Best Home Loan Rates Singapore January 2026 | Homejourney Comparison Guide

Choosing 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 rates have fallen to around half of early‑2025 levels, understanding how to compare packages safely and accurately is critical for every buyer and owner.

As someone who has lived in Singapore for years and personally navigated home loans for both an HDB in Punggol and, later, a condo near Tanjong Rhu, I know how confusing bank packages and fine print can be. This guide is written to help you make confident, transparent decisions, with Homejourney as your trusted partner for safe bank rate comparison, eligibility checks, and multi‑bank applications.

Use this as your definitive January 2026 reference on the best mortgage rate January 2026, home loan rates comparison 2026, lowest mortgage rate Singapore, and bank rate comparison January 2026.

1. January 2026 Singapore Home Loan Landscape at a Glance
2. Key Home Loan Concepts (Explained Simply)
3. Current Best Home Loan Rates (Indicative January 2026)
4. HDB Loan vs Bank Loan in 2026: Which Is Better?
5. How MAS TDSR/MSR and CPF Rules Affect Your Loan
6. Practical Comparison Framework: How to Choose the Best Package
7. Refinancing & Repricing in 2026: Making Falling Rates Work for You
8. Step‑by‑Step: Using Homejourney to Secure the Best Rate Safely
9. Insider Tips & Real‑Life Singapore Examples
10. FAQ: Best Home Loan Rates Singapore January 2026
11. Next Steps: How Homejourney Supports Your Entire Property Journey

1. January 2026 Singapore Home Loan Landscape at a Glance

By early 2026, Singapore home loan rates have dropped sharply from their 2023–early‑2025 highs, tracking global interest rate cuts and a softer inflation outlook.[3] Fixed‑rate packages that were around 3.1% at the start of 2025 are now quoted in the 1.4%–1.8% p.a. range for many borrowers, depending on loan size and profile.[3][2] Floating‑rate packages linked to SORA have also eased, with some bank‑broker data in late‑2025 indicating promotional spreads from about 1M SORA + 0.25%.[2][1]

At the same time, the HDB concessionary loan rate remains at 2.6% p.a., pegged at 0.1% above the CPF Ordinary Account (OA) interest rate.[1][3] This has created a rare situation where many bank loans are significantly cheaper than HDB loans, prompting a surge in refinancing from HDB to bank financing.[3][9]

Against this backdrop, Homejourney’s mission is to provide verified, transparent bank rate comparison so you can see real offers from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank in one safe place via our bank rates page Bank Rates .

Why January 2026 Is a Critical Window

From walking past bank branches in the CBD (Raffles Place, Tanjong Pagar) to chatting with mortgage bankers at neighbourhood malls like Bedok Mall and Compass One, the message is consistent: 2026 may be a sweet spot where rates are low, but there is still uncertainty about how long they will stay this way.[3]

Fixed rates are near multi‑year lows compared to 2023–2024, giving you a chance to lock in stability.
SORA is lower than before, but it can rebound if global conditions change.
Many homeowners whose 2‑ or 3‑year packages started in 2023 are now coming out of lock‑in and should seriously review refinancing options.

For both first‑time buyers and upgraders, doing a disciplined home loan rates comparison 2026 at this time can materially reduce your monthly instalments and risk exposure.

2. Key Home Loan Concepts (Explained Simply)

2.1 Fixed vs Floating vs SORA‑Pegged Loans

Fixed‑rate home loan: The interest rate is locked in (e.g., for 2 or 3 years). You pay the same rate regardless of market movements during that period.[6]

Floating‑rate (SORA‑pegged) home loan: The rate is made up of:

A reference rate, usually 3M or 6M Compounded SORA (Singapore Overnight Rate Average), published by MAS.
A fixed spread (e.g., +0.60% p.a.).[4]

Example: If 3M SORA is 0.8% and your package is 3M SORA + 0.70%, your payable rate is 1.5% p.a.[4]

Board‑rate loans (bank‑determined reference) still exist but are much less common than SORA packages in 2026, after SORA replaced SIBOR.[8]

2.2 Lock‑In Period, Free Conversion and Clawbacks

Most attractive packages from banks like DBS, OCBC, UOB, Maybank or HSBC come with a lock‑in period of 2–3 years, during which you pay a penalty (typically 1.5% of outstanding loan) if you fully redeem or refinance externally.[2][1]

Some packages offer:

Free conversion (FC) after 12–36 months (e.g., FC12, FC24, FC36), allowing you to switch to another package within the same bank without penalty.[2]
Subsidies for legal and valuation fees when refinancing, often S$2,000–S$2,800 for loans above S$1M.[2]

Be aware of clawback clauses: if you refinance or redeem within a certain period (commonly 3 years), the bank may claw back legal subsidies and cash rebates.

