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Singapore Home Loan Complete Guide 2026: HDB Loans, Bank Loans, TDSR, MSR and Best Rates Explained

Singapore Home Loan Complete Guide 2026: HDB Loans, Bank Loans, TDSR, MSR and Best Rates Explained

by | Jun 4, 2026 | Buying Guide, Financial Planning, Home Loans & Mortgages, Investment Analysis, Property Finance, Resources & Tools

Quick Answer — Singapore Home Loans at a Glance (2026)

  • Two main options: HDB Concessionary Loan (2.6% p.a., LTV 80%) and Bank Loan (~3.0–3.7% p.a., LTV 75%).
  • MSR caps your HDB or EC loan instalment at 30% of gross income; TDSR caps all debt at 55% of income.
  • Bank loans require a minimum 5% cash downpayment; HDB loans require 5% cash on the 20% downpayment portion.
  • Floating-rate loans are pegged to SORA (Singapore Overnight Rate Average) — 3M SORA ~2.4% at June 2026.
  • A S$1 million loan at 3.5% over 25 years costs S$85,000 more in total interest than at 2.6%.
  • Lock-in periods of 1–3 years are standard on bank fixed-rate packages; exiting early triggers a clawback of ~1.5% of the outstanding loan.
  • Refinancing after the lock-in expires can save tens of thousands; always compare at least 3 banks’ packages.

What Is a Home Loan and Why Does the Structure Matter?

A home loan (or housing loan) is a secured credit facility from a lender — either the Housing and Development Board or a licensed bank — that allows you to finance the purchase of a residential property in Singapore. The property serves as collateral; if you default, the lender can repossess and sell it to recover the outstanding debt.

The structure matters because small differences in interest rate, tenure, and loan-to-value ratio compound dramatically over a 25–30-year horizon. A 0.9 percentage point difference (say, 2.6% vs 3.5%) on a S$600,000 HDB loan over 25 years translates to roughly S$51,000 in additional interest. That is not a minor detail. Beyond the rate, two Monetary Authority of Singapore (MAS) rules govern how much you can borrow: the Mortgage Servicing Ratio (MSR) for HDB and Executive Condominium (EC) purchases, and the Total Debt Servicing Ratio (TDSR) for all property loans.

HDB Concessionary Loan vs Bank Loan — The Key Differences

Every Singapore home buyer faces the same first question: HDB loan or bank loan? Each has distinct advantages and constraints. The comparison below sets out the essential differences.

HDB concessionary loan vs bank loan comparison table 2026 key parameters Singapore
Figure 1: HDB Concessionary Loan vs Bank Loan — Key Parameters (2026). Source: HDB, MAS.

The HDB loan rate of 2.6% p.a. is fixed at 0.1% above the CPF Ordinary Account (OA) rate of 2.5%. It moves only if the CPF OA rate changes — which has not happened since July 1999. Bank loans fluctuate with market rates. At June 2026, the best 2-year fixed bank packages sit at approximately 3.0–3.2% p.a., while SORA-pegged floating packages range from SORA+0.75% to SORA+1.20% (3M SORA ~2.4%, implying ~3.15–3.60% all-in).

HDB Concessionary Loan — Eligibility and Key Rules

To qualify for the HDB loan, at least one buyer must be a Singapore Citizen; the household gross income must not exceed S$14,000 per month (families) or S$7,000 (singles); and no buyer may currently own or have disposed of private property in the 30 months before the flat application. You also need a valid HDB Flat Eligibility (HFE) letter — a mandatory pre-application document from HDB confirming your loan eligibility, CPF grant entitlement and maximum loan quantum (mandatory since May 2023, valid for 9 months).

The maximum loan under the HDB loan is 80% of the lower of the purchase price or valuation. On a S$700,000 flat that is S$560,000. The remaining 20% (S$140,000) is the downpayment — at least 5% (S$35,000) must be cash; the rest may come from CPF OA.

Bank Loans — LTV, Lock-in and SORA

Bank loans allow a longer maximum tenure (30 years vs 25 years), access to all property types, and — potentially — lower rates during low-rate periods. The trade-off is variability and the lock-in period. Most bank fixed rates carry a lock-in of 1–3 years, after which the loan reprices to a floating SORA-pegged rate. The Loan-to-Value (LTV) for a bank loan is 75% if you have no outstanding loans; 45% if you have one; 35% if two or more. SORA replaced SIBOR as the benchmark rate on 1 October 2024 following the MAS phase-out of SIBOR.

