Fed Rate Cuts 2026 will likely keep Singapore mortgage rates near multi‑year lows, with most banks already pricing in easier US policy and offering fixed packages around 1.4%–1.8% and SORA‑pegged loans near 1.4%–1.6% as of early 2026.
For Singapore borrowers, this means a window to lock in cheaper home loans, refinance existing mortgages, and compare banks more aggressively using Homejourney’s verified rate data and secure application tools.
This cluster guide sits under our broader Fed & Interest Rate pillar: “Fed Rate Cuts 2026: Singapore Mortgage Impact Explained | Homejourney” Fed Rate Cuts 2026: Singapore Mortgage Impact Explained | Homejourney . Here we focus specifically on bank rate comparison and practical decisions for buyers and owners in 2026.
How Fed Rate Cuts Shape Singapore Mortgage Rates in 2026
Singapore does not set interest rates via a local policy rate; instead, MAS manages the Singapore dollar via the exchange rate, while domestic borrowing costs track global funding markets, especially US interest rates.[4]
When the US Federal Reserve cuts rates, Singapore dollar funding typically becomes cheaper, and banks here respond by lowering mortgage package rates, especially SORA‑pegged floating packages and new fixed‑rate promotions.[4]
By late 2025, after several Fed cuts, Singapore fixed home loan rates had already fallen from around 3.1% at the start of 2025 to about 1.4%–1.8% – roughly half the previous level.[4]
At the same time, 3‑month SORA dropped from about 3.0% in early 2025 to around 1.2% by December 2025, its lowest since 2022, and banks moved floating mortgage packages in tandem.[4]
UOB research has suggested that local interest rates could bottom around the first half of 2026, meaning most of the Fed easing is already priced in and further declines from here may be modest.[1][4]
Understanding SORA, Fixed and Board Rates in 2026
SORA (Singapore Overnight Rate Average) is now the main reference rate for floating home loans in Singapore, replacing SIBOR and SOR. Most major banks (DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and others) offer 1‑month or 3‑month compounded SORA packages.
In early 2026, the lowest advertised floating packages for refinancing are around 1M SORA + 0.25%, which works out to roughly 1.4% if 1M SORA is about 1.15%–1.20%.[5]
Fixed‑rate packages for private property and HDB refinancing are typically in the 1.35%–1.75% range for the first two or three years, depending on bank, loan size and promotions.[3][5]
Board rate packages use an internal bank reference rate that the bank can revise at its discretion, often less popular in 2026 because SORA is more transparent and fixed packages are relatively cheap.
The chart below shows recent interest rate trends in Singapore:
As you can see, most of the sharp fall in SORA and fixed rates has already happened; the 2026 story is more about how long these levels last and how to position your mortgage accordingly.[1][4]
Current 2026 Singapore Mortgage Levels: What’s “Cheap” Now?
Based on market data from independent mortgage aggregators, as of early January 2026:
- Lowest new fixed rates for larger private property loans (around S$500k and above) start from about 1.30%–1.40% in year 1.[5][6]
- More typical 2‑ or 3‑year fixed packages for condos and landed homes range from 1.50% to 1.80% in year 1.[3][5]
- HDB refinancing fixed packages can be slightly cheaper, from about 1.45%–1.65% for 2‑year fixed, depending on bank.[3]
- Floating packages often start at 1M or 3M SORA + 0.25%–0.40%, so all‑in rates around 1.4%–1.6%.[3][5]
- HDB concessionary loan remains at 2.6%, pegged at 0.1% above CPF OA interest rate, so many flat owners are now switching to cheaper bank loans.[3][4]
For context, if you bought a resale 4‑room flat in Punggol or Sengkang in 2022 and took a 25‑year SORA loan at close to 3.5%, refinancing today to around 1.6% could easily save S$400–S$600 per month, depending on outstanding balance.
In my own experience speaking with homeowners in towns like Bukit Batok and Tampines, most owners with loans above S$350k who refinanced in late‑2025 are already seeing monthly savings close to what CNA’s case study homeowner achieved – around S$500 per month after switching from ~3% to ~1.6%.[4]
Fed Rate Cuts 2026: What This Means for Different Borrower Profiles
Because most of the Fed easing is now priced into local rates, the key decision in 2026 is not whether rates will crash further, but whether you should:
- Lock in today’s fixed rates at 1.4%–1.7%, or
- Stay on/choose SORA floating and accept some future rate volatility.
1. First-time Buyers (New HDB or Condo Purchase)
If you are booking a BTO in Tengah or a new launch condo in Lentor or Tampines, your main risks are income stability and future rate rises after the first 2–3 years.
In 2026, a balanced strategy for first‑timers is often a 2‑ or 3‑year fixed package around 1.5%–1.7%, giving certainty during the crucial early years while still taking advantage of low global rates.[4][5]
You can then review near the end of the lock‑in to see if SORA packages or another fixed deal on Homejourney’s bank rates page Bank Rates make more sense.
2. Existing Owners Considering Refinancing
Owners in mature estates like Bishan, Toa Payoh or Clementi who took loans between 2020–2023 are often paying 2.8%–4%. For them, 2026 is a prime refinancing window.
As a working rule of thumb many mortgage advisers use, if your current rate is more than 0.7%–1.0% higher than what you can get today, and you have at least S$200k outstanding with 10–20 years left, refinancing almost always makes sense after accounting for legal and valuation subsidies.[4][5]
Homejourney’s refinancing flow lets you compare refinancing packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank side‑by‑side, then apply to multiple banks in one submission via Singpass Bank Rates .
3. Investors with Multiple Properties
If you own a Tenancy‑in‑Common investment condo in areas like Geylang, Jurong East or Woodlands, you may be more open to floating SORA packages to squeeze out slightly lower initial rates and maintain flexibility.
Given that Fed guidance now indicates only modest further cuts and a “high bar” for more easing, the downside risk is that SORA may already be near its floor; if the global economy strengthens, SORA could creep up again in a few years.[1][4]
Investors comfortable with some volatility may choose 1M SORA + margin packages, while more conservative landlords who rely heavily on rental income (for example, renting a 2‑bedder in Queenstown or Jurong Gateway) may prefer 2‑year fixed at 1.5%–1.7% to stabilise cash flow.
Bank-by-Bank Rate Landscape in 2026 (High-Level Overview)
Exact rates change weekly and differ by loan size and profile, so use this section as a directional map, then confirm live numbers on Homejourney’s comparison tool Bank Rates .
DBS Bank
DBS is the largest consumer bank in Singapore and a key player in HDB and private mortgages.
In late‑2025, DBS was offering a 3‑year fixed home loan around 1.55% for HDB owners switching from HDB loans, with no penalty for sale or early repayment during the lock‑in.[4]
DBS typically offers:
