For Singapore homeowners, the current Singapore SORA Rate Outlook 2026 points to SORA staying low through 2026, with major banks forecasting a bottoming-out around Q2 2026 and a gentle rise thereafter, not a sharp spike.[5][2] This means your 3M and 6M SORA home loan instalments are likely to remain manageable in 2026, but you should still plan for some upside risk and choose packages carefully.
This FAQ is a focused cluster to our main pillar guide, Singapore SORA Rate Outlook 2026: What Homeowners Should Know | Homejourney Singapore SORA Rate Outlook 2026: What Homeowners Should Know | Homejourney . Here, we zoom into the most common SORA rate 2026 questions from real borrowers in Singapore, and give you practical steps on how to react, refinance, or choose between 3M and 6M SORA packages safely.
What is SORA and why does it matter for my 2026 home loan?
SORA (Singapore Overnight Rate Average) is the volume‑weighted average interest rate of unsecured overnight interbank SGD transactions, administered by MAS.[2] In simple terms, it reflects the cost banks pay to borrow from each other overnight, and many home loans in Singapore are now pegged to compounded 1M, 3M or 6M SORA instead of SIBOR or SOR.
Most owner‑occupiers I speak to in towns like Sengkang, Punggol and Jurong West who took SORA packages after 2022 are on 3M compounded SORA + a fixed spread (for example, 3M SORA + 0.6–1.0% p.a.). Their monthly instalments adjust every 3 months based on the latest SORA fixing, which you can track live on MAS or via Homejourney’s bank rates page Bank Rates .[2]
As of late 2025, 3M SORA has fallen sharply from levels around 3.5–3.6% in 2024 to roughly the low‑1% range, making floating‑rate mortgages noticeably cheaper for many households.[3][6] This drop is what you’re feeling now if your bank has recently sent you a revised repayment schedule.
SORA rate outlook for 2026: What are the main forecasts?
While no one can predict future interest rates with certainty, several reputable forecasts give a reasonable SORA forecast range for 2026:
- UOB forecast: SORA could bottom out around 1% in Q2 2026 before gradually rising to about 1.39% by end‑2026.[5][1]
- Macro model projections: Trading Economics’ MAS‑based models expect SORA to be around 1.0% in the near term, trending towards about 1.5% in 2027.[2]
- Current trend: SORA has already fallen from around 3% in early 2024–2025 to about 1.2% by late 2025, its lowest since 2022.[3][6]
Taken together, these point to an interest rate outlook in Singapore where SORA is likely to stay low by historical standards in 2026, with a mild upward drift rather than a surge, assuming no major global shock.[5][2]
3M SORA vs 6M SORA in 2026: Which is safer for homeowners?
For most Singapore mortgages, you’ll see banks quoting either 3M compounded SORA or 6M compounded SORA as the benchmark. Here’s how they differ in practical terms:
- 3M SORA: Resets every 3 months. Your instalments change more frequently, but the rate reflects market moves faster. Good when you expect rates to fall further or stay stable.
- 6M SORA: Resets every 6 months. Instalments are more stable for longer, but you may be stuck slightly longer with a higher rate if the market falls quickly.
In 2026, with SORA near its expected bottom, the difference becomes a trade‑off between flexibility vs stability:
- If you’re a young couple in an HDB flat in Punggol or Bukit Batok managing childcare costs, you may prefer 6M SORA for more predictable half‑yearly instalments.
- If you’re a higher‑income household in a city‑fringe condo (e.g. Kallang/Whampoa or Geylang), and you monitor markets closely, you might accept 3M SORA volatility to react faster via refinancing or repricing.
The chart below shows recent interest rate trends in Singapore so you can visualise how quickly SORA has been moving compared to the past:
Use this trend together with Homejourney’s live bank rates tracker Bank Rates to judge whether a 3M or 6M SORA peg suits your comfort level.
How will SORA movements in 2026 affect my monthly instalments?
For a typical SORA‑pegged loan, your all‑in rate is:
All‑in mortgage rate = 3M or 6M SORA + bank’s spread (margin)
Example (owner‑occupied HDB, 25‑year tenure):
- Loan amount: S$500,000
- Package: 3M SORA + 0.80%
- Scenario A – 3M SORA at 1.0% → All‑in rate = 1.8% p.a.
- Scenario B – 3M SORA at 1.5% → All‑in rate = 2.3% p.a.
Using Homejourney’s mortgage calculator Mortgage Rates , the approximate monthly instalments (rounded) would be:
- At 1.8%: around S$2,071/month
- At 2.3%: around S$2,167/month
A 0.5% change in SORA translates to roughly S$100/month difference for a S$500,000 loan over 25 years. For a bigger S$900,000 private property loan in areas like Tampines, Queenstown or Woodlands, the impact is proportionally larger – easily S$180–S$200/month.
