Understanding Home Loan Interest Rates: Frequently Asked Questions
Homejourney provides clear answers to the most common questions about home loan interest rates in Singapore, helping first-time buyers and refinancers make informed decisions in a trusted environment.[1][2]
This cluster article dives into home loan interest rate Singapore specifics, from current rates to SORA trends, linking back to our comprehensive Home Loan Interest Rates Singapore 2026 Guide for full coverage. At Homejourney, we prioritize your safety with verified data and transparent comparisons.
What Are the Current Mortgage Rates in Singapore (January 2026)?
Current mortgage 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%).[1][2][3]
For resale condos, top fixed packages include 2-year fixed at 1.48%-1.50% from promos, while floating starts at 1M SORA + 0.25%.[1] HDB resale flats see 2-year fixed EMI at 1.45%, and refinancing floating at 1M SORA + 0.25%.[1] Banks like DBS, OCBC, UOB, HSBC, and Maybank offer these via Homejourney's comparison tool at https://www.homejourney.sg/bank-rates.
The HDB concessionary loan remains at 2.6% (CPF OA + 0.1%), making bank loans more attractive now.[1][2] Track live rates on Homejourney to stay updated securely.
Fixed vs Floating Rates: Key Differences
Fixed rates lock in for 1-3 years (e.g., DBS 2-year at 1.75%, 3-year at 1.80%), offering payment stability.[1][3] Floating rates, pegged to SORA (now ~1.2%), add a margin like +0.25%-0.40%, fluctuating with markets but often lower long-term.[2][4]
| Type | Pros | Cons | Best For |
|---|---|---|---|
| Fixed | Predictable payments; protection from rises | Higher initial rates; reversion risk post-lock-in | Risk-averse buyers |
| Floating (SORA) | Lower averages; flexible | Payment volatility | Tolerance for change |
Compare interest rate comparison side-by-side on Homejourney's bank rates page, featuring DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more.
What is SORA and How Does it Impact Your Loan?
SORA (Singapore Overnight Rate Average) is the key benchmark, with 3M SORA at ~1.2% as of late 2025, down from 3%.[2] Banks add a spread (e.g., +0.25% promo, Maybank 3M SORA +0.40%).[1][3]
3M SORA suits short-term stability; 1M SORA offers quicker adjustments in falling markets.[1][4] For a S$500,000 loan, switching from HDB 2.6% to bank 1.6% fixed saves ~S$500 monthly.[2] Homejourney tracks live 3M/6M SORA daily.
The chart below shows recent interest rate trends in Singapore:
As seen, rates have halved since early 2025, but may stabilize.[2]
How to Find the Best Home Loan Rate
- Assess your profile: Check LTV (up to 75% for private), TDSR (60% debt cap) via Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator.
- Compare packages: Use Homejourney for DBS (1.55% 3Y fixed HDB), OCBC, UOB (3M SORA +0.70% Year 2).[1][3][4]
- Consider rebates: S$2,000-$2,800 cashback for S$500k+ loans.[3]
- Refinance if eligible: Bank rates beat HDB 2.6%; apply via Singpass on Homejourney for multi-bank offers.[2]
- Time it: Q1 2026 sees intense competition.[2]
Submit one application on Homejourney to get personalized rates from all partners safely—no need to visit branches.
Mortgage Rate 2026 Outlook
Experts predict stability after US Fed cuts, with SORA at a floor ~1.2%.[2] Fixed promos like 1.35%-1.50% persist.[3] For upgraders from Punggol HDB to condos, lower rates ease budgets—search matching properties at https://www.homejourney.sg/search.
Read more in our Singapore Interest Rate Trends 2026 Guide.
FAQ: Home Loan Interest Rates Singapore
Q1: What is the best home loan rate now?
A: Promos offer 1.35%-1.48% fixed or 1M SORA +0.25% (~1.36%) for qualified buyers. Verify on Homejourney bank rates.[1][3]
Q2: Should I switch from HDB to bank loan?
A: Yes, if rates <2.6%—savings up to S$4,100/year on S$500k loan. Note: No HDB loan return. Use Homejourney for seamless switch.[2]
Q3: Fixed or floating in 2026?
A: Fixed for stability (e.g., 1.6% DBS), floating if rates fall further. Assess risk on our calculator.[1][2]
Q4: How does SORA affect payments?
A: 0.1% SORA drop saves ~S$25/month per S$500k. Track trends via Homejourney.[2]
Q5: Can I refinance easily?
A: Reprice without fees post-lock-in; full refinance has costs. Homejourney brokers guide you.[2]
Disclaimer: Rates change; consult professionals. Homejourney verifies data for trust, but not financial advice.
Ready to secure the best home loan rate? Visit https://www.homejourney.sg/bank-rates for comparisons, calculators, and Singpass applications. Explore properties at https://www.homejourney.sg/search and our full pillar guide for more.
