Understanding Home Loan Interest Rates: Bank Rate Comparison Guide
In January 2026, Singapore's home loan interest rates have dropped to 3-year lows, with fixed rates between 1.4% and 1.8% and floating rates like 1M SORA + 0.25% (around 1.36%). This Understanding Home Loan Interest Rates: Bank Rate Comparison Guide from Homejourney equips you with actionable insights to compare current mortgage rates across major banks like DBS, OCBC, UOB, HSBC, and more.
As a trusted platform prioritizing user safety and transparency, Homejourney verifies rates daily and helps you compare options securely via our bank rates page. This cluster article builds on our pillar guide, Homejourney: Home Loan Interest Rates Singapore 2026 Guide, focusing on bank comparisons for first-time buyers, refinancers, and investors.
Types of Home Loan Interest Rates in Singapore
Singapore home loans fall into two main categories: fixed rates and floating rates. Fixed rates lock in your interest for 1-5 years, offering payment stability ideal for first-time HDB buyers in areas like Punggol or Tengah. Floating rates, pegged to benchmarks like SORA, fluctuate with market conditions but often start lower.
SORA, or Singapore Overnight Rate Average, is the key benchmark since 2023, replacing SOR and FIBOR. 3M SORA (compounded over 3 months) is most common, currently around 1.2% as of late 2025, down from 3% early that year. Banks add a spread (e.g., +0.25%-0.40%), making effective rates 1.45%-1.60%.
HDB loans remain at 2.6% (CPF OA rate + 0.1%), but with bank rates now lower, more owners are switching—OCBC saw a 7x increase in 2025. Always check eligibility on Homejourney's mortgage calculator.
Current Home Loan Interest Rates: Bank Comparison (Jan 2026)
Here's a snapshot of the best home loan rates from Homejourney partner banks for resale HDB, condos, and refinancing. Rates are indicative and subject to profile; use our bank rates comparison tool for personalized quotes.
Best Fixed Rates for Resale Condo/Landed (Year 1-2):
- Promo: 2 Yr Fixed at 1.48%-1.50%
- Maybank: 2 Yr Fixed at 1.65%
- SCB: 2 Yr Fixed at 1.68%
- HSBC: 2 Yr Fixed at 1.70%
- DBS: 2 Yr Fixed at 1.75%; 3 Yr at 1.80%
Best Floating Rates for Resale HDB (Year 1-2):
- Promo: 1M SORA +0.30%
- Maybank: 3M SORA +0.40%
Refinancing Floating: Promo 1M SORA +0.25%; Maybank 3M SORA +0.40%.
Track live 3M SORA and 6M SORA on Homejourney—updated daily for precise timing. For HDB upgraders, DBS offers 3 Yr Fixed at 1.55% with no early repayment penalty.
Interest Rate Trends: Visualizing the Drop
The chart below shows recent Singapore interest rate trends over the past 6 months, highlighting SORA's fall from 3% to 1.2% and its impact on mortgage rates 2026.
As seen, rates have halved since early 2025 due to US Fed cuts, but may stabilize in 2026 with only marginal easing expected. This makes now ideal for locking in rates via Homejourney's multi-bank applications.
Fixed vs Floating: Pros, Cons and Who Should Choose What
| Feature | Fixed Rate | Floating (SORA) |
|---|---|---|
| Stability | High (locked 2-3 years) | Low (market-linked) |
| Initial Rate | 1.48%-1.80% | 1.36%-1.60% |
| Best For | Risk-averse buyers, HDB families | Investors tolerant of volatility |
| Risk | Reverts higher post-lock-in | Could rise if SORA increases |
Fixed suits conservative profiles like young families budgeting for Punggol ECs; floating fits investors eyeing condos in Orchard. Assess your risk on Homejourney's tools.
Actionable Steps: How to Compare and Secure the Best Rate
Follow this decision framework for interest rate comparison:
- Check Eligibility: Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator to estimate borrowing power.
- Compare Live Rates: View DBS, OCBC, UOB, HSBC, SCB, Maybank side-by-side on https://www.homejourney.sg/bank-rates.
- Assess Trends: Monitor SORA via our dashboard; reprice if your lock-in ends.
- Apply Securely: Submit one app via Singpass—get offers from all partners instantly. Connect with Homejourney Mortgage Brokers for guidance.
- Refinance Smartly: Switch from HDB 2.6% if eligible; save up to S$4,100/year on S$500k loan.
Insider tip: Q1 2026 sees peak promos with cash rebates (S$2,000-$2,800). Pair with property search on https://www.homejourney.sg/search to find homes in budget.
Disclaimer: Rates are indicative as of Jan 2026 and subject to bank approval. Homejourney provides information, not financial advice—consult professionals.
FAQ: Home Loan Interest Rates Singapore
What are current mortgage rates in Singapore? Fixed: 1.4%-1.8%; Floating: SORA +0.25%-0.40% (~1.36%-1.60%). Check Homejourney bank rates for updates.
Is now a good time for refinancing in 2026? Yes, with rates at lows vs HDB's 2.6%. Owners saved S$500/month switching to DBS 1.6% fixed.
3M SORA vs 6M SORA: Which is better? 3M is more common and responsive; both track closely now at ~1.2%. Track both on Homejourney.
How does SORA affect my payments? On S$500k loan at +0.30%, monthly payment ~S$2,100 at 1.5% vs S$2,300 at 2.6% HDB.
Best home loan rate for HDB resale? Promo 1M SORA +0.30% or 2 Yr Fixed 1.45% EMI. Compare via Homejourney.
Ready to secure the best home loan rate? Visit https://www.homejourney.sg/bank-rates
