Singapore Mortgage Rate Downturn: How SORA Reshapes 2026 Property Logic
As of January 2026, Singapore mortgage rates have rapidly declined from around 3.1% in early 2025 to approximately 1.4%–1.8% (depending on loan amount and package), significantly reducing financing costs. This article focuses on the SORA rate mechanism, using the latest quarterly data from URA and HDB to analyze the impact of interest rate changes on private and public housing transactions, price elasticity, buyer structure, and 2026 risk boundaries, and provides actionable interest rate strategy frameworks for 'owner-occupation and investment'.
1) Conclusion First: This Round of Mortgage Rate Decline is Changing the Market's "Marginal Buyers"
- Interest Rate Status: In January 2026, mainstream mortgage quotes in Singapore have fallen back to approximately 1.4%–1.8% (variations may occur due to differences among banks, fixed/floating rates, loan amounts, and lock-in periods).
- Market Feedback: Lower financing costs increase affordable monthly payments and loan amounts, thereby raising the bidding power of "marginal buyers"; however, prices will not rise unconditionally, as supply, policies, and buyer price resistance have become more evident in 2025.
- Key Judgment: The 2026 market resembles a combination of "transaction recovery + moderate prices": transactions become smoother, home-swapping more active, but price increases rely more on location/product quality/school districts/scarcity, rather than being driven solely by interest rates.
This article will unfold with three anchor points: (A) Why interest rates are declining and how they will transmit; (B) What the latest data on private and public housing suggests; (C) How buyers and investors should choose between fixed/floating rates and refinancing timing in 2026.
