Homejourney: Understanding Home Loan Interest Rates Singapore 2026 – The Definitive Guide
This comprehensive pillar guide from Homejourney equips Singapore property buyers and owners with everything needed to navigate home loan interest rate Singapore landscape in 2026. From current mortgage rates to SORA trends and refinancing strategies, discover how to secure the best home loan rate while prioritizing safety and trust.
Homejourney verifies all data and provides transparent tools like real-time rate comparisons at https://www.homejourney.sg/bank-rates, ensuring confident decisions in a trusted environment.[1][2][3]
Table of Contents
- Executive Summary
- 1. Types of Home Loan Interest Rates in Singapore
- 2. Deep Dive into SORA: Singapore's Key Benchmark
- 3. Fixed vs Floating Rates: Complete Comparison
- 4. Current Mortgage Rates 2026 Across Major Banks
- 5. HDB Loans vs Bank Loans: Which is Better?
- 6. Interest Rate Trends Visualization
- 7. Refinancing and Repricing Strategies
- 8. Decision Framework for Choosing Rates
- 9. How Homejourney Simplifies Your Journey
- FAQ: Home Loan Interest Rates Singapore
- Next Steps with Homejourney
Executive Summary
In 2026, home loan interest rate Singapore have hit 3-year lows, with fixed rates at 1.4-1.8% and floating SORA-based rates around 1.35-1.6%.[2] This downtrend, driven by US Fed cuts, offers savings opportunities but requires understanding SORA, fixed vs floating, and bank packages.
Homejourney's guide analyzes data from MAS, banks, and market trends, providing tables, charts, and tools. First-time buyers, upgraders, and refinancers can compare rates instantly at https://www.homejourney.sg/bank-rates and apply via Singpass for personalized offers from DBS, OCBC, UOB, and more.[1][2][3]
1. Types of Home Loan Interest Rates in Singapore
Singapore home loans fall into fixed, floating (SORA or swap-based), and HDB concessionary rates. Fixed rates lock in for 1-5 years, offering payment stability. Floating rates adjust with benchmarks like SORA plus a bank margin.[1][2]
Fixed Rate Loans
These provide predictable payments during the lock-in period (e.g., 2-3 years). Post-lock-in, they convert to floating. Ideal for risk-averse buyers.[1]
Floating Rate Loans (SORA-Pegged)
Pegged to 1M, 3M, or 6M SORA plus 0.25-0.80% margin. More volatile but often lower long-term.[2][3]
HDB Concessionary Loans
Fixed at 2.6% (CPF OA 2.5% + 0.1%), available for eligible HDB buyers with income ceilings.[1][7]
2. Deep Dive into SORA: Singapore's Key Benchmark
SORA (Singapore Overnight Rate Average) replaced SOR in 2024 as the primary benchmark. It's a volume-weighted average of overnight interbank loans, published daily by ABS.[2]
3M SORA (common for loans) fell from 3% in early 2025 to 1.2% by late 2025, driving lower current mortgage rates.[2] Track live 3M and 6M SORA on Homejourney's bank rates page.
3M vs 6M SORA Comparison
| Metric | 3M SORA | 6M SORA |
|---|---|---|
| Lag | Shorter, more responsive | Longer, smoother |
| Volatility | Higher | Lower |
| Typical Margin | +0.25-0.40% | +0.30-0.50% |
3M SORA suits those expecting falls; 6M for stability.[2][3]
3. Fixed vs Floating Rates: Complete Comparison
Fixed rates offer peace of mind; floating potentially lower costs. Choose based on risk tolerance and outlook.
| Factor | Fixed | Floating (SORA) |
|---|---|---|
| Stability | High (lock-in) | Variable |
| Current Rates (2026) | 1.45-1.75% | SORA +0.25% (~1.45%) |
| Best For | First-timers | Experienced investors |
Pros and Cons
- Fixed Pros: Predictable budgeting; protection from rises.
- Fixed Cons: Higher initial rates; penalty for early exit.
- Floating Pros: Lower averages; flexibility.
- Floating Cons: Payment shocks if rates rise.[2]
4. Current Mortgage Rates 2026 Across Major Banks
As of January 2026, rates are competitive. Use Homejourney's rate comparison tool for live updates from DBS, OCBC, UOB, HSBC, etc.[1][3]
Best Fixed Rates for Resale Condo/Landed (Jan 2026)
| Bank | Loan Type | Year 1 | Year 2 |
|---|---|---|---|
| Promo | 2 Yr Fixed | 1.48% | 1.48% |
| Promo | 2 Yr Fixed | 1.50% | 1.50% |
| Maybank | 2 Yr Fixed | 1.65% | 1.65% |
| SCB | 2 Yr Fixed | 1.68% | 1.68% |
Best Floating Rates (SORA) for New Purchases
| Bank | Year 1 | Year 2 |
|---|---|---|
| Promo | 1M SORA +0.25% | +0.25% |
| Promo | 3M SORA +0.25% | +0.25% |
For HDB resale, floating starts at +0.30%. Refinancing sees similar promos with cash rebates up to S$2,800.[1][3]
5. HDB Loans vs Bank Loans: Which is Better?
HDB loans at 2.6% suit low-income buyers but lack flexibility. Bank loans now lower (1.4-1.8%) and offer perks like subsidies.[2] Switches from HDB rose 7x at OCBC in 2025.[2]
- HDB: Simple, no bank hassle; citizenship rules apply.
- Bank: Better rates, but volatility risk. Cannot revert to HDB.[2]
Example: S$500k loan saves S$4,100/year switching to bank fixed.[2]
6. Interest Rate Trends Visualization
The chart below shows recent interest rate comparison trends in Singapore, including SORA and fixed packages over the past 6 months, highlighting the downtrend to 2026 lows.
As seen, SORA hit 1.2% lows, with fixed rates following suit. Expect stability unless US shocks occur.[2] For deeper analysis, see Singapore Interest Rate Trends 2026: Smart Mortgage Planning via Homejourney ">Singapore Interest Rate Trends 2026: Smart Mortgage Planning via Homejourney .
7. Refinancing and Repricing Strategies
Reprice within lock-in (admin fees ~S$200) or refinance post-lock-in (legal/valuation ~S$2-3k). Example: From 3% to 1.6% saves S$500/month on S$500k loan.[2]
- Check lock-in expiry.
- Compare via Homejourney bank-rates.
- Apply multi-bank via Singpass.
- Factor costs vs savings.[2]
Insider tip: Time repricing Q1 when promos peak.[2]
8. Decision Framework for Choosing Rates
Assess risk tolerance: Conservative? Fixed. Optimistic on falls? SORA. Use Homejourney's mortgage calculator for scenarios.
Consider tenure (25-30 yrs), LTV (up to 75-90%), and MSR/TDSR.[7]
