Singapore Interest Rate Trends and Mortgage Planning: Frequently Asked Questions
Singapore's interest rates have stabilized around 1.05% for the Singapore Overnight Rate Average (SORA) as of early 2026, with forecasts suggesting a potential dip to 1.00% this quarter before trending toward 1.50% in 2027.
This cluster article addresses the most common questions from first-time buyers, refinancers, and investors on interest rate trends Singapore and mortgage rate forecast. It builds on our pillar guide, Singapore Interest Rate Trends 2026: Mortgage Planning Guide by Homejourney, offering tactical FAQs and steps for confident decisions. At Homejourney, we prioritize your safety with verified data and transparent tools like our bank rates comparison at https://www.homejourney.sg/bank-rates.
What is SORA and How Does It Impact Your Mortgage?
SORA, or Singapore Overnight Rate Average, is the key benchmark for most floating-rate home loans in Singapore. Published daily by the Monetary Authority of Singapore (MAS), it reflects the volume-weighted average of unsecured overnight interbank SGD borrowing rates between 8am and 6:15pm.[6]
Banks add a spread (typically 0.5%-1.0%) to 3-month or 6-month compounded SORA for your effective rate. In January 2026, SORA ranged from 0.93% to 1.45%, down sharply from 3.41%-3.82% in January 2024.[2] This drop has lowered monthly payments—for a S$500,000 loan over 25 years, a 1.2% SORA + 0.7% spread means about S$2,300/month, versus S$3,200 at 3.5% peaks.
The chart below shows recent interest rate trends Singapore over the past 6 months, highlighting SORA's downward trajectory:
As seen in the chart, rates have stabilized post-2025 easing, influenced by MAS's unchanged policy and global factors like US Fed cuts.[1][3]
Fixed vs Floating Rates: Which is Better in 2026?
Fixed rates lock your rate (e.g., 1.48%-1.75% for 2-3 years) for predictability, ideal for risk-averse buyers like HDB upgraders.[4] Floating rates (SORA-based, averaging 1.47%-1.67%) fluctuate but often stay lower long-term for tolerant borrowers.
| Type | Pros | Cons | Best For |
|---|---|---|---|
| Fixed | Payment stability; protects against rises | Higher initial rates; refinancing costs | First-time buyers, short-term plans |
| Floating (SORA) | Lower averages; flexible | Rate volatility; payment uncertainty | Investors, long-term holders |
Assess your risk: Conservative? Choose fixed from DBS or OCBC. Optimistic on rate prediction 2026? Go SORA via Homejourney's comparison tool.
Mortgage Rate Forecast for 2026: What to Expect
MAS kept policy unchanged in January 2026, raising inflation to 1.0-2.0% amid resilient growth (5.7% Q4 2025 GDP).[1] SORA is forecast at 1.00% end-Q1, potentially bottoming at 1% mid-year before rebounding to 1.3%-1.4%.[3][4]
DBS expects net interest income pressure from falling rates (NIM at 1.93% Q4 2025).[2] For planning: If buying a S$1M condo, lock fixed now if rates rise; refinance later via Homejourney if SORA dips further. Track live 3M/6M SORA on https://www.homejourney.sg/bank-rates.
Actionable Steps for Rate Planning:
- Check eligibility: Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator factoring TDSR (60% debt cap).
- Compare banks: DBS, OCBC, UOB, HSBC offer 1.4%-1.8%; submit one app via Singpass for multi-bank offers.
- Time your lock: Monitor MAS interest rate announcements (Apr/Oct reviews).
- Refinance if >0.5% savings: Break costs ~1.5% of loan; our brokers guide you.
Homejourney Tools for Safe Mortgage Planning
Homejourney verifies rates from partners like DBS, UOCB, UOB, HSBC, Standard Chartered, Maybank, CIMB—compare side-by-side safely. Apply once via Singpass for instant income verification and personalized quotes. Our platform ensures transparency, building trust as Singapore's safest property hub.
Link your budget to properties at https://www.homejourney.sg/search or explore projects at Projects Directory . For post-purchase, check Aircon Services .
FAQ: Singapore Interest Rate Trends and Mortgage Planning
Q1: What is the current SORA rate and 2026 forecast?
SORA is 1.05% (latest), expected at 1.00% soon, rising to 1.50% by 2027. Track daily on Homejourney.[3]
Q2: Should I fix my rate now or wait for mortgage rate forecast drops?
With stabilization, fix if risk-averse; floating suits if you review yearly. Use our calculator for scenarios.[4]
Q3: How does MAS policy affect my rate planning?
MAS uses S$NEER band, not direct rates—policy holds steady, supporting mild SORA ease.[1]
Q4: Which banks have best rates for HDB loans?
DBS/OCBC lead at ~1.5% effective; compare all 10+ on Homejourney's verified page.
Q5: Can I refinance multiple times in 2026?
Yes, but mind ABSD/TDSR; Homejourney simplifies with one submission.
Disclaimer: Rates fluctuate; this is not financial advice. Consult Homejourney brokers or advisors. Data as of Feb 2026 from MAS, banks.
Ready to plan? Visit https://www.homejourney.sg/bank-rates for live rates, calculators, and secure applications. Explore our pillar guide for full Singapore Interest Rate Trends and Mortgage Planning: Frequently Asked Questions coverage: Singapore Interest Rate Trends 2026: Mortgage Planning Guide by Homejourney .
