Singapore condo mortgages come in fixed, SORA-floating, and board-rate packages. With 3-month compounded SORA at approximately 2.95% (as of 2026-Q2), top 2-year fixed rates sit between 1.32% and 1.45%, making fixed the rational default for most buyers who want certainty. LTV caps at 75% for your first loan, TDSR at 55%, and the stress-test rate stays at 4%.
What separates the buyer who saves S$40,000 in interest over five years from the one who overpays? Rarely the property choice — almost always the mortgage structure. Singapore's home loan market has changed more in the past 18 months than in the preceding decade: the shift from SIBOR to SORA, the Federal Reserve's rate pivot, and falling fixed-rate packages have given buyers more options than ever, with more ways to choose badly.
This guide cuts through the jargon — fixed versus floating, SORA spreads, board rates, lock-in clauses, LTV limits, and the TDSR stress test — so you can walk into any bank negotiation in 2026 knowing exactly what you are comparing and why it matters.
Singapore completed its transition from SIBOR (Singapore Interbank Offered Rate) to SORA (Singapore Overnight Rate Average) as the primary floating-rate benchmark in September 2024, following MAS guidance on the SORA transition. SIBOR-pegged mortgages no longer exist for new originations. Any lender quoting you a SIBOR package is offering legacy pricing on an expiring benchmark — a red flag (as of 2026-Q2).
On the rate environment: the 3-month compounded SORA stood at approximately 2.95% in late April 2026, having fallen sharply from a peak above 3.0% in early 2025, tracking the US Federal Reserve's rate cuts. Top 2-year fixed packages from major local banks now price between 1.32% and 1.45%, with SORA-floating packages quoting SORA plus a bank spread of 0.70–0.85 percentage points. The consensus forecast among brokers clusters SORA in the 1.0%–1.2% range through 2026 — meaning most of the rate decline is already priced in. Choosing floating today is a bet that SORA falls further from here, not a sure saving.
On the regulatory side, MAS Notice 645 — which governs TDSR rules and the 4% stress-test rate — remains unchanged (as of 2026-Q2). The MAS MSR and TDSR rules explainer is the authoritative source for current limits. First-time private property buyers face a 75% LTV cap; investors buying a second property face 45%. The MAS TDSR calculation guide walks through the arithmetic that every bank will run on your application.
Fixed vs Floating Rate Loans
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Understanding SORA-Based Rates
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Bank Package Comparison
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Lock-In Period & Penalties
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Loan Tenure Optimisation
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Progressive vs Normal Payment
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Mortgage Insurance Requirements
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Choosing the Right Package
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Consider a S$1.5 million condo purchase with a 25-year loan at 75% LTV — a S$1.125 million loan. At a 2-year fixed rate of 1.40%, the monthly repayment works out to approximately S$4,470. At a SORA-floating rate assuming SORA at 1.20% plus a 0.80% spread (1.99% all-in), the same loan costs approximately S$4,770 per month — S$300 more, despite nominal rates appearing lower, because SORA itself remains above the fixed headline rate at current spreads. Use the mortgage calculator to model your own loan amount and tenure. As of 2026-Q2, the arithmetic favours fixed for most owner-occupiers on a 2-year horizon.
TDSR stress-test arithmetic. When you apply, the bank does not use the actual 1.40% rate to calculate affordability. MAS requires lenders to apply a stress-test rate of 4% (or the prevailing rate, whichever is higher) to the new loan. On S$1.125 million over 25 years at 4%, the monthly obligation is approximately S$5,930. Your gross monthly income must be at least S$10,782 to satisfy the 55% TDSR ceiling — and that is before accounting for any existing debt commitments (car loans, student loans, credit card facilities). The TDSR calculator handles this arithmetic including variable income haircuts (30% for bonus, 70% for commission), which many buyers underestimate (as of 2026-Q2).
MSR for HDB upgraders. If you are using the proceeds from an HDB flat to fund a private condo purchase, note that the Mortgage Servicing Ratio (MSR) does not apply to private property — MSR's 30% cap is HDB-specific. However, your existing HDB loan (if still outstanding during a bridging period) counts toward the TDSR as a live liability. Factor this into your bridging timeline.
LTV limits by buyer profile. For Singaporeans and PRs buying a first private property with no outstanding property loans, the LTV is 75% (minimum 5% cash, remainder can be CPF or cash). Buying a second property drops LTV to 45%, with a 25% minimum cash component. Foreign buyers face the same LTV tiers but pay an additional 60% ABSD on top of BSD. Use the total cost of purchase calculator to see the full acquisition outlay including ABSD, BSD, legal fees, and option fee (as of 2026-Q2).
- Get an In-Principle Approval (IPA) before you view. An IPA is a non-binding bank commitment that tells you your maximum loan quantum. Securing one takes 3–5 working days and is free. It also locks in the stress-test calculation at a point in time — useful if rates are rising. Do not make an offer without one.
- Run your TDSR before comparing rates. Use the TDSR calculator to find your maximum loan ceiling. Then use the affordability calculator to work backwards from a target monthly repayment to a loan amount. Knowing your ceiling before entering bank negotiations prevents overshooting (as of 2026-Q2).
- Compare at least three banks, including brokers. Rate sheets change weekly. Mortgage brokers (fee-free, paid by banks) can access rates not publicly advertised. The loan comparison calculator lets you model fixed versus floating side-by-side over a 5-year horizon with a customisable SORA outlook.
- Understand the lock-in clause before signing. A 2-year lock-in means you pay a penalty of 0.75%–1.5% of the outstanding loan if you refinance, sell, or partially prepay above the permitted threshold within two years. At S$1.1 million, that is S$8,250–S$16,500. Weigh this against the rate saving. For buyers who know they will sell within 18 months — off-plan investors at TOP, for instance — a shorter lock-in or no-lock package at a marginally higher rate often makes more sense (as of 2026-Q2).
- Schedule a rate review at 18 months, not 24. Refinancing takes 3–4 months from application to disbursement. If your lock-in ends at month 24, start the process at month 20–21, not month 23. Late-starting borrowers roll onto the bank's (higher) board rate in the gap. Use the refinancing calculator to estimate whether the switch cost is worth the rate saving.
- Check total acquisition cost, not just the mortgage. BSD, ABSD, legal fees, stamp duty on the mortgage deed, and option fee together can exceed S$80,000 on a S$1.5 million purchase. Ensure your cash-plus-CPF position covers these before committing. The total cost calculator maps every mandatory outlay.
Frequently Asked Questions
Should I choose fixed or floating rate?
What is SORA and how does it affect my loan?
Can I switch from fixed to floating mid-loan?
How long does a typical mortgage lock-in period last, and what is the penalty for exiting early?
Most Singapore fixed-rate mortgages carry a 2-year lock-in period, though some packages offer 1-year or 3-year lock-ins. During the lock-in, fully redeeming the loan, refinancing to another bank, or making a lump-sum partial prepayment above the permitted annual threshold (commonly 10% of outstanding principal) attracts a penalty of 0.75%–1.5% of the outstanding loan amount. On a S$1 million loan, that is S$7,500–S$15,000. Shorter lock-in packages typically carry marginally higher headline rates. Buyers who intend to sell within 24 months — for example, investors reselling at the end of a construction period — should compare packages explicitly on total cost including penalty risk (as of 2026-Q2).