Answer
Property Loan Interest Rates Singapore 2026
SORA has dropped below 1%. Here's where bank rates stand and how to pick between fixed and floating.
Answer: In 2026, Singapore property loan rates are: fixed 2.65-2.80% (3-year lock-in), floating 2.5-2.8% (SORA-pegged at ~0.98% + spread). HDB concessionary loan is 2.6% fixed with no lock-in. MAS stress-tests at 4%. Best strategy: floating if you can handle rate risk, fixed if you want certainty.
Bank Mortgage Rate Comparison — Q1 2026
Rates are indicative and change frequently. Always check with the bank.
| Bank | Fixed Rate | Lock-in | Floating Rate | Benchmark |
|---|---|---|---|---|
| DBS | 2.70% | 3 years | 2.55% | 3M SORA + 0.80% |
| OCBC | 2.65% | 3 years | 2.60% | 3M SORA + 0.85% |
| UOB | 2.75% | 2 years | 2.50% | 3M SORA + 0.78% |
| Standard Chartered | 2.80% | 3 years | 2.65% | 3M SORA + 0.90% |
| HDB Loan | 2.60% | None | N/A | CPF OA + 0.1% |
Rates as of Feb 2026, for reference only. Actual rates depend on loan amount, property type, and credit profile.
What Is SORA?
SORA (Singapore Overnight Rate Average) replaced SIBOR and SOR as the main mortgage benchmark from 2024. It reflects the average rate at which banks lend to each other overnight, published daily by MAS.
| Metric | Value (Feb 2026) |
|---|---|
| Daily SORA | ~0.95% |
| 1-month compounded SORA | ~0.96% |
| 3-month compounded SORA | ~0.98% |
| Typical bank spread | +0.78% to +1.00% |
| Your floating rate | ~2.50% – 2.80% |
Most mortgages reference 3-month compounded SORA. Your rate resets every 3 months.
Fixed vs Floating — Pros and Cons
| Factor | Fixed Rate | Floating Rate |
|---|---|---|
| Rate certainty | Locked for 2-3 years | Changes every 3 months |
| Current rate range | 2.65-2.80% | 2.50-2.80% |
| When rates drop | You're stuck at fixed rate | You benefit immediately |
| When rates rise | You're protected | Your payment increases |
| Early repayment | Penalty during lock-in (1.5%) | Usually no penalty |
| Best for | Risk-averse, tight budget | Rate-savvy, flexible budget |
Strategy tip: With SORA at ~0.98% and expected to stay low, floating rates currently offer a slight edge. But if your budget is tight, fixed gives you peace of mind during the lock-in period.
MAS Stress Test — Why 4% Matters
Even though your actual rate might be 2.7%, MAS requires banks to compute your TDSR (Total Debt Servicing Ratio) at 4% or the actual rate, whichever is higher. This means:
| Loan Amount | Monthly at 2.7% (30yr) | Monthly at 4% stress test | Min income needed (TDSR 55%) |
|---|---|---|---|
| $750,000 | $3,048 | $3,580 | $6,509 |
| $1,000,000 | $4,064 | $4,774 | $8,680 |
| $1,500,000 | $6,096 | $7,161 | $13,020 |
Assumes 30-year tenure, no other debts. TDSR limit = 55% of gross monthly income.
How much can you borrow?
Your actual borrowing power depends on income, age, and existing debts. Use our calculators to find out.
FAQ
What is the current property loan interest rate in Singapore 2026?
As of early 2026, fixed rates range from 2.65-2.80% for a 3-year lock-in period. Floating rates (SORA-pegged) are around 2.5-2.8%. HDB concessionary loan rate is 2.6% fixed (pegged at 0.1% above CPF OA rate).
Should I choose a fixed or floating rate mortgage in Singapore?
Fixed rate gives certainty — your payment stays the same during lock-in (typically 2-3 years). Floating rate is currently slightly cheaper and tracks SORA, which is at ~0.98%. Choose floating if you can absorb rate increases; fixed if you want predictable payments.
What is SORA and how does it affect my mortgage?
SORA (Singapore Overnight Rate Average) is the benchmark interbank rate set by MAS. Most floating-rate mortgages are pegged to 3-month compounded SORA. As of early 2026, SORA is around 0.98%. Your mortgage rate = SORA + bank spread (typically 0.80-1.00%).
What rate does MAS use for the TDSR stress test?
MAS requires banks to stress-test your loan at 4% interest rate (or the actual rate, whichever is higher) when computing your Total Debt Servicing Ratio. This means you need to qualify at 4% even if your actual rate is 2.7%.
Is the HDB loan rate of 2.6% a good deal in 2026?
HDB loan at 2.6% is competitive — slightly below bank fixed rates. The advantage is no lock-in period and no penalty for early repayment. The downside: max LTV is 80% (vs 75% for banks, but HDB has no cash floor for the 5%). Best for buyers who want flexibility and stability.
Related
- Mortgage Calculator — monthly payment for any rate and tenure
- TDSR Calculator — max loan from your income
- HDB Loan vs Bank Loan Guide — full comparison
- Maximum Loan Tenure in Singapore — 30 yrs (bank) / 25 yrs (HDB)
- Affordability Calculator — max condo from your HDB equity
Last updated Feb 2026. Rates are indicative and sourced from publicly available bank rate sheets. Always confirm with your bank. This is not financial advice.