The Lendela Team
May 19th, 2026
Table of contents
When purchasing a property or refinancing an existing mortgage in Singapore, understanding mortgage interest rates is crucial for making informed financial decisions. This guide explains the key types of mortgage interest rates available in Singapore, how they work, and factors to consider when selecting the best home loan option for your needs.
How to apply for a home loan in Singapore
Applying for a home loan in Singapore means choosing between an HDB loan and a bank loan, then submitting your income, CPF and property details for assessment. Most buyers compare offers from several banks and financial institutions before committing, since the rate, lock-in period and loan-to-value ratio can vary meaningfully between them. A single application through a loan matching platform such as Lendela sends your details to 70+ banks and financial institutions at once, so you can compare personalised offers side by side instead of approaching each bank separately.
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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. Floating rates vary by bank and are published on each bank's own rate page – see the current rates table further down this page.
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 0.1 percentage points above the CPF Ordinary Account interest rate. | Only 10% down payment, with more flexibility for CPF usage. | Suitable for buyers seeking stable and predictable repayments. |
Bank loans | Varies by bank and loan package – see the current rates table further down this page for today's published rates. | Minimum 25% down payment | Provide more flexibility, with options to refinance or reprice |
Key considerations when choosing your ideal mortgage
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.Risk appetite
Fixed rates are ideal for those seeking stability, while floating rates suit borrowers who can handle market fluctuations.Future refinancing opportunities
Many borrowers refinance their mortgages after the lock-in period to secure lower rates, making flexibility a critical factor.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 (checked October 2026)
Loan type | Rate | Notes |
HDB concessionary loan | 2.6% p.a. | Pegged 0.1 percentage points above the CPF Ordinary Account rate (2.5%). Unchanged through 30 September 2026. |
DBS floating (Prime Rate) | 4.25% p.a. | No lock-in period. |
DBS fixed | 3M SORA + 0.75% margin | 2-year lock-in. |
OCBC floating (SORA-linked) | 1M SORA + 0.98% (Years 1–2), +1.40% thereafter | — |
Rates shown are each bank's own published figures as at October 2026 and change with each bank's rate review cycle – always check the current rate on the bank's own page before committing. HDB loans stay fixed for the life of the loan; bank loans typically reprice after the lock-in period ends, which is when many homeowners compare refinancing options.
Sources: DBS Home Loan Rates, OCBC Home Loan, CPF Board.
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.
Frequently asked questions
How do I apply for a home loan in Singapore?
You can apply directly with a bank, through HDB for an HDB loan, or submit one application through a loan matching platform that sends your details to multiple banks and financial institutions at once, so you can compare offers before deciding.
What's the difference between a housing loan and a mortgage loan in Singapore?
The terms are used interchangeably in Singapore. Both refer to financing used to purchase or refinance a residential property, whether an HDB flat or private property.
Can I get a bank loan for a private property in Singapore?
Yes. Private properties are financed through bank loans only, not HDB loans. Bank loans for private property require a minimum 25% down payment and are capped at a 75% loan-to-value ratio.
How much can I borrow for a home loan in Singapore?
Your maximum loan amount depends on your Total Debt Servicing Ratio (TDSR) and, for HDB flats, the Mortgage Servicing Ratio (MSR), alongside the property's valuation and the loan-to-value limit for your loan type.
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.
The Lendela Team
Lendela is a loan-matching platform that partners with 70+ banks and financial institutions. We aim to deliver a transparent, safe, and personalised loan-matching experience, empowering borrowers with confidence to choose what truly fits. Since launching in 2018, we’ve helped hundreds of thousands of Singaporeans make smarter, more informed financial decisions through clarity and control.
