MoneyDigest.sg

Been putting off checking your mortgage rate because the whole thing feels like a moving target?

Fair. Rates have been shifting all year, and if you last looked at your home loan when you signed the papers, chances are the market has already moved past you.

Here’s the good news: rates have actually softened compared to where they sat a couple of years ago. The less good news? “Rates are lower” doesn’t automatically mean your current package is a good deal. Let’s break down what’s actually happening with home loan rates in 2026, and what’s worth paying attention to.

Where Rates Actually Sit Right Now

Fixed rate packages for HDB flats and private property are currently landing in a fairly tight range, with the most competitive promotional packages sitting well below the “headline” rates banks advertise publicly. Floating packages, pegged to SORA (more on that below if you’re not familiar), have also eased from their highs.

The catch is that “current rates” isn’t one number. It’s dozens of packages across 16-plus banks, each with its own spread, lock-in period, and fine print. What looks like a great fixed rate on a bank’s website is sometimes beaten by an unpublished promotional rate available only through a broker.

Fixed vs Floating: The Question Everyone Asks

Fixed rate means your interest rate stays the same for a set period, usually 1 to 3 years. You know exactly what you’re paying each month. The tradeoff is that if rates drop further after you lock in, you don’t benefit until your lock-in ends.

Floating rate packages move with SORA, the benchmark that replaced the old SIBOR system a few years back. These often start with a lower headline rate than fixed packages, and they give you more flexibility to switch once your lock-in ends without penalty. The tradeoff is your monthly repayment can shift if the benchmark moves.

Neither is objectively “better.” It depends on your risk appetite and how long you plan to hold the loan. If you’re the type who wants to know exactly what’s leaving your account every month, fixed wins. If you’re comfortable riding some movement in exchange for a potentially lower starting cost, floating is worth a serious look.

Should You Actually Refinance in 2026?

This is the question we’re getting asked the most. Here’s a rough way to think about it.

If your current lock-in period has already ended, or is ending soon, and you haven’t checked rates in over a year, it’s very likely you’re paying more than you need to. Banks don’t proactively lower your rate just because market rates have dropped. You have to go and get the better deal yourself.

If you’re still deep in a lock-in period, run the numbers before jumping ship. Early repayment penalties can eat into the savings from switching, so it’s worth comparing the penalty cost against what you’d actually save over the remaining lock-in.

A quick gut check: if the rate gap between what you’re paying and what’s currently available is more than 0.3 to 0.5 percentage points, it’s usually worth running the full comparison.

The Bit Most People Miss

Here’s the thing nobody tells you when you’re comparing Singapore mortgage rates on your own: the rate you see advertised on a bank’s website is often not the best rate that bank is actually willing to offer.

Banks run promotional packages that aren’t always publicly listed, and mortgage brokers get access to these because they bring in volume. This is where working with a broker like DollarBack Mortgage tends to make an actual difference, not just in finding a lower rate, but in comparing all 16 major banks at once instead of you calling each one individually. On top of that, using a broker for refinancing or a new purchase can come with cash rewards of up to $3,300, which stacks on top of whatever rate savings you land.

If you’ve got a loan above $300k, that’s not a small amount to leave on the table.

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