Mortgage rates in Singapore sit near multi-year lows in mid-2026, with two-year fixed packages and SORA-linked floating loans both trading well below their 2023 peaks. Repayments are cheaper, but the Monetary Authority of Singapore's stress-test floor still caps how much banks will lend, so a lower rate rarely means a bigger loan. Before committing to any package, compare live offers from several banks and stress-test the numbers at that floor.
TL;DR:
- Lower mortgage rates in 2026 are mainly seen in large loans above S$1.5 million or for borrowers with existing banking relationships, not universally.
- The MAS stress-test floor limits loan size regardless of the advertised low rate, so a cheaper rate does not always mean more borrowing capacity.
- Fixed rates around 1.4% to 1.8% are good for borrowers planning to hold their property for two to three years without refinancing.
- SORA, linked to overnight SGD transactions, is heavily influenced by US rate moves, with bank spreads adding significant variation in actual rates.
- Before choosing a package, compare live offers, check reversion rates after lock-in, and ensure affordability at the MAS stress-test floor.
Table of Contents
- Current mortgage rate trends in Singapore for 2026
- What drives Singapore mortgage rates today
- Fixed vs floating: which suits you in 2026?
- HDB loan vs bank loan: is refinancing worth it now?
- SORA's fall from 2023 highs: how much room is left
- How to compare mortgage packages step by step
- How Haio helps you run these numbers
- Why the headline rate isn't the whole story
- Sources
Current mortgage rate trends in Singapore for 2026
Two-year fixed packages are advertised around 1.4% to 1.8%, and three-year fixed offers sit in a similar band once promotional tiers are factored in, according to rate trackers monitoring Singapore's bank panel. These figures mark a sharp reversal from early 2025, when fixed packages averaged around 3.1% before falling through 2025 as Channel NewsAsia reported.
The HDB concessionary loan, pegged at 0.1% above the CPF Ordinary Account rate and typically sitting near 2.6%, now looks expensive next to many bank packages for the first time in years.
Not every borrower gets the lowest advertised number, though. Rate sheets published by Nexus show that the cheapest tiers are frequently reserved for larger loans, sometimes above S$1.5 million, or for borrowers who meet relationship-banking conditions such as holding a salary account with the lender. Smaller loans, older properties, or borrowers without existing banking relationships often land a rate half a percentage point or more above the headline figure. A few practical points worth checking before assuming a rate applies to you:
- Whether the lowest tier requires a minimum loan size, and where your loan falls against it
- Whether the rate is a temporary promotional rate that reverts after year one or two
- Whether it requires fire insurance, mortgage insurance, or a salary credit tied to that bank
- Whether the package excludes certain property types, such as older HDB resale flats
What drives Singapore mortgage rates today
Singapore Overnight Rate Average, or SORA, is the volume-weighted average rate of actual overnight interbank SGD transactions, published daily by the Monetary Authority of Singapore. Most floating packages reference either the one-month or three-month compounded average. The three-month version smooths out short-term noise, so it tends to lag sudden shifts, while the one-month version moves faster but can feel jumpy from one repricing date to the next.
SORA does not move in isolation. Singapore's small, open economy imports much of its interest-rate direction from the United States, since capital flows chase yield across borders, and moves in the US Federal Reserve's policy rate typically show up in local rates within a matter of months rather than instantly.
MAS itself does not set an interest-rate target. It manages monetary policy through the exchange rate, letting the Singapore dollar float within an undisclosed band against a basket of currencies, which indirectly shapes domestic liquidity and short-term rates.
- SORA reflects actual overnight transactions, not a forecast or a survey
- US Fed moves transmit to Singapore rates over roughly one to two quarters
- MAS policy works through the exchange rate, not a policy rate
- Bank spreads vary because each lender funds itself differently and prices risk on loan size and tenure
Bank spreads matter more than most borrowers assume. Two banks referencing the same three-month SORA can still land 0.3 to 0.5 percentage points apart once each adds its own funding-cost spread, according to comparisons across 16 bank panels.
Fixed vs floating: which suits you in 2026?
The case for fixing now is straightforward: two-year fixed packages near 1.4% to 1.8% lock in certainty at rates that were unthinkable in 2023, and if you plan to hold the property for two to three years without refinancing again, that predictability has real value.
