Singapore Interest Rate Trends 2026: Mortgage Planning Guide | Homejourney
This definitive pillar guide on interest rate trends Singapore and mortgage planning equips first-time buyers, upgraders, and investors with actionable insights for 2026. Homejourney prioritizes your safety and trust by verifying data from MAS and banks, helping you navigate MAS interest rate changes and mortgage rate forecast with confidence.
From SORA deep dives to fixed vs floating comparisons, discover rate prediction 2026 and rate planning strategies. Track live rates on Homejourney's bank rates page for DBS, OCBC, UOB, and more.
Executive Summary
Singapore's interest rate trends Singapore in 2026 show stability with easing pressures, as MAS maintained its policy on January 29, 2026, amid resilient growth and core inflation at 1.2% in Q4 2025.[1] SORA stands at 0.89%, down from recent highs, signaling potential relief for borrowers.[2]
Homejourney's guide covers SORA trends, bank comparisons, and rate planning to help you borrow safely under TDSR rules. Use our mortgage calculator for instant affordability checks.
1. Understanding Singapore Interest Rates
Unlike many countries, Singapore's MAS manages policy via the S$NEER band, not direct rates, influencing SORA indirectly.[1] SORA, the Singapore Overnight Rate Average, replaced SIBOR as the main mortgage benchmark by 2024.
Mortgage rates = SORA + bank spread (0.2-0.8% p.a.). Fixed rates offer 1-3 year stability via swaps. HDB loans remain at 2.6% concessionary rate, but banks often beat this for larger loans.[4]
Key Rate Types in Singapore
- 3M SORA: Average of daily SORA over 3 months; volatile but responsive.
- 6M SORA: Smoother, less frequent changes; preferred for stability.
- Fixed Deposit Peg (FD): Tied to bank's FD rates; promotional now below 1.8%.[4]
- Fixed Rates: Locked for 1-5 years via interest rate swaps.
Homejourney verifies these daily on our bank rates page, prioritizing transparency for safe decisions.
2. SORA Deep Dive
SORA is the volume-weighted median of overnight interbank loans, published daily by MAS at 11 AM. It's risk-free, unlike SIBOR, ensuring fairer pricing.[2]
3M SORA suits short-term monitoring; 6M for planning. Recent drop to 0.89% from 0.98% reflects global easing.[2] Track live 3M/6M SORA on Homejourney.
The chart below shows recent interest rate trends in Singapore:
As visible, SORA dipped amid MAS stability, aiding floating loans.[1][2] For deeper insights, see What is SORA? How It Impacts Your Singapore Mortgage | Homejourney ">What is SORA? How It Impacts Your Singapore Mortgage.
How SORA Affects Your Payments
For a S$800,000 HDB loan at 25 years, 3M SORA + 0.5% spread at 1.39% means ~S$3,800/month. A 0.5% rise adds S$250/month.
3. Fixed vs Floating Rates
Choose fixed for certainty if risk-averse; floating for potential savings if tolerant.[4]
| Aspect | Fixed Rate | Floating (SORA) |
|---|---|---|
| Stability | High (1-3 years lock) | Variable quarterly |
| Current Rates | 1.35-1.8%[4] | 0.89% + 0.3-0.7% |
| Best For | First-timers, stable income | Investors, optimists |
Insider tip: For Punggol HDB upgraders, fixed suits budgeting amid family costs.
4. Current Bank Rates and Trends
As of Feb 2026, promotional rates start at 1.35% fixed (DBS/OCBC).[4] SORA spreads tightened to 0.3% for top profiles.
- DBS: 3M SORA + 0.35%, 2-yr fixed 1.45%
- OCBC: 6M SORA + 0.40%, FD peg 1.38%
- UOB: 1.5% fixed promo for S$1M+
- HSBC/Standard Chartered: Competitive for expats
- Maybank/CIMB/RHB: Value for mid-tier loans
Compare all on Homejourney bank rates. Trends: Fixed competitive post-peak; refinancing up as banks undercut HDB 2.6%.[4]
5. Mortgage Rate Forecast 2026
Rate Prediction 2026
MAS forecasts core inflation 1-2%, GDP easing but resilient.[1] SORA projected to 1.0% Q1, 1.5% by 2027.[2] Global Fed cuts support easing to 2.5-3% range early, but AI capex may cap drops.[5]
Homejourney outlook: Floating advantageous if SORA <2%; fix if inflation ticks up. Risks: Geopolitics, oil prices.[1]
| Scenario | SORA Forecast | Mortgage Impact |
|---|---|---|
| Base Case | 1.0-1.5% | Stable payments ~2-2.5% |
| Easing | <1% | Floating wins |
| Tightening | 1.8%+ | Fixed protects |
6. Mortgage Planning Strategies
Assess risk: High tolerance? Go floating. Factor TDSR (60% debt cap), MSR for HDB. Use Homejourney's eligibility calculator.
- Check SORA trends on Homejourney.
- Compare banks: DBS vs UOB spreads.
- Simulate payments for 20-30 yr tenures.
- Lock promo before expiry.
- Reprice every 6-12 months.
Practical: For S$600K BTO in Sengkang, aim <2.2% total rate under TDSR.
7. Refinancing in a Changing Rate Environment
Refi if new rate < current -0.2%, within 2-3 yr lock-in. Costs: ~S$2K-5K fees. HDB owners: Banks <2.6% viable.[4]
Steps: 1) Check eligibility on Homejourney. 2) Submit multi-bank app via Singpass. 3) Compare offers. See SORA Rates Explained: How Singapore's Mortgage Benchmark Affects Your Home Loan ">SORA Rates Explained.
8. Homejourney Tools for Rate Planning
Homejourney builds trust with verified rates from DBS to Citibank. Features:
- Live SORA tracker (3M/6M).
- Side-by-side bank comparison.
- Singpass loan apps for instant verification.
- Multi-bank offers from one form.
- Property search within budget.
Start at https://www.homejourney.sg/bank-rates. Brokers guide safely.
FAQ
What are current interest rate trends in Singapore?
SORA at 0.89%, stable MAS policy, easing bias.[1][2]
Mortgage rate forecast 2026?
1.0-1.5% SORA base; total mortgages 1.5-2.5%.[2]
3M vs 6M SORA: Which to choose?
6M for less volatility; 3M for quick adjustments. Compare on Homejourney.
Best bank rates now?
Promos from 1.35%; check Homejourney daily.[4]
When to refinance?
If savings > fees, e.g., drop 0.3%+ on S$1M loan.
Does MAS set mortgage rates?
Indirectly via NEER; banks price off SORA.[1]
HDB vs bank loan 2026?
Banks lower for >S$800K; HDB stable at 2.6%.
Next Steps with Homejourney
Master interest rate trends Singapore and rate planning by visiting Homejourney bank rates. Calculate, compare, apply safely. Pair with property search for trusted journeys. Homejourney verifies data, listens to feedback, ensuring secure decisions.
Disclaimer: Not financial advice. Consult professionals. Rates as of Feb 2026; subject to change.[1][2][4]
