Singapore Mortgage Interest Rate Forecast 2026 What to Expect: Frequently Asked Questions
Experts forecast Singapore mortgage rates to bottom out around 1% SORA in Q2 2026 before a gradual rise to 1.39% by year-end, offering a key window for refinancing or new loans.[1][2][3]
This cluster article dives into the Singapore mortgage interest rate forecast 2026 what to expect: frequently asked questions, building on our pillar guide Singapore Mortgage Rate Forecast 2026: What to Expect | Homejourney Singapore Mortgage Rate Forecast 2026: What to Expect | Homejourney . At Homejourney, we prioritize your safety with verified data and transparent tools like our bank rates comparison at https://www.homejourney.sg/bank-rates.
Current Singapore Mortgage Rates and 2026 Mortgage Rate Forecast 2026
Fixed-rate home loans have dropped to 1.4-1.8% p.a., their lowest in three years, while 3-month SORA sits at around 1.2%.[2] Banks like DBS offer 2-year fixed at 1.55%, OCBC at 1.45% for 3 years, and Standard Chartered at 1.45% for 2 years.[4]
UOB predicts SORA will hit a floor of 1% in Q2 2026, then climb to 1.39% by December, influenced by modest US Fed cuts.[1][3] This interest rate prediction Singapore 2026 suggests rates may stay low early in the year but rise later, per CNA analysis.[2]
Homejourney tracks live 3M and 6M SORA daily on our bank rates page. Use our mortgage calculator at https://www.homejourney.sg/bank-rates#calculator to see how a 1% SORA shift impacts your S$500,000 loan payments.
The chart below shows recent interest rate trends in Singapore:
Rates have stabilized near lows, but expect modest upward pressure post-Q2.[1][2]
SORA Prediction 2026: 3M vs 6M and What It Means for You
SORA, the Singapore Overnight Rate Average, is the key benchmark for floating-rate mortgages, replacing older models like fixed deposits.[2] 3M compounded SORA reflects short-term trends, currently ~1.2%, while 6M SORA offers slight stability but similar levels.
For 2026, SORA prediction 2026 points to a Q2 bottom at 1%, per UOB, before gradual hikes tied to global cues like Fed policy.[1][3] On a S$1M loan over 25 years, dropping from 1.2% to 1% saves ~S$200 monthly; a rise to 1.39% adds ~S$150.
Fixed rates from DBS (1.55%), OCBC (1.45%), UOB, HSBC, and Maybank now beat HDB's 2.6% concessionary rate, driving switches.[2] Insider tip: HDB upgraders in areas like Punggol or Tengah should compare via Homejourney before lock-ins end to avoid penalties.
Mortgage Rates Going Up or Down in 2026? Fixed vs Floating Decision Framework
Mortgage rates going up down outlook: Downward pressure eases in Q2 2026, then up modestly.[1][2] Fixed rates lock stability (pros: predictable payments; cons: higher initial rates), ideal for risk-averse first-time buyers. Floating SORA loans suit those betting on lows (pros: lower now; cons: volatility).
| Type | Pros | Cons | Best For |
|---|---|---|---|
| Fixed (e.g., DBS 1.55% 2Y) | Stable payments | Can't benefit from drops | Families budgeting tightly |
| Floating SORA +0.5% | Lower current rates | Rate risk post-Q2 | Investors timing lows |
Assess risk: If your income is stable (e.g., civil servant), fixed works. Volatile jobs? Monitor SORA on Homejourney. Refinance HDB loans now—OCBC saw 7x switches in 2025.[2]
Actionable Steps: Time Your 2026 Mortgage Decision with Homejourney
- Compare rates: Check DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB on https://www.homejourney.sg/bank-rates—side-by-side, updated daily.
- Calculate affordability: Use our eligibility calculator factoring TDSR and MSR.
- Apply safely: Submit one app via Singpass—get offers from all partners instantly, no hassle.
- Track trends: Follow rate outlook 2026 with our live SORA tools; link properties in budget via https://www.homejourney.sg/search.
- Refinance smartly: Act in Q1-Q2 2026 window; consult Homejourney brokers for personalized advice.
Disclaimer: Rates fluctuate; this is not financial advice. Verify with MAS guidelines and professionals. Homejourney verifies data for your trust.
Singapore Mortgage Interest Rate Forecast 2026 What to Expect: Frequently Asked Questions
Will mortgage rates rise in 2026?
Yes, after bottoming at ~1% SORA in Q2, expect gradual rise to 1.39% by year-end, per UOB and CNA experts.[1][2][3] Banks may keep promotions early-year.
Should I switch from HDB to bank loan now?
Bank rates (1.45-1.55%) beat HDB's 2.6%; save S$4,100 yearly on S$500k loan.[2] Use Homejourney's tool but note no HDB return option.
Fixed or floating for 2026 rate outlook 2026?
Fixed for certainty if risk-averse; floating if expecting Q2 lows. Compare on Homejourney.[4]
How does Fed impact Singapore rates?
Singapore follows Fed cues; one 0.25% cut expected, limiting big drops.[2] See our Fed analysis: Fed Rate Cuts 2026: Singapore Mortgage Impact & Homejourney Benefits .
Best time to refinance in 2026?
Q1-Q2 before rise; lock fixed rates now. Track via Homejourney for safety.[1]
Ready for 2026? Start with Homejourney's secure bank rates comparison and pillar guide for full insights. Your trusted partner for safe property decisions.
