Singapore SORA Rate Outlook 2026: What Homeowners Should Know
If you are planning a purchase or refinance in 2026, the Singapore SORA Rate Outlook 2026 What Homeowners Should Know: Benefits of Applying via Homejourney can be boiled down to this: SORA is expected to stay relatively low and stable compared to the 2022–2023 peak, but it has likely already bottomed out, so borrowers should focus on choosing the right package and execution timing rather than waiting indefinitely for lower rates.[6][2]
This article sits within Homejourney’s broader 2026 market outlook pillar, including detailed rate comparison and approval strategies: Singapore SORA Rate Outlook 2026: What Homeowners Should Know | Homejourney , Singapore SORA Rate Outlook 2026: Bank Rate Comparison Guide | Homejourney and Singapore SORA Rate Outlook 2026 & Approval Tips | Homejourney . Here we zoom in on the SORA rate 2026 outlook, what it means for your monthly instalments, and why applying via Homejourney gives you a safer, more transparent path to the right home loan.
Quick refresher: What is SORA and how does it work?
SORA (Singapore Overnight Rate Average) is the volume-weighted average rate of unsecured overnight interbank SGD transactions, administered by MAS and used as Singapore’s key interest rate benchmark.[2] Unlike older board rate or SIBOR packages, SORA is transparent and published by MAS each business day, which helps homeowners track movements and verify their bank’s calculations.
Most home loans in 2026 use compounded SORA over a period such as 3 months (3M SORA) or 6 months (6M SORA). The bank then adds a fixed margin, for example “3M SORA + 0.80% p.a.”. Your effective interest rate changes every time SORA is reset, usually every 3 or 6 months.
As of late 2025, 3M SORA had fallen sharply from about 3% in early 2024 to around the low 1% range, hitting its lowest level since mid‑2022.[6][3] This reflects the broader shift from the high‑rate environment of 2022–2023 to a more moderate setting as global inflation cooled.[2]
SORA forecast for 2026: 3M and 6M SORA outlook
Multiple banks and market data providers expect SORA to stay relatively benign in 2026, though not necessarily to fall much further. Trading Economics’ model points to SORA around 1.0% in the near term, trending towards about 1.5% by 2027, implying a modest upward drift from current levels.[2] UOB’s house view similarly projects SORA bottoming near 1.0% in 1H 2026 before gradually rising towards about 1.39% by end‑2026.[1]
In practical terms, that means for homeowners:
- 3M SORA 2026 prediction: Likely anchored around the low‑1% handle for much of the year, with some volatility, and a gentle upward bias into 2027.[1][2]
- 6M SORA 2026 prediction: Typically a bit higher than 3M SORA, so you might see a small premium (for example 0.10–0.20% p.a.) in exchange for less frequent rate resets, though exact spreads depend on liquidity conditions and bank pricing.[2]
Channel NewsAsia reported that by late 2025, SORA had already dropped to around 1.2%, and DBS’ strategist suggested SORA may have “found a floor”, with most of the US Federal Reserve’s expected easing already priced in.[6] That reinforces the idea that we are closer to the bottom of the interest rate cycle than the top.
The chart below shows recent interest rate trends in Singapore to help you visualise how SORA has moved compared to earlier peaks:
For a deeper bank‑by‑bank comparison of 3M SORA and 6M SORA packages across DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB Bank, Public Bank, Hong Leong Bank and Citibank, refer to our dedicated comparison guide: Singapore SORA Rate Outlook 2026: Bank Rate Comparison Guide | Homejourney .
How SORA affects your monthly instalments in 2026
For most owner‑occupiers in estates like Punggol, Sengkang or Jurong West, the key question is simple: “How much will my monthly instalment change if SORA moves?” Let’s use a real‑world style example similar to many 4‑room HDB flats near Punggol MRT, where resale prices in 2025 often ranged around S$650,000–S$750,000 (check live prices via Property Search ).
Assume:
- Loan amount: S$500,000
- Tenure: 25 years
- Package: 3M SORA + 0.80% p.a.
If 3M SORA is 1.0%, your effective rate is 1.8% p.a. Monthly instalment is roughly S$2,070. If SORA drifts up to 1.5% by 2027 (rate becomes 2.3% p.a.), the instalment rises to about S$2,170 – around S$100 more per month. That is manageable for most households but still meaningful when you add childcare, car loan and daily expenses.
Local borrowers in districts like Tampines or Woodlands often underestimate how quickly small rate changes compound over a 25‑ or 30‑year tenure. This is why Homejourney strongly encourages using our real‑time mortgage calculator at Bank Rates to simulate different mortgage rate trend scenarios before you commit.
3M SORA vs 6M SORA in 2026: Which should you choose?
In 2026, most major banks offer both 3M SORA and 6M SORA home loans. The right choice depends on your risk profile and how closely you want to track market movements.
Key differences:
- 3M SORA: Updates every 3 months, so your rate responds faster to market changes. You benefit more quickly when rates fall, but you also feel the impact sooner when rates rise.
- 6M SORA: Updates every 6 months, giving you slightly more payment stability, but you may lag behind if rates are trending down.
