SORA vs Fixed Rate Home Loans in Singapore (Sept 2025): Which is Better?
With Daily SORA dipping below 1% in Sept 2025, Singapore homebuyers face a key choice: lock in historic low fixed rates from 1.65%–1.75%, or ride SORA packages where they can enjoy at 1.3%–1.5% potentially. Beyond rates, features like penalty waivers, partial prepayments, and free conversions after one year make the right mortgage strategy more important than ever.
Is it better to choose Home loan with the lowest interest rate in 2025?
Many Singaporeans chase the lowest home loan interest rate, but in 2025 the cheapest option isn’t always the best. Lock-in periods, floating rate risks, hidden fees, and flexibility matter just as much as the headline rate. Learn why choosing wisely between bank fixed, SORA floating, or HDB loans can save you more in the long run.
What is SORA? Is SORA or Fixed Rate Better in 2025?
In short, choose fixed if you value peace of mind. Choose SORA if you want to ride the market downward.
SORA (Singapore Overnight Rate Average) is fast becoming the dominant benchmark for floating-rate home loans in Singapore. It is grounded in actual overnight interbank lending volumes, making it more transparent and stable. With global interest rates easing, SORA is flexing its potential as a smarter, fairer benchmark
Home Loan: Fixed or Floating Rate in Aug 2025?
With growth in Singapore slowing and inflation moderating, the key question now becomes: Should homeowners opt for Fixed‑rate stability or Floating‑rate flexibility?