Singapore Mortgage Interest Rate Forecast 2026 What to Expect: Bank Rate Comparison Guide
Singapore's mortgage rates are forecasted to bottom out in Q2 2026 around 1% SORA before rising slightly to 1.39% by year-end, offering a window for locking in low rates.[1]
At Homejourney, we prioritize your financial safety by providing transparent tools to compare rates from DBS, OCBC, UOB and more, helping you make confident decisions in this trusted environment.
Singapore Mortgage Rate Forecast 2026: Key Predictions
The mortgage rate forecast 2026 points to stabilisation after significant declines in 2025. UOB predicts SORA rates will bottom at around 1% by Q2 2026, ahead of US Fed cuts, then edge up to 1.39% by December.[1] Current 3-year lows see fixed rates at 1.4-1.8% and SORA at 1.2% as of late 2025.[2]
Experts like DBS note SORA may have found its floor, with modest further easing possible but no large drops expected barring economic shocks.[2] This interest rate prediction Singapore 2026 follows global trends, with Singapore GDP growth at 2.6% supporting steady conditions.[1]
For first-time buyers or refinancers, this means acting soon on Bank Rates to secure rates before any uptick. Homejourney's real-time SORA tracker helps you time decisions perfectly.
SORA Prediction 2026: Understanding the Benchmark
SORA (Singapore Overnight Rate Average) is the key benchmark for most floating home loans in Singapore, published daily by ABS and used by MAS-regulated banks. 3-month compounded SORA has dropped from 3% in early 2025 to 1.2%, directly lowering monthly payments.[2]
In 2026, expect 3M SORA to hover near 1% mid-year before a slight rise.[1] 6M SORA offers more stability but typically 0.1-0.2% higher. Track live 3M and 6M SORA on Homejourney's bank rates page for daily updates.
The chart below shows recent interest rate trends in Singapore, illustrating SORA's downtrend and fixed rate movements:
As seen, rates have halved from 2025 peaks, but volatility remains—perfect for using Homejourney's mortgage calculator at https://www.homejourney.sg/bank-rates#calculator to model scenarios.
Fixed vs Floating Rates: 2026 Outlook and Pros/Cons
Mortgage rates going up down? Fixed rates (1.4-1.8%) lock in certainty for 2-5 years, ideal for risk-averse buyers like HDB upgraders.[2][3] Floating SORA-pegged rates track the benchmark, benefiting from further drops but risking rises post-Q2 2026.[1]
| Type | 2026 Forecast | Pros | Cons | Best For |
|---|---|---|---|---|
| Fixed | 1.4-1.8% stable[2] | Predictable payments | Higher initial rate; lock-in penalties | Families budgeting tightly |
| Floating (SORA) | ~1% then 1.39%[1] | Lower potential rates | Payment volatility | Investors with cash buffers |
Choose fixed if rates are rising post-Q2; floating if you expect prolonged lows. Homejourney helps assess via our eligibility calculator.
Bank Rate Comparison Guide 2026: DBS, OCBC, UOB and More
Compare rate outlook 2026 across Homejourney partners. Current indicative rates (as of early 2026):
- DBS: 3Y Fixed 1.55%, SORA +0.5% spread[2]
- OCBC: 5Y Fixed 1.4-1.7%, attractive for HDB switchers saving $4,100/year on $500k loan[2]
- UOB: Competitive promos ~1.35-1.78%[4]
- HSBC/Standard Chartered: 1.5-1.8% fixed, strong for expats
- Maybank/CIMB/RHB: SORA floating from 1.2% + margin
Spreads over SORA average 0.5-0.8%. Banks like DBS offer no-penalty early repayment.[2] View side-by-side on https://www.homejourney.sg/bank-rates and submit one Singpass-enabled application for offers from all.
Refinancing from HDB's 2.6% to bank loans is surging—OCBC saw 7x increase in 2025.[2] Use Homejourney for seamless multi-bank quotes.
Actionable Steps: Decision Framework for 2026 Rates
1. Assess risk tolerance: Fixed for stability, floating for savings potential.
2. Calculate affordability on Homejourney's tool—input income, see borrowing power under TDSR.
3. Compare banks now: Lows won't last; lock before Q2 bottom-out.[1]
4. Time refinancing: Switch if >0.5% savings, but note no HDB return.
5. Monitor SORA weekly via Homejourney.
For full strategies, see our pillar Singapore Mortgage Rate Forecast 2026: What to Expect | Homejourney . Pair with Projects for properties in budget via Property Search .
FAQ: Singapore Mortgage Interest Rate Forecast 2026
What is the mortgage rate forecast 2026 in Singapore?
SORA to bottom at 1% Q2, rise to 1.39% end-2026; fixed 1.4-1.8%.[1][2]
Will mortgage rates go up or down in 2026?
Modest downtrend early, then slight up; large drops unlikely.[2][3]
SORA prediction 2026?
Stabilise ~1% mid-year per UOB.[1]
Best bank for low rates 2026?
Compare DBS/OCBC/UOB on Homejourney—promos from 1.35%.[4]
Should I fix or float now?
Fix for certainty if risk-averse; float if tolerant. Use our calculator.
Disclaimer: Rates fluctuate; this is not financial advice. Consult professionals. Homejourney verifies data for your safety.
Ready for 2026? Compare rates and apply via Singpass on Homejourney's bank rates page. Build trust with transparent tools—start today.