This is why MAS, banks and financial advisers often urge homeowners to stress‑test their repayment ability at 3–4% interest, even if the current SORA outlook is benign.[2] You can do this safely on Homejourney’s calculator Bank Rates .
Fixed vs SORA floating in 2026: Which mortgage type suits me?
With SORA near its expected bottom, many homeowners are torn between locking in a fixed rate or staying with a SORA‑pegged floating package. Here’s a quick comparison:
Who may prefer fixed rates in 2026:
- Families upgrading from a 4‑room HDB in Bedok to an EC in Sengkang, stretching their finances near TDSR limits.
- Near‑retirees in mature estates like Toa Payoh or Ang Mo Kio who don’t want surprises in their cash flow.
Who may prefer SORA floating in 2026:
- Young professionals working in the CBD, buying city‑fringe condos (e.g. Commonwealth, Redhill) and expecting income growth.
- Investors with rental income from units near MRT nodes like Paya Lebar or Buona Vista, who track markets closely and can refinance actively.
To compare both options safely, use Homejourney’s bank rates page Bank Rates to:
- Compare live SORA and fixed packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, and Citibank side‑by‑side.
- Calculate monthly payments instantly with our mortgage calculator Bank Rates .
- Apply via Singpass/MyInfo to auto‑fill your details and get faster responses from multiple banks.
What are the biggest risks to the SORA forecast for 2026?
Even though banks expect SORA to stabilise near 1–1.4% in 2026, there are real risks that could change this path:[5][1][2]
- Global inflation rebound: If energy prices spike or supply chains are disrupted again, central banks may keep rates higher for longer, delaying the SORA bottom.
- Slower US Fed cuts: UOB’s forecast assumes the US Federal Reserve’s rate‑cut cycle proceeds as expected.[1][5] If cuts are delayed, SORA may stay elevated.
- Geopolitical shocks: Conflicts or financial crises could push global funding costs up, affecting SORA via Singapore’s open, trade‑driven economy.[1][2]
This is why Homejourney always recommends that you:
- Stress‑test your loan at higher rates (e.g. 3–4%) using our calculator Mortgage Rates .
- Avoid maximising your borrowing just because rates are low – keep some buffer for childcare, elderly care and emergencies.
- Review your loan at least once a year, not just when the bank calls you.
For a deeper macro and property‑market perspective, you can also read the latest 2026 outlook coverage from trusted local media such as Straits Times Housing News and CNA Property News , alongside our own 2026 market outlook series on Homejourney Projects Directory .
How should I decide whether to refinance in 2026?
In towns like Sembawang, Yishun and Pasir Ris, many owners bought during the low‑rate era and are now seeing their older packages roll off or revert to higher board rates. With SORA low in 2026, refinancing can reduce instalments – but only if you do it safely.
Use this simple 5‑step decision framework:
- Check your current rate and lock‑in
Look at your bank letter or internet banking: note your current all‑in rate, remaining lock‑in period, and any clawback on subsidies. - Compare against live market rates
Go to Homejourney’s bank rates page Bank Rates and compare both fixed and SORA floating packages across all major banks. Look beyond headline rates; check lock‑in, legal subsidies, and repricing options. - Calculate real monthly savings
Use Homejourney’s eligibility and instalment calculator Mortgage Rates to see exactly how much you save each month after switching, and how long it takes to break even after legal and valuation costs. - Stress‑test at higher rates
Key in a rate 1–1.5% higher than current SORA and see if your cash flow still works. If not, consider a fixed‑rate option. - Apply safely via multi‑bank submission
Through Homejourney, you can submit one application and receive personalised offers from multiple banks, using Singpass/MyInfo to verify your income securely Bank Rates . Our mortgage brokers will explain fine print and ensure you understand all risks before signing.
This framework helps you avoid being locked into unsuitable packages just because of low teaser rates or aggressive marketing.
How does SORA outlook affect my property search and long‑term plans?
The 2026 SORA outlook doesn’t just affect existing loans; it also shapes how much you can comfortably borrow when buying your next home. MAS uses loan‑to‑value (LTV) and Total Debt Servicing Ratio (TDSR) rules to keep household leverage safe, and banks must assess your income against these rules.[2]
When you are planning upgrades – for example, from a 3‑room HDB in Queenstown to a resale condo near Redhill MRT – you can use Homejourney to:
- Estimate your safe budget with our eligibility calculator Mortgage Rates .
- Search for units within that budget at Property Search , filtering by MRT line, school distance, and price.
- Check project‑level data for condo launches and resale trends via Projects or Projects Directory , including past transaction prices and estimated rentals.
- Plan post‑purchase costs, including air‑conditioning servicing Aircon Services , conservancy charges and renovations.
