Singapore SORA Rate Outlook 2026: Bank Comparison Guide by Homejourney

Singapore SORA Rate Outlook 2026 What Homeowners Should Know: Bank Rate Comparison Guide – in 2026, most analysts expect SORA to hover near 1.0%–1.4%, meaning home loan rates are likely to stay relatively low but may have already bottomed out, so homeowners should lock in packages that balance stability with flexibility, rather than trying to time the exact bottom.[1][3][6][7][2]

This cluster guide builds on our main pillar article “Singapore SORA Rate Outlook 2026: What Homeowners Should Know | Homejourney” Singapore SORA Rate Outlook 2026: What Homeowners Should Know | Homejourney and zooms in on practical bank rate comparison, fixed vs floating choices, and how to use Homejourney tools safely to choose the right mortgage for 2026.

Understanding SORA and Why It Matters in 2026

SORA (Singapore Overnight Rate Average) is the benchmark interest rate that most new floating home loans in Singapore are pegged to.[8] It is the volume‑weighted average of actual overnight interbank SGD borrowing transactions between 8am and 6.15pm each business day.[8]

Since MAS uses the S$NEER exchange rate rather than a policy rate, SORA is shaped mainly by global liquidity and US Federal Reserve policy, rather than direct MAS rate decisions.[1][2] Trading Economics data shows SORA around 1.02–1.03% in early 2026, with longer‑term projections around 1.5% by 2027, suggesting a modest upward drift from current lows.[2]

UOB’s 2026 outlook – widely quoted in local media – expects SORA to bottom around 1% in Q2 2026, then rise to about 1.39% by end‑2026, in line with continued but moderate US rate cuts and a Singapore GDP growth forecast of about 2.6%.[1][3][6][7] For homeowners, this implies that 2026 looks like a low‑rate window, but not a forever‑low environment.

On the ground, you can already feel this if you chat with bankers at DBS or OCBC branches in areas like Tampines Hub or Jurong Point – they’re highlighting that today’s packages are much cheaper than 2022–2023, yet also reminding clients that rates may not fall dramatically further.

The chart below shows recent interest rate trends in Singapore to visualise how SORA has softened into 2026:

From this kind of trend, many Homejourney users in estates like Punggol, Bishan and Clementi are shifting from pure floating to either fixed or hybrid strategies to protect themselves if rates creep up again.

3M SORA vs 6M SORA in 2026: Key Differences for Homeowners

Most SORA‑pegged mortgages use either 3‑Month Compounded SORA (3M SORA) or 6‑Month Compounded SORA (6M SORA). Both are backward‑looking compounded averages of daily SORA over the respective periods, published by MAS.[8]

In practical terms:

3M SORA: resets every 3 months – reacts faster to market changes, so your instalment can move more frequently.
6M SORA: resets every 6 months – moves more slowly, giving slightly more payment stability but lagging rate cuts and hikes.

In a 2026 environment where SORA is believed to be near its floor and may climb gently later in the year, a 3M SORA package could benefit you slightly more if rates stay low for longer, while a 6M SORA package may shield you a bit if the rise is quicker than expected.

For example, imagine a $700,000 loan with 25 years remaining on a typical SORA package:

3M SORA at 1.05% + bank spread 0.7% ≈ 1.75% effective rate
6M SORA at 1.10% + bank spread 0.7% ≈ 1.80%–1.85% effective rate

At around 1.75%, your monthly payment is roughly $2,900–$3,000. At 2.25% (if SORA and spreads rise by around 0.5 percentage points), that monthly can jump by about $150–$180. Homejourney’s mortgage calculator Mortgage Rates lets you plug in different SORA scenarios so you can see the impact on your own numbers instantly.

2026 Interest Rate Outlook Singapore: What Forecasts Say

To make sense of the interest rate outlook Singapore 2026, it helps to combine several credible sources:

UOB forecast: SORA bottoming at about 1% by Q2 2026 and rising to about 1.39% by year‑end, ahead of US rates.[1][3][7]
Trading Economics: SORA seen around 1.0% in the near term and trending toward 1.5% in 2027.[2]
Local media: Commentary notes that SORA has already fallen sharply from around 3% in early 2024–2025 to around the low‑1% range and may be near a floor.[5][6]

This consensus suggests a low but not ultra‑low rate environment. Home loan packages in 2026 from banks like DBS, OCBC, UOB, HSBC and Standard Chartered are therefore likely to sit in the roughly 1.7%–2.4% range for competitive SORA‑pegged offers, depending on the bank spread and promotions. Exact figures move week to week, so always confirm live numbers on Homejourney’s bank rates page at Bank Rates .

One important insight from MAS’ own outlook is that core inflation is projected around 0.5–1.5% going into 2026, which reduces pressure for significantly higher rates as long as growth stays moderate and stable.[2] That’s why many homeowners in mature estates like Toa Payoh and Queenstown are using this period to refinance out of older 3%+ packages signed during the post‑pandemic spike.

For a deeper macro discussion, you can also refer to coverage in The Straits Times and Business Times for 2026 property and interest‑rate outlooks Straits Times Housing News Business Times Property .

Fixed vs Floating in 2026: Which Mortgage Type Suits You?

With SORA near its projected floor, the classic question returns: fixed vs floating. Here is a simple, homeowner‑friendly comparison for 2026.

