Navigating Mortgage Interest Rates in 2025: Forecasts & Buyer Advice by Homejourney

Singapore Mortgage Interest Rates 2025: Direct Summary for Buyers

Singapore mortgage interest rates are forecast to decline further in 2025, with fixed home loan rates already dipping to as low as 1.35% and floating SORA-based packages expected to reach around 2.5% by year-end[1][2][3][4][5][7]. This creates a rare window for buyers and investors to secure favourable financing, but careful selection and timing remain crucial for long-term financial security.

This cluster article supports our Homejourney pillar guide on Singapore property financing, linking data-driven forecasts and tactical advice to empower safe, confident decisions in today’s dynamic market.

Understanding the 2025 Singapore Mortgage Rate Landscape

Interest rates for Singapore home loans have fallen sharply since their peak in late 2022. As of November 2025, fixed mortgage rates start from 1.35% for large loan amounts (min $500k), and floating rates based on SORA are as low as 1.50% (1-month SORA + 0.25%)[3][4]. Most major banks now offer fixed-rate packages between 1.80% and 2.68%, with monthly repayments for a $1.5M loan ranging from $6,213 to $6,866 over 25 years[4].

The Singapore Overnight Rate Average (SORA) serves as the benchmark for floating home loans. Recent data shows the 1-month SORA at 2.6848% and the 3-month SORA at 2.9180%, but these are expected to ease to 2.5% by end-2025, following global rate-cutting trends led by the US Federal Reserve[2][5].

Key Drivers: Global and Local Forces Shaping Mortgage Rates

US Federal Reserve Policy: Decisions to cut rates have a direct impact on Singapore’s borrowing costs, as capital flows and investor expectations shift globally[1][2][5].
Monetary Authority of Singapore (MAS): In January 2025, MAS eased its policy for the first time in four years, reducing the slope of the SGD NEER band, which directly led to lower local borrowing costs[1][2].
Domestic Inflation & Market Conditions: Moderating inflation and trade disruptions have prompted MAS to maintain a cautious approach, balancing affordability with macroeconomic stability[2].

2025 Rate Forecasts: How Low Will Mortgage Rates Go?

Fixed Home Loan Rates: Currently at 1.35% to 2.68% (depending on tenure and bank), with analysts predicting potential drops to 2.0% or below by end-2025 if global easing continues[1][2][3][4][7].
Floating SORA Packages: Expected to stabilise around 2.5% for the 3-month SORA by year-end, making these attractive for those anticipating further rate cuts[2][5][7].
Refinancing Opportunities: Many homeowners are refinancing to capture these lower rates, reducing monthly payments and increasing disposable income[2].

Actionable Steps: How Singapore Buyers Should Navigate Mortgage Rates

1. Compare Fixed vs Floating Rate Packages

Use Homejourney’s bank rates comparison tool Bank Rates to review the latest fixed and floating mortgage packages across major banks.
Fixed rates offer certainty and are ideal if you prefer predictable repayments—especially during periods of rate volatility.
Floating rates may be lower initially and more flexible, but carry risk of future increases if global conditions shift.

2. Time Your Application Strategically

Monitor the US Federal Reserve’s announcements and MAS policy updates for signals of further easing or tightening[1][2][5][7].
Consider locking in a fixed rate now if you expect rates to rebound in 2026, or opt for floating if you believe further cuts are likely.
Homejourney’s expert advisors can help you interpret market signals and decide on the optimal timing Mortgage Rates .

3. Assess Loan Flexibility and Penalties

Read the fine print on lock-in periods, early repayment penalties, and refinancing costs.
Look for packages with flexible terms, allowing you to refinance or adjust your loan if rates change unexpectedly.
Homejourney verifies all lender terms to ensure users can make confident, risk-aware decisions.

