Homejourney Guide: Home Loan Interest Rates Singapore 2026
This is the definitive guide to home loan interest rates Singapore 2026 from Homejourney, your trusted platform for safe and transparent property decisions. Whether you're a first-time HDB buyer, condo investor, or refinancing homeowner, understand current mortgage rates, SORA trends, and how to secure the best home loan rate amid falling rates.[1][2]
Homejourney prioritizes your safety with verified bank rates, instant calculators, and multi-bank applications via Singpass. Start comparing on our bank rates page today.
Table of Contents
- Executive Summary
- 1. Types of Home Loan Interest Rates in Singapore
- 2. SORA Explained: The Key Benchmark for 2026
- 3. Fixed vs Floating Rates: Complete Comparison
- 4. Current Mortgage Rates from Major Banks (Jan 2026)
- 5. HDB Loans vs Bank Loans: Which is Better Now?
- 6. Interest Rate Trends and 2026 Outlook
- 7. Interest Rate Comparison Tools and Tips
- 8. Decision Framework: Choosing Your Loan
- 9. Refinancing in 2026: When and How
- 10. Monthly Payment Calculations and Examples
- 11. How Homejourney Simplifies Your Loan Journey
- FAQ: Home Loan Interest Rates Singapore 2026
- Next Steps with Homejourney
Executive Summary
Singapore's home loan interest rates have plummeted to 3-year lows in 2026, with fixed rates at 1.4-1.8% and floating SORA +0.25%.[2] This guide breaks down mortgage rate 2026 trends, bank offerings from DBS, OCBC, UOB, and more, plus actionable steps to save thousands.
Key takeaway: Bank loans now beat HDB's 2.6% rate, but choose based on risk tolerance. Use Homejourney's real-time tools for interest rate comparison and secure the best home loan rate safely.[1][2]
1. Types of Home Loan Interest Rates in Singapore
Home loans in Singapore fall into fixed, floating (SORA-pegged), and HDB concessionary rates. Fixed rates lock in for 1-5 years, ideal for budgeting. Floating rates tie to SORA, offering flexibility but variability.[2]
SORA replaced SOR in 2024 as the primary benchmark, published daily by ABS. HDB loans remain at 2.6% (CPF OA +0.1%), but banks offer lower effective rates now.[1][2]
Fixed Rate Loans
These provide stability with unchanged rates during the lock-in (e.g., 2-3 years). Post-lock-in, they convert to floating. Perfect for first-time buyers like those purchasing a 4-room HDB in Tampines.[1]
Floating Rate Loans (SORA-Pegged)
Pegged to 1M, 3M, or 6M SORA plus a bank spread (e.g., +0.25%). Rates fell from 3% to 1.2% in 2025, slashing payments.[2]
2. SORA Explained: The Key Benchmark for 2026
SORA (Singapore Overnight Rate Average) is the volume-weighted average of overnight interbank loans, risk-free and backward-looking. 3M SORA averages the prior 3 months, smoothing volatility.[2]
As of Jan 2026, 1M SORA is ~1.14%, 3M ~1.2%. Track live rates on Homejourney's bank rates page. Compare 3M vs 6M: 3M reacts faster to drops, suiting 2026's easing outlook.[2][7]
The chart below shows recent SORA and interest rate trends in Singapore:
As seen, rates hit lows not witnessed since 2022, driven by US Fed cuts and local liquidity.[2]
3. Fixed vs Floating Rates: Complete Comparison
Fixed suits risk-averse buyers; floating favors those betting on rate cuts. Here's a pros/cons table:
| Aspect | Fixed Rate | Floating (SORA) |
|---|---|---|
| Stability | High (locked 2-3 yrs) | Variable |
| Current Rates (Jan 2026) | 1.4-1.8% | SORA +0.25% (~1.45%) |
| Best For | First-time buyers | Investors expecting cuts |
| Risk | Low initially, rises post-lock-in | Market-dependent |
Insider tip: For a $800k BTO in Punggol, fixed saves budgeting stress amid family planning.[1][2]
4. Current Mortgage Rates from Major Banks (Jan 2026)
Homejourney aggregates rates from partner banks. Best fixed for resale condos: Promo 1.48% (2yr).[1] Floating: 1M SORA +0.25%.[1][3]
Compare on https://www.homejourney.sg/bank-rates. Table of top rates:
| Bank | Type | Year 1 Rate | Year 2 Rate |
|---|---|---|---|
| Promo/DBS | 2Yr Fixed | 1.48% | 1.48% |
| Maybank | 3M SORA | +0.40% | +0.40% |
| HSBC | 2Yr Fixed | 1.70% | 1.70% |
| OCBC | 1M SORA | +0.25% | +0.25% |
| UOB | 2Yr Fixed | 1.65% | 1.65% |
Rates for HDB resale slightly higher (+0.30% spread). Always verify on Homejourney for promos.[1]
