Understanding Home Loan Interest Rates in Singapore 2026
Home loan interest rates in Singapore have dropped dramatically, with fixed-rate mortgages now ranging from 1.35% to 1.8% compared to 3.1% at the start of 2025[2]. This represents a historic opportunity for buyers and refinancers, but understanding how these rates work is essential to securing the best deal for your financial situation. Homejourney makes this process transparent and accessible by allowing you to compare rates from all major banks—DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more—in one trusted platform.
The dramatic rate decline reflects global economic trends, particularly the US Federal Reserve's rate cuts that have rippled through Singapore's lending market[2]. However, current rates likely represent the floor of expected decreases, meaning now is an ideal time to lock in favorable terms[2]. Whether you're a first-time buyer, refinancing an existing loan, or upgrading from an HDB flat, understanding the mechanics of interest rates will help you make confident decisions.
Fixed-Rate Mortgages: Stability and Certainty
Fixed-rate loans lock in your interest rate for a predetermined period—typically 2 to 5 years—meaning your monthly repayment remains unchanged regardless of market fluctuations[2]. This provides budget certainty and protects you from future rate increases. As of January 2026, promotional fixed rates start from 1.45% for HDB loans and 1.48% for private property loans, with major banks like DBS, OCBC, and Maybank offering competitive 2-year fixed packages between 1.55% and 1.75%[1].
Fixed rates are ideal if you prefer predictability, plan to stay in your property long-term, or believe rates will rise in the future. The trade-off is that if market rates fall during your lock-in period, you cannot benefit without refinancing—which incurs legal and valuation fees. Most homeowners should consider switching when their lock-in period ends, potentially saving thousands annually[2].
Floating-Rate Mortgages: Flexibility and Savings Potential
Floating-rate loans are pegged to SORA (Singapore Overnight Rate Average) plus a bank margin, meaning your rate fluctuates with market conditions[2]. Current floating rates start from 1M SORA + 0.25% (approximately 1.36% as of January 2026)[3]. SORA has fallen from 3% in early January 2025 to 1.2% by December 2025, demonstrating how significantly floating rates can decrease[2].
Floating rates offer lower initial payments and the potential to benefit from further rate decreases. However, you face payment uncertainty and the risk of increases if SORA rises. Mortgage advisers recommend floating rates for borrowers with flexible budgets, those planning to refinance within a few years, or those who believe rates will remain stable or decline[2]. Track live 3M SORA and 6M SORA rates updated daily on Homejourney's bank rates page to time your decisions perfectly.
The chart below shows recent interest rate trends to help you understand how SORA and fixed rates have moved in Singapore's market:
Fixed vs. Floating: Which Should You Choose?
Your choice between fixed and floating rates depends on your risk tolerance, financial situation, and economic outlook. Here's a practical comparison:
| Factor | Fixed Rate | Floating Rate |
|---|---|---|
| Monthly Payment | Unchanged for 2-5 years | Varies with SORA movements |
| Interest Rate Risk | Protected from increases | Exposed to rate increases |
| Savings Potential | Limited if rates fall | Significant if rates decline |
| Best For | Budget certainty, long-term stability | Flexible budgets, rate decline expectations |
| Refinancing Costs | Legal and valuation fees apply | No early refinancing needed |
Many borrowers use a hybrid approach: lock in a fixed rate for initial stability, then switch to floating when your lock-in period ends if rates remain favorable[2]. Homejourney's mortgage calculator helps you model both scenarios to understand the financial impact of each choice.
Current Market Rates: January 2026 Overview
Singapore's mortgage market remains highly competitive as banks vie for market share in the first quarter of 2026[2]. Here are the current best rates across property types:
Private Property & Landed Homes
- Best Fixed Rates: Promotional packages at 1.48-1.50% for 2-year terms; DBS at 1.75%, HSBC at 1.70%, SCB at 1.68%[1]
- Best Floating Rates: 1M SORA + 0.25% (approximately 1.36%) from promotional lenders[1]
HDB Flats
- Best Fixed Rates: Promotional packages at 1.45-1.50% for 2-year terms; Maybank at 1.55%, DBS at 1.65%[1]
- Best Floating Rates: 1M SORA + 0.30% from promotional lenders; Maybank at 3M SORA + 0.40%[1]
- HDB Bank Loan Alternative: Fixed at 2.6% (higher than bank loans, making refinancing increasingly attractive)[1]
Refinancing
- Best Fixed Rates: 1.55-1.65% for 2-year terms across major banks[1]
- Best Floating Rates: 1M SORA + 0.25% from promotional lenders[1]
- Cash Rebates: S$2,000-2,800 available for refinancing, with additional rebates for loans above S$1 million[3]
These rates change regularly based on market conditions and bank promotions. Compare rates from all major banks side-by-side on Homejourney's bank rates page to ensure you're seeing the most current offers.
