Understanding Home Loan Interest Rates: Frequently Asked Questions
Navigating home loan interest rates in Singapore can be overwhelming, but Homejourney simplifies it with transparent tools and verified data to help you make safe, confident decisions. This FAQ-focused guide answers the most common questions on current mortgage rates, SORA trends, fixed vs floating options, and how to find the best home loan rate in 2026.
As a trusted platform prioritizing user safety, Homejourney verifies rates from partner banks like DBS, OCBC, UOB, HSBC, and more, ensuring you compare accurately without hidden fees. For comprehensive coverage, see our pillar guide: Homejourney: Home Loan Interest Rates Singapore 2026 Guide.
What Are the Current Home Loan Interest Rates in Singapore (January 2026)?
Current mortgage rates have hit 3-year lows, with fixed rates between 1.4% and 1.8% p.a. and floating rates pegged to SORA + 0.25% to 0.70%.[2][1] For resale condos, top promo 2-year fixed rates start at 1.48%, while floating 1M SORA options are as low as SORA + 0.25%.[1]
Homejourney's bank rates page lets you track live rates from DBS (2-year fixed at 1.75%), Maybank (1.65%), SCB (1.68%), and others side-by-side: https://www.homejourney.sg/bank-rates. Bank loans now beat HDB's fixed 2.6% rate (0.1% above CPF OA at 2.5%), prompting switches.[2][6]
Here's a snapshot of best home loan rates for key property types (Jan 2026):[1]
| Property Type | Best Fixed (Year 1) | Best Floating (Year 1) |
|---|---|---|
| Resale Condo/Landed | 1.48% (Promo 2Yr) | 1M SORA + 0.25% |
| Resale HDB | 1.45% EMI (Promo) | 1M SORA + 0.30% |
| Refinancing | 1.55% (Promo 1+1Yr) | 1M SORA + 0.25% |
These rates reflect high liquidity and US Fed cuts, with SORA at 1.2% (down from 3%).[2] Always verify on Homejourney for real-time updates.
What is SORA and How Does it Affect My Home Loan?
SORA (Singapore Overnight Rate Average) is the key benchmark for floating home loan interest rate Singapore, published daily by ABS and used by MAS-regulated banks.[2] Unlike fix-linked rates, 3M or 6M compounded SORA + bank margin (e.g., 0.25%-0.70%) adjusts with market liquidity.
For a S$500,000 loan at 3M SORA (1.2%) + 0.40%, your effective rate is ~1.60%, saving ~S$4,100 yearly vs HDB 2.6%.[2] UOB's private home loan, for example, starts at 3M SORA + 0.70% in Year 2.[3]
The chart below shows recent interest rate trends in Singapore, including 3M and 6M SORA movements over the past 6 months:
As seen, SORA fell sharply from 3% to 1.2%, driving down floating rates. Track live 3M/6M SORA on Homejourney: https://www.homejourney.sg/bank-rates.[2]
Fixed vs Floating Rates: Which is Best for You?
Fixed rates lock in (e.g., 1.48%-1.75% for 2-3 years) for payment stability, ideal for risk-averse first-time buyers.[1] Floating (SORA-based) offer lower initial rates but vary with markets—suitable for investors expecting cuts.[2]
- Fixed Pros: Predictable payments; protects against rises. Cons: Higher post-lock-in; penalties for early exit.
- Floating Pros: Lower now (SORA + 0.25%); flexible. Cons: Volatility if rates rise.
Assess risk: Conservative? Choose fixed like DBS 3Yr at 1.80%. Optimistic on easing? Go floating.[1][2] Use Homejourney's calculator to compare: https://www.homejourney.sg/bank-rates#calculator.
Home Loan Interest Rate Comparison: Actionable Steps
To find the best home loan rate, follow these steps on Homejourney:
- Visit https://www.homejourney.sg/bank-rates for side-by-side rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, and more.
- Input property details in our mortgage calculator for monthly payments.
- Apply via Singpass—submit once, get offers from all partners instantly.
- Refinance if your lock-in ends; save S$500/month like Ms. Denise Chan's DBS switch to 1.6%.[2]
For HDB upgraders, bank rates beat 2.6%; check eligibility first.[2] See related: Home Loan Interest Rates Singapore 2026: Apply via Homejourney.
Disclaimer: Rates fluctuate; Homejourney provides verified data but consult advisors. Not financial advice.
FAQ: Home Loan Interest Rates Singapore
Q1: Will mortgage rates fall further in 2026?
SORA may stabilize at lows, with modest Fed cuts; banks compete with promos in Q1.[2] Monitor via Homejourney.
Q2: What's the mortgage rate 2026 outlook?
Fixed 1.4-1.8%; floating SORA + 0.25-0.70%. HDB at 2.6% less competitive.[1][2]
Q3: How do I compare interest rates safely?
Use Homejourney's verified comparison—avoid unverified sources. Link properties to budgets via https://www.homejourney.sg/search.
Q4: Can I switch from HDB to bank loan?
Yes, if eligible; can't revert. Saves significantly now.[2]
Q5: Best rate for first-time buyers?
Promo fixed 1.45-1.55% or SORA + 0.30% for HDB. Calculate on Homejourney.
Ready to secure the best rate? Start with Homejourney's safe, Singpass-enabled application at https://www.homejourney.sg/bank-rates. Trust Homejourney for transparent property journeys—for deeper insights, read our pillar: Homejourney: Home Loan Interest Rates Singapore 2026 Guide.
