Mortgage
Comparing Home Loan Interest Rates: What to Expect in 2026
A current look at fixed vs floating home loan rates in Singapore, and how to decide which structure is right for your situation.
Lendela Team ·
Fixed vs floating rates
Fixed rate loans lock your rate for an initial period (typically 2–5 years), giving certainty over your monthly payment. After the lock-in, the rate usually reverts to a floating rate.
Floating rate loans are pegged to benchmarks such as the Singapore Overnight Rate Average (SORA) or bank internal board rates. They’re lower initially but can rise with market movements.
Current market context
Following a period of elevated global interest rates, borrowers should stress-test their repayment capacity at rates 1–2% higher than current quotes.
Tips for comparison
- Look beyond the headline rate — compare total interest cost over your intended hold period.
- Factor in lock-in penalties if you plan to sell or refinance within the fixed period.
- Compare at least three lenders using the same loan amount and tenure.