As 2026 approaches, homeowners and property buyers are watching interest rates closely. After several years of volatility — from the steep climbs of 2022–2023 to the gradual easing in 2024–2025 — many are now asking the same question: What will Singapore home loan rates 2026 look like?
Whether you’re planning to buy a new property, upgrade your home, or explore mortgage refinancing in Singapore, understanding where rates may be headed is crucial. The next 12 months are likely to bring meaningful shifts, and those who prepare early will be best positioned to secure favourable financing.
This guide breaks down what you can expect from home loan rates in Singapore in 2026, what will influence them, and how to make smart loan decisions in the months ahead.
The Big Picture: Where Are Singapore Home Loan Rates Heading in 2026?
Most analysts expect Singapore home loan rates 2026 to remain relatively moderate, with further dips possible depending on how global inflation behaves. While rates are unlikely to return to the ultra-low levels seen during the pandemic, they are also unlikely to spike the way they did between 2022 and 2023.
The Singapore mortgage rate forecast for 2026 suggests that interest rates will stabilise in a “mid-range zone.” This means borrowers can anticipate more predictable monthly instalments and better clarity when planning long-term affordability.
The key driver remains the U.S. Federal Reserve. As the Fed continues its measured rate-cut cycle, Singapore’s interest rates — which closely track U.S. movements — are expected to ease gradually. This will directly influence home loan rates in Singapore, both fixed and floating packages.
Why Mortgage Rates Are Likely to Stabilise
Several factors support a stable Singapore housing loan interest rate landscape in 2026:
1. Easing Global Inflation
Inflation in major economies is finally cooling. As price pressures ease, interest rates tend to follow. This leads to reduced funding costs for banks, which may translate into more competitive mortgage rates in Singapore in 2026.
2. Recovery and Confidence in Property Markets
Singapore’s property market has shown resilience despite global uncertainty. Stable demand and healthy household balance sheets provide a foundation for more measured rate adjustments rather than sharp movements.
3. SORA-Based Stability
Most floating packages in Singapore now use SORA (Singapore Overnight Rate Average). Compared to older benchmarks like SIBOR, SORA is designed to be more transparent and less volatile, contributing to a steadier rate environment going into 2026.
Together, these factors support a 2026 environment where borrowers can expect consistent, manageable rates — favourable for both new buyers and those considering mortgage refinancing in Singapore.
Fixed vs Floating: Which Will Perform Better in 2026?
One of the most important decisions borrowers face is choosing between fixed home loan rates in Singapore and floating home loan rates in Singapore. Each option has its advantages, depending on market conditions and personal financial preferences.
Fixed Home Loan Rates Singapore
Fixed rates are expected to remain attractive in early 2026 as banks compete for market share. If the global rate-cut cycle continues, fixed packages could sit in a moderate band — low enough to give borrowers certainty without overpaying.
Fixed rates are ideal for buyers who:
- Want stable instalments
- Prefer predictability
- Expect rates to rise later
Given the overall Singapore mortgage rate forecast, locking in a favourable fixed rate in 2026 may prove to be a smart defensive move.
Floating Home Loan Rates Singapore
Floating rates, pegged to 1-month or 3-month SORA, will follow market movements more closely. If SORA continues trending down in 2025 and early 2026, floating loans may offer cheaper upfront rates.
Floating rates suit borrowers who:
- Can handle short-term fluctuations
- Believe SORA will stay low
- May refinance within a few years
With mortgage rates in Singapore in 2026 expected to stabilise rather than spike, floating packages could remain appealing — especially for shorter-term loan strategies.
What to Expect from Bank Home Loan Rates in 2026
Banks are likely to compete more aggressively in 2026. With stable economic conditions and renewed confidence among buyers, lenders may offer:
- Lower spreads on floating packages
- Promotional fixed rates for new launches
- Better repricing options for existing customers
- Benefits for mortgage refinancing in Singapore to attract switchers
This means bank home loan rates in Singapore should stay competitive as lenders fight to retain and grow their mortgage portfolios.
Borrowers can expect attractive packages especially in:
- Early 2026 (after rate-cut announcements)
- Periods of strong new-launch activity
- Months when SORA dips notably
Being timing-savvy may help you secure more favourable home loan rates in Singapore than the headline numbers suggest.
Should You Refinance Before 2026?
If your current rate is above 2%, 2025–2026 may present an excellent window to evaluate refinancing. With Singapore home loan rates 2026 projected to remain moderate, refinancing early could lock in better repayment terms.
Refinancing may benefit you if:
- Your lock-in period is ending soon
- Your rate is significantly above current market levels
- You prefer more stable fixed packages
- You want to reduce monthly repayment commitments
Many homeowners in Singapore are already exploring mortgage refinancing in Singapore options to take advantage of falling SORA-based rates.
How to Choose the Best Home Loan in Singapore in 2026
Choosing the right loan is not simply about picking the lowest headline rate. You must evaluate multiple factors, including:
1. Your risk tolerance: If you prefer stability, choose a fixed package. If you’re comfortable with short-term changes, floating rates may save more over time.
2. Your refinancing horizon: Borrowers planning to refinance again in 2–3 years may favour shorter lock-in floating packages.
3. Lock-in period terms: Longer lock-ins provide good rates but reduce your flexibility.
4. Total 3-year cost instead of first-year rate: This helps you gauge true affordability.
5. Promotions and subsidies: Banks may offer legal fee subsidies or limited-time discounts to attract borrowers.
When evaluating options, focus on choosing the package that aligns with your financial goals and plans — not just the lowest number on paper.
If you’re unsure how to choose the best home loan in Singapore 2026, consulting an independent mortgage advisor can help you compare offers objectively.
Final Thoughts: A More Predictable Year Ahead for Borrowers
The outlook for mortgage rates in Singapore in 2026 is positive for buyers and homeowners. With global inflation easing and the rate-cut cycle underway, Singapore mortgage rate forecast models show improved affordability and stability.
Whether you’re entering the market for the first time, purchasing an investment property, or planning mortgage refinancing in Singapore, 2026 offers a strategic opportunity to secure a favourable package.
By understanding how Singapore home loan rates in 2026 might evolve — and how to match the right loan to your financial strategy — you can make confident, well-timed decisions in the year ahead.
Author Bio:
Paul Grewal is a seasoned home mortgage consultant based in Singapore, renowned for his strategic finesse and deep market insights. With over a decade of experience, he specialises in helping clients navigate the complexities of property investment and refinancing home loans. Paul’s approach is highly personalised, ensuring that his clients secure the best possible terms and mortgage loan interest rates in Singapore tailored to their unique financial situations. An avid writer, he contributes regularly to leading financial publications, offering advice on smart property investment and financial planning. His workshops on financial literacy are highly sought after, reflecting his commitment to empowering homeowners in Singapore. This blog explains what to expect from Singapore home loan rates in 2026 and how buyers can choose the best mortgage.