2.3 Basic Loan Math: How Instalments Are Calculated

Monthly instalments are based on an amortising loan formula. For quick planning, a rough rule of thumb in the current rate environment (around 1.5%–2.0% p.a.) is:

Every S$100,000 of loan over 25 years at 1.6% p.a. ≈ S$400–S$420 per month.
Every 0.5% change in interest rate changes monthly instalments by roughly 6%–8% over a 20–30 year tenure.

Instead of relying on rules of thumb, use Homejourney’s mortgage calculator to see accurate monthly repayment and total interest costs for different interest rates and tenures Mortgage Rates or .

3. Current Best Home Loan Rates (Indicative January 2026)

Because banks update promotional rates frequently, there is no single “forever lowest mortgage rate Singapore”. However, we can look at recent late‑2025 data from brokers and banks as a realistic guide to what January 2026 packages typically look like.

3.1 Snapshot: Fixed vs Floating Rates Around Early 2026

Package Type	Indicative Range (Late‑2025 / Early‑2026)	Typical Lock‑In	Who It Suits
2‑year fixed	~1.40% – 1.70% p.a.[1][2][3]	2 years	Owners who value short‑term certainty
3‑year fixed	~1.55% – 1.80% p.a.[2][3]	3 years	Buyers wanting longer stability
1M / 3M SORA floating	SORA + 0.25% – 0.70% (all‑in ~1.35% – 1.80% p.a.)[1][2][4]	2–3 years typical	Comfortable with some rate volatility
HDB concessionary loan	2.60% p.a. (fixed, can change if CPF‑OA changes)[1][3]	None in bank sense	Lower‑risk buyers preferring HDB flexibility

These ranges are based on publicly available bank and broker information up to end‑2025 and should be treated as indicative only. Always use Homejourney’s live comparison tool for the most updated bank rate comparison January 2026 Bank Rates .

3.2 Illustrative Bank Package Examples

Exact rates change frequently, but typical structures from major banks in late‑2025 / early‑2026 look like:

DBS Bank: 2‑year fixed around the mid‑1.6% range; 3‑year fixed around 1.6%–1.7%; SORA packages like 3M SORA + ~0.60% after the first year, depending on loan size and property type.[2][3][6]
OCBC Bank: Competitive 2‑ and 3‑year fixed packages comparable to DBS and UOB; floating packages tied to 1M or 3M SORA plus a spread.[1][2]
UOB: 3M Compounded SORA + 0.70%–0.80% p.a. in years 2–3 and higher spread thereafter for its private home loan packages.[4]
HSBC, Standard Chartered, Maybank, CIMB, RHB, Citibank, Hong Leong Bank, Public Bank: Typically jostle with DBS/OCBC/UOB on promotions, often offering limited‑time sub‑1.6% fixed rates or tight SORA spreads for larger loans (S$1M and up).[1][2][5]

Because banks often reserve their best rates for broker or partner channels and do not always publish them on retail websites,[2] using Homejourney’s comparison and multi‑bank application tool is often the most efficient way to surface truly lowest mortgage rate Singapore options for your profile Bank Rates .

3.3 How Loan Size Affects Your Rate

Banks commonly offer better spreads (and sometimes extra cash rebates) for larger loan sizes, especially above S$1M–S$1.5M.[2] For example:

Loan < S$500,000: Standard promotional board – slightly higher spreads.
Loan S$500,000–S$1,000,000: Better spreads; possible legal subsidy.
Loan > S$1,000,000: Best promotional rates + legal subsidy + higher cash rebate.[2]

If you are buying a three‑bedder in an OCR condo like Sengkang or Jurong at S$1.3M with an 80% loan (S$1.04M), your rate may be visibly better than a smaller S$300K HDB loan.

4. HDB Loan vs Bank Loan in 2026: Which Is Better?

4.1 Quick Comparison Table

Feature	HDB Loan	Bank Loan
Interest Rate (Jan 2026)	2.60% p.a. (pegged to CPF‑OA)[1][3]	~1.40%–1.80% p.a. typical promos[1][2][3]
Downpayment	Min 10% (can be 100% CPF)	Min 25% (min 5% cash; 20% cash/CPF)
Loan‑To‑Value (LTV)	Up to 80% of purchase price/valuation	Up to 75% (subject to MAS rules)
Flexibility	Easier early redemption; no lock‑in penalties	Lock‑in 2–3 years; penalties & clawback if early
Eligibility	Only for eligible HDB buyers; income & property ownership limits	For HDB & private, subject to credit & TDSR
Risk of Future Rate Changes	Low–moderate (depends on CPF‑OA changes)	Depends on package; higher for floating