Best Home Loan Rates Singapore 2026 — DBS, OCBC, UOB Compared

Best Home Loan Rates Singapore 2026 — What You Need to Know

With interest rates shifting in 2026, choosing the right home loan package has never been more important. A difference of just 0.30% p.a. on a S$600,000 loan saves you over S$1,800 a year — more than S$36,000 over a 20-year mortgage.

Current Home Loan Rates Singapore — Fixed vs SORA (May 2026)

Singapore home loans come in two main types: fixed rate (locked for 2–5 years) and SORA-pegged floating rate. Here is the current snapshot from the four major banks:

DBS Home Loan Rates 2026

OCBC Home Loan Rates 2026

UOB Home Loan Rates 2026

Maybank Home Loan Rates 2026

*Rates as of May 2026. Subject to change — always confirm with the bank directly.*

Fixed Rate vs SORA Floating — Which Is Better in 2026?

The Case for Fixed Rates

• Budget certainty: Your monthly payment does not change during the fixed period
• Protection if rates rise: If SORA increases, you are shielded
• Popular with first-time buyers: Easier to plan finances

The Case for SORA Floating

• Lower starting rate historically (SORA spreads can be attractive)
• Rate falls benefit you immediately: If SORA drops, your payment drops
• No lock-in on many packages: More flexibility to refinance

2026 Outlook

MAS expects SORA to remain in the 3.5–3.8% range through mid-2026 before potentially easing. If you believe rates will fall materially in 12–18 months, SORA floating (with no lock-in) gives you flexibility to benefit. If you prefer certainty, a 2-year fixed at 2.90–2.95% is an excellent anchor.

How to Compare Home Loan Packages Properly

1. Look Beyond the Headline Rate

Banks often advertise teaser rates for year 1. Always check: - Year 1, Year 2, Year 3 rates - Post-lock-in rate (what happens after the fixed period ends) - Whether the post-lock-in rate is competitive

2. Understand the Lock-In Period Penalty

Most fixed-rate packages have a lock-in period during which you cannot refinance without penalty. Typical penalty: 0.75–1.50% of outstanding loan amount.

On a S$600,000 loan: - 0.75% penalty = S$4,500 - 1.50% penalty = S$9,000

3. Factor In Legal Fees and Subsidies

When refinancing to a new bank, legal fees of S$1,800–S$3,000 apply. Most banks offering refinancing provide a legal fee subsidy of S$1,800–S$2,000 — effectively making refinancing free in some cases.

4. Check Repricing Options

At the end of your lock-in, you can reprice (stay with current bank, new package) or refinance (move to new bank). Repricing costs only S$200–S$800 but may not give you the best rate.

Monthly Repayment Comparison — S$600,000 Loan, 25 Years

*Going from 3.50% to 2.90% saves S$224/month and S$67,200 over 25 years.*

Tips to Get the Best Home Loan Rate in Singapore

1. Apply to Multiple Banks Simultaneously

Applying to DBS, OCBC and UOB at the same time counts as a single credit inquiry if done within 30 days. This lets you compare actual approvals without multiple hits to your credit score.

2. Use a Mortgage Broker (Free Service)

Mortgage brokers earn commission from banks — their service is free to you. A good broker has access to exclusive rates not advertised publicly and handles all paperwork. For loans above S$500,000, brokers regularly secure 0.10–0.20% below advertised rates.

3. Negotiate, Especially for Large Loans

Banks are willing to negotiate, especially for loan amounts above S$800,000. Ask for: - Lower spread on SORA packages - Waiver of processing fees - Extended fixed-rate period at the same advertised rate - Higher legal fee subsidy

4. Keep Your Credit Score Above 1,844

The Credit Bureau Singapore (CBS) scores run from 1,000–2,000. Scores of 1,844–1,911 (AA/BB rating) get the best rates. Check yours free at CBS before applying.

5. Lower Your TDSR Before Applying

If your Total Debt Servicing Ratio (TDSR) is close to 55%, clear smaller debts first. A better TDSR gives you more borrowing power and can qualify you for better packages.

HDB vs Private Property Loan Rates

Home loan rates are the same regardless of whether you are buying an HDB or private property — the bank does not differentiate on rate. However, HDB buyers also have the option of the HDB Concessionary Loan at 2.6% p.a. — see our HDB loan vs bank loan guide for full details.

Frequently Asked Questions

Which bank has the best home loan rate in Singapore in 2026?

As of May 2026, OCBC offers the lowest 2-year fixed rate at 2.90% p.a. DBS and UOB are close at 2.95% and 2.98% respectively. For SORA floating packages, UOB's 1M SORA + 0.85% is competitive. Rates change regularly — always compare at the time of your application.

Is fixed or SORA better for 2026?

For buyers who want certainty, 2-year fixed at 2.90–2.95% provides stability while leaving flexibility to reassess in 2028 when rates may be lower. If you are comfortable with some payment variability and believe SORA will fall, a no-lock-in SORA package gives you optionality.

How much does 0.10% interest rate difference save?

On a S$600,000 loan over 25 years, a 0.10% difference saves approximately S$300/month and S$7,200 over the loan term. On a S$1,000,000 loan, that same 0.10% saves S$500/month and S$12,000 total.

Can I lock in a rate before my BTO is completed?

No. Banks cannot lock in current rates for an in-progress BTO — you apply for the loan only when your flat is ready (HDB sends the Notice of Estimated Completion). HDB Concessionary Loan rates are set at the time of application.

What is SORA and how does it affect my mortgage?

SORA (Singapore Overnight Rate Average) is MAS's benchmark rate, published daily. It replaced SIBOR as the reference rate for Singapore floating-rate mortgages. Your monthly payment changes when SORA moves — typically reset monthly (1M SORA) or quarterly (3M SORA). Use our mortgage calculator to model payment changes at different SORA levels.