Singapore home loan interest rates have entered a more uncertain phase as we approach the end of 2026.

After a prolonged period of declining mortgage rates, banks have started adjusting their fixed-rate packages upwards. Meanwhile, floating home loan rates linked to the Singapore Overnight Rate Average (SORA) remain relatively attractive, creating a dilemma for homeowners deciding whether to lock in a fixed rate or continue riding the floating-rate market.

At FairLoan Mortgage Advisory, we believe that a competitively priced 2-year fixed-rate package is currently the more balanced choice for homeowners who prioritise stability, particularly given the potential for elevated interest rates through 2027.

However, this does not mean homeowners should rush into accepting any 2-year fixed-rate offer.

In fact, we believe that some fixed-rate packages currently offered by banks are priced rather aggressively, and homeowners should carefully evaluate whether the additional cost of securing a fixed rate is justified.

In this November 2026 mortgage update, we examine the latest fixed and floating home loan packages, our interest rate outlook for 2027 and 2028, and what homeowners should consider before making their next mortgage decision.

Singapore Home Loan Rates in November 2026

Based on selected mortgage packages and quotations observed by FairLoan, the following are indicative rates entering November 2026.

These are selected indicative quotations, not the lowest available market rates across every bank. Some banks offer lower fixed-rate packages. Rates depend on loan quantum, property type, borrower profile and prevailing promotions, and may change without notice.

The main question for borrowers is no longer simply which bank offers the lowest interest rate today.

Instead, homeowners should ask: Which mortgage package offers the best balance between cost, stability and flexibility over the next two to three years?

1-Year Fixed Home Loan: Attractive Rates, but What Happens in Year 2?

One-year fixed mortgage packages are currently being quoted at approximately 1.80%-1.90% for selected borrowers.

On the surface, these rates appear attractive when compared with 2-year fixed packages costing 2.15%-2.40%.

However, there is an important risk that homeowners should understand.

For the 1-year fixed packages we are examining, the mortgage interest rate switches to a floating SORA-linked rate in the second year.

This means borrowers are effectively making a bet on where interest rates will be in 2027.

If floating rates remain low, they could benefit from choosing a shorter fixed-rate commitment.

However, if SORA rises significantly, the savings achieved during the first year could be reduced or even reversed in the second year.

Why FairLoan Is Cautious About 1-Year Fixed Packages

Our concern centres on the interest rate outlook for 2027.

Based on prevailing global monetary conditions and the potential for rates to remain elevated, FairLoan believes Singapore floating mortgage rates face upward risks during 2027 and potentially into 2028.

Another important factor is how compounded SORA works.

Unlike a daily interest rate that can move immediately, 1-month and 3-month compounded SORA reflect historical overnight interest rates over their respective calculation periods.

Therefore, when overnight SORA increases, compounded SORA generally adjusts progressively as older observations are replaced by newer ones.

The reverse is also true.

Even if daily interest rates subsequently decline, compounded SORA may take time to reflect the full decrease.

This means homeowners moving from a 1-year fixed package into a floating rate in 2027 could face elevated borrowing costs for longer than expected.

FairLoan’s recommendation: We generally do not favour a 1-year fixed package for borrowers seeking repayment certainty. However, it can still be suitable for homeowners who understand the risks, have sufficient financial flexibility or expect to review their financing arrangements after the first year.

Before accepting such a package, borrowers should also check the Year 2 spread, lock-in conditions, conversion rights and whether refinancing is possible without penalties.

2-Year Fixed Home Loan: Our Preferred Duration, but Not at Any Price

Two-year fixed-rate mortgage packages have become more expensive, with selected bank quotations ranging between approximately 2.15% and 2.40%.

We acknowledge that fixed-rate mortgages naturally carry a premium over floating rates when banks anticipate higher funding costs or interest rate uncertainty.

After all, borrowers are paying for the certainty of knowing their mortgage interest rate for the next two years.

However, the question is whether the premium being charged is reasonable.

For a S$1 million mortgage, locking in a 2-year fixed rate at 2.20%-2.40% may not represent particularly attractive value when floating rates remain substantially lower.

We have also observed that movements in mortgage fixed rates do not always correspond proportionately with changes in fixed deposit rates offered to savers.

