Singapore Mortgage Interest Rate Forecast 2026: What to Expect
This definitive guide from Homejourney delivers the most comprehensive analysis of the mortgage rate forecast 2026 in Singapore. As your trusted partner prioritizing user safety and transparency, we synthesize expert forecasts, historical trends, and practical advice to empower homebuyers, refinancers, and investors. Whether you're eyeing an HDB upgrade or private property investment, understand the interest rate prediction Singapore 2026, SORA prediction 2026, and if mortgage rates are going up or down.
With rates at 3-year lows, 2026 presents critical opportunities—but also risks. Homejourney's real-time tools like our bank rates comparison let you track live SORA and compare DBS, OCBC, UOB, and more securely. Disclaimer: This is educational content, not financial advice. Consult professionals for personalized guidance.
Executive Summary: Rate Outlook 2026
Singapore's mortgage rates are at 3-year lows, with SORA around 1.0-1.2% and fixed packages at 1.4-1.8%.[2] Experts like UOB forecast rates bottoming in Q2 2026 at ~1%, then rising to 1.39% by year-end.[1][3] This creates a narrow window for locking in low rates before potential upticks tied to US Fed moves.
Key takeaway: Act in Q1-Q2 2026 for refinancing or new loans. Homejourney verifies data from official sources like MAS, ensuring you make confident, safe decisions. Track everything on our bank-rates page.
Current Mortgage Rates in Singapore (Early 2026)
As of February 2026, rates have halved from 2025 peaks. Fixed-rate loans range 1.4-1.8% (depending on quantum), while floating SORA-pegged loans track at ~1.2% + spread.[2] Banks compete aggressively with promotions like cash rebates and legal subsidies, especially in Q1.
Here's a snapshot of top packages for a S$500,000 loan (indicative, check Homejourney for live updates):
| Bank | Lock-in | Year 1 Rate | Subsequent |
|---|---|---|---|
| OCBC | 3 Years | 1.45% | 1M SORA + 0.45% |
| SCB | 2 Years | 1.45% | 1.55-2.0% |
| DBS | 2 Years | 1.528% | 1.628-1.928% |
| RHB | 2 Years | 1.527% | 2.177% |
| Maybank | 2 Years | 1.878% | 2.178% |
Source: Aggregated from bank offers; rates vary by profile.[5] Use Homejourney's mortgage calculator to personalize.
SORA Deep Dive: Singapore's Primary Benchmark
SORA (Singapore Overnight Rate Average) is the volume-based overnight rate published daily by MAS, replacing SIBOR for transparency. Most floating loans peg to 3M or 6M compounded SORA + bank spread (0.3-0.7%).[4]
3M SORA reacts faster to market changes; 6M offers more stability. Current 3M SORA: ~1.2%, down from 3% in early 2025.[2] Historical trends show peaks in 2023 (4%+), now at lows since 2022.
The chart below shows recent SORA trends to visualize movements:
Rates have stabilized post-2025 Fed cuts, but volatility persists. Track live 3M/6M SORA on Homejourney's bank-rates page, updated daily for precise timing.
Fixed vs Floating Rates: Which for 2026?
Fixed rates lock payments (e.g., 2-5 years at 1.4-2.2%), ideal for budgeting. Floating (SORA) follow market, cheaper now but riskier if rates rise.[4]
| Factor | Fixed Rate | Floating (SORA) |
|---|---|---|
| Stability | High (predictable payments) | Low (market-linked) |
| Current Cost | 1.4-1.8% | 1.2% + 0.5% spread |
| 2026 Suitability | Lock low now (pre-rise) | Benefit if bottom holds |
| Risk | Miss further drops | Rises post-Q2 |
First-time buyers prefer fixed for safety; investors opt floating for flexibility. Assess via Homejourney's tools.