MSR and TDSR — How Much Can You Actually Borrow?

The MAS introduced the TDSR framework in June 2013 and has maintained it as the primary constraint on borrowing. For HDB and EC purchases, the MSR applies as a tighter cap.

  • TDSR ≤ 55%: Total monthly debt obligations — home loan plus all other debts — must not exceed 55% of gross monthly income.
  • MSR ≤ 30%: For HDB and EC purchases only — the monthly home loan repayment alone must not exceed 30% of gross monthly income.
Maximum home loan quantum by household income MSR 30 percent TDSR 55 percent comparison chart Singapore 2026
Figure 2: Maximum Loan Quantum by Household Income — MSR (HDB/EC) vs TDSR (private property), 2026.

A household earning S$10,000 per month can borrow up to approximately S$826,000 on an HDB loan (MSR 30% at 2.6% p.a. over 25 years) or up to S$1,514,000 under TDSR on a bank loan for private property (55% at 3.0% p.a. over 30 years). The MSR is the binding constraint for HDB buyers; TDSR is the constraint for private property buyers.

Fixed Rate vs Floating Rate (SORA) — Which Is Better?

Fixed-rate packages offer certainty: the rate is locked for 2–3 years. After the lock-in, the loan reverts to a floating rate and you may reprice or refinance. Breaking the lock-in early triggers a clawback penalty of approximately 1.0–1.75% of the outstanding loan.

Floating-rate packages pegged to 3M compounded SORA move with the market. When rates fall, your instalment falls. When rates rise (as they did sharply in 2022–2023), your instalment rises. Floating packages currently sit at SORA + 0.75%–1.20%.

Total interest cost on S$1 million home loan by rate scenario 2026 HDB 2.6 percent bank fixed SORA floating
Figure 3: Total Interest Cost on S$1 Million Loan (25-year tenure) by Rate Scenario. Source: LovelyHomes calculations, indicative June 2026.

The chart shows the cost differential starkly. The HDB loan at 2.6% costs approximately S$377,000 in total interest over 25 years on a S$1 million loan. A bank fixed rate at 3.5% costs S$462,000 — a S$85,000 difference. For buyers of private property or ECs using bank financing, the choice between fixed and floating hinges on your rate outlook and risk tolerance.

CPF and Home Loan Financing

Most Singapore buyers use their CPF Ordinary Account (OA) to service instalments and fund the downpayment. The rules are set by the Central Provident Fund Board under the CPF Act (Cap 36). The key constraints are the Valuation Limit (VL) — the lower of price or valuation — and the Withdrawal Limit (WL), which is 120% of the VL. CPF OA can be used freely up to the VL; above the VL up to the WL only if you have set aside the Basic Retirement Sum (S$106,500 in 2026) in your CPF accounts.

A critical point: when you sell the property, you must refund to CPF the total principal withdrawn plus accrued interest at 2.5% p.a. This is not a penalty — it restores your retirement savings — but it reduces net cash proceeds from sale. See our CPF Property Withdrawal Limits 2026 guide for detail.

Summary Table — Singapore Home Loan Framework 2026

Parameter HDB Concessionary Loan Bank Loan (HDB/EC) Bank Loan (Private)
Rate (Jun 2026) 2.6% p.a. fixed ~3.0–3.7% p.a. ~3.0–3.7% p.a.
Loan-to-Value 80% 75% 75%
MSR Cap ≤ 30% ≤ 30% N/A
TDSR Cap ≤ 55% ≤ 55% ≤ 55%
Max Tenure 25 years (age 65) 30 years (age 65) 30 years (age 65)
Min Cash Down 5% of price 5% of price 5% of price
Lock-in / Clawback None 1–3 yr clawback 1–3 yr clawback
Property Types HDB flats only HDB + EC All types

Worked Example — Mr & Mrs Wong Buying Bishan 4-Room HDB Resale

Mr & Mrs Wong are a Singapore Citizen couple. Joint gross income: S$9,500 per month. They plan to purchase a 4-room HDB resale flat in Bishan at S$680,000. This is their first property. They hold S$90,000 combined CPF OA. They qualify for an Enhanced Housing Grant (EHG) of S$60,000 (income S$9,001–S$10,000) and a Proximity Housing Grant (PHG) of S$30,000 (parents within 4 km). Total housing grants: S$90,000.