Although mortgage pricing and fixed deposit rates are not directly comparable, this raises an important question about how aggressively banks are pricing their fixed-rate packages.

Banks consider various factors, including wholesale funding costs, hedging costs, liquidity requirements, market competition and expected interest rate movements.

Nevertheless, we believe that borrowers should be cautious about accepting higher fixed rates solely because of concerns that interest rates could climb substantially in the near future.

Could Banks Be Pricing in Homeowners’ Fear of Rising Rates?

When borrowers become increasingly concerned about rising interest rates, demand for fixed-rate certainty often increases.

This can reduce the pressure on banks to offer their most competitive fixed-rate pricing.

At FairLoan, our concern is that some homeowners may feel compelled to lock in a relatively expensive mortgage package because they fear rates could become significantly higher.

However, locking in a higher rate today does not automatically mean it is the best financial decision.

For instance, a homeowner offered a 2-year fixed rate of 2.40% should not assume that this represents the best available protection against rising interest rates.

There could be another bank offering a more competitive fixed rate, or a floating-rate package with sufficient flexibility to justify remaining exposed to SORA.

Could 2-Year Fixed Rates Fall Closer to 2% in Early 2027?

FairLoan sees a possibility that some banks may revise their fixed-rate offerings towards approximately 2.00% during January or February 2027, before potential upward pressure resumes later in the year.

*This is our market assessment rather than a confirmed forecast.

Banks may launch new promotions, adjust their mortgage acquisition strategies or respond to changing funding conditions.

We therefore believe the first quarter of 2027 will be an important period to monitor.

For homeowners whose existing mortgage arrangements allow them to wait without incurring unnecessary costs, it may be worthwhile to compare fresh quotations at the beginning of 2027.

However, borrowers should not delay purely on the assumption that rates will definitely fall. Pricing could remain unchanged or increase.

FairLoan’s recommendation: Between November 2026 and the first half of 2027, a competitively priced 2-year fixed package remains our preferred option for borrowers seeking stability. The emphasis is on securing the right rate and package features, rather than accepting any 2-year fixed offer regardless of price.

3-Year Fixed Home Loan: Why We Are Not Favouring Longer Commitments

Selected 3-year fixed mortgage quotations have reached approximately 2.50%-2.80%.

At these rates, we generally do not see compelling value in committing to a longer fixed-rate period.

While a 3-year fixed package offers additional repayment certainty, it can also mean paying a higher interest rate for a longer period.

More importantly, borrowers choosing a 3-year fixed mortgage in November 2026 would continue paying that rate into late 2029, even if market rates begin to decline in 2028 or 2029.

Our base-case outlook is that interest rate pressures could eventually ease from 2028 onwards, although the timing and magnitude remain uncertain.

Should mortgage rates decline during that period, borrowers with longer fixed-rate commitments may be unable to benefit immediately.

Some packages also impose penalties for refinancing or making substantial repayments during their lock-in periods.

FairLoan’s recommendation: At quoted rates of 2.50%-2.80%, we generally prefer a shorter fixed-rate commitment. A 3-year fixed package may still be appropriate for borrowers who place greater value on certainty and receive sufficiently competitive pricing, but the premium should be carefully justified.

Floating Home Loans: Should You Stay with SORA?

Floating-rate home loans remain attractive in November 2026.

As at 30 October 2026, the published benchmarks were approximately:

• 1-Month Compounded SORA: 1.33%
• 3-Month Compounded SORA: 1.27%

This means borrowers with competitive bank spreads can still enjoy an effective mortgage interest rate well below 2%.

For example, assuming a 3-month compounded SORA of approximately 1.27%:

These rates remain significantly lower than some of the 2-year fixed-rate packages currently being quoted.

This creates a genuine dilemma for homeowners.

Why should a borrower voluntarily switch to a 2.20% fixed rate when their existing floating-rate mortgage is costing only around 1.40%-1.60%?

The answer depends on how much interest rate risk the borrower is prepared to accept.

What Happens If Floating Rates Increase by 1% or 2%?

Consider a homeowner with an outstanding mortgage of S$1 million and 25 years remaining.

Assuming the current interest rate is approximately 1.43%, the estimated monthly mortgage repayments would be:

A 1 percentage-point increase would raise the estimated monthly repayment by approximately S$484.

