A guide to mortgage interest rates in Singapore

What are the types of mortgage interest rates in Singapore?

Fixed interest rates

Fixed-rate mortgages lock in a consistent interest rate for a specified period, typically between 2 to 5 years. This offers stability in monthly payments, making it easier for homeowners to budget and plan their finances without worrying about fluctuating interest rates. However, these rates could be higher than floating rates, and after the lock-in period, the loan usually shifts to a floating rate.

Floating interest rates

Floating rates vary based on market conditions and are pegged to benchmarks like the Singapore Overnight Rate Average (SORA), the Singapore Interbank Offered Rate (SIBOR), or bank-specific board rates. Floating rates are generally lower than fixed rates initially but carry higher volatility. Current floating rates for private properties range between 1.45-1.50%.

Floating rates offer the potential for savings, as they are generally lower than fixed rates at the outset, but they also come with volatility, which can be challenging for borrowers who prefer stable payments.

Key benchmarks for floating rates

SORA (Singapore Overnight Rate Average)

The dominant benchmark in Singapore since SIBOR is being phased out. SORA reflects the average borrowing costs in Singapore’s interbank market and is considered more transparent and stable.

SIBOR (Singapore Interbank Offered Rate)

Previously the primary benchmark, being phased out in favor of SORA.

Board rates

Internally set by banks, board rates lack transparency and can be adjusted unpredictably.

Fixed deposit linked rates

Tied to a bank’s fixed deposit rates, these are relatively stable but less transparent than SORA.

How do interest rate changes impact monthly repayments?

The U.S. Federal Reserve’s decisions often influence Singapore’s interest rates. For example, floating rates like SORA and SIBOR react to Fed rate hikes. A small percentage change can significantly impact monthly repayments. For a $500,000 loan over 25 years, every 0.5% increase in the interest rate adds roughly $120 to monthly payments. Over time, these increases can lead to significant additional costs, so keeping an eye on interest rate trends is crucial. Therefore, understanding rate trends is critical when choosing between fixed and floating options.

Comparing HDB loans vs. bank loans

Loan type	Interest rate	Downpayment	Key features
HDB loans	Fixed at 2.60% per annum, pegged to the CPF Ordinary Account rate + 0.10%	Only 10% down payment, with more flexibility for CPF usage	Suitable for buyers seeking stable and predictable repayments
Bank loans	Fixed rates from 1.3%, Floating rates from 1.45%	Minimum 25% down payment	Provide more flexibility, with options to refinance or reprice

Key considerations when choosing your ideal mortgage

1. Lock-in period
   Ensure you’re comfortable with the duration of the lock-in period. Breaking it early often incurs penalties of 1–1.50% of the loan amount.

2. Risk appetite
   Fixed rates are ideal for those seeking stability, while floating rates suit borrowers who can handle market fluctuations.

3. Future refinancing opportunities
   Many borrowers refinance their mortgages after the lock-in period to secure lower rates, making flexibility a critical factor.

4. Loan-to-Value (LTV) ratio
   The LTV for HDB loans is up to 80%, while for bank loans, it is capped at 75%.

Current mortgage rate trends

As of latest update (2026), the lowest fixed mortgage rates are approximately 1.30% for private properties, with floating rates starting at 1.45% for SORA-linked loans. HDB loans remain fixed at 2.6%, a rate unchanged for years. Local banks like POSB offer HDB-specific fixed rates, e.g. 3-year fixed at 1.70% p.a.

Tools for comparing mortgage rates

Lendela is a loan matching platform that connects borrowers with multiple banks and financial institutions in one application, providing personalised mortgage options based on your financial profile.

Additional tips for homebuyers and homeowners

• Review your mortgage regularly: Revisit your mortgage rate annually to see if refinancing or re-pricing could benefit you.

• Consider a loan with flexibility: Choose a loan that offers options like early repayment or the ability to switch between fixed and floating rates, which can offer more flexibility as your financial situation changes.

• Plan for market fluctuations: Prepare for potential interest rate hikes, especially if you’re on a floating rate, by ensuring you have a buffer in your budget.

How Lendela helps you find the best mortgage rates

Understanding the nuances of mortgage interest rates can save you thousands of dollars over the loan tenure. Regularly reviewing and comparing rates ensures you’re getting the best deal, especially after your lock-in period. Whether you prioritise stability or flexibility, tailor your loan package to align with your financial goals and risk tolerance. Get personalised mortgage options on Lendela to help you make the best cost-effective decision for your home.