  • Purchase price: S$680,000
  • HDB Loan (80% LTV): S$544,000
  • Downpayment (20%): S$136,000 — CPF OA S$90,000 + cash S$46,000
  • Grants applied: S$90,000 (EHG + PHG) — reduces net purchase price
  • Monthly instalment (2.6%, 25yr): S$2,468/month
  • MSR check: S$2,468 ÷ S$9,500 = 26.0% — PASS (threshold 30%)
  • Buyer’s Stamp Duty (BSD): 1% × S$180k + 2% × S$180k + 3% × S$320k = S$15,000
  • Legal fees: ~S$2,800 | HDB caveat: S$64.45
  • ABSD: Nil (SC first property)
  • Total cash outlay: ~S$46,000 (downpayment cash) + S$15,000 (BSD) + S$2,800 (legal) = ~S$63,800

The HDB loan is the clear choice here: the 2.6% fixed rate is materially cheaper than any bank offering in June 2026, the couple meets the S$14,000 income ceiling comfortably, and the S$90,000 grants significantly reduce the net outlay. Total cost of ownership over 25 years at 2.6%: approximately S$680,000 principal + S$200,000 interest + S$63,800 upfront costs = S$943,800 in total expenditure on a flat that, based on OCR HDB price growth of ~10% per year over the past 5 years, may be worth substantially more at resale.

Refinancing and Repricing — When and How

Repricing means switching to a new package with your existing bank; refinancing means moving to a new lender. Refinancing is generally more powerful but involves legal fees of S$1,800–S$3,500 and a valuation fee of S$200–S$500. Most banks offer cashback of S$1,800–S$2,000 to offset these costs. The optimal window to refinance is 3–6 months before your lock-in expires. Never refinance within the lock-in unless savings clearly outweigh the clawback penalty.

What to Watch in H2 2026

3M SORA has been stable at approximately 2.3–2.5% since early 2026 as global central banks paused tightening. The key variable remains the US Federal Reserve: any cut flows through to SORA within weeks. For buyers who value certainty, a 2-year fixed package now locks in June 2026 rates. For buyers expecting rates to fall over the next 12–18 months, a floating SORA package may deliver lower effective payments over the loan lifecycle. The prudent approach regardless: stress-test your affordability at a rate 1.5–2.0 percentage points above your current package rate.

Frequently Asked Questions

Can I switch from an HDB loan to a bank loan after purchasing?

Yes. You can refinance from the HDB loan to a bank loan at any time after the HDB loan is active — there is no lock-in or clawback on the HDB side. You will need a conveyancing lawyer to discharge the HDB mortgage and register the bank mortgage. Bank loans typically cover 75% LTV, so if your outstanding HDB loan balance is below 75% of the current valuation, it can be fully refinanced. Note: once you switch to a bank loan, you cannot switch back to the HDB loan.

What happens if SORA rises sharply on my floating-rate loan?

Floating-rate borrowers bear the full rate risk. A 1 percentage point rise in SORA increases the monthly instalment on a S$600,000 loan (30yr) by approximately S$300. MAS requires banks to stress-test borrowers at a floor of 3.5% or contractual rate plus 1%, whichever is higher — so your loan was approved assuming you can handle a rate rise. Budget a meaningful buffer above your starting instalment.

Can I use CPF to pay stamp duty?

BSD and ABSD must be paid in cash within 14 days of signing the OTP. After payment, you may apply for CPF reimbursement from your OA. The initial cash payment is mandatory. This is a common cash-flow surprise: on a S$680,000 HDB flat, BSD is approximately S$15,000 cash on top of the downpayment.

What is the difference between repricing and refinancing?

Repricing means switching packages with your current lender (processing fee S$0–S$800; limited to that bank’s offerings). Refinancing means moving to a new lender (legal fees S$1,800–S$3,500; access to the full market). Refinancing is generally more effective but involves more paperwork and a 1–3 month processing window. Cashbacks from new lenders typically offset legal costs.

Does my car loan or personal loan reduce how much I can borrow for a home?

Yes — under TDSR, all outstanding debt obligations count against your 55% cap. A car loan of S$1,200/month and personal loan of S$500/month on a S$10,000/month income household reduces the permissible home loan instalment to S$3,800/month (55% × S$10k − S$1,700). MAS allows a 30% haircut on variable income (bonuses, commissions) when computing TDSR.

Can a foreigner get a home loan in Singapore?

Yes — foreigners can obtain bank loans for Singapore private residential property. The HDB loan is available only to eligible Singapore Citizens and Permanent Residents buying HDB flats. Note that foreigners purchasing private residential property pay 60% ABSD as at 2026 — see our ABSD guide for the full rate table. Bank loans for foreigners follow the same LTV and TDSR framework, though some banks may apply slightly stricter income documentation requirements for non-residents.

