After two years of falling rates, banks have started repricing. The difference between the best and worst packages is smaller than most people think. The lock-in period, the fees and your own plans matter more.
Home loan rates in Singapore are rising again after the US Federal Reserve raised interest rates on 17 September 2026, its first hike in three years. At least four fixed-rate packages for a S$500,000 loan have crossed 2%, and the one- and three-month compounded SORA has risen to about 1.2%, so floating packages now mostly sit between 1.5% and 1.8%.
For most of 2025 and early 2026, refinancing was simple: wait a little and rates got lower. That has now changed. The US Federal Reserve raised rates by 0.25 percentage points on 17 September, its first hike in three years, and Singapore banks have repriced their home loans in the weeks since.
Banks price fixed-rate loans off swap rates, which reflect what they pay to borrow in wholesale markets, plus a margin. OCBC's head of home loans Maryanne Phua said swap rates rose by nearly 0.3 percentage points in September, and OCBC raised its fixed rates by about 0.2 points in the week of 21 September. UOB adjusted selected packages ahead of the Fed's meeting after a review in August, and DBS said it was reviewing its fixed-rate packages in light of changing market conditions.
| Bank | Package | Rate |
|---|---|---|
| Maybank | 3-year fixed | 2.55% |
| Citibank | 2-year fixed | 2.20% |
| OCBC | 3-year fixed | 2.08% |
| Standard Chartered | 1- and 2-year fixed (raised 1 Oct) | 2.00% |
| Most banks | Floating (SORA-pegged) | 1.5–1.8% |
These are the rates reported by The Straits Times from mortgage broker Mortgage Master's website for a S$500,000 loan on a new private property or HDB flat. Rates change often and depend on your loan size and property type, so treat them as a snapshot.
Floating rates are rising too. One- and three-month compounded SORA, the benchmark most floating packages use, has climbed to around 1.2% after bottoming at about 1% in Q2 2026. Banks haven't changed their margins over SORA, so floating packages have risen with it.
Probably somewhat, but not as much as US rates. DBS senior investment strategist Joanne Goh said markets expect one more US hike in 2026 and another by Q1 2027, taking US rates from 4.25% to 4.5%. She pointed out that Singapore manages inflation through the exchange rate rather than interest rates, and with plenty of liquidity in the banking system, SORA is unlikely to climb as high as US rates.
Mortgage Master CEO David Baey was more cautious about floating rates. He expects them to be unattractive for the next six months to a year, with higher oil prices from the Middle East conflict feeding into inflation. His suggestion was shorter fixed tenors of one to three years, so borrowers aren't locked into a long fixed rate if conditions change.
Less than the percentages suggest. Here's the monthly instalment on a S$500,000 loan over 25 years at different rates:
| Interest rate | Monthly instalment | vs 1.7% floating |
|---|---|---|
| 1.50% (low-end floating) | S$2,000 | −S$47 |
| 1.70% (mid floating) | S$2,047 | — |
| 2.08% (3-year fixed, OCBC) | S$2,139 | +S$92 |
| 2.55% (3-year fixed, Maybank) | S$2,256 | +S$209 |
Redbrick Mortgage Advisory associate director Clive Chng described choosing fixed as buying insurance against rate increases, and with the gap between fixed and floating this narrow, the insurance is fairly cheap right now. Whether you need it depends on how much a S$200 to S$300 rise in your monthly instalment would hurt.
Most banks have dropped their one-year fixed packages. Among those checked by The Straits Times, only OCBC and RHB still offer them, and both require a two-year lock-in, so you can't refinance to another bank after the first year. Standard Chartered offers a one-year fixed rate that switches to a floating rate of one-month SORA plus 0.4% in the second year, also with a strict two-year lock-in.
So the short, flexible fixed rate that many people want now comes with a lock-in that cancels out much of its flexibility. Read the terms before you sign.
HDB owners can also borrow from HDB at the concessionary rate. It's pegged 0.1 percentage points above the CPF Ordinary Account rate and has stayed at 2.6% for around two decades. Bank packages for HDB flats are currently cheaper. OCBC offers a five-year fixed rate of 2.28% and DBS a three-year fixed rate of 2.08%.
DBS also has a package pegged below the CPF OA rate for the whole loan: 1.78% for the first three years, 2.2% in years four and five, and 2.4% from year six. That keeps it below the 2.6% HDB rate throughout, as long as the OA rate doesn't change.
A one-way door. Once you refinance an HDB loan to a bank loan, you can't switch back to an HDB loan later. The HDB loan rate has been stable for about 20 years, while bank rates can change, so make sure the savings are worth giving up that option, especially if you're near retirement or your income is less predictable.
UOB's Jacquelyn Tan and DBS's Chelsea Ling both made the same point: choose a loan on affordability, flexibility and your own plans, not just the advertised rate. In practice, check these before signing:
Lock-in period. If you might sell or refinance within two years, a slightly higher rate with a shorter lock-in can work out cheaper than a lower rate with a long one. One homeowner featured in the ST article picked a two-year fixed rate over a three-year one for exactly this reason, because he may buy another property.
Fees and clawbacks. Early repayment penalties, and clawback of legal or valuation subsidies if you redeem within a set period, can wipe out a year's worth of savings.
What happens after the fixed period. The rate you'll move to in year three or four matters as much as the rate you start on.
Enter your loan amount, tenure and two different rates to see the monthly difference and total interest over the life of the loan. It's a quick check on whether a "better" package is worth the lock-in.
Open the mortgage calculator →I wouldn't treat this as a crisis. Rates around 2% are still low by historical standards, and a S$90 a month difference won't change whether most people can afford their home. What has changed is the direction. Waiting for rates to fall further no longer works as a refinancing plan.
If your lock-in ends in the next few months, start comparing now. Banks typically let you lock in a new package a few months before your current lock-in ends, and that window matters more when rates are rising than when they're falling.
If you're buying, think about your plans before you think about the rate. If you might upgrade or sell in two years, flexibility is worth paying for. If you're staying put and want predictable instalments, a two- or three-year fixed rate at today's narrow premium is reasonable value. If you're on an HDB loan, don't switch just to save a little. You can't switch back.
Refinancing soon, or planning a purchase and not sure how rising rates change your budget? Happy to walk through it with you.
WhatsApp Bryan → More guides →Sources: The Straits Times, 3 October 2026, "What home owners should look out for in loan plans as rates rise" by Chor Khieng Yuit, citing published rates from Mortgage Master and comments from OCBC, UOB, DBS, Mortgage Master and Redbrick Mortgage Advisory. Rates are as reported in early October 2026 and change frequently; check with the bank or a mortgage broker for current terms. Monthly instalments are my own calculations for illustration. This article is for informational purposes only and does not constitute financial advice.
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