Part of Sora project analysis
Homejourney Editorial
SORA Rate Update September 2026: Bank Rate Comparison Guide is about helping Singapore borrowers understand how the latest SORA rate September 2026 levels translate into real home loan costs across DBS, OCBC, UOB and other banks, so you can make safe, informed decisions with Homejourney.
As of mid‑September 2026, most live SORA trackers show 3‑month compounded SORA1.12–1.17%6‑month SORA1.09–1.09%compounded 1M or 3M SORA + a fixed bank spread2.12% p.a.
This cluster article supports Homejourney’s main pillar guide on Singapore mortgage financing by zooming into the SORA Rate Update September 2026: Bank Rate Comparison GuideProjects Directory and the interest‑rate‑focused pillar content.
SORA (Singapore Overnight Rate Average) is the key benchmark interest rate underpinning most floating‑rate home loans in Singapore, fully replacing SIBOR from 1 January 2024. MAS defines SORA as the volume‑weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore between 8am and 6.15pmtransparent and reliable
In practice, a SORA‑pegged loan is expressed as:
• Compounded SORA (1M or 3M) + fixed bank spread• The compounded SORA portion can move every 1 or 3 months depending on your package, while the spread stays constant over the lock‑in period.
• Your monthly instalment for your HDB in Woodlands or condo in Pasir Ris will therefore adjust as the benchmark moves, typically with a short lag.
The chart below shows recent interest rate trends in Singapore, focusing on compounded SORA over the past six months to give you a sense of how quickly benchmarks have moved in 2026:
From the recent data, SORA has generally stayed in a relatively moderate band compared to the spikes seen in 2023–2024, which supports more manageable monthly payments for many borrowers.
As of September 2026, indicative live figures show:
• 1M compounded SORA1.17%• 3M compounded SORA1.12%• 6M compounded SORA1.09%
Most retail home loans use either 1M or 3M compounded SORA. The 3‑month SORA September
Practical implications for borrowers:
• Choosing 1M SORA• Choosing 3M SORA• Over a typical 25‑ or 30‑year tenure, the choice between 1M vs 3M matters most for near‑term cashflow management rather than long‑run total interest, assuming spreads are similar.
In 2026, many banks in Singapore offer both fixed‑rateSORA‑pegged floating
| Feature | Fixed‑rate mortgage | SORA‑pegged floating mortgage |
|---|---|---|
| Rate behaviour | Unchanged during lock‑in (e.g. 2–3 years) | Moves with 1M or 3M SORA plus bank spread |
| Current level (2026) | Often slightly higher than SORA‑effective rates | Often lower upfront, but can rise if SORA increases |
| Budget certainty | High—monthly instalment is predictable | Moderate—instalments can adjust every 1–3 months |
| Risk profile | Suited for risk‑averse households | Suited for borrowers comfortable with rate fluctuations |
| Refinancing flexibility | May have higher break costs during lock‑in | Often more flexible once lock‑in ends; can refi as SORA trends change |
In 2026, some forecasts suggest SORA will remain relatively contained compared with earlier hiking cycles, making floating‑rate loans attractive to cost‑conscious borrowers. However, MAS does not provide explicit rate forecasts, and external projections can be wrong, so it is prudent to consider your own risk tolerance. For example, a couple buying a 4‑room BTO in Tampines GreenSpring and planning for childcare and car expenses might prioritise fixed payments over potential savings from a floating rate.
Every bank in Singapore—DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank—sets its own spread• Year 1–2• Year 3 onwards
Using the September 2026 SORA update:
• Assume 3M SORA September 2026 = 1.12%• Your effective rate in Year 1–2 = 1.12% + 0.80% = 1.92% p.a.• For a $600,000 loan over 25 years, 1.92% produces an instalment of roughly $2,522/month• If SORA rises to 1.50%, the same spread yields ~2.30% p.a., pushing the instalment up by around $80–100/month.
Having lived in estates like Bedok and Ang Mo Kio, many homeowners can recall how instalments changed between 2022 and 2024 when benchmarks moved quickly. In 2026, with SORA relatively stable, spreads and fees become more important to compare across banks. Homejourney’s Mortgage Rates page lets you compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered and more in one place
Because each bank updates its packages frequently and MAS and lenders do not permit publishing live retail rates without caveats, the comparisons below are indicative, based on common structures seen in 2026. Always verify current figures via bank disclosures or through Homejourney’s mortgage tools before committing.
Instead of manually checking each bank’s website, you can use Homejourney’s mortgage tools at Mortgage Rates to:
• Track live SORA rates• Compare rates from all major banks side‑by‑side• Calculate your monthly payments instantly• Submit one request
To select between fixed and floating packages, and among banks’ SORA spreads, it helps to use a simple decision framework. Start with three pillars: cashflow stabilityrisk tolerancetime horizon
Ask yourself:
• Are you planning major life expenses (e.g. childcare, supporting parents, starting a business)?
• Would a $150–200 monthly swing in instalment cause stress?
If you depend on predictable monthly budgets, fixed‑rate or lower‑volatility 3M SORA packages may be preferable. For example, a family in a 5‑room HDB at Clementi Avenue 5 juggling tuition and car loan instalments might prefer fixed payments even if SORA‑pegged options look slightly cheaper.
Floating SORA loans suit borrowers who are comfortable with some uncertainty and can actively monitor benchmarks. MAS adopts a policy stance focused on price stability, not publishing explicit SORA forecasts, but external analysts in 2026 broadly expect moderated volatility compared to prior hiking cycles. If you use Homejourney to monitor daily SORA changes and keep a buffer fund, a SORA‑pegged loan can be practical, especially if you intend to refinance when spreads or benchmarks move favourably.
Shorter horizons (e.g. planning to sell or upgrade within 5–7 years) generally favour cheaper initial rates and flexible packages. Longer horizons may justify locking in stability. In suburban areas like Bukit Panjang or Sembawang, upgraders frequently move from HDB to condo within 8–10 years, often choosing competitive SORA packages first, then refinancing through platforms like Homejourney once lock‑in expires to capture better spreads.
To apply this framework to your situation:
1. Use Homejourney’s eligibility calculator at Mortgage Rates to determine your borrowing power based on income, existing loans and TDSR/MSR rules.
2. Run scenarios with different interest rates using the mortgage calculator and observe how instalments change if SORA rises by 0.5–1.0 percentage points.
3. Consider your household budget and savings buffer, then shortlist 2–3 packages.
4. Submit a single loan request
Imagine you are buying a $650,000 4‑room resale HDB in Bishan. After a 20% downpayment, you need a $520,000 loan• Option A (floating)• Option B (fixed)
If 3M SORA September 2026 is 1.12%:
• Option A effective rate = 1.12% + 0.85% = 1.97% p.a.
View price trends, transaction history, and nearby amenities for Sora.