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Disclaimer: This guide is for general information only and does not constitute financial, legal, or mortgage advice. Interest rates, LTV limits, MSR, TDSR, and CPF rules are subject to change. Always verify current rates with your lender or mortgage broker, and consult a licensed financial adviser before making borrowing decisions. Official references: MAS, HDB, CPF Board, IRAS.

Singapore Home Loan Rates April 2026: Fixed vs Floating in the Current SORA Cycle

by | Apr 21, 2026 | Home Loans & Mortgages, Market News, Property Trends

Singapore home loan pricing has moved materially since the peaks of 2023 and 2024, and April 2026 is shaping up to be one of the more borrower-friendly moments in the current cycle. The 3-month Compounded SORA has settled into a range well below its late-2023 highs, and the gap between fixed-rate and floating-rate packages has narrowed to the point where the “obvious” choice is no longer obvious at all.

This piece takes stock of where rates are, how the major banks are pricing, and what the trade-offs look like for new buyers, HDB upgraders, and the large cohort of owners whose 2023 fixed-rate lock-ins are rolling off this year.

Where the benchmark sits

The 3-month Compounded SORA — the reference rate that replaced SIBOR and SOR for new housing loans — has eased through Q1 2026 as the US Federal Reserve’s cutting cycle has filtered through to Singapore dollar funding markets. Where 3M SORA was printing above 3.7% through much of 2023, the indicator has been hovering in the 2.3%–2.6% band for most of April 2026, with banks pricing new floating packages off that level plus a spread of roughly 0.70%–0.90%.

That puts an average SORA-linked package today at an all-in rate of approximately 3.0%–3.5%, depending on the bank, the loan quantum, and the lock-in terms. Fixed-rate packages, which lagged the downward move, are now quoting in a similar neighbourhood — typically 2.8%–3.3% for 2-year fixes, and a touch higher for 3-year tenors.

Fixed vs floating: the trade-off has narrowed

Through 2023 and much of 2024, the gap between fixed and floating was wide enough that borrowers who chose wrong paid for it in real money. Fixed packages at the peak were being priced defensively, while floating rates climbed sharply as SORA averaged above 3.7%. By April 2026, the two curves have converged.

For a borrower drawing down today, the working assumption is that fixed and SORA-linked packages are within roughly 20–40 basis points of each other at origination. That means the decision is driven less by absolute pricing and more by risk appetite:

  • Fixed: Certainty of monthly instalments through the lock-in period. Useful for borrowers whose cash flow is tight, or who prefer not to track a benchmark. The cost of certainty has fallen to a level many borrowers now find worth paying.
  • Floating (SORA-linked): Full transmission of any further SORA easing, but also full exposure to any reversal if inflation or SGD funding conditions surprise to the upside.

Industry desks are generally characterising the market consensus as “one or two more cuts, then pause” — but that consensus has been wrong often enough in the last three years that it should not be treated as a plan.

Refinancing pressure: the 2023 cohort is rolling off

The more immediate market story is the wave of 2-year and 3-year fixed-rate loans taken out in 2023 and early 2024 that are now resetting. Many of these packages were locked in at 3.8%–4.5%, and are rolling to revert rates (typically a bank board rate plus spread) that today would be higher still if left unaddressed.

For this cohort, refinancing is not a theoretical optimisation — it is often a 50–150 basis point saving per year on the outstanding balance. On a S$1.5 million loan, that is roughly S$7,500–S$22,500 in annual interest saved. Unsurprisingly, loan-redemption teams across the major local banks have reported elevated refinancing volumes through the first quarter.

The usual frictions apply: lock-in clawbacks on the outgoing package, legal subsidy recovery if the original loan is less than three years old, and a full TDSR/MSR recomputation at the new bank. Borrowers whose income has moved or whose other credit obligations have grown since the original drawdown should run the TDSR numbers before committing to a switch.

What new buyers should be modelling

For buyers entering the market in April 2026 — whether for a new launch, a resale private, or an HDB resale — the practical planning rate remains higher than today’s quoted rate. MAS’s medium-term interest rate floor for TDSR and MSR stress-testing is 4% for residential property loans, so any serviceability calculation should be done at 4% regardless of how attractive the current quote looks.