Feature	Fixed‑Rate Package	SORA‑Pegged Floating Package
Typical 2026 headline rate (first 2–3 years)	About 1.90%–2.40% p.a. (varies by bank & tenure)	About 1.60%–2.20% p.a. (3M/6M SORA + spread)
Monthly instalment stability	Very stable during lock‑in	Can change every 3 or 6 months
Benefit if SORA falls further	No – you stay at the fixed rate	Yes – instalments will trend lower
Risk if SORA rises faster than expected	Limited during lock‑in	Higher instalments, more budgeting risk
Best for	Owners who prioritise certainty (e.g. young families, retirees)	Owners comfortable with some volatility, watching SORA closely

Many 2026 buyers in BTO projects around Tengah, Bukit Batok West and Tampines are choosing 2‑ to 3‑year fixed packages for stability, especially if their household budget is tight. Investors with multiple condos in city‑fringe areas like Geylang or Kallang often prefer SORA‑pegged loans, betting that rates will stay manageable and they can refinance quickly if needed.

Risk profile rule of thumb:

If a $200–$300 monthly swing will strain your cashflow, lean towards fixed.
If you have a 6–12 month emergency fund and rental income buffer, a floating SORA package can be acceptable.

For more help weighing this, see our related article “SORA Mortgage Rates 2026: Bank Comparison Guide by Homejourney” SORA Mortgage Rates 2026: Bank Comparison Guide by Homejourney .

Comparing 2026 Bank Mortgage Packages Safely

In 2026, the main banks – DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank – are all competing aggressively on home loans. Rather than walking from branch to branch in Raffles Place or Orchard, you can safely compare them side‑by‑side on Homejourney’s bank rates page at Bank Rates .

When comparing packages, focus on:

Reference rate: 3M SORA vs 6M SORA vs fixed.
Bank spread / margin: e.g. SORA + 0.70% vs SORA + 0.85% – a small difference adds up over 25–30 years.
Lock‑in period: common tenors are 2 or 3 years; shorter lock‑ins give more flexibility if SORA behaves differently from forecasts.
Free conversion or repricing options: some banks allow you to switch package types after the lock‑in with reduced fees.
Subsidies: legal subsidy, valuation subsidy, or limited‑time cash rebate (typical in early‑year campaigns).

Homejourney verifies rate data directly with banks where possible and updates frequently so that users are not relying on outdated brochures. This is especially important because some promotional rates only appear for a few weeks and may not be widely advertised outside of direct channels.

Insider tip: In mature HDB estates like Ang Mo Kio or Bedok, where many flats crossed their 5‑year MOP before 2022, a large wave of owners are now refinancing out of high‑rate packages. Banks sometimes run quiet, area‑targeted campaigns via mortgage specialists. Checking live rates on Homejourney regularly helps you catch these limited‑time offers without waiting for a cold call.

A Simple Decision Framework for 2026 Homeowners

Use this structured approach when choosing between SORA and fixed packages for 2026.

Step 1: Assess Your Cashflow Cushion

List your monthly mandatory expenses – mortgage, car loan, childcare, parents’ allowance, etc. Then stress‑test your loan at +1.0% above current rates using Homejourney’s mortgage calculator Mortgage Rates . If the higher instalment still fits comfortably with room to save, you can tolerate more rate volatility.

Step 2: Consider Your Property Plans

If you expect to sell or upgrade within 3–5 years – for example, upgrading from a 4‑room HDB in Yishun to an OCR condo in Sengkang – a shorter lock‑in period and low clawback risk is critical. SORA packages with 2‑year lock‑ins can be attractive. If you plan to hold a family home for 10+ years, a fixed rate for the next 2–3 years can smooth cashflow while you raise kids or support parents.

Step 3: Read the Economic Signals, Not Just Headlines

Rather than trying to predict every MAS move, look at the direction of inflation, growth and Fed policy. Current projections of modest Singapore growth, soft but rising core inflation, and further US easing suggest gentle, not extreme, rate movements into 2026.[1][2][6] That’s why many risk‑aware owners are choosing SORA packages but pairing them with higher emergency savings.

Step 4: Use Homejourney’s Safe Comparison and Application Flow

To protect your data and avoid multiple hard credit checks, use Homejourney’s integrated tools:

Track live SORA rates (3M and 6M) on our bank rates page: Bank Rates .
Compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank and more side‑by‑side in one secure dashboard.
Calculate your monthly payments and borrowing power with our eligibility and affordability calculator: Mortgage Rates .
Apply via Singpass/MyInfo so banks can verify income and employment instantly, reducing manual document handling.
Submit one application and receive personalised offers from multiple partner banks, supported by Homejourney Mortgage Brokers who can explain fine print and lock‑in clauses clearly.

These workflows are designed to minimise errors, avoid mis‑selling, and ensure users always know what rate they are committing to before signing anything.

How SORA Forecasts Affect Refinancing in 2026

For existing owners whose loans were pegged to higher SORA or older board rates, the 2026 SORA forecast is a clear signal to review refinancing options. With SORA in the low‑1% range and projected to rise only gradually, there is a strong case for locking in some of the savings now rather than waiting indefinitely for a lower bottom.

Typical scenarios we see from Homejourney users: