Best Home Loan Rates Singapore 2026: Fixed vs SORA Compared
In May 2026, fixed-rate home loan packages in Singapore start from 1.40% p.a. for jumbo loans. Typical 2-year fixed rates run between 1.45% and 1.65% p.a. SORA-linked packages now sit at roughly 1.25% to 1.80% p.a. effective. The gap between fixed and SORA is the narrowest it has been since 2022. Here is what you need to weigh before you lock in.
Current Home Loan Rates in Singapore (May 2026)
Singapore home loan rates come in two broad types. A fixed-rate package locks your interest rate for a set period, usually 2 to 3 years. A floating-rate package is pegged to SORA (Singapore Overnight Rate Average), which MAS publishes. Both are open to HDB resale flats and private property. What changes between them is the LTV cap, the lock-in tenor on offer, and which lenders happen to be cheapest for your loan size. For the live picture across all 16+ banks, see our live rate sheet across 16+ banks.
| Package Type | Rate (p.a.) | Applies To | Lock-In |
|---|---|---|---|
| 2-Year Fixed | 1.45%–1.65% | HDB & Private | 2 years |
| 3-Year Fixed | 1.55%–1.80% | HDB & Private | 3 years |
| 5-Year Fixed (Jumbo) | 1.40%–1.55% | Loans ≥ S$1.5M | 5 years |
| SORA-Linked (3M) | 1.25%–1.80% | 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 11 May 2026. Individual packages vary by bank, loan quantum, and LTV. The board rate applies after a fixed package expires if you do not reprice or refinance.
Look at the board rate first. If you take a 2-year fixed package and do nothing when it expires, you revert to your bank’s board rate, which sits between 3.50% and 4.50%+ p.a. On a S$700,000 loan, that jump alone can add S$1,000 to S$1,400 a month to your instalment. So reprice or refinance every time your lock-in ends. It is the single most valuable thing a Singapore borrower can do with their home loan. Use our refinance savings calculator to see the dollar gap on your specific loan.
A fixed rate at 1.50% p.a. against a board rate at 3.80%–4.50% p.a. On a S$700,000 loan, that is roughly S$1,000 to S$1,400 every month. Reprice before the board rate kicks in.
Fixed vs SORA: Which Is Right for You in 2026?
Fixed Rate
SORA-Linked
In May 2026, fixed and SORA-linked packages are surprisingly close. 3M Compounded SORA sits at 1.0514% p.a., with 1M Compounded SORA at 1.0744% p.a. A SORA-linked package with a 0.55% bank spread runs at roughly 1.60% p.a. effective. On a S$700,000 outstanding loan, that works out to only about S$60 to S$130 a month more than the cheapest mainstream fixed rate. So the real choice now is certainty against flexibility. Fixed gives you a known number; SORA can fall further or rise. Jumbo borrowers (S$1.5M+) tend to get the tightest SORA spreads of all, sometimes 0.20% to 0.30%, which can make SORA cheaper than the headline fixed rate.
Why have rates fallen so far? SORA tracked global rates higher in 2022 and 2023, peaking above 3.7%. Through 2024 and 2025, easing inflation and softer SGD-USD funding pressure pulled SORA back down. By May 2026 it sits near multi-year lows. Banks have answered by sharpening their fixed-rate offers to defend market share. That is why the gap between fixed and floating is so narrow today.
HDB vs Private Property: Does Your Loan Type Affect the Rate?
Not really, for bank loans. HDB resale buyers and private property buyers can both reach the same fixed and SORA-linked packages from Singapore banks. The differences sit elsewhere, mostly in how much you can borrow rather than what it costs.
- LTV limits differ. HDB resale buyers on 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 how much you can borrow but not the rate itself. Run the numbers in our TDSR/MSR affordability calculator.
- MSR applies to HDB, not private. HDB flat buyers face the Mortgage Servicing Ratio cap of 30% of gross income, on top of the TDSR limit of 55%. Private buyers only face TDSR. Again, this caps how much you can borrow, not the rate on offer. Read: TDSR for private property.
- The HDB Concessionary Loan is HDB-only. The HDB loan at 2.60% p.a. (no lock-in, up to 75% LTV since the 20 Aug 2024 cooling measures, CPF can cover the full down payment) is not available for private property. It costs more than the cheapest bank fixed rates, but the flexibility suits some buyers. Full breakdown: HDB loan vs bank loan.
- The stress test is the same either way. Every Singapore bank loan, HDB or private, is stress-tested at the MAS 4% stress test floor. Your TDSR is worked out at whichever is higher, the actual rate or 4.00% p.a.
What Affects the Rate You Actually Get?
The advertised rate is not guaranteed to every applicant. Banks adjust the effective rate, and how keen they are to offer it at all, based on a few things specific to your profile.
- Loan size matters most. Jumbo loans (S$1.5M+) reach the cheapest rates in the market, including the 1.40% p.a. 5-year fixed and SORA spreads as tight as 0.20% to 0.30%. Smaller loans (<S$300K) may not qualify for certain promotional packages and rarely get full legal fee subsidies. See: best loan for condo / private property.
