Singapore Interest Rate Trends 2026: Mortgage Planning via Homejourney
Singapore's benchmark interest rate, the Singapore Overnight Rate Average (SORA), stands at 0.89% as of February 2026, down from 0.98% previously, signaling a stabilizing trend amid MAS policy steadiness.[1]
Applying via Homejourney offers safe, transparent mortgage planning with live SORA tracking, multi-bank comparisons, and Singpass-enabled applications for faster approvals. This cluster dives into Singapore interest rate trends and mortgage planning: benefits of applying via Homejourney, linking to our pillar guide on comprehensive home financing strategies.
Current Singapore Interest Rate Trends
The Monetary Authority of Singapore (MAS) maintained its S$NEER policy band unchanged in January 2026, with SORA at 0.89% reflecting resilient growth and contained inflation projected at 1%-2% for the year.[1][2]
Interest rates averaged 1.25% from 1988-2026, with forecasts pointing to 1.00% by quarter-end and 1.50% by 2027.[1] Floating rates tied to SORA have eased, making 2026 a strategic time for mortgage planning.
Homejourney's bank rates page tracks live 3M SORA and 6M SORA daily, helping users time applications amid these interest rate trends Singapore.
SORA Deep Dive: Impact on Mortgage Payments
SORA, the Singapore Overnight Rate Average, is the primary benchmark for floating home loans, replacing SIBOR for greater transparency.[3] It reflects actual interbank borrowing costs, directly influencing monthly repayments.
3M SORA offers quarterly resets for quicker adjustments to falling rates, while 6M SORA provides slightly more stability.[3] For a $800,000 HDB loan at 0.89% SORA plus 0.7% bank spread (total ~1.59%), monthly payments are about $3,800—lower than 2024 peaks above 3%.[1][4]
The chart below shows recent interest rate trends in Singapore, highlighting SORA movements over the past 6 months:
As seen in the chart, SORA dipped from 0.98% to 0.89%, benefiting floating rate borrowers with reduced payments.[1]
Fixed vs Floating Rates: Pros, Cons, and Who Should Choose What
Fixed rates lock in payments (e.g., 1.8% p.a. for first 2-3 years from banks like DBS or OCBC), ideal for risk-averse first-time HDB buyers seeking predictability.[3]
Floating SORA rates (e.g., 0.89% SORA + 0.6-0.9% spread = ~1.5-1.8%) suit investors comfortable with fluctuations, potentially saving more if rates fall further.[1][3]
| Type | Pros | Cons | Best For |
|---|---|---|---|
| Fixed | Stable payments Budget certainty | Higher initial rates Reversion risk | First-time buyers, HDB upgraders |
| Floating (SORA) | Lower potential costs Tracks market drops | Payment variability Rate rise risk | Investors, stable income earners |
Assess your risk tolerance: Conservative? Go fixed. Optimistic on rate prediction 2026? Choose SORA-linked.[1]
Mortgage Rate Forecast and Rate Planning Strategies
Mortgage rate forecast for 2026 anticipates mild easing, with SORA around 1.00-1.50% influenced by global trends and MAS stability.[1][6] Banks like UOB, HSBC, and Standard Chartered offer competitive spreads from 0.6% on qualifying loans over $500,000.[3]
For rate planning, monitor TDSR (capping payments at 55% of income) and MSR (30% for HDB). Use Homejourney's mortgage calculator to simulate scenarios.
- Check live rates on Homejourney bank-rates.
- Compare DBS, OCBC, UOB, HSBC, Maybank, CIMB offers side-by-side.
- Apply via Singpass for instant verification—one form, multiple bank quotes.
- Time refinancing if your current rate exceeds 2.6% HDB benchmark.[3]
Read more in our Singapore Interest Rate Trends 2026: Mortgage Planning Guide | Homejourney ">Singapore Interest Rate Trends 2026: Mortgage Planning Guide.
Benefits of Applying via Homejourney: Safety and Trust First
Homejourney prioritizes user safety and trustworthiness, verifying data and offering transparent comparisons from partner banks: DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank.
Key benefits include:
- Multi-bank submission: One application yields personalized offers, saving time.
- Singpass integration: Secure, instant income/employment verification.
- Real-time tools: Track MAS interest rate and SORA, calculate affordability instantly.
- Expert guidance: Connect with Homejourney Mortgage Brokers for tailored advice.
Unlike fragmented searches, Homejourney creates a safe, trusted environment for property transactions. Pair your loan with properties via property search or check market data at Projects ">projects directory.
Disclaimer: Rates fluctuate; consult professionals. Homejourney provides tools, not financial advice.
FAQ: Singapore Interest Rate Trends and Mortgage Planning
What is the current SORA rate in Singapore?
SORA is 0.89% as of February 2026, expected to reach 1.00% by quarter-end.[1]
How do interest rate trends affect my home loan?
Falling SORA lowers floating payments; fixed rates offer stability amid mortgage rate forecast easing.[3]
Should I fix or float my mortgage in 2026?
Fix for certainty if risk-averse; float to benefit from projected drops. Use Homejourney's calculator.[1]
What are Homejourney's mortgage benefits?
Compare all major banks, apply once via Singpass, track live rates securely at bank-rates.
When is the best time for refinancing?
Now, with SORA at lows and banks offering <1.8% packages. Check What is SORA & Mortgage Impact: Homejourney Benefits ">What is SORA & Mortgage Impact.[3]
Master Singapore interest rate trends and mortgage planning: benefits of applying via Homejourney today. Start with our bank rates comparison for confident decisions in a trusted platform. Explore our pillar on full mortgage strategies for deeper insights.
