Best Home Loan Rates Singapore 2026: Fixed vs SORA Compared
In April 2026, fixed-rate home loan packages in Singapore start from 1.40% p.a. — while SORA-linked packages sit at 3.25%–3.45% p.a. That gap is the largest it has been in years, and it has significant consequences for whether you should fix, float, or refinance right now. Here is what every Singapore borrower needs to know.
Current Home Loan Rates in Singapore (April 2026)
Singapore home loan rates fall into two broad categories: fixed-rate packages, which lock your interest rate for a defined period (typically 2–3 years), and floating-rate packages tied to SORA (Singapore Overnight Rate Average). Both are available for HDB resale flats and private property, though the specific packages and eligible LTV ratios differ.
| Package Type | Rate (p.a.) | Applies To | Lock-In |
|---|---|---|---|
| 2-Year Fixed | 1.40%–1.65% | HDB & Private | 2 years |
| 3-Year Fixed | 1.55%–1.80% | HDB & Private | 3 years |
| SORA-Linked (3M) | 1.65%–1.85% | HDB & Private | 2–3 years |
| HDB Concessionary | 2.60% | HDB BTO & Resale only | None |
| Board Rate (post lock-in) | 3.50%–4.50%+ | All (if not repriced) | None |
Rates are indicative as of April 2026. Individual packages vary by bank, loan amount, and LTV ratio. The board rate applies after a fixed package expires if you do not reprice or refinance.
The most important number in that table is the board rate. Every borrower who takes a 2-year fixed package and does nothing when it expires will automatically revert to their bank’s board rate — which sits between 3.50% and 4.50%+. On a S$700,000 loan, that reversion alone adds S$800–S$1,200 per month to your instalment. Repricing or refinancing at every lock-in expiry is not optional — it is the single highest-value action a Singapore borrower can take.
A fixed rate at 1.50% vs a board rate at 3.80%–4.50% — on a S$700,000 loan, the difference is S$800–S$1,200 every month. Repricing is not optional.
Fixed vs SORA: Which Is Right for You in 2026?
Fixed Rate
SORA-Linked
In April 2026, fixed and SORA-linked packages are surprisingly close. 3M Compounded SORA has fallen to approximately 1.06% p.a. — meaning a SORA-linked package with a 0.70% bank spread runs at roughly 1.75% p.a. On a S$700,000 outstanding loan, that is only about S$100–S$180/month more than the cheapest fixed rate. The trade-off now is between certainty (fixed) and flexibility (SORA, which could fall further or rise). For most borrowers buying or refinancing in 2026, a 2-year fixed still makes sense for peace of mind — but SORA is no longer the expensive option it was in 2022–2023.
HDB vs Private Property: Does Your Loan Type Affect the Rate?
The short answer is: not materially, for bank loans. Both HDB resale flat buyers and private property buyers can access the same fixed-rate and SORA-linked packages from Singapore banks. The differences lie elsewhere.
- LTV limits differ: HDB resale buyers using a bank loan are capped at 75% LTV. Private property first-purchase buyers are also at 75% LTV. Second-property buyers drop to 45% LTV, which affects loan quantum but not the rate itself.
- MSR applies to HDB, not private: HDB flat buyers face the Mortgage Servicing Ratio (MSR) cap of 30% of gross income, on top of the TDSR limit of 55%. Private property buyers only face TDSR. This affects how much you can borrow, not the rate on offer.
- HDB Concessionary Loan is HDB-only: The HDB loan at 2.60% p.a. (no lock-in, up to 80% LTV, CPF can cover full down payment) is not available for private property. It is currently more expensive than the best bank fixed rates, but offers flexibility that suits some buyers. See our full comparison: HDB Loan vs Bank Loan: Which Is Right for You?
- Stress test is the same: All Singapore bank loans — HDB or private — are stress-tested at the MAS 4% floor rate. Your TDSR is calculated at whichever is higher: the actual rate or 4%.
What Affects the Rate You Actually Get?
Advertised home loan rates are not guaranteed to every applicant. Banks adjust the effective rate — and their willingness to offer it — based on several factors specific to your profile.
