Market Math
SORA Below 1% — Is This the Best Time to Upgrade?
Feb 15, 2026
The headline: 3-month SORA has fallen to 0.98% — below 1% for the first time since 2022. Best fixed mortgage rates are at 1.30% (DBS/OCBC), floating as low as SORA + 0% = 1.09%. Monthly payments are $500–$800 lower than they were at 2024 peaks. UOB forecasts SORA bottoms at ~1% by Q2 2026.
Current mortgage rates (Feb 2026)
| Type | Rate | Monthly ($750K loan, 25y) |
|---|---|---|
| Best fixed (2-year lock) | 1.30% | $2,970 |
| Best floating (SORA+0%) | ~1.09% | $2,890 |
| For comparison: 2024 peak | ~4.0% | $3,960 |
| MAS stress test rate | 4.0% | $3,960 |
Rates as of Feb 2026. Banks still stress-test at 4% for TDSR regardless of actual rate.
How much more condo can you afford?
Lower rates don't change your maximum loan — banks still stress-test at 4%. But they dramatically change your actual monthly payment and comfort level.
| Condo Price | At 1.30% (now) | At 3.50% (2024) | You Save |
|---|---|---|---|
| $1.0M | $2,970 | $3,960 | $990/mo |
| $1.2M | $3,560 | $4,750 | $1,190/mo |
| $1.5M | $4,460 | $5,940 | $1,480/mo |
| $2.0M | $5,940 | $7,920 | $1,980/mo |
75% LTV, 25-year tenure. Savings are the monthly payment difference between current rate and 2024 peak.
Fixed vs floating — which one?
The spread between fixed (1.30%) and floating (~1.09%) is only 20 basis points — the tightest in years. At this gap, fixed makes more sense for most people. You lock in a rate near the bottom and avoid any upside surprise.
Floating only wins if SORA stays flat or drops further. UOB forecasts SORA bottoming at ~1% by Q2 2026 and staying there through year-end. The risk-reward of floating for 20bps savings is slim.
| Scenario | Fixed (1.30%) | Floating (~1.09%) | Diff |
|---|---|---|---|
| $1M loan, monthly | $3,960 | $3,850 | $110 |
| $1M loan, 2-year total savings | — | $2,640 | Marginal |
| Risk if SORA rises to 1.5% | Protected | +$200/mo | — |
The catch: stress test hasn't moved
Even though actual rates are 1.3%, MAS still requires banks to stress-test your loan at 4%. This means your maximum borrowing amount hasn't changed — TDSR is still calculated at 4%.
The benefit is purely in monthly cash flow. You can't borrow more, but what you pay each month is significantly less. For a $1.5M condo, that's nearly $1,500/month less than at 2024 peak rates.
See your numbers at today's rates
The pipeline calculator uses current market rates. See your monthly payment, income ratio, and cash at closing — with today's low rates.
Run My NumbersRelated
Published Feb 15, 2026. SORA data from MAS. Mortgage rates from DBS, OCBC, UOB. This is market commentary, not financial advice.
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