Singapore Overnight Rate Average (SORA) — the benchmark that replaced the retired SIBOR in 2024 — has held steady in the 2.85-3.00% band through the first four months of 2026. Floating-rate mortgages pegged to 3-month compounded SORA are pricing at all-in rates around 3.65-3.75% for private condo borrowers, and 3.55-3.65% for HDB borrowers. For anyone weighing a new purchase or a refinance, the April snapshot is the cleanest read of the market since 3M SORA peaked near 3.8% in late 2023.
Where we are
The three-month compounded SORA index stood at 2.95% on 21 April 2026, unchanged from the previous week and inside the narrow trading band of the past two quarters. SORA has declined roughly 85 basis points from its cycle peak in mid-2023 (3.82% on 5 September 2023) but the pace of decline has slowed materially since Q3 2025. The Monetary Authority of Singapore (MAS) has not adjusted its policy stance since October 2023; the S$-NEER policy band remains on an appreciation bias, with unchanged slope and width.
Bank spreads above SORA have narrowed modestly over the past six months. Major local banks are quoting SORA+0.70% to SORA+0.85% on private condo floating-rate loans, down from SORA+0.85% to SORA+1.00% at the start of 2025. The competitive pressure stems from the slower mortgage-book growth banks are seeing (a function of the moderating new-launch volume) — they are fighting harder for each customer.
Fixed-rate alternatives
Two-year and three-year fixed packages have converged with floating pricing. As of mid-April, representative fixed rates are 3.45-3.65% for 2-year fixes and 3.55-3.75% for 3-year fixes. The fixed-to-floating spread, historically 20-40 basis points in favour of fixed when rates were expected to fall, has compressed to zero or even inverted. Borrowers are being offered comparable rates to lock in versus float, reflecting bank expectations that 3M SORA is near the bottom of this cycle.
Refinancing
The refinancing window is genuinely open. Borrowers on legacy fixed packages that were priced at 4.0-4.3% during 2023-24 can refinance today to 3.45-3.65% fixed — a 55-85 basis-point saving. On a S$1.0m outstanding balance at a 25-year remaining tenure, a 70 basis-point drop saves approximately S$435 a month in interest, or S$5,220 a year. Net of the S$2,000-3,000 legal and valuation costs of refinancing, the breakeven is inside 8 months.
The tighter TDSR framework applies at refinancing. Your TDSR must still fit within 55% of gross monthly income at the new rate. For investment property, the rental-income haircut (70% of assessed rent) remains in force. Borrowers who have changed employment or whose income has dipped may find the refinancing window narrower than the savings optics suggest; arrange the refinancing conversation with the bank before the lock-in period expires so a renegotiation of terms is an option if TDSR is tight.
HDB loans — HDB concessionary vs bank
HDB concessionary loans remain at 2.60% — the floor of 0.1 percentage point above the CPF Ordinary Account interest rate. Bank HDB loans at SORA-based floating are pricing at 3.55-3.65%, making the HDB loan meaningfully cheaper on a coupon basis. But the eligibility rules remain restrictive: HDB concessionary requires at least one Singapore-citizen buyer, gross monthly household income ceilings of S$14,000 (couple) or S$21,000 (multi-generation), and the household must not own or have owned more than one other property in the last 30 months.
For eligible first-time HDB BTO buyers, HDB concessionary is the default choice — 90 basis points below bank HDB, with the added option to use the HDB Home Protection Scheme (HPS) at concessionary rates. For HDB resale buyers who have outgrown eligibility, bank floating is typically the cheaper route, especially with 2-year fixed packages pricing around 3.45%.
What the MAS signal tells us
MAS’s April 2026 Monetary Policy Statement reiterated the existing stance — S$-NEER appreciation bias maintained, slope and band width unchanged. The statement noted ‘core inflation easing broadly in line with projections’ and ‘the domestic economy expanding at a moderate pace’. No forward guidance was provided. In practice, this means the MAS is watching the same data as the market, and rate volatility is likely to be lower over the next two quarters than it was during the 2023 rate-cycle peak.
The read-across for the mortgage market: 3M SORA is likely to stay in a 2.80-3.10% range through the middle of 2026 unless the US Federal Reserve moves aggressively in either direction. Bank spreads may compress another 5-10 basis points if loan-book growth continues to be sluggish. All-in mortgage rates of 3.60-3.75% are the reasonable planning assumption for a new purchase today.
Three practical moves
If you are buying: the competitive tension between banks is real. Obtain at least three written indicative offers before committing to a loan. Ask for spread (not just headline rate), lock-in period, prepayment penalties and free-conversion clauses. A free-conversion clause after the second year is worth 5-10 basis points against the lowest headline rate.
If you are refinancing: start 4 months before your lock-in ends. Most legacy packages allow a ‘repricing’ with the existing bank 3 months before lock-in ends — use the competing offers from other banks to negotiate a sharper repricing without the legal costs of a full refinance. Savings can land at 80-90% of a full-refinance move with 0% of the hassle.
If you are on a floating-rate loan and considering a fixed: model the break-even by comparing a 24-month sum of current floating payments versus 24 months at the fixed rate, plus the fixed-conversion fee. If the break-even is inside 12 months and you value cashflow certainty, move. If the break-even is further out, the optionality of staying floating is worth more than the spread.
Bottom line
Mortgage rates in April 2026 look settled. Floating at 3.60-3.75%, fixed at 3.45-3.65%, HDB concessionary at 2.60%. The refinancing economics are meaningful for anyone locked into a 2023-vintage fixed package above 4%. For new purchases, run your TDSR at the regulatory stress-test rate of 4.00%, not at the headline rate offered — the same rate banks test your loan against. That way, if rates unexpectedly rise, your cashflow buffer is intact.
Related reading on LovelyHomes
- → TDSR & MSR: How Much Can You Borrow in Singapore 2026
- → CPF for Property Purchase Singapore 2026
- → CPF Housing Grants Singapore 2026
- → Buyer’s Stamp Duty Singapore 2026 — worked examples
Sources: Monetary Authority of Singapore (MAS) SORA daily fix (https://www.mas.gov.sg/); bank published rate sheets for DBS, UOB, OCBC, Maybank and StanChart — April 2026. This article is editorial commentary produced by the LovelyHomes team and does not constitute investment or financial advice. Rates, indices and figures are current as at the date of publication. Buyers and investors should consult a licensed professional before making a property-related decision.
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