Fixed Rate vs Floating Rate Mortgage Calculator Singapore 2026
Compare HDB and bank home loan costs side-by-side — free calculator with real-time monthly payment and total interest results in SGD.
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Understanding Fixed vs Floating Rate Mortgages in Singapore
Choosing between a fixed and floating rate home loan is one of the most consequential financial decisions a Singapore homeowner faces. With HDB housing loans pegged at a fixed 2.6% per annum (as at Q3 2026) and bank floating loans typically benchmarked to the Singapore Overnight Rate Average (SORA) plus a spread of 0.5%–1.0%, the rate differential can translate into tens of thousands of dollars over a 25-year tenure. The Monetary Authority of Singapore (MAS) reports that residential mortgage loans outstanding exceed S$230 billion as at June 2026, underscoring the scale of this decision for Singaporean households.
This calculator helps you model both scenarios using your actual loan amount, tenure, and rate assumptions — including a projected future floating rate after the initial lock-in period. All results are in SGD and calculated using the standard amortisation formula used by Singapore banks and HDB.
Not financial advice. All figures are for educational reference only. Consult a licensed mortgage broker or bank before committing to a home loan. Data as at Q3 2026 unless noted.
What Is the HDB Concessionary Loan Rate?
The HDB Housing Loan (concessionary rate) is set at 0.1% above the prevailing CPF Ordinary Account (OA) interest rate, which has been 2.5% p.a. since 1999. This pegs the HDB loan rate at 2.6% p.a., making it one of the most stable — and often competitive — home loan options in Singapore. Crucially, HDB loans are only available to Singapore Citizens purchasing HDB flats, and eligibility is subject to the HDB Loan Eligibility (HLE) letter criteria, including income ceilings and prior property ownership rules.
What Is a SORA-Pegged Floating Rate Loan?
Since 2021, MAS phased out SIBOR and SOR benchmarks in favour of SORA (Singapore Overnight Rate Average) — a volume-weighted average of overnight borrowing transactions in Singapore's interbank market. Most bank mortgage packages today use 1-month or 3-month Compounded SORA (SORA-C) plus a bank spread. As at August 2026, 3-month SORA-C sits near 3.0%–3.2%, with total all-in rates for private residential loans ranging from approximately 3.3% to 3.8% depending on the bank and loan-to-value ratio. Floating rates reset periodically, meaning your monthly instalment can rise or fall.
How to Use This Mortgage Calculator
- Loan Amount: Slide to your total home loan amount in SGD. For HDB BTO flats, typical loan amounts range from S$200,000 to S$500,000. For private condominiums, S$600,000 to S$1.5M is common.
- Loan Tenure: Set your repayment period (5–30 years). HDB loans allow up to 25 years (or up to age 65, whichever is earlier). Bank loans cap at 30 years for most borrowers.
- Fixed Rate: Enter the all-in fixed rate quoted by your bank or use 2.60% for the HDB concessionary rate. Fixed packages from banks typically offer 2–3 year lock-ins at rates between 2.0% and 3.5% p.a.
- Floating Rate (Current): Enter today's floating rate (SORA-C + spread). Check your bank's mortgage webpage for the current all-in floating rate.
- Expected Floating Rate After 2 Years: Set your expectation for where floating rates will move after the initial period. This is the critical variable — it models your long-term interest cost.
The calculator instantly shows monthly payments and estimated total interest for both options, plus a verdict on which saves more at your assumptions.
Pro tip: After comparing loans, use our Retirement Planning Calculator to see how your monthly mortgage instalment affects your overall retirement savings capacity.
What Is a Fixed Rate Mortgage in Singapore?
A fixed rate mortgage locks your interest rate for a specified period — typically 1 to 5 years — after which the loan reverts to the bank's prevailing floating rate or you may refinance. The key advantage is certainty: your monthly instalment is identical every month during the fixed period, regardless of market rate movements. For HDB borrowers, the HDB concessionary loan operates at a fixed 2.6% p.a. for the entire loan tenure — a genuinely rare and valuable feature in any interest rate environment.
For bank fixed-rate packages, the typical structure in Singapore is a 2–3 year fixed period with a lock-in clause. Breaking the lock-in early triggers a prepayment penalty, usually 1.5% of the redeemed amount. After the fixed period, the rate typically converts to a SORA-pegged floating rate unless you refinance or reprice. As at August 2026, the most competitive 2-year fixed rates from major Singapore banks (DBS, OCBC, UOB, Standard Chartered) range from approximately 2.45% to 3.10% p.a. all-in, depending on LTV ratio and loan quantum.
Fixed rates suit buyers who value budget predictability, especially dual-income households where mortgage servicing forms a defined portion of total monthly outgoings.