A 2 percentage-point increase would increase it by approximately S$1,002.

*Calculations assume a fully amortising loan with monthly repayments, an unchanged S$1 million principal and 25-year repayment tenure for each scenario. Actual repayments will depend on the outstanding balance, future interest resets and loan terms. These are stress-test scenarios, not interest rate forecasts.

For borrowers with substantial mortgages, an increase in floating rates can therefore have a meaningful impact on household cash flow.

Should Existing Floating-Rate Borrowers Switch to Fixed?

At FairLoan, we believe there are two situations worth distinguishing.

Scenario 1: Your existing floating-rate package has a competitive spread

If you currently enjoy a favourable spread, particularly one that would be difficult to obtain again, we would generally advise against rushing into a higher fixed rate without a proper comparison.

Remaining on floating could still be financially advantageous, especially if the difference between your current interest rate and a fixed-rate offer is substantial.

Scenario 2: Your current mortgage package is approaching its expiry or repricing date

If your existing promotional period is ending and your bank’s subsequent floating spread is considerably higher, switching to a competitive 2-year fixed package may make sense.

This would provide interest rate certainty over the more uncertain 2027–2028 period.

However, we would first compare both repricing with your existing bank and refinancing to another lender.

The right decision depends on your current spread, remaining loan tenure, repayment capacity, property plans and available bank offers.

Singapore Interest Rate Outlook 2027-2029: What Does the US Federal Reserve Tell Us?

Singapore does not directly follow the US Federal Reserve’s interest rate decisions.

Unlike the Federal Reserve, which uses policy interest rates as a primary monetary policy instrument, the Monetary Authority of Singapore manages monetary policy principally through the Singapore dollar exchange rate.

Nevertheless, Singapore’s interest rates are influenced by global interest rate conditions, including developments in the United States.

According to the US Federal Reserve’s September 2026 Summary of Economic Projections, the median projected federal funds rate was approximately:

These projections suggest that US interest rates could remain elevated throughout 2027 before easing more meaningfully from 2028 onwards.

However, the Federal Reserve’s projections are not guaranteed outcomes, and Singapore’s SORA may move differently due to domestic liquidity conditions, currency expectations and global funding markets.

FairLoan’s Mortgage Rate Outlook

Our working scenario is as follows:

2027: Continued uncertainty and upward pressure

We believe floating mortgage rates could face further upward pressure as global rates remain relatively elevated.

2028: Potential stabilisation and gradual easing

If inflation moderates and global monetary conditions become more accommodative, mortgage rates may begin stabilising or easing.

2029: Potential for further rate normalisation

Borrowers may benefit from lower interest rates if the anticipated easing cycle materialises.

This outlook forms part of our mortgage planning approach, but homeowners should understand that unexpected economic developments, inflation shocks or monetary policy changes could alter the trajectory.

This is also why we generally prefer the flexibility of a 2-year fixed package over a more expensive 3-year commitment.

BUC Home Loans: Is 3M SORA + 0% Spread Really the Best Deal?

The recent launch of Thomson Reserve has generated considerable attention in Singapore’s private residential property market.

Thomson Reserve, comprising 1,268 residential units, became Singapore’s largest new private residential launch of 2026.

During its launch period on 30 and 31 October 2026, 1,143 units were sold, representing approximately 90% of the development.

With significant demand from new-launch condominium buyers, banks have an opportunity to compete for Building Under Construction (BUC) mortgage customers.

Some promotional BUC home loan packages are being quoted with an attractive 3-month SORA + 0% bank spread for the first two years.

At first glance, this appears extremely competitive.

However, does a 0% spread necessarily mean borrowers will achieve substantial savings?

Not always.

Why a 0% Spread May Offer Only Modest Initial Savings

BUC home loans operate differently from mortgages for completed properties.

Instead of the entire mortgage being disbursed immediately, loan disbursements generally follow the construction progress and payment milestones stipulated in the Sale and Purchase Agreement.

This means that borrowers are charged interest only on the loan amount that has actually been disbursed.

During the early stages of construction, the drawn loan amount can be considerably lower than the total approved mortgage.

As a result, the difference between a 0% spread and a 0.16% spread may be smaller than borrowers expect.

