Singapore Interest Rate Trends and Mortgage Planning: Frequently Asked Questions
Singapore's interest rate trends in 2026 show easing with SORA at 0.89%, down from 0.98%, signaling stability for mortgage planning amid MAS's steady policy.[1]
This cluster article answers key questions on Singapore interest rate trends and mortgage planning: frequently asked questions, helping first-time buyers, refinancers, and investors make informed decisions. It connects to our pillar guide on Singapore Interest Rate Trends 2026: Mortgage Planning Guide | Homejourney ">Singapore Interest Rate Trends 2026: Mortgage Planning Guide for comprehensive coverage. Homejourney prioritizes your safety with verified data and transparent tools like our bank rates page.
What is SORA and How Does It Impact Mortgage Rates?
SORA, or Singapore Overnight Rate Average, is the volume-weighted average rate of unsecured overnight interbank SGD cash market transactions from 8am to 6:15pm, set by the Monetary Authority of Singapore (MAS).[5] Most floating mortgages now peg to 3-month or 6-month SORA plus a bank spread, replacing older SIBOR for better transparency.[3]
As SORA fell to 0.89% in Feb 2026 from 0.98%, monthly payments on floating loans decrease directly.[1] For a $800,000 HDB loan at 3M SORA + 0.7% spread, your rate drops to about 1.59%, saving roughly $150 monthly versus peaks.[3] Track live 3M and 6M SORA on Homejourney's bank rates page, updated daily.
The chart below shows recent interest rate trends Singapore over the past 6 months, illustrating SORA's downward trajectory:
As seen, rates eased post-2025 peaks, with MAS holding policy steady on Jan 29, 2026, amid resilient growth and 1-2% inflation forecasts.[1]
Fixed vs Floating Rates: Which is Better in 2026?
Fixed rates offer payment certainty (e.g., 1.8% p.a. for first 2-3 years from DBS, OCBC), ideal for risk-averse buyers like HDB upgraders.[3] Floating SORA-linked rates (1.35% promo starts) suit those betting on further cuts, but fluctuate monthly.[3]
| Type | Pros | Cons | Best For |
|---|---|---|---|
| Fixed | Stable payments; locks in low 2026 rates | Higher long-term if rates fall; repricing fees | First-time buyers, stable income |
| Floating (SORA) | Lower now (1.59%); benefits from cuts | Payment volatility; rises with SORA | Investors, high risk tolerance |
Compare DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank side-by-side on Homejourney bank rates. Use our mortgage calculator to test scenarios.
Mortgage Rate Forecast and Rate Prediction 2026
MAS projects SORA to hit 1.00% by Q1 2026 end and 1.50% in 2027, with easing from 2025 highs.[1] Fixed packages start below 1.8% for loans over $500k; floating at SORA + tight spreads (0.5-0.8%).[3] Refinancing surged as HDB owners beat 2.6% concessionary rates.[3]
Actionable steps for rate planning: 1) Assess TDSR (60% debt cap); 2) Lock spreads now; 3) Reprice every 2 years. Homejourney's multi-bank submission lets you apply once via Singpass for offers from all partners—faster, safer approvals.
5-Step Mortgage Planning Framework
- Check Eligibility: Use Homejourney's calculator for borrowing power under TDSR/MSR.
- Track Trends: Monitor MAS interest rate and SORA on our dashboard.
- Compare Banks: View DBS to Citibank rates at .
- Choose Type: Fixed for stability; floating for potential savings.
- Apply Securely: Singpass integration verifies income instantly.
For deeper SORA insights, see What is SORA? How It Impacts Your Singapore Mortgage | Homejourney ">What is SORA? How It Impacts Your Singapore Mortgage. Pair with property search to find HDB/condos in budget.
Frequently Asked Questions
What are current Singapore mortgage rates in 2026?
Floating: 3M SORA (0.89%) + 0.5-0.8% = 1.39-1.69%; Fixed: 1.35-1.8% promos.[1][3] Verify live at Homejourney. Disclaimer: Rates change; consult brokers.
Will interest rates rise in 2026?
Forecast: SORA to 1.00% Q1, 1.50% 2027 amid steady MAS policy.[1] Downward bias from global easing.
How does SORA affect my monthly payment?
For $1M loan at SORA+0.7%, 0.09% drop saves ~$60/month. Use our calculator.
Should I refinance my HDB loan?
Yes if bank offers <2.6%. Homejourney simplifies with one app for DBS-UOB offers.
How to plan for rate changes?
Build 6-month buffer; reprice timely. Homejourney tracks for you.
Homejourney builds trust through verified rates and user-first tools. Start planning at bank-rates or explore properties at search. For full guide, visit our pillar on Singapore Interest Rate Trends 2026: Mortgage Planning Guide | Homejourney ">Singapore Interest Rate Trends 2026.
