SORA Mortgage Rates 2026: Bank Comparison Guide by Homejourney

The short answer for homeowners: based on current forecasts, the Singapore SORA Rate Outlook 2026 suggests 3M and 6M SORA are likely to hover near their lows around 1% in early 2026 before gently rising towards about 1.3–1.5% by year-end, so you should plan for today’s low SORA to gradually move up rather than stay at rock-bottom levels.[2][3][6]

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 focuses specifically on bank rate comparison and how to choose between 3M/6M SORA and fixed packages for 2026 home loans and refinancing.

Understanding SORA and Why 2026 Matters

SORA (Singapore Overnight Rate Average) is the interest rate that banks pay to borrow Singapore dollars from one another overnight, calculated as a volume‑weighted average of actual interbank transactions between 8am and 6.15pm each business day.[7]

Most new floating‑rate home loans in Singapore are now pegged to compounded 3M or 6M SORA plus a bank spread (for example, 3M SORA + 0.80% p.a.). When you hear people quote “SORA mortgage rate”, they usually mean compounded 3‑month SORA + margin.

Since SORA is driven mainly by global rates and MAS’ exchange‑rate‑based policy, it dropped sharply from above 3% in 2023 to near 1% by early 2026, reaching the lowest levels since mid‑2022.[2][5] This is why many buyers in 2025–2026 are re‑looking at refinancing from older high‑rate packages.

Singapore SORA Rate Outlook 2026: Key Forecasts

Official and bank‑level projections suggest that Singapore interest rates are near a floor in early 2026. UOB, for example, forecasts SORA to stabilise around 1% by Q2 2026, then edge up towards about 1.39% by end‑2026 as global conditions normalise.[1][3][8]

Macro models tracked via MAS data and global economic platforms also point to SORA heading towards the 1.5% range in 2027, implying a gentle uptrend rather than an aggressive spike.[2] Independent analysts echo that SORA may dip towards 1% before climbing later, in line with a stabilising US Federal Reserve path and moderate Singapore GDP growth.[6]

The chart below shows recent SORA and mortgage‑rate trends to help you visualise how quickly rates have fallen and how they may stabilise around current levels:

For homeowners, the practical takeaway is this: current 3M/6M SORA‑pegged packages are attractive, but you should budget for about 0.3–0.5 percentage points of upside risk over the next 12–24 months instead of assuming today’s lows will last indefinitely.

3M SORA vs 6M SORA in 2026: What’s the Difference?

Both 3M and 6M SORA rates are based on the same overnight market, but compounded over different periods. In practice:

3M SORA: resets every 3 months. Your instalment adjusts more frequently to market changes.
6M SORA: resets every 6 months. Instalments are more stable between resets, but can move more at each revision.

In a slowly rising rate environment like the current 2026 outlook, 6M SORA can sometimes feel more comfortable because your repayment is “locked in” for longer between resets. The trade‑off is that banks may offer a slightly higher spread on 6M SORA than on 3M SORA, depending on their funding strategies.

For example, on a S$800,000 condo in Punggol or Tampines (a common ticket size we see among young families upgrading from a 5‑room HDB), a 0.20% p.a. difference in all‑in rate can mean roughly S$80–S$100 per month in instalments, depending on tenure.

You can see the live 3M and 6M SORA benchmarks, plus current bank spreads, on Homejourney’s Bank Rates page: Bank Rates . This page tracks SORA daily and gives you real‑time comparisons across major banks.

Fixed vs Floating in 2026: Which Fits You Better?

With SORA near its projected floor, one of the most important decisions for 2026 borrowers is whether to lock in a fixed rate or ride a SORA‑pegged floating rate. Fixed packages from banks like DBS, OCBC and UOB have become popular again because many homeowners value stability after the 2022–2023 spike.[5]

Fixed vs Floating: Quick Comparison

Feature	Fixed‑Rate Package	SORA Floating Package
Monthly instalment	Stable during lock‑in (2–5 years)	Moves whenever 3M/6M SORA resets
Short‑term certainty	High – easier for budgeting	Lower – expect some fluctuation
Benefit if rates fall further	Limited – you stay at fixed rate	High – repayments adjust down when SORA drops
Risk if rates rise	Bank bears risk during lock‑in	You bear risk of higher instalments
Recommended for	Risk‑averse owners, tight cashflow, young families	Owners with buffer, investors, shorter holding horizon

Who Should Consider Fixed Rates in 2026?

Based on conversations with buyers in neighbourhoods like Sengkang, Woodlands and Jurong West, fixed rates are often preferred by:

First‑time buyers taking their first HDB or condo loan and worried about cash‑flow surprises.
Families with young children, where childcare and enrichment costs already take up a big chunk of the household budget.
Owners with high leverage (e.g. 75% LTV bank loan) who cannot easily absorb a few hundred dollars of monthly fluctuation.