- Loan-to-Value (LTV) ratio: Borrowers at 60% LTV or below are considered lower risk and may receive preferential pricing from some lenders. Borrowing at 75% LTV (the maximum) does not typically disqualify you from the best rates, but it may affect legal fee subsidy eligibility.
- Loan quantum: Larger loans (>S$1M) carry more negotiating leverage, particularly on legal fee subsidies and cashback offers. Smaller loans (<S$300K) may not qualify for certain promotional packages.
- TDSR headroom: If you are close to the 55% TDSR ceiling, your choice of lender narrows. Banks can see each other’s exposure via credit bureau checks. A broker will know in advance which lenders are most competitive for your debt profile. If you want to understand TDSR fully before applying, read: TDSR & the 4% Stress Test Explained.
- Fixed or floating selection: You choose the package type; the bank does not assign it. Choosing fixed in a market where fixed is cheaper (as it is now) is a straightforward decision for most borrowers.
- Package-specific cashback and subsidies: Some banks offer S$2,000–S$5,000 cashback on disbursement, or full legal fee subsidies worth S$1,800–S$2,800. These are not reflected in the headline rate but can significantly reduce total cost of borrowing in year one.
Why No Single Bank Has the Best Rate for Everyone
Bank home loan rate promotions in Singapore change monthly. A rate that DBS led in January may have been overtaken by OCBC in March and matched by UOB in April. Beyond the headline rate, you need to compare legal fee subsidies, cashback clawback periods, what the rate reverts to after lock-in, and whether the bank’s credit assessment process suits your income type (salaried, variable, self-employed, or commission-based).
The most efficient way to find the genuinely cheapest home loan rate in Singapore for your specific profile is to approach all 16+ lenders at the same time. An independent mortgage broker does exactly this — and does it at no cost to you. The bank pays the referral fee on disbursement. You receive a side-by-side comparison of every live package, including details that are not published on any bank’s public rate sheet.
What to Do Right Now
- New purchase (HDB or private): Get In-Principle Approval (IPA) from a broker before making an offer. This locks in a rate for 30 days and gives you certainty when negotiating. Read the full first-time buyer process: How to Buy HDB in Singapore: 2026 Step-by-Step Guide.
- Existing loan approaching lock-in expiry: Start comparing packages 3–4 months before expiry. Refinancing to a 1.50% fixed from a board rate of 3.80% saves approximately S$650–S$900/month on a S$700K balance. Full guide: When to Refinance Your Home Loan in Singapore (2026).
- Currently on a SORA-linked package taken in 2022–2023: Check your lock-in expiry date immediately. If you’re within 3–4 months of it, this is your highest-priority financial action of 2026.
- Using CPF OA for repayments: Make sure you understand the accrued interest implications of CPF usage before maximising CPF drawdown. Details: CPF OA for Home Loans: What Singapore Buyers Must Know.
Your Mortgage Broker
Talk to Dan Ler — Nexus Mortgage SG
I compare home loan rates across all 16+ Singapore lenders simultaneously and give you a no-obligation side-by-side comparison. No bank preference, no hidden fees — my service is free and the bank pays the referral fee on disbursement.
WhatsApp Dan — Free Rate Comparison →See how much your instalment changes at different rates: use the free Advanced Mortgage Calculator
Further Reading
- HDB Loan vs Bank Loan: Which Is Right for You? — full comparison of the HDB Concessionary Loan against the best bank fixed rates available today
- When to Refinance Your Home Loan in Singapore (2026) — the exact process and timing to move from your expiring package to the best available rate
- Understanding the MAS 4% Stress Test (2026) — how the stress floor rate determines your maximum borrowable amount at any rate level
- TDSR & MSR Explained for Singapore Property Buyers — the debt ratio limits that cap how much you can borrow regardless of the rate
- MAS: SORA (Singapore Overnight Rate Average) — live daily SORA rates published by MAS
Nexus Mortgage SG is an independent mortgage advisory in Singapore. This article is for general informational purposes and does not constitute financial advice. Interest rates quoted are indicative and based on conditions as of April 2026. Bank lending guidelines and MAS regulations are subject to change. Please consult a qualified mortgage adviser before making any financial decisions.