Summary
The three-month compounded Singapore Overnight Rate Average (SORA), one of the benchmarks banks use to price floating-rate home loans, was 1.25% on 19 Oct 2026, according to the Monetary Authority of Singapore (MAS) Domestic Interest Rates table. It has risen at every month-end since April, when it stood at 1.03%, according to the same table. That is still below the 1.32% recorded at the end of October 2025, and far below the 3.75% at the end of November 2023 (MAS). The HDB concessionary loan rate stays at 2.6% a year from 1 Oct to 31 Dec 2026, the CPF Board said on 22 Sep 2026.
What this means for Singapore borrowers
How SORA reaches your instalment
SORA is the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore between 8.00am and 6.15pm. MAS publishes each day's rate on the next business day. Banks do not price home loans off a single day's SORA. SORA packages use the compounded average of daily SORA over one, three or six months, and the all-in rate adds the bank's margin to that average, MoneySense says. Older SOR and SIBOR loans reset from one day's rate, which could change abruptly on reset dates. SOR was discontinued on 30 Jun 2023, and SIBOR was scheduled to end after 31 Dec 2024. A three-month average looks back over three months, so a change in overnight rates reaches borrowers gradually. On 19 Oct the one-month average was above the three- and six-month averages, which means overnight rates over the past month averaged more than over the past three or six months.
| Benchmark | Rate | Date | Source |
|---|---|---|---|
| Overnight SORA | 1.32% | 19 Oct 2026 | MAS Domestic Interest Rates |
| 1-month compounded SORA | 1.32% | 19 Oct 2026 | MAS Domestic Interest Rates |
| 3-month compounded SORA | 1.25% | 19 Oct 2026 | MAS Domestic Interest Rates |
| 6-month compounded SORA | 1.20% | 19 Oct 2026 | MAS Domestic Interest Rates |
| 3-month compounded SORA | 1.03% | End-April 2026 | MAS Domestic Interest Rates |
| 3-month compounded SORA | 1.32% | End-October 2025 | MAS Domestic Interest Rates |
| HDB concessionary loan rate | 2.6% | 1 Oct to 31 Dec 2026 | CPF Board |
HDB loan or bank loan: compare more than the rate
The HDB rate is pegged at 0.1 percentage point above the CPF Ordinary Account (OA) rate, which stays at its 2.5% floor from October to December 2026, the CPF Board said. A bank's floating rate is the benchmark plus the bank's margin, so compare all-in rates rather than SORA itself. The terms differ as well. According to the CPF Board, an HDB loan has no lock-in period and no penalty for early repayment, and you can refinance to a bank at any time, subject to the bank's approval. Once you do, you cannot return to an HDB loan. Bank packages typically carry a lock-in of one to three years, and repaying or refinancing within it may cost a penalty of around 1.5% of the outstanding loan, on top of legal and valuation fees and clawbacks of subsidies or rebates.
Fixed or floating
A fixed-rate package keeps its rate for the first few years, after which the rate becomes variable, MoneySense says. A floating package tracks a reference rate such as SORA, the CPF OA rate or a bank's board rate, and the reference can change at any time. Banks must tell you in advance, usually 30 days, before changing the interest rate on your housing loan, and the property loan fact sheet lists any early repayment penalty.
Repricing or refinancing
Repricing means moving to a new package with your current bank; refinancing means moving the loan to another lender, MoneySense says. For an owner-occupied home, MAS does not require the total debt servicing ratio (TDSR) or mortgage servicing ratio (MSR) to be met when you refinance, though the lender's own credit assessment still applies. For an investment property, the ratios apply unless the borrower commits to repay at least 3% of the outstanding balance over up to three years. MAS sets no regulatory loan-to-value limit on refinanced housing loans. A lower SORA does not raise how much you can borrow for a new purchase. For the TDSR, MAS requires lenders to calculate residential loan instalments at the higher of 4% or the loan's "thereafter" rate.
Illustration: a S$600,000 loan over 25 years
Illustration only. ProprKey calculation of the monthly instalment at a constant rate. The 1.5% and 2.0% rates are examples, not bank quotes.
| Interest rate | Monthly instalment |
|---|---|
| 1.5% | about S$2,400 |
| 2.0% | about S$2,543 |
| 2.6% (HDB rate, October to December 2026) | about S$2,722 |
| 4.0% (MAS floor for the TDSR test) | about S$3,167 |
On this loan, the half-point between 1.5% and 2.0% adds about S$143 a month.
FAQ
Does a lower SORA let me borrow more? No. Lenders calculate instalments for the TDSR at no less than 4% a year, whatever the benchmark does. Can I move a bank loan to an HDB loan? No. HDB flat buyers cannot refinance a bank loan with an HDB loan, according to MoneySense and the CPF Board. Education only — not tax, legal or investment advice. Confirm with a licensed professional.
What to do next
- Check your lock-in end date and penalty in the loan's fact sheet before you ask for a new package.
- Ask your current bank for a repricing offer first, then compare other lenders' all-in rates and effective interest rates (EIR), as MoneySense suggests.
- Track three-month compounded SORA together with the margin your package adds to it.
- If you hold an HDB loan, weigh the lack of a lock-in against bank rates before you refinance, because the switch is one-way.
- Talk to a verified mortgage adviser or conveyancing lawyer: proprkey.com/en/pros?segment=legalFinance
- Compare homes against your budget: proprkey.com/en/properties?segment=buyer&mode=buy