Singapore Mortgage Rate Forecast 2026: What to Expect & Homejourney Benefits

Singapore's mortgage rates are forecasted to bottom out by Q2 2026 around 1% SORA before a modest rise to 1.39% by year-end, driven by US Federal Reserve cuts.[1]

Fixed rates currently range from 1.45% to 1.55% for top banks like OCBC, SCB, and DBS, offering savings over HDB's 2.6% concessionary rate.[2][3]

This cluster article dives into the mortgage rate forecast 2026 and why applying via Homejourney maximizes safety, transparency, and competitive offers. It supports our pillar guide on Singapore Mortgage Rate Forecast 2026: What to Expect | Homejourney ">Singapore Mortgage Rate Forecast 2026: What to Expect with tactical advice for buyers and refinancers.

Current Singapore Mortgage Landscape (Early 2026)

Home loan rates have hit 3-year lows, with fixed packages at 1.4%-1.8% and 3M SORA at 1.2% as of late 2025.[2]

Banks like DBS offer 1.55% for 3-year fixed (no early repayment penalty), while OCBC reports sevenfold increase in HDB-to-bank switches, saving up to S$4,100 annually on a S$500,000 loan.[2]

Floating rates pegged to SORA provide flexibility but carry volatility risk. Homejourney's bank-rates page lets you track live 3M and 6M SORA rates daily, compare DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more side-by-side.

SORA Prediction 2026: Key Benchmark Insights

SORA (Singapore Overnight Rate Average) is the risk-free benchmark replacing SOR/SIBOR, reflecting actual interbank lending costs published by ABS.[4]

UOB predicts SORA stabilizes at ~1% by Q2 2026, then rises to 1.39% by December, outpacing US rates due to Singapore's 2.6% GDP growth.[1]

3M compounded SORA suits most home loans for quarterly resets; 6M offers slightly higher stability but less responsiveness. For a S$500,000 loan at 1.2% SORA + 0.5% spread, monthly payments are ~S$2,150—dropping to ~S$1,900 at 1% SORA.

The chart below shows recent interest rate trends in Singapore, illustrating SORA's downtrend and stabilization signals:

Rates have halved from 2025 peaks, but experts like DBS warn SORA may have found its floor barring economic shocks.[2]

Mortgage Rates Going Up or Down in 2026?

Expect modest further declines early 2026, then stabilization or slight uptick as Fed easing slows (only 0.25% cut projected).[2]

Fixed rates (2-5 year lock-ins) now compete aggressively: OCBC 1.45% (3Y), SCB 1.45% (2Y), DBS 1.55% (2Y).[3]

Floating rates track SORA closely, ideal if you anticipate lows persisting. Banks intensify Q1 promotions with rebates and legal subsidies.[2]

|Bank|Lock-in|Year 1 Rate|Typical Spread Post-Lock-in|
|-----|--------|------------|---------------------------|
|OCBC|3Y|1.45%|SORA + 1.7%|
|SCB|2Y|1.45%|SORA + 1.7%|
|DBS|2Y|1.55%|SORA + 1.6%|
|RHB|2Y|1.53%|SORA + 1.6%|[3]

Homejourney simplifies this: Use our mortgage calculator for instant payments and eligibility checks.

Fixed vs Floating: Which for 2026 Rate Outlook?

Fixed: Certainty for risk-averse buyers (e.g., HDB upgraders). Pros: Predictable payments; Cons: Higher post-lock-in rates.
Floating (SORA): Lower initial costs, benefits from cuts. Pros: Flexibility; Cons: Volatility if rates rise.

Choose fixed if rates outlook 2026 signals upticks; floating for optimistic scenarios. Assess risk tolerance: Stable income? Opt floating. Family budgeting? Go fixed.[2]

Refinancers: Bank rates now beat HDB's 2.6%—but note no HDB return post-switch.[2] See our Singapore Mortgage Rate Forecast 2026: Bank Comparison Guide | Homejourney ">bank comparison guide.

Benefits of Applying via Homejourney: Safety & Savings

Homejourney prioritizes your safety with verified bank partners, Singpass integration for instant income verification, and transparent comparisons—no hidden fees.

One-Click Multi-Bank Apps: Submit once via Homejourney bank-rates, get personalized offers from DBS, OCBC, UOB, HSBC, Maybank, CIMB, RHB, and more.
Live Tracking: Monitor SORA prediction 2026 and rates in real-time to time applications perfectly.
Expert Guidance: Connect with Homejourney Mortgage Brokers for tailored advice, boosting approval odds—link to Singapore Mortgage Rate Forecast 2026: Improve Approval Odds | Homejourney ">improve approval odds guide.
Seamless Process: Auto-fill with Singpass, calculate affordability instantly, find budget-fit properties via property search.

Users save time and secure better rates in our trusted ecosystem, backed by customer feedback-driven improvements.

Actionable Steps for 2026 Mortgage Decisions

1. Check eligibility on Homejourney's calculator.

2. Compare live rates across 10+ banks.

3. Apply via Singpass for fastest approvals.

4. Time refinancing pre-Q2 bottom-out.[1]

5. Consult broker if TDSR near limits—especially with 2026 cooling measures via Cooling Measures 2026: Bank Rates Guide | Homejourney ">cooling measures guide.

Disclaimer: Rates fluctuate; this is not financial advice. Consult professionals. Data from MAS, UOB, CNA as of Feb 2026.[1][2]

FAQ: Singapore Mortgage Interest Rate Forecast 2026

What is the interest rate prediction Singapore 2026? SORA ~1% Q2 low, 1.39% year-end; fixed ~1.4-1.8%.[1][2]

Are mortgage rates going up or down in 2026? Slight down early, then stabilize/up modestly post-Q2.[1][2]

Should I fix or float for rate outlook 2026? Fix for certainty; float to capture lows if risk-tolerant.[2]

How does Homejourney help with mortgage applications? Multi-bank submissions, live SORA tracking, Singpass speed—safer and faster.

Best banks for 2026 rates? OCBC/DBS/SCB at 1.45-1.55%; compare on Homejourney.[3]

Ready for the best Singapore Mortgage Interest Rate Forecast 2026 What to Expect: Benefits of Applying via Homejourney? Start at Homejourney bank-rates today. Explore our pillar on Singapore Mortgage Rate Forecast 2026: What to Expect | Homejourney ">Singapore Mortgage Rate Forecast 2026 for full insights.