The case for floating rests on a bet that SORA has more room to fall, or at least won't rise sharply, before your next repricing point. Jumbo loans often get a sharper spread on floating packages than on fixed ones, which can tip the maths further in floating's favour for larger loans.
To decide, work through this order:
- Check your lock-in period and what the break cost looks like if you need to exit early.
- Compare the fixed rate against the current floating all-in rate, not against SORA alone.
- Estimate how many years you'll likely hold the loan before moving or refinancing again.
- Model your instalment under both packages using your actual loan amount, not a rounded example.
On a S$800,000 loan over 25 years, a fixed package and a SORA-linked package differ by a moderate amount per month in early instalments, small enough that lock-in flexibility often matters more than the rate gap itself.
Pro Tip: Ask each bank for the reversion rate after your lock-in ends, not just the promotional rate. A cheap first two years can be undone by a punishing reversion rate in year three.
HDB loan vs bank loan: is refinancing worth it now?
The HDB concessionary loan is pegged at 0.1% above the prevailing CPF Ordinary Account rate, which has kept it steady near 2.6% for years while bank rates swung both above and below it. When bank packages dropped under 2.6% through 2025 and into 2026, refinancing enquiries picked up noticeably, as CNA's reporting on the rate environment noted.
Switching away from an HDB loan is a one-way decision. Once you leave the concessionary loan for a bank package, you cannot switch back to an HDB loan later, so the calculation needs to hold up beyond the current promotional period.
Before refinancing, weigh these costs against the savings:
- Legal and valuation fees, often partially offset by bank subsidies but not always fully covered
- Any lock-in break cost if you're refinancing away from an existing bank loan mid-term
- CPF usage rules and whether your Total Debt Servicing Ratio and Loan-to-Value limits still work under the new package
- Whether the new bank rate is genuinely sustainable or a short promotional rate that reverts upward
SORA's fall from 2023 highs: how much room is left
That is one of the sharpest multi-year declines in the benchmark's short history.
The number that matters here isn't just today's level. It's the range SORA has covered in three years. A benchmark that moved more than two percentage points in one direction can move meaningfully in the other, particularly if inflation surprises to the upside or a global shock forces central banks to reverse course.
For floating-rate borrowers, that history is the main argument for building some rate buffer into affordability planning rather than assuming today's low holds for the life of the loan. For fixed-rate borrowers, the risk sits at the other end of the timeline. Whatever rate is available when your current fix expires depends on where SORA and bank spreads have moved by then, not on where they are today.
How to compare mortgage packages step by step
Run through this checklist before signing anything:
- All-in rate (the benchmark plus the bank's spread), not the benchmark alone
- Lock-in period and the exact break cost in dollars, not just as a percentage
- Legal, valuation, and administrative fees, and whether the bank subsidises any of them
- Waiver conditions if you're porting a loan or refinancing before your current lock-in ends
- Which eligibility tier your loan quantum falls into, since the advertised lowest rate rarely applies to every applicant
- Repayment flexibility, including partial prepayment limits and penalties
The workflow itself is simple, even if the comparison feels dense:
- Pull live rate sheets from several banks on the same day, since promotional rates shift weekly.
- Run your numbers through an affordability check using the MAS stress-test floor, not the actual quoted rate.
- Calculate the break-even point between a fixed and a floating package based on your likely holding period.
- Request the full loan illustration in writing, including the reversion rate, before deciding.
Pro Tip: Rates quoted verbally can shift by the time your paperwork is processed. Re-run your comparison if more than a week passes between your first quote and signing.
How Haio helps you run these numbers
Affordability checks that apply MAS stress-test logic to your income and loan size can show whether a package is workable before you approach a bank. Live mortgage-rate comparisons let you check fixed and floating options against each other for your specific loan amount, rather than relying on generic headline figures. Combined with valuation and market-trend tools, you can model a refinancing decision or a new purchase within the same platform used to track the property itself. Explore these tools on Haio before you commit to any package.
Why the headline rate isn't the whole story
The conventional advice tells buyers to chase the lowest advertised rate and stop there. That misses the part that actually determines your borrowing power: the MAS stress-test floor, which assesses affordability at a rate well above whatever you're actually paying.
What gets underweighted is the reversion rate after a fix expires and the eligibility tier behind any advertised lowest figure.
Prioritise the affordability check first, the package comparison second, and the headline rate last. That order protects you from a package that looks attractive on day one and expensive by year three.
— HAIO