Best Home Loan Rates Singapore January 2026: Your Questions Answered
Finding the best home loan rate in Singapore requires understanding how rates work, what banks are offering, and which loan structure suits your situation. As of January 2026, fixed mortgage rates have dropped significantly—now ranging from 1.35% to 1.78% depending on loan amount and tenure—making this an opportune time for both first-time buyers and refinancers to lock in favorable terms.
This guide addresses the most common questions Singapore property buyers ask when comparing home loan rates, helping you make informed decisions about your mortgage. At Homejourney, we prioritize transparency and user safety by providing verified rate information and connecting you with trusted lenders, ensuring you can compare options confidently.
What Are the Current Best Home Loan Rates in Singapore?
As of January 2026, the lowest fixed mortgage rates start from 1.35% for loan amounts above S$2 million, while more accessible rates for typical home purchases begin around 1.48% to 1.50% for 2-year fixed terms.[1] For floating-rate loans pegged to SORA (Singapore Overnight Rate Average), rates begin from 1M SORA + 0.25%, which currently equates to approximately 1.36%.[1]
The chart below shows recent interest rate trends in Singapore to help you understand how rates have evolved:
Major banks offering competitive rates include DBS, OCBC, UOB, HSBC, Standard Chartered, and Maybank. To view current rates from all major Singapore banks and compare options instantly, visit Homejourney's bank rates page, where you can also calculate your mortgage eligibility and apply to multiple lenders simultaneously.
Important note: Banks typically don't publish their lowest rates online. Rates above S$2 million require direct bank consultation. At Homejourney, our mortgage brokers can help you access these exclusive rates through our loan application process.
Fixed vs. Floating Rate: Which Should You Choose?
This is one of the most critical decisions when securing a home loan. Fixed-rate mortgages lock in your interest rate for a set period (typically 2-3 years), providing payment certainty and protection if rates rise. Floating-rate mortgages are pegged to SORA and adjust quarterly, offering lower initial rates but exposing you to rate increases.
Choose fixed-rate if: You prefer payment predictability, expect rates to rise, or want to lock in current favorable rates. Most first-time buyers benefit from the security of fixed rates during their initial lock-in period.
Choose floating-rate if: You plan to refinance within 2-3 years, expect rates to fall, or want flexibility to switch between fixed and floating. Floating rates currently offer approximately 0.15% lower initial rates than fixed alternatives.
Many banks offer hybrid structures—fixed for the initial 2-3 years, then converting to floating SORA-based rates. This balances security with long-term flexibility. Calculate which option saves you more money using Homejourney's mortgage calculator, which factors in your specific loan amount and tenure.
What Is SORA and How Does It Affect My Mortgage?
SORA (Singapore Overnight Rate Average) is the benchmark interest rate set by Singapore's Monetary Authority (MAS) based on actual overnight lending rates between banks. Since 2022, most Singapore banks have transitioned from the old SIBOR benchmark to SORA, which is considered more reliable and transparent.
When you take a floating-rate mortgage, your interest rate is calculated as SORA + a bank spread. For example, a loan at "1M SORA + 0.25%" means your rate equals the current 1-month SORA rate plus 0.25%. If 1M SORA is 1.11%, your mortgage rate would be 1.36%.
SORA rates fluctuate based on Singapore's monetary policy. When MAS raises rates, your floating mortgage payment increases; when rates fall, your payment decreases. This is why many buyers prefer fixed rates during uncertain economic periods—you avoid this variability. Track live SORA rates on Homejourney's bank rates page to understand current market conditions and time your mortgage decision strategically.
How Much Can I Borrow? Understanding TDSR and MSR
Two critical regulations determine your maximum borrowing amount: Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR).
TDSR limits your total monthly debt payments to 55% of your gross monthly income. This includes your mortgage, car loans, credit cards, and other obligations. For example, if you earn S$10,000 monthly, your total debt servicing cannot exceed S$5,500.
MSR specifically caps mortgage payments at 30% of gross monthly income. Using the same example, your mortgage alone cannot exceed S$3,000 monthly.
Banks apply the stricter of these two ratios. Most first-time buyers hit the MSR limit before TDSR. To calculate your maximum borrowing power instantly, use Homejourney's mortgage eligibility calculator, which factors in your income, existing debts, and current interest rates.
Example calculation: If you earn S$8,000 monthly with no other debts, your maximum monthly mortgage payment is S$2,400 (30% MSR). At a 1.55% interest rate over 30 years, this supports a loan of approximately S$500,000.
HDB Loan vs. Bank Loan: Which Is Better?
Singapore offers two distinct mortgage pathways, each with unique advantages:
HDB Loans (for HDB flats): Offered directly by the Housing and Development Board at a concessionary rate of 2.6% per annum (reviewed quarterly).[2] HDB loans feature no lock-in period, no early repayment penalties, and a maximum tenure of 25 years or until age 65. The loan-to-value ratio is up to 75%, requiring a 25% down payment fully payable using CPF OA savings.[2]
Bank Loans (for private property and HDB resales): Offered by commercial banks with rates starting from 1.35% for fixed terms. Bank loans typically include 2-3 year lock-in periods with early repayment penalties. However, rates are significantly lower than HDB loans, and you have flexibility to refinance after the lock-in period.
The decision: For HDB flats, compare the HDB concessionary rate (2.6%) against bank rates. If banks offer rates below 2.6%, refinancing from an HDB loan to a bank loan saves money—but you cannot return to HDB loans in future. Many homeowners strategically refinance when bank rates drop significantly below the HDB rate, as they're currently doing in 2026.