- Your LTV ratio plays a part. Borrowers at 60% LTV or below are lower risk and sometimes get preferential pricing. Borrowing at 75% LTV does not shut you out of the best rates, but it can narrow legal-fee-subsidy eligibility.
- TDSR headroom counts. If you are close to the 55% TDSR ceiling, your choice of lender narrows. Banks see each other’s exposure through the credit bureau. A broker knows in advance which lenders are keenest for your debt profile.
- Property type shifts the leader. Completed condos, BUC (Building-Under-Construction) condos, executive condos and HDB resale flats each have their own cheapest bank in a given month. The same bank rarely tops every category at once.
- Cashback and subsidies move the real cost. Some banks offer S$2,000 to S$5,000 cashback on disbursement, or full legal fee subsidies worth S$1,800 to S$2,800. None of this shows up in the headline rate, but it can shave thousands off your year-one cost. For full property-equity refinancing, see our equity / cash-out loan guide.
Why No Single Bank Has the Best Rate for Everyone
Bank home loan promotions in Singapore change month to month. A rate DBS led in January might be overtaken by OCBC in March and matched by UOB in April. The headline number is only part of it. You also need to weigh legal fee subsidies, cashback clawback periods, what the rate reverts to after lock-in, and whether the lender’s credit assessment fits your income type (salaried, variable, self-employed or commission-based). All 16+ MAS-regulated lenders belong to the Association of Banks in Singapore and follow the same MAS rules. Their pricing strategies, though, differ sharply.
The quickest way to find the genuinely cheapest rate for your profile is to put it in front of all 16+ lenders at once. An independent broker does that for you, at no cost. The bank pays the referral fee on disbursement. You get a side-by-side comparison of every live package, including spreads and subsidies that never appear on any bank’s public rate sheet. Start with our live rate sheet across 16+ banks.
What to Do Right Now
- Buying now, HDB or private? Get In-Principle Approval (IPA) before you make an offer. The IPA confirms loan eligibility and gives you a 30-day rate hold. Plan your CPF too. See using CPF OA for property.
- Loan coming up to lock-in expiry? Start comparing packages 3 to 4 months ahead. Moving from a 3.80% board rate to a 1.55% fixed saves roughly S$1,100 to S$1,300 a month on a S$700K balance. Full guide: when to refinance.
- On a SORA-linked package taken in 2022 or 2023? Your spread was set when SORA was much higher. Check your lock-in expiry date today. If you are within 3 to 4 months of it, this is the most worthwhile move you will make all year.
- Borrowing S$1.5M or more? The cheapest rates in the market are there for you, but they are not advertised. Brokers see broker-only desks and tighter spreads that walk-in customers never do.
Frequently Asked Questions
As of 11 May 2026, fixed-rate home loan packages start from 1.40% p.a. for jumbo loans (typical range 1.45%–1.65% p.a. for a 2-year fixed). SORA-linked packages are competitive at roughly 1.25%–1.80% p.a. effective (3M Compounded SORA at 1.0514% plus a bank spread of 0.20%–0.75%). The fixed-vs-SORA gap is narrow in 2026.
No single bank consistently offers the cheapest rate — packages change monthly and vary by loan quantum, LTV, and whether you take HDB or private property financing. An independent broker compares all 16+ MAS-regulated lenders simultaneously and identifies the cheapest package for your profile at no cost to you.
In 2026 the gap is narrow. Fixed packages run 1.40%–2.00% p.a.; SORA-linked sits around 1.25%–1.80% p.a. effective. Fixed gives certainty; SORA gives flexibility and benefits if SORA falls further. Jumbo loans (S$1.5M+) often get the tightest SORA spreads. The decision is about lock-in tolerance, not big cost gaps.
A broker accesses all 16+ MAS-regulated lenders simultaneously and negotiates on volume. Banks often release broker-exclusive rate promotions and legal fee subsidies not advertised to walk-in customers. The service is free — Nexus is paid by the bank on disbursement.
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
Or read first: Singapore Mortgage Free Report — a 16-bank fixed-vs-SORA comparison, year-by-year rate progression for your loan, cost horizons over 2y/3y/5y and the lock-in expiry playbook in one PDF.
Further Reading
- Singapore Mortgage Free Report — Dan's full 16-bank rate comparison with year-by-year instalment projections across fixed, SORA and combo packages, plus the lock-in expiry playbook and cost horizons in one downloadable PDF
- 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
- MAS: TDSR for Property Loans — official MAS explainer on how TDSR is calculated
About the author — Dan Ler has advised on Singapore home loans since 2017 at Nexus Mortgage SG, an independent brokerage comparing 16+ MAS-regulated lenders. Nexus is paid by the bank on disbursement, so there is no cost to the borrower.
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 11 May 2026. Bank lending guidelines and MAS regulations are subject to change. Please consult a qualified mortgage adviser before making any financial decisions.