Mortgage Rate Forecast 2026: Detailed Predictions
UOB predicts SORA bottoms at 1% in Q2 2026, rising to 1.39% by Dec—driven by Fed's modest cuts (one 25bps expected).[1][3] CNA experts note further declines modest; SORA may floor soon.[2]
Quarterly Outlook:
- Q1: 1.0-1.2% (competitive promotions)
- Q2: ~1% bottom—prime refinancing window
- Q3-Q4: Gradual rise to 1.4%+ (Fed stabilization)
Homejourney analyzes MAS data and bank trends for this interest rate prediction Singapore 2026. See related: Fed Rate Cuts 2026: Singapore Mortgage Impact & Homejourney Benefits
Key Economic Factors Influencing 2026 Rates
Singapore tracks US Fed closely; Powell signals no hikes, but only marginal easing.[2] Local GDP: 2.6% growth (down from 4.8%).[3] Cooling measures impact via TDSR (60% debt cap).[4]
Insider tip: Watch MAS policy statements—shifts precede rate changes. Homejourney links to verified sources for transparency.
Global risks: US election, inflation. If Fed cuts more, SORA dips further; delays mean quicker rises post-Q2.[1]
Decision Framework: Should Rates Go Up or Down for You?
1. Risk Tolerance: Conservative? Fix now. Aggressive? Float for potential savings.
2. Loan Quantum: Larger loans amplify savings (e.g., S$500k switch saves S$4,100/year vs HDB).[2]
3. Timeline: Buying soon? Lock fixed. Long-term? Monitor SORA.
Use this checklist:
- Calculate affordability on Homejourney calculator
- Compare 5+ banks side-by-side
- Apply via Singpass for instant verification
Positioned as your safe hub, Homejourney prioritizes verified data.
Refinancing in 2026: Step-by-Step Guide
With bank rates < HDB's 2.6%, switching surges (OCBC: 7x in 2025).[2] Steps:
- Check Eligibility: TDSR, LTV (75-90%). Use Homejourney calculator.
- Compare Rates: Via Homejourney—DBS, OCBC, UOB, HSBC, etc.
- Submit Multi-Bank App: One form, multiple offers via Singpass.
- Time It: Q1-Q2 before rises.[1]
- Exit Penalty: Avoid if selling soon.
OCBC/DBS report 7-13x uptake. Related: Cooling Measures 2026: Bank Rates Guide | Homejourney
HDB Loans vs Bank Loans: 2026 Comparison
HDB: Fixed 2.6% (CPF OA +0.1%), stable but higher now. Banks: Lower (1.5%), but floating risk. Switch irreversible.
| Aspect | HDB Loan | Bank Loan |
|---|---|---|
| Rate | 2.6% fixed | 1.4-1.8% promo |
| Flexibility | Low | High (repricing) |
| 2026 Advice | Keep if risk-averse | Switch for savings |
For HDB upgraders, explore Homejourney property search post-financing.
Homejourney: Your Trusted Partner for 2026 Rates
Homejourney builds trust through verified rates, Singpass apps, and multi-bank submissions. Features:
- Live SORA tracking (3M/6M)
- Side-by-side comparisons (11 banks)
- Instant calculators
- Mortgage brokers for guidance
Start at https://www.homejourney.sg/bank-rates. After securing loans, check projects directory or aircon services for maintenance.
Next steps: Compare rates today, apply securely, buy confidently with Homejourney.
FAQ: Singapore Mortgage Rates 2026
What is the mortgage rate forecast 2026 in Singapore?
Rates bottom Q2 at ~1% SORA, rise to 1.39% end-year.[1][3]
SORA prediction 2026?
Stabilizes ~1% mid-year, gradual uptick.[1]
Are mortgage rates going up or down in 2026?
Down to bottom Q2, then up modestly.[2]
Best banks for low rates 2026?
OCBC, SCB at 1.45%; compare on Homejourney.[5]
Should I refinance now?
Yes, if bank rates < current—use Q1-Q2 window.[1]
Fixed or floating for 2026 rate outlook?
Fixed for stability pre-rise; floating if optimistic.[4]
How does Fed affect Singapore rates?
Singapore follows; expect 25bps cut impact.[2]
HDB vs bank loan 2026?
Banks cheaper now, but assess risk.[2]
Where to track rates safely?
Homejourney's verified bank-rates page.
More FAQs in Cooling Measures 2026 Impact on Financing: Homejourney FAQ . Homejourney listens to feedback for continuous improvement.
