Fed Rate Cuts 2026: Singapore Mortgage Rates & Bank Comparison Guide | Homejourney
Fed rate cuts in 2026 will likely keep Singapore mortgage rates low at 1.3-1.8%, making it an ideal time for buyers and refinancers to compare bank packages on Homejourney. With 3M SORA around 1.34% and fixed rates halving from 2025 highs, banks like DBS and OCBC offer packages below HDB's 2.6% concessionary rate.[1][2] This Fed rate cuts Singapore mortgage guide helps you navigate US interest rate impact on local loans safely.
At Homejourney, we prioritize your safety with verified bank rates and Singpass-enabled applications. Use our bank rates page to compare real-time offers from DBS, OCBC, UOB, and more – all in one secure platform.
How Fed Rate Cuts Drive Down Singapore Mortgage Rates
Singapore banks peg most floating loans to SORA, which tracks global trends influenced by US interest rate impact. The Fed's 2025 cuts pushed 3M SORA from 3% to 1.2-1.4%, with experts forecasting stability at 1.3-1.4% through 2026.[1][2] Fixed rates followed, dropping to 1.4-1.8% p.a. from 3.1% early 2025.[2]
This global rates Singapore linkage means further Fed easing could shave 0.1-0.25% off rates, but most declines are priced in.[2] HDB owners save S$3,600 yearly on a S$400k loan switching to bank packages like DBS's 1.55% 3-year fixed.[1] First-time buyers benefit from lower monthly repayments under TDSR rules.
The chart below shows recent interest rate trends in Singapore:
As seen, SORA hit 3-year lows, signaling a refinancing window into mid-2026 before moderation.[1]
Singapore Bank Rate Comparison: Top Packages for 2026
Compare mortgage rate prediction across Homejourney partners. Rates as of Jan 2026: lowest fixed at 1.30-1.35% for loans >S$1M; floating from 1M SORA +0.25% (1.42%).[3] All beat HDB's 2.6%.[1][2]
| Bank | Best Package | Year 1 Rate | Lock-in | Rebate (Refi >S$1M) |
|---|---|---|---|---|
| DBS | 3Y Fixed | 1.55% | 3Y (no early pay penalty) | S$2,500 |
| OCBC | 5Y Fixed | 1.50% | 5Y | S$2,800 |
| UOB | 1M SORA +0.25% | 1.42% | 2Y | S$2,300 |
| HSBC | 2Y Fixed Flexi | 1.40% | 2Y | S$2,000 |
| Standard Chartered | 3M SORA +0.50% | 1.84% | 3Y | S$2,000 |
OCBC saw 7x HDB-to-bank switches in 2025; DBS 13x uptake for POSB HDB loans.[2] Compare instantly on Homejourney bank-rates.
Fixed vs Floating: Which for Fed Cut Era?
Floating (SORA-pegged) suit low-rate forecasts, potentially dipping to 1.2-1.3% all-in.[3] Fixed offers certainty; DBS's 1.55% saves S$500/month vs prior 3%.[2] Risk-averse? Lock fixed 2-3Y. Aggressive? Floating with free conversion.[3]
- Check lock-in end via bank statements.
- Calculate savings: S$500k loan at 1.6% vs 2.6% HDB = S$4,100/year.[2]
- Use Homejourney calculator for TDSR fit.
- Apply multi-bank via Singpass on Homejourney for best offers.
Actionable Steps: Secure Best Rates on Homejourney
1. Visit https://www.homejourney.sg/bank-rates: See live SORA, compare DBS/OCBC/UOB/HSBC/StanChart/Maybank/CIMB/RHB/Public/Hong Leong/Citibank.
2. Eligibility check: Input income/debt for borrowing power (e.g., S$10k/month income = S$400-500k loan post-TDSR).
3. One-click apply: Singpass auto-fills; banks compete for you. Processing: 1-3 days approval, 1-2 weeks full.[2]
4. Refinance tip: Act pre-mid-2026; many 2023 loans already switched.[1] Link to properties in budget via property search.
Disclaimer: Rates fluctuate; consult Homejourney brokers. Not financial advice.
FAQ: Fed Rate Cuts & Singapore Mortgages
Q: Will Fed cuts lower my 2026 mortgage further?
A: Likely modest 0.1-0.25% drops if SORA hits 1.3%; most easing priced in.[2] Track on Homejourney.
Q: Best bank for HDB refinance?
A: DBS POSB 1.55% 3Y fixed, no penalties; OCBC for larger rebates.[1][2] Compare all at bank-rates.
Q: Fixed or floating in 2026?
A: Floating for potential savings if rates fall; fixed for stability. Use our calculator.[3]
Q: How to apply safely?
A: Homejourney's Singpass multi-bank system – verified, transparent, user-first.
Q: Impact on first-time buyers?
A: Lower rates boost approvals; check eligibility on mortgage calculator.
Explore our pillar: Fed Rate Cuts 2026: Impact on Singapore Mortgages for full analysis. Start comparing now at Homejourney bank-rates – safe, trusted property financing.