Local experience from 2022–2023 taught many East‑side homeowners in areas like Bedok and Marine Parade that when rates are rising quickly, 3M SORA packages can cause more frequent shocks to cash flow. In today’s more subdued environment, the difference is less dramatic, and banks sometimes price 6M SORA slightly higher to compensate for the longer reset interval.[2]
On Homejourney’s Bank Rates page, you can track live 3M and 6M SORA levels side‑by‑side and see which banks are offering more attractive spreads in real time, instead of relying solely on branch quotes.
SORA floating vs fixed rates in 2026: Which suits you?
With SORA off its peak but no longer collapsing, the classic question returns: should you lock in a fixed rate, or ride a SORA‑pegged floating package? Channel NewsAsia notes that fixed packages have broadly moved in tandem with SORA‑linked floating packages, reflecting the market’s expectation that big further cuts are unlikely.[6]
Pros and cons: Fixed vs SORA‑floating (2026 context)
In 2026, the interest rate outlook Singapore is for modest moves rather than extreme spikes, which makes SORA‑pegged loans less scary than in 2022–2023 but still not risk‑free.[1][2][6] If your household budget is very tight – for example, a young couple buying a BTO in Tengah with childcare and upcoming renovation expenses – a reasonably priced fixed rate from DBS, OCBC or UOB may be worth the slight premium for peace of mind.
If you are an investor buying a one‑bedder near Tanjong Pagar MRT or a resale condo in Jurong East, and you have adequate reserves, a 3M SORA package from banks like HSBC, Standard Chartered or Maybank may improve your net yield while rates stay benign. Homejourney’s Projects Directory provides context on rental yields and project‑level data to help balance rate savings against rental income.
How to decide: A simple 2026 mortgage decision framework
Use this 4‑step framework to decide between SORA‑floating and fixed in 2026.
- Check your cash flow buffer. If you cannot comfortably absorb a 0.5–1.0% rise in rates (e.g. extra S$200–S$400 per month on a typical S$600,000 condo loan), lean towards fixed or a more conservative SORA package.
- Consider your property horizon. If you may sell or upgrade within 3 years (common for HDB upgraders moving from a 4‑room in Yishun to an OCR condo), ensure the lock‑in period and penalties match your timeline.
- Assess economic and job stability. If you work in more cyclical sectors (e.g. export‑oriented manufacturing in Jurong), you may want more certainty even if the headline rate is slightly higher.
- Stress‑test using real numbers. Use Homejourney’s mortgage calculator at to model best‑case and worst‑case SORA scenarios based on forecasts from MAS, UOB and Trading Economics, then discuss your comfort level with our mortgage specialists.
Because forecasts are never guaranteed – MAS itself highlights downside and upside risks around growth and inflation into 2026[2] – Homejourney’s role is to make those uncertainties transparent and help you choose a structure that keeps your family safe even if the market surprises.
Why apply for your 2026 SORA loan via Homejourney?
Homejourney is built around user safety, transparency and verification. For SORA‑based home loans in 2026, applying via Homejourney gives you several concrete advantages over going bank‑by‑bank on your own.
1. Track live SORA and bank rates in one trusted place
On Homejourney’s bank rates page Bank Rates , you can track live SORA rates (3M SORA, 6M SORA) updated daily, alongside packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB Bank, Public Bank, Hong Leong Bank and Citibank. You see the underlying benchmark and the bank’s spread clearly, so there is no confusion about how your final rate is derived.
For example, instead of vaguely hearing that “SORA packages are around 1‑plus percent”, you can view a specific line‑up such as “3M SORA + 0.70%” from Bank A versus “3M SORA + 0.85%” from Bank B, and immediately estimate the impact on your monthly instalment using the built‑in calculator.
2. Compare rates across all major banks, fairly and safely
Homejourney’s comparison engine lets you compare rates from all major banks side‑by‑side in a standardised format, including lock‑in periods, subsidies and key conditions. This reduces the risk of missing an important clause in the fine print or being swayed by a single bank’s promotion.
Because Homejourney does not list unverified lenders, you avoid the risk of dealing with unregulated or informal financing. All offers you see are from MAS‑regulated banks, with data sourced directly from the institutions and cross‑checked regularly to protect users.
3. Instant affordability and eligibility checks
Many buyers in estates like Bukit Panjang or Sembawang only realise their TDSR/MSR constraints late in the process. Through , you can calculate your borrowing power instantly, factoring in current SORA levels, your income, existing debts, and MAS rules. This helps ensure you stay within safe limits before you even pay an option fee.
If you are still searching for a property, Homejourney’s Property Search tool lets you filter listings based on your budget and estimated monthly instalment, so you focus only on homes that fit your realistic financing range.
4. One application, multiple banks – with Singpass verification
Instead of filling up separate forms and uploading documents repeatedly, you can submit one application via Homejourney and receive personalised rate offers from multiple partner banks. Using Singpass/MyInfo integration, your income and employment data can be securely retrieved and shared with banks, reducing errors and speeding up approvals.
Because data flows directly from official sources, the risk of mis‑stated income or missing documents – a common reason for delays – is significantly reduced. This is particularly helpful for self‑employed borrowers or those with variable bonuses who often face more queries from banks.