For private property purchases, bank loans are your only option. Compare rates across DBS, OCBC, UOB, HSBC, Standard Chartered, and Maybank using Homejourney's bank rates comparison tool to find your best option.
What Down Payment Do I Need?
Down payment requirements depend on your property type and whether it's your first purchase:
First property (HDB or private): Minimum 25% down payment required. Of this, at least 5% must be paid in cash, while up to 20% can be covered using CPF Ordinary Account (OA) savings.[2] For example, on a S$600,000 property, you need S$150,000 down—at least S$30,000 in cash and up to S$120,000 from CPF.
Subsequent properties: Down payment requirements increase to 25-30% depending on the number of properties owned and cooling measures in effect. This is why understanding current regulations is crucial—cooling measures periodically adjust these thresholds.
CPF usage: Most buyers can cover their down payment using CPF OA savings without affecting retirement funds. Verify your CPF eligibility and available balance before committing to a purchase. Use Homejourney's property search feature to find properties within your calculated budget, considering both down payment and monthly servicing capacity.
Should I Refinance My Existing Mortgage?
Refinancing makes sense when current bank rates are significantly lower than your existing mortgage rate. With rates now at historic lows (1.35%-1.78% fixed), many homeowners with older mortgages at 2.5%-3.5% rates are refinancing to save substantial amounts.
Refinancing benefits: Lower interest rates reduce monthly payments and total interest paid over the loan tenure. A S$500,000 mortgage refinanced from 2.8% to 1.55% saves approximately S$600+ monthly.
Refinancing costs: Consider lock-in period penalties, legal fees (typically S$800-1,500), valuation fees (S$400-600), and processing fees. Most banks offer cash rebates (S$2,000-2,800) to offset these costs, making refinancing worthwhile if you plan to stay in the property for 2+ years.
The calculation: Compare total savings against refinancing costs. If monthly savings exceed costs divided by remaining tenure, refinancing is financially sound. Homejourney's mortgage brokers can help you evaluate refinancing options and connect you with banks offering the best refinancing packages.
What Fees and Charges Should I Expect?
Beyond interest rates, several costs factor into your total mortgage expense:
- Legal fees: S$800-1,500 for conveyancing and mortgage documentation
- Valuation fees: S$400-600 for property valuation (required by banks)
- Processing fees: S$300-500 charged by banks for loan processing
- Stamp duty: 0.1%-0.4% of the property price, paid to IRAS
- Mortgage insurance: Optional protection covering loan repayment if you become unable to work
- Cash rebates: S$2,000-2,800 offered by banks (especially for refinancing) to offset costs
Always request a complete fee breakdown from your bank before committing. Homejourney's loan application process requires banks to provide transparent fee schedules, ensuring you understand the true cost of your mortgage before signing.
How Long Does the Mortgage Approval Process Take?
Typical mortgage approval timelines in Singapore range from 2-4 weeks, depending on documentation completeness and bank processing speed. Here's the general process:
- Application and documentation (3-5 days): Submit completed application with payslips, tax returns, CPF statements, and property documents
- Property valuation (5-7 days): Bank arranges independent valuation
- Credit assessment (5-10 days): Bank reviews your credit history and TDSR compliance
- Approval and offer (2-3 days): Bank issues formal mortgage offer
- Legal documentation (5-7 days): Conveyancing lawyer prepares mortgage documents
- Final approval and disbursement (2-3 days): Funds released to seller
You can accelerate this process by preparing documents in advance and using Homejourney's Singpass/MyInfo integration, which auto-fills your application with verified income and employment data in seconds. Applying through Homejourney's multi-bank submission system means you receive offers from multiple lenders simultaneously, reducing overall approval time.
Frequently Asked Questions About Home Loan Rates
Q1: Can I lock in a rate before making an offer on a property?
Most banks offer rate locks for 30-60 days after you've submitted a formal mortgage application with property details. This protects you if rates rise during the approval process. However, you typically need to be in active negotiations on a specific property. Homejourney's mortgage brokers can advise on rate lock availability from different lenders based on your situation.
Q2: What's the difference between 1M SORA and 3M SORA rates?
1-month SORA resets monthly, while 3-month SORA resets quarterly. 1M SORA is more volatile but typically offers lower spreads (e.g., 1M SORA + 0.25%). 3M SORA is more stable but usually requires higher spreads (e.g., 3M SORA + 0.70%). For most borrowers, 1M SORA provides better value, but 3M SORA offers predictability. Compare both options using Homejourney's rate comparison tool.
Q3: Can I switch from fixed to floating rate mid-loan?
Yes, many banks offer free conversion from fixed to floating after the lock-in period ends (typically after 2-3 years). Some premium packages allow conversion even during the lock-in period. This flexibility lets you lock in security initially, then switch to floating rates if they become more favorable. Check your specific mortgage offer for conversion terms.
Q4: How do cooling measures affect mortgage rates and my borrowing power?
Cooling measures don't directly affect interest rates but do impact down payment requirements and borrowing capacity. When cooling measures tighten, down payments increase (typically to 25-30%), reducing your maximum loan amount. Current 2026 measures require careful TDSR calculation. Homejourney's eligibility calculator factors in current regulations, ensuring accurate borrowing power assessment. For detailed cooling measures impact on financing, see our comprehensive guide on 2026 Cooling Measures Impact on Financing.