4. Factor in Total Homeownership Costs

Use Homejourney’s projects directory Projects Directory for up-to-date market data on property prices, rental yields, and transaction trends.
Remember to budget for maintenance (see our aircon servicing partners Aircon Services ), insurance, taxes, and legal fees.
For detailed budgeting advice, see Budgeting for Your First Condo in Singapore with Homejourney Budgeting for Your First Condo in Singapore with Homejourney .

5. Stay Informed and Seek Verified Advice

Track authoritative news on Singapore property markets via Straits Times Housing News , Business Times Property , and EdgeProp Property News .
Consult Homejourney’s verified mortgage specialists for personalised recommendations, ensuring all advice is based on the latest rates and regulations.
Explore our comprehensive Singapore Property Loan Guide 2025: Best Mortgage Rates & Trusted Advice by Homejourney Singapore Property Loan Guide 2025: Best Mortgage Rates & Trusted Advice by Home... .

Singapore Property Market Trends: Impact of Lower Mortgage Rates

Home affordability has improved, leading to increased demand and a surge in new private home sales[2][6].
Developers are responding with early-bird discounts and attractive pricing for bulk units[2].
Private home prices grew just 1.3% in H1 2025, and only 0.5% in Q2—reflecting a flattening market despite lower borrowing costs[6].
Refinancing activity is at record highs as existing owners seek to lock in lower rates[2].

Critical Considerations for Safe, Trusted Decisions

Don’t rush into purchases solely due to low rates. Weakening economic outlooks can impact property values and rental yields, so assess your long-term financial resilience[6].
Verify all information and loan terms with trusted platforms like Homejourney, which prioritises transparency, user safety, and customer feedback.
Consider legal, tax, and regulatory implications—see our guides on Singapore buying house tax legal considerations 新加坡买房子税多少要注意什么的法律考虑因素 | Homejourney and Singapore home buying taxes financial planning guide 新加坡购房税务须知：财务规划指南 | Homejourney .
International buyers should consult expert resources on fund transfer regulations 中国买家如何合法转移资金到新加坡：Homejourney权威解读与实操指南 .

FAQ: Singapore Mortgage Interest Rates & Buyer Strategies

What is the current lowest mortgage interest rate in Singapore (Nov 2025)?

Fixed home loan rates start from 1.35%, and floating SORA-based packages can be as low as 1.50% for qualifying loan amounts[3][4].

Will mortgage rates in Singapore drop further in 2025?

Analysts and banks expect rates to fall to around 2% or below by end-2025, contingent on further global easing and MAS policy decisions[1][2][7].

Should I refinance my home loan in 2025?

If your existing rate is above current market offers, refinancing could significantly reduce monthly payments. Always compare packages and factor in fees before switching. Use Homejourney’s comparison tools for safe, transparent evaluation Bank Rates .

Are fixed or floating rates better for Singapore buyers in 2025?

Fixed rates offer security in a volatile environment, while floating rates may be lower but subject to future increases. Assess your financial goals and risk tolerance, and consult Homejourney’s verified advisors for tailored recommendations Mortgage Rates .

What other costs should I consider when buying property in Singapore?

Include legal fees, taxes, maintenance (e.g., aircon servicing Aircon Services ), insurance, and renovation costs. Review our comprehensive budgeting guide for detailed planning Budgeting for Your First Condo in Singapore with Homejourney .

Take Action with Homejourney: Secure the Best Mortgage Rates Today

Homejourney empowers Singapore buyers and investors with verified, transparent data and expert advice prioritising safety and trust. Use our bank rates comparison Bank Rates , projects directory Projects Directory , and trusted service partners to make confident decisions in 2025’s evolving mortgage landscape.

Ready to plan your next move? Explore our comprehensive pillar guide on Singapore Property Financing

References

Singapore Property Market Analysis 1 (2025)
Singapore Property Market Analysis 2 (2025)
Singapore Property Market Analysis 3 (2025)
Singapore Property Market Analysis 4 (2025)
Singapore Property Market Analysis 5 (2025)
Singapore Property Market Analysis 7 (2025)
Singapore Property Market Analysis 6 (2025)