How Floating Rate (SORA) Loans Work in Singapore
Floating rate loans are priced as SORA (Singapore Overnight Rate Average) plus a bank spread. The spread is the bank's margin and typically ranges from 0.50% to 1.00% p.a. SORA itself is published daily by MAS and represents the actual transaction-based overnight interbank rate. For mortgage pricing, lenders use Compounded SORA over 1-month or 3-month periods (SORA-C), which smooths out daily volatility.
With the US Federal Reserve initiating rate cuts from late 2024 and Singapore following, SORA has declined from its 2023 peak of ~3.7% to around 3.0%–3.2% as at August 2026. Markets are pricing further Fed cuts of 50–75 basis points through end-2026 and into 2027, which could bring Singapore floating mortgage rates to 2.5%–3.0% all-in over the next 12–18 months. This makes floating rates increasingly attractive for borrowers with a medium-risk tolerance who believe the rate cycle has peaked.
| Feature | Fixed Rate | Floating (SORA) |
|---|---|---|
| Rate certainty | High (lock-in period) | Low (resets monthly/quarterly) |
| Upside if rates fall | None (locked) | Yes (payment falls) |
| Prepayment penalty | Usually 1.5% in lock-in | Often none after 1 yr |
| Best for | Budget certainty seekers | Rate-downside beneficiaries |
| HDB eligible? | Yes (HDB 2.6% + bank) | Bank loans only |
Fixed vs Floating: Which Saves More for Singapore Borrowers?
The “right” answer depends entirely on future interest rate movements — which nobody can predict with certainty. However, we can model scenarios. For a S$600,000 loan over 25 years:
| Scenario | Fixed 2.60% | Float: 3.50%→3.00% | Float: 3.50%→2.50% |
|---|---|---|---|
| Monthly (Yr 1-2) | S$2,714 | S$2,994 | S$2,994 |
| Monthly (Yr 3+) | S$2,714 | ~S$2,760 | ~S$2,530 |
| Total Interest | S$214,000 | ~S$247,000 | ~S$188,000 |
| Verdict | Fixed wins | Fixed wins | Float wins |
Key insight: the HDB concessionary rate of 2.6% is very difficult for floating bank loans to beat unless SORA drops substantially and stays low. For private property buyers comparing bank packages, the calculation is more nuanced and depends on the specific fixed rate offered versus your SORA outlook.
Best Home Loan Platforms in Singapore
Singapore homebuyers have several routes to compare and secure mortgage rates. The major local banks — DBS, OCBC, UOB — typically offer the broadest range of HDB and private property packages. Foreign banks like Standard Chartered, HSBC, and Maybank often compete on private property loans with attractive fixed-rate teaser rates. For side-by-side comparisons, MoneySmart and SingSaver publish regularly updated loan tables, though always verify current rates directly with the bank before committing.
For investment properties and those looking to put surplus cash to work alongside their mortgage repayment, robo-advisors like Endowus and Syfe offer flexible investing platforms that can help you simultaneously grow savings while servicing your loan. Many Singapore investors maintain a balanced approach: making regular CPF top-ups for OA usage (which earns 2.5%) while investing surplus monthly cash flow through FSMOne in dividend-paying S-REITs. Use our Dividend Portfolio Yield Calculator to model the income side of this equation.
Using CPF OA to Service Your Mortgage in Singapore
Singapore's CPF Ordinary Account (OA) earns 2.5% p.a. (with the first S$20,000 earning 3.5%). This makes CPF OA a natural source of mortgage repayment funds for eligible properties. For HDB flats, you can use CPF OA to service both HDB loans and approved bank loans (for HDB properties). For private property, CPF OA can similarly be used up to the Valuation Limit and Withdrawal Limit set by CPF Board.
The important consideration: when you sell the property, you must refund the CPF OA funds used (plus accrued interest at 2.5% p.a.) into your CPF account. This CPF accrued interest can become significant over long tenures — on S$300,000 of CPF usage over 25 years at 2.5%, the accrued interest tops S$215,000. This effectively increases your true housing cost and reduces the equity you take from the sale. Use our CPF OA/SA Allocation Calculator to understand your CPF flow, and cross-reference with the Retirement Planning Calculator to ensure mortgage repayments don't crowd out your retirement savings rate.
Mortgage Cost as Part of Your Singapore Retirement Plan
For most Singaporeans, a home loan is the largest debt obligation of their lifetime. Clearing the mortgage before retirement is widely cited as a key financial goal — and for good reason. A S$600,000 loan at 2.6% over 25 years generates total interest of approximately S$214,000 over the loan life. Accelerating repayment by just S$500 extra per month from year 5 can cut the tenure by 4–5 years and save S$40,000–S$60,000 in interest, depending on the rate environment.
