find that a 3-month SORA package today can start around the same level as a 2-year fixed package, once you add the bank’s spread. The real question is not “Which is cheaper this month?” but “How much volatility can your household budget absorb if SORA rises again within two to three years?”
3. How do I compare home loan offers correctly in 2026?
Avoid focusing only on the headline interest rate. In Singapore, MAS requires banks to disclose terms clearly, but packages can still be complex, especially when they include legal subsidies, valuation subsidies or free repricing.[4]
Here is a simple 5-step framework I use with clients when we sit down in a café under Raffles Place MRT to go through their options:
- Confirm your loan profile
Property type (HDB vs private), new purchase vs refinancing, owner-occupied vs investment, and remaining lease. For example, a 4-room HDB resale in Bukit Batok with 70 years remaining will get different offers than a new EC in Sengkang. - Check maximum loan and tenure
Based on MAS Total Debt Servicing Ratio (TDSR) and HDB mortgage servicing ratio (MSR) where applicable. Use Homejourney’s mortgage eligibility calculator to get an instant estimate. - Compare effective cost, not just year 1 rate
Look at rates over the entire lock-in period, any conversion or repricing fees, and whether there is a clawback on subsidies if you refinance early. - Read the lock-in and penalty clauses
Early repayment penalties are usually around 1.5% of the redeemed amount during lock-in. For investors who might sell within 2–3 years, a lower penalty or no lock-in can be more valuable than a 0.05% lower rate. - Test your budget at +1% interest
Take your monthly instalment and check if you are still comfortable if rates rise by 1–1.5% after the lock-in. This reflects how banks also stress-test your affordability under MAS rules.
Homejourney’s bank rates comparison tool Bank Rates automates much of this by letting you:
- View current rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank in one dashboard.
- Calculate eligibility instantly with our built-in calculator that factors in TDSR and, for HDB buyers, MSR.
- Apply to multiple banks with one click, using Singpass/MyInfo to auto-fill income, employment and CPF details for safer, faster approval.
4. HDB loan vs bank loan – which is better in January 2026?
HDB loans still charge a concessionary rate of 2.6% p.a. pegged at 0.1% above the CPF OA rate. This has been unchanged for many years and is not directly tied to SORA.[2]
As of January 2026, many bank loans are significantly below 2.6%, with packages around 1.4%–1.8%.[1][2] That is why more flat owners have been switching from HDB loans to bank financing in the past year.[2]
However, there are crucial trade-offs:
- Stability vs flexibility
HDB’s 2.6% is extremely stable; bank loans are cheaper today but can rise again in future. If you switch from HDB to bank, you cannot switch back to an HDB loan later.[2] - Downpayment structure
HDB loans allow up to 85% LTV with at least 15% from CPF / cash. Bank loans are generally capped at 75% LTV for most buyers, with at least 5% cash and the rest cash/CPF, depending on your existing housing loans. - Eligibility
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