In practice, that means:

  • Take the current quoted rate for the lock-in period (say 3.0%) and model monthly cash flow at that number.
  • Separately stress the same loan at 4% to check TDSR headroom and personal comfort.
  • Assume the loan will at some point float against SORA at reversion — plan for that eventuality rather than hope the current quote holds for the full 25–30 year tenor.

The gap between those two numbers is the buffer the framework asks borrowers to keep. In an easing cycle it is tempting to view 4% as overly conservative; in a tightening cycle it is what keeps households solvent.

Looking ahead

The near-term path for Singapore home loan rates is tied to the same macro questions global markets are wrestling with: the terminal level of US policy rates, the pace at which Asian central banks mirror or diverge, and whether core inflation in Singapore continues to drift back towards MAS’s comfort zone. A further 25–50 basis points of easing through the remainder of 2026 is priced in by most desks, but the base case could shift quickly if the inflation data surprises.

For borrowers, the practical stance is unchanged regardless of the macro view: understand whether your exposure is to the fixed curve or to SORA, refinance when the arithmetic clearly favours it, and model every purchase at the 4% stress rate rather than the headline quote. The packages on offer in April 2026 are the most competitive they have been in roughly two years — but that is a reason to shop carefully, not a reason to stop reading the fine print.

This article is a market overview and does not constitute financial advice. Borrowers should speak with their preferred bank or a licensed mortgage broker for package-specific terms and obtain personalised serviceability calculations before committing to a home loan.


Fixed vs Floating Home Loan Singapore 2026: Which Should You Pick?

Fixed vs Floating Home Loan Singapore 2026: Which Should You Pick?

by | Apr 18, 2026 | Home Loans & Mortgages, Property Finance

Choosing between a fixed vs floating home loan in Singapore is the single biggest interest-rate decision most Singaporeans ever make. Get it right, and you save S$200–S$500 a month on a typical condo mortgage. Get it wrong — lock in fixed just before a rate cut, or float into a rate-hike cycle — and the same decision costs you S$50,000+ over a loan term.

This 2026 guide cuts through the bank-marketing gloss. No one knows where SORA will be in two years, but the decision framework is knowable. Here it is.

Quick Answer — Fixed vs Floating 2026

  • Fixed: 2.55%–2.85% for 3-year packages; instalment locked; 1.5% penalty if you break lock-in.
  • Floating (SORA): 2.25%–2.55% headline; resets every 1 or 3 months; usually no or light lock-in.
  • Fixed wins when: you prioritise certainty, have tight cashflow, or expect rates to rise.
  • Floating wins when: you have rate-shock buffer, are planning to sell within 2–3 years, or believe rates are peaking.
  • Neither is strictly better — it depends on your time horizon and cash-flow tolerance.

What “Fixed” and “Floating” Actually Mean

A fixed-rate package contractually locks in your interest rate for a set term, typically 1, 2, 3, or 5 years. Your monthly instalment is flat; the bank bears the rate risk. At the end of the fixed term, the loan reverts to a floating rate (a “rollover” rate set by the bank) until you refinance or the loan matures.

A floating-rate package is priced as a benchmark plus a spread. In Singapore, the benchmark is almost always SORA 3M (the Singapore Overnight Rate Average, compounded over 3 months). A typical quote: “SORA 3M + 0.60% p.a., no lock-in”. Your rate resets every 1 or 3 months depending on the reset frequency.

Fixed vs floating home loan Singapore 2026 side-by-side comparison showing rates, lock-in and rate risk
Figure 1: Same loan, two packages. The gap in headline rate is small; the gap in lock-in and rate risk is the real decision.

The 2026 Rate Environment

SORA 3M is currently sitting around 2.3% after peaking at 3.9% in late 2023. Market consensus for 2026–2027 is a gradual drift to 2.0%–2.5%, with the Fed’s trajectory dominating.

In this environment, fixed rates and floating rates are pricing close: 3-year fixed packages quote around 2.55%–2.85%, and floating SORA+spread packages quote 2.25%–2.55%. The floating edge is roughly 30 bps.

Banks price this way because they are hedging a forward rate view. If banks thought rates would fall sharply, fixed rates would be materially cheaper than floating (banks want to lock in the highest rate they can). If they thought rates would rise, fixed would be materially more expensive.

When Fixed Wins

Fixed is the right call if any of the following apply:

  1. Tight monthly cash-flow. If a 100-bps rate rise would make your monthly instalment uncomfortable, pay the small fixed-rate premium for certainty.
  2. First-time buyer. First-time buyers often have the least cash buffer; predictability outweighs marginal rate savings.
  3. Property bought for the long haul. If you intend to hold 10+ years, locking in 3 years of certainty through the next rate cycle is worth it.
  4. Macro view: rising rates. If you believe the Fed or MAS will hike, fixed hedges you. The bank is taking the other side of that bet at a market-cleared price, but if your macro read is strong, that is the trade.