Singapore's median household income is around S$10,200/month (as at 2025 MAS data). The MAS guideline caps Total Debt Servicing Ratio (TDSR) at 55% of gross monthly income, meaning a household earning S$10,000/month can theoretically service up to S$5,500/month in total debt obligations. Keeping mortgage payments below 30% of net income is considered prudent by most financial planners. Use our SRS Tax Savings Calculator to find additional ways to reduce tax while building your retirement nest egg alongside the mortgage. For a comprehensive passive income picture, see The Kopi Notes' Passive Income Singapore 2026 guide.
Frequently Asked Questions
Is fixed rate or floating rate better for HDB loans in Singapore?
For HDB loans, the concessionary fixed rate of 2.6% p.a. is extremely competitive and hard to beat with bank floating packages in a high-rate environment. In a falling-rate scenario where SORA drops to 2.0%–2.5%, bank floating packages can offer all-in rates of 2.5%–3.0% — potentially cheaper, but with more payment variability. Most financial advisers suggest HDB borrowers eligible for the concessionary loan take it for the certainty and simplicity, especially for first-time buyers.
What is a good mortgage rate in Singapore in 2026?
As at August 2026, competitive fixed rates from major Singapore banks range from 2.45% to 3.10% p.a. for 2–3 year fixed packages on HDB and private properties. Floating SORA-pegged rates (3-month SORA-C + spread) are in the 3.30%–3.80% all-in range. The HDB concessionary loan at 2.6% fixed remains the benchmark. Rates change frequently — always request the latest Letter of Offer from your preferred bank.
How much will I pay monthly for a S$500,000 mortgage over 25 years at 2.6%?
Using the standard amortisation formula: at 2.6% p.a. over 25 years (300 months), a S$500,000 loan requires a monthly instalment of approximately S$2,262. Total interest paid over the full tenure is approximately S$178,600. If you increase the monthly payment by S$300 to S$2,562, you could save around S$28,000 in interest and clear the loan about 3 years earlier.
What is SORA and how does it affect my Singapore mortgage?
SORA (Singapore Overnight Rate Average) is the benchmark interest rate published daily by MAS, replacing the older SIBOR and SOR rates from 2021–2024. It reflects the volume-weighted average of overnight unsecured borrowing transactions in Singapore's interbank market. Floating rate mortgages are typically priced at 1-month or 3-month Compounded SORA plus a bank spread. When SORA rises, your monthly repayment increases; when it falls, your repayment decreases. As at August 2026, 3-month Compounded SORA is approximately 3.0%–3.2%.
Can I switch from a floating to a fixed rate mortgage in Singapore?
Yes. You can switch via repricing (changing packages within the same bank, typically at a lower fee of S$500–S$800) or refinancing (moving to a different bank, which involves legal costs of S$2,000–S$3,000 but may offer a cash rebate from the new bank). The optimal time to switch is when your current lock-in period ends, as switching during lock-in triggers a prepayment penalty (typically 1.5% of outstanding loan). Most financial advisers suggest reviewing your mortgage every 2–3 years.
Which Singapore bank offers the best home loan rate in 2026?
DBS, OCBC, and UOB consistently feature among the most competitive lenders for HDB and private property loans in Singapore. Foreign banks like Standard Chartered and HSBC often compete with attractive fixed teaser rates for private properties. The “best” rate depends on your property type, LTV ratio, loan quantum, and whether you prioritise fixed or floating pricing. Use a mortgage broker (licensed under MAS) or a comparison portal to solicit indicative rates from multiple lenders before deciding.
How does TDSR (Total Debt Servicing Ratio) affect my Singapore mortgage?
MAS caps TDSR at 55% of your gross monthly income. This means all your monthly debt obligations — mortgage, car loan, credit card minimum payments, personal loans — cannot exceed 55% of your gross income. For a household earning S$10,000/month, total debt service is capped at S$5,500/month. Banks use a stress-test rate (typically the higher of the actual rate or a minimum 3.5%–4.0% floor) when computing your TDSR for approval purposes, so your actual approved loan may be lower than what you calculated at the quoted rate.
Should I use CPF or cash to repay my Singapore mortgage?
Using CPF OA (earning 2.5% p.a.) to repay an HDB loan at 2.6% p.a. results in a net cost of 0.1% — very affordable. However, every dollar of CPF OA used must be refunded upon sale of the property (with 2.5% accrued interest), which can significantly erode your net sale proceeds. Many Singapore investors prefer to use cash to repay the mortgage while leaving CPF OA untouched to compound, then invest the CPF later via CPFIS in approved instruments. The right choice depends on your property exit timeline and overall financial plan.
What happens to my floating rate mortgage if SORA rises sharply?
If SORA rises, your monthly instalment increases proportionally. On a S$600,000 floating rate loan at 3.5% with 25 years remaining, a 1% SORA increase adds approximately S$330/month to your instalment and roughly S$100,000 in total interest over the life of the loan. To stress-test your affordability, use this calculator with a higher-than-expected future floating rate (try 5.0%) and confirm you can still service the resulting monthly payment comfortably within your TDSR limit.
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