5. HDB Loans vs Bank Loans: Which is Better Now?
HDB loans at 2.6% suit low-income buyers (ceiling $14k household), but banks at ~1.5% save $4,100/year on $500k loan.[2] Switches from HDB to banks surged 7x at OCBC in 2025.
Caution: No reversing to HDB post-switch. Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator.[2]
6. Interest Rate Trends and 2026 Outlook
Rates halved from 3.1% (Jan 2025) to 1.4-1.8%, tracking Fed cuts and high liquidity. SORA may floor at 1.2%, with modest easing ahead.[2]
For deeper trends, see Singapore Interest Rate Trends 2026: Smart Mortgage Planning via Homejourney . Expect competition in Q1 2026 with rebates.[2]
7. Interest Rate Comparison Tools and Tips
Manual comparison is tedious—use Homejourney for side-by-side from DBS to Maybank. Factors: spread, lock-in, fees (e.g., $1,800 valuation subsidy).[3]
- Check daily SORA updates
- Factor Total Debt Servicing Ratio (TDSR 55%)
- Compare effective rates post-rebates
8. Decision Framework: Choosing Your Loan
Assess risk: Conservative? Fixed. Optimistic on cuts? SORA. Steps:
- Calculate affordability on Homejourney
- Review 2026 outlook (modest cuts)
- Apply multi-bank via Singpass
- Lock if rates bottom
For approval tips, read Home Loan Interest Rates Singapore 2026: Improve Your Approval Chances .
9. Refinancing in 2026: When and How
Reprice if out of lock-in (no fees), refinance for better rates (fees ~$2-3k). Example: From 3% to 1.6% saves $500/month.[2]
Homejourney streamlines with one application to all banks. Ideal now as bank rates < HDB 2.6%.[2]
10. Monthly Payment Calculations and Examples
For $500k loan, 25yrs, 1.5% rate: ~$2,300/month. At 2.6%: $2,700 (+$400).
Use mortgage calculator. HDB example: $400k resale, SORA+0.3% = $1,900 vs HDB $2,150.
11. How Homejourney Simplifies Your Loan Journey
Homejourney builds trust with verified rates, Singpass apps, and brokers. Features:
- Live 3M/6M SORA tracking
- Compare DBS, OCBC, UOB, HSBC, etc.
- One app, multiple offers
- Link to property search for budget fits
See our full guide Homejourney: Home Loan Interest Rates Singapore 2026 Guide .
FAQ: Home Loan Interest Rates Singapore 2026
What is the average home loan interest rate Singapore 2026? Fixed: 1.4-1.8%, Floating: SORA+0.25-0.4% (~1.45-1.6%).[1][2]
Best home loan rate for HDB 2026? Promo 1M SORA +0.30% or 2yr fixed 1.45%.[1]
Will rates rise in 2026? Unlikely; Fed signals modest easing, SORA at floor.[2]
How to compare mortgage rates?