The actual savings will depend on the construction timeline, loan disbursement schedule and outstanding loan balance throughout the promotional period.

What Should BUC Buyers Compare Instead?

For BUC loans, FairLoan advises buyers to consider:

• The bank spread after the initial promotional period.
• Whether the package offers free conversion to another mortgage package.
• Whether there is a lock-in period or refinancing penalty.
• Any legal subsidy, valuation requirement or clawback condition.
• The flexibility to restructure the loan as the development approaches TOP.
• The total borrowing cost across the construction period and after completion.

A 0% promotional spread is certainly attractive, but homeowners should avoid choosing a bank based on this feature alone.

A package with a slightly higher initial spread but better long-term terms may ultimately offer greater value.

Frequently Asked Questions About Singapore Home Loan Rates in November 2026

Is a 2-year fixed home loan better than a 1-year fixed home loan in November 2026?

FairLoan generally prefers a competitively priced 2-year fixed package for borrowers seeking stability because it offers protection against potential floating-rate increases throughout 2027. However, a 1-year fixed package may suit borrowers who accept interest rate uncertainty and understand the package’s second-year terms.

Will Singapore home loan interest rates increase in 2027?

There is a possibility that Singapore floating mortgage rates could increase in 2027. FairLoan’s current outlook reflects the risks of elevated global interest rates and further SORA increases. However, the direction and timing of future rate movements cannot be predicted with certainty.

Will Singapore mortgage rates fall in 2028?

FairLoan sees potential for mortgage rates to ease during 2028 and 2029 if global monetary conditions become more accommodative. This is a forecast, not a guaranteed outcome.

Should I refinance my mortgage now or wait until 2027?

Homeowners with competitive existing packages may benefit from waiting, provided there are no material costs or risks from doing so. Those approaching the end of their promotional or lock-in period should review their options early rather than relying on an expected future rate reduction.

Is a SORA floating-rate home loan still worth considering?

Yes. SORA floating mortgages can still offer substantially lower initial rates than fixed packages. Borrowers should nevertheless assess the impact of potential interest rate increases and ensure that their mortgage remains affordable under less favourable conditions.

What is the best BUC home loan package in Singapore?

The best BUC mortgage is not necessarily the package with the lowest first-year spread. Buyers should compare promotional rates, later-year spreads, free-conversion rights, refinancing flexibility and the expected construction-period interest cost.

Final Thoughts: FairLoan’s Mortgage Recommendation for November 2026

As we enter November 2026, our preferred mortgage strategy remains broadly unchanged.

We believe a competitively priced 2-year fixed-rate package offers a reasonable balance between interest rate protection and future flexibility, particularly for homeowners concerned about potential floating-rate increases in 2027.

However, we do not believe borrowers should rush into accepting fixed rates of 2.20%-2.40% without first exploring whether more competitive packages are available.

For those who have the flexibility to wait, January and February 2027 could present an opportunity to reassess fixed-rate pricing, although there is no guarantee rates will decline.

For homeowners currently enjoying attractive floating-rate spreads, remaining on their existing package could still be worthwhile, provided they are financially prepared for potential rate increases.

As for BUC buyers, our advice is to look beyond promotional spreads and assess the entire mortgage structure, especially the conditions that will apply as construction progresses and after TOP.

Ultimately, choosing a mortgage is not about correctly predicting the lowest point of the interest rate cycle.

It is about finding a mortgage that offers suitable affordability, flexibility and financial certainty for your individual circumstances.

At FairLoan Mortgage Advisory, we compare home loan packages across banks, review fixed and floating rate options, and help homeowners understand how different interest rate scenarios could affect their mortgage repayments.

Whether you are purchasing a new property, refinancing an existing mortgage or arranging financing for a BUC development, speak with FairLoan before committing to your next home loan.

Compare the latest Singapore mortgage rates at FairLoan Mortgage Advisory.

Related Reading

• Singapore Home Loan Rates — October 2026 Update
• When Should I Refinance My Home Loan in Singapore?

Disclaimer: The market commentary and forecasts represent FairLoan Mortgage Advisory’s assessment as at 1 November 2026. Mortgage rates and promotions are subject to change, and individual loan packages depend on bank approval, property type, loan amount and borrower circumstances. This article is for general information and does not constitute a guarantee of future interest rate movements.