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.


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 tend to be higher than floating rates, and after the lock-in period, the loan usually shifts to a floating rate. For instance, as of December 2024, fixed rates for HDB loans range from 2.6% per annum.

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 3.4% and 3.7%.

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

Down Payment

Key Features

HDB loans

Fixed at 2.6% per annum, pegged to the CPF Ordinary Account rate + 0.1%.

Only 10% down payment, with more flexibility for CPF usage.

Suitable for buyers seeking stable and predictable repayments.

Bank loans

Fixed rates from 2.4%, Floating rates from 3.4%

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 1–1.5% 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%.


As of January 2025, the lowest fixed mortgage rates are approximately 2.4% for private properties, with floating rates starting at 3.4% for SORA-linked loans. HDB loans remain fixed at 2.6%, a rate unchanged for years. These trends make refinancing a popular option for those looking to reduce their interest burden.


Tools for comparing mortgage rates

When comparing mortgage rates in Singapore, Lendela stands out as one of the most convenient and comprehensive platforms. Unlike other tools like MoneySmart, ROSHI, and iCompareLoan, Lendela connects borrowers directly with multiple banks and financial institutions, providing access to personalised mortgage solutions and competitive rates. Lendela works with top banks such as DBS, Standard Chartered, and CIMB, making it easier to compare and identify the best home loan options available. Whether you're looking for fixed or floating rates, Lendela simplifies the process by offering tailored recommendations based on your financial profile, saving you time and effort in finding the ideal mortgage deal.

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.