In these cases, paying a small premium for fixed‑rate stability over the next 2–3 years can be a reasonable “insurance” against unexpected global shocks.

Who Might Prefer SORA‑Pegged Floating Rates?

Floating SORA‑based packages can make sense if you:

Expect to sell or refinance within 3–5 years (for example, buying an EC in Tengah or Bukit Batok with the intention to upgrade after MOP).
Have a comfortable buffer in your monthly budget – e.g. both spouses working, overall TDSR well below the 55% limit set by MAS.
Are an investor buying a 1‑bedroom unit near MRT hubs like Paya Lebar or Novena, where rental yields help cushion rate movements.

Because SORA is already near its expected bottom, the upside from rates falling further is limited, but you may still get an edge if 2026 stays lower for longer than banks currently price in.

How Banks Structure SORA and Fixed Packages in 2026

Major banks such as DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank generally offer two key components for SORA‑pegged loans:

Benchmark: 3M or 6M compounded SORA, published by MAS.[7]
Spread (margin): a fixed number of percentage points (e.g. +0.70% to +1.20%) that the bank adds on.

Fixed‑rate packages are usually quoted as a flat rate for the lock‑in period (typically 2–5 years), after which they often convert to a SORA‑pegged rate or a board rate plus spread. Channel NewsAsia has reported strong demand for these fixed packages as SORA fell, with four in five OCBC customers in 2025 opting for fixed loans.[5]

Because headline rates and spreads change quickly as banks compete for market share, Homejourney does not hard‑code rates in our guides. Instead, you can compare current SORA, fixed and hybrid packages side‑by‑side on our live comparison engine: Bank Rates .

Bank Rate Comparison: How to Read the Numbers

When you open the Homejourney bank‑rate comparison page, you will see different combinations of SORA and fixed packages from all major banks. To compare fairly:

Look at the all‑in rate for year 1–3, not just the spread. A lower spread on a higher SORA can still be more expensive than a higher spread when SORA is low.
Check lock‑in and clawback conditions – especially legal subsidy or cash rebate clawbacks if you refinance or sell within a few years.
Compare total 3‑year interest cost using the Homejourney calculator instead of just headline year‑1 rate: Mortgage Rates or .
Assess repricing options – some banks let you switch packages after lock‑in without changing banks.
Factor in fees such as valuation, fire insurance and early repayment charges.

From experience reviewing packages for clients staying in areas like Clementi, Pasir Ris and Bishan, the difference between banks is often less about the headline rate and more about lock‑in flexibility, legal subsidies and how easy it is to reprice later.

Decision Framework: Choosing a Mortgage in 2026

Use this simple framework to narrow down your choice in a safe, structured way that fits the 2026 SORA forecast:

Step 1: Clarify Your Time Horizon

Ask yourself how long you realistically plan to hold the property:

Short‑term (≤5 years): EC buyers, investors, or upgraders waiting for new launches in OCR hubs like Lentor or Tampines North.
Long‑term (>5–7 years): Families setting roots near primary schools, for example in Bukit Timah or Marine Parade.

Short‑term owners can be more comfortable with floating SORA, while long‑term owners may prefer fixed certainty during the key early years.

Step 2: Test Your Risk Tolerance and Cash Buffer

Use Homejourney’s eligibility and affordability calculator to see how your monthly instalment changes when interest moves from, say, 1.5% to 2.0% or 2.5%: . If a 0.5% increase already stretches your cashflow, a fixed rate or 6M‑SORA with conservative assumptions may be safer.

As a rule of thumb used by many conservative homeowners in Singapore, try to keep your property‑related instalments (including car loans) within 30–35% of household income, well below MAS’ 55% TDSR ceiling. This gives you room if SORA drifts higher than forecast.

Step 3: Consider the Economic and SORA Outlook

Based on the latest projections, SORA is expected to bottom out around 1% in 2026 and then gently rise as global growth and inflation normalise.[2][3][6][8] This supports the view that extreme volatility is less likely than in 2022–2023, but you should still plan for some upward drift.

For more macro context, you can cross‑reference the latest property outlooks from trusted news sources such as Straits Times Housing News or CNA Property News , and pair these insights with Homejourney’s Singapore‑focused analyses in our 2026 Market Outlook series:

Step 4: Compare Banks Safely via Homejourney

Instead of manually visiting each bank’s website, use Homejourney’s Bank Rates engine to compare live packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank in one trusted place: Bank Rates .

On Homejourney, you can:

Track live 3M and 6M SORA updated daily and see how different spreads translate into real monthly instalments.
Calculate your borrowing power instantly using our MAS‑aligned eligibility calculator.
Submit a single application via Singpass/MyInfo and let multiple banks respond with personalised offers, reducing the need to share documents repeatedly.