When Floating Wins

Floating is right when:

  1. You plan to sell or upgrade within 2–3 years. Floating packages typically have no lock-in past month 6–12. Fixed packages impose a 1.5% penalty that can cost S$12,000+ on an S$800k loan.
  2. You have substantial cash reserves. A 6-month emergency fund means you can ride out a 100-bps hike without distress.
  3. Macro view: falling or flat rates. Floating captures every cut as it happens; fixed locks you out of savings.
  4. You’re a property investor. Investors typically prioritise net yield and use cash buffers to manage rate risk; floating usually wins over an investment holding period.

The Hybrid Options

Two hybrid structures are popular in 2026:

  • Fixed-then-floating (“step-up”). 2-year fixed at 2.65%, converts to SORA+spread thereafter. Gives you short-term certainty with upside later.
  • Partial split. Some banks let you split the loan — e.g. 50% fixed, 50% floating. Effective blended rate halfway between the two packages, and you diversify rate risk.

The hybrid approaches are rarely dominated by a pure fixed or floating choice — they usually emerge as “middle” options when banks want to compete on flexibility.

Lock-In: The Real Cost Driver

Lock-in is more important than headline rate for most borrowers. A 2.85% 3-year fixed with a 3-year lock-in effectively bets you do not need to refinance or sell before month 36. If rates fall 50 bps and you want to switch, you pay 1.5% of outstanding — often S$10,000–S$15,000 — to break the lock-in.

Floating packages typically waive the lock-in after 6–12 months. This portability is why floating wins for anyone who might move, upgrade, or refinance mid-term.

SORA Reset Frequency: 1M vs 3M

Most floating packages now price against 3M SORA (the 3-month compounded average). The 1M version resets faster — you capture rate cuts sooner but also eat rate hikes sooner. In 2026’s low-volatility environment, 3M is slightly cheaper on spread but marginally less reactive.

The replacement of SIBOR and SOR with SORA was completed in mid-2024; any legacy SIBOR/SOR loans have been migrated or are on run-off.

Worked Comparison: S$800k Loan Over 25 Years

Consider two competing packages today for an identical loan:

  • Package A — 3Y Fixed at 2.75%: monthly S$3,691, lock-in 3Y, 1.5% break penalty (S$12,000).
  • Package B — SORA 3M + 0.55% (~2.30% effective): monthly S$3,516, lock-in 6M, no break penalty after.

If rates stay flat, Package B saves S$175 × 36 = S$6,300 over the first 3 years, with no lock-in risk. If SORA rises 100 bps, Package B payment rises to ~S$4,015 — S$324 more than A after the rise. Package B bet loses S$7,500 over 2 years of hikes.

The cross-over point is roughly a 60 bps sustained rise. Your view on that probability decides the trade.

Frequently Asked Questions

Can I switch from floating to fixed mid-term?

Yes, by refinancing or re-pricing with your existing bank. Re-pricing usually has no cost; refinancing has switching costs. Both are subject to whatever lock-in remains.

What if I want to prepay part of the loan?

Most packages allow partial prepayment of up to 25% of outstanding per year without penalty. Check the specific prepayment clause — some fixed packages are stricter.

Do I need MRTA (mortgage reducing term assurance)?

Not technically required for bank loans on private property, but most buyers take it. HDB loans with CPF require the HPS (see our CPF for Property guide).

Is there still SIBOR or SOR in 2026?

No. Both benchmarks were retired in mid-2024 and replaced with SORA. Any remaining SIBOR/SOR references in older documentation should be treated as historical.

Should I time the refinance to Fed meetings?

Marginally useful. Fed rate decisions move SORA, but banks lag Fed moves by weeks. The more reliable signal is your own lock-in expiry date — see our refinancing guide.

What to Do Next

  1. Home Loan Refinancing 2026 — the same decision, applied at your package reset.
  2. HDB Loan vs Bank Loan — fixed vs floating only applies to bank loans.
  3. All Home Loans & Mortgages.

Disclaimer: This guide is general information, not financial advice. Rate levels quoted are illustrative of 2026 packages and change frequently. Always obtain a current IPA and package terms directly from banks or a licensed mortgage broker before deciding.


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