Singapore home loan rates as of 2026-05 sit at multi-year lows: floating SORA packages start at 1.04% per annum and fixed-rate packages from 1.30%. The Total Debt Servicing Ratio (TDSR) caps total monthly debt at 55% of gross income, computed at a 4% stress-test rate. Maximum loan tenure is 30 years for private property (with reductions if the loan extends past age 65) and 25 years for HDB flats. The Loan-to-Value (LTV) ceiling is 75% for a first private property bank loan, 80% for first HDB with concessionary loan, 45% for a second property, and 35% for a third.
The Singapore home loan landscape in 2026
Singapore home loans are governed by a tightly-controlled regulatory framework managed by the Monetary Authority of Singapore (MAS). The framework has three primary tools: LTV caps (how much you can borrow against the property), TDSR (how much of your income can service debt), and MSR (a stricter cap for HDB/EC loans). Source: MAS macroprudential framework.
The 2026 rate environment is uniquely favourable. Floating SORA packages have fallen to 1.04% per annum (3-month SORA + 0.25% spread) as of May 2026 — the lowest rates since 2021. Fixed-rate packages start from 1.30% for 2-year locks.
Current home loan rates (May 2026)
| Package type | Lowest rate | Lock-in | Best for |
|---|---|---|---|
| Floating — 3M SORA + spread | 1.04% | 2 years | Borrowers comfortable with rate variation |
| Floating — board rate | 1.15% | None | Borrowers wanting bank discretion (riskier) |
| Fixed 2-year | 1.30% | 2 years | Predictable budgeting; refinance after lock |
| Fixed 3-year | 1.55% | 3 years | Longer rate certainty at modest premium |
| HDB Concessionary Loan | 2.60% | None | HDB buyers wanting full-CPF financing |
Rates change weekly. The MoneySmart, Cashew, Redbrick, and MortgageWise comparison platforms publish updated rate tables — but always verify directly with banks before applying. Source: MAS.
LTV: how much you can borrow
| Loan scenario | Max LTV | Min cash % | Total downpayment |
|---|---|---|---|
| First HDB, HDB Concessionary Loan | 80% | 0% (full CPF) | 20% |
| First HDB, bank loan | 75% | 5% | 25% |
| First private property, bank loan | 75% | 5% | 25% |
| Second property, bank loan | 45% | 25% | 55% |
| Third+ property, bank loan | 35% | 25% | 65% |
The HDB 80% LTV was reduced from 85% on 16 December 2021 as a cooling measure.
For borrowers aged 50+, a separate constraint: max LTV drops by 25 percentage points if the loan ends past age 65. A 50-year-old applying for a 25-year mortgage finishes the loan at 75, triggering the LTV reduction to 50% (first property) or 20% (second). To preserve full LTV, the borrower must shorten the tenure.
TDSR: the 55% income cap
TDSR caps total monthly debt obligations at 55% of gross monthly income across all property loans, car loans, credit cards, personal loans, and any guarantor liabilities. Source: MAS Notice 804 (FHC).
Banks compute TDSR using a 4% per annum medium-term stress rate, regardless of the actual loan rate. This is critical: a borrower's actual instalment at the contractual 1.27% rate may look comfortable, but TDSR uses 4% to determine eligibility.
Variable income (bonuses, commission, rental income from other properties) is subject to a 30% haircut — only 70% counts toward gross monthly income.
MSR: the 30% cap for HDB and EC
MSR applies only to HDB flats and Executive Condominium (EC) purchases. It caps monthly housing instalments at 30% of gross monthly income — stricter than TDSR's 55%. Source: MAS macroprudential framework.
For borrowers with low other debts (typical for first-time buyers), MSR is the binding constraint. The 30% cap is stricter than 55% TDSR until other debts exceed approximately 25% of gross income. See: complete MSR guide.
Loan tenure caps
| Property type | Max tenure | Notes |
|---|---|---|
| Private property, bank loan | 30 years | — |
| HDB flat, HDB Concessionary Loan | 25 years | HDB rules |
| HDB flat, bank loan | 30 years | — |
| Executive Condominium, bank loan | 30 years | — |
Tenure is also capped by borrower age. The loan must end before age 75 to preserve full LTV. For a 55-year-old buyer of a first HDB flat with bank loan, the max tenure is 20 years (ends at 75) — or 30 years with LTV reduction.
Bank loan vs HDB Concessionary Loan
| Feature | HDB Loan | Bank Loan |
|---|---|---|
| Max LTV (first HDB) | 80% | 75% |
| Min cash component | 0% | 5% |
| Interest rate | 2.60% (CPF OA + 0.1%) | 1.04%–1.75% |
| Tenure | 25 years max | 30 years max |
| Refinancing flexibility | One-way: HDB → bank (not back) | Free to refinance |
| Income ceiling (for loan) | S$14k household | None |
The HDB Loan trades a higher interest rate (2.6% vs ~1.3% bank fixed) for full-CPF financing and zero cash component. For buyers with substantial CPF balance and low cash savings, this is attractive. For high-cash buyers, the bank loan saves S$300–S$500 per month on a S$300,000 loan.
Fixed vs floating: which to pick in 2026
The current 2026 rate environment (floating 1.04%, fixed 1.30%) means floating is cheaper today by approximately 26 basis points. But fixed packages lock in stability for 2-3 years.
- Choose fixed if: You want budget certainty; you expect rates to rise significantly; the rate gap to floating is below 50 bps.
- Choose floating if: You're comfortable with rate variation; you expect rates to stay low or fall; you may sell/refinance within 1-2 years; the spread to fixed exceeds 50 bps.
SORA-based floating packages reset every 3 months — your effective rate updates four times per year as 3M SORA moves.
When to refinance
2026 is a multi-year-low rate window — most existing borrowers benefit from refinancing if their current rate exceeds 2.5%. Refinancing economics:
- Check existing loan's lock-in period (typically 2 years; prepayment penalty 1.5%).
- If lock-in expires within 6 months, start refinancing now.
- Compare new package vs current monthly outflow — savings over 24 months should exceed legal + valuation fees (typically S$1,800–S$3,000).
- TDSR is generally exempted for owner-occupied refinancing without increased loan amount.
For detailed refi mechanics: complete refinancing guide (separate spoke).
All affordability spokes in this cluster
- How much income for a S$1M condo
- Can I afford a S$1.5M condo?
- What is TDSR in Singapore 2026?
- What is MSR for HDB loans?
- Minimum condo downpayment
- Can singles buy property?
- Cash needed for first condo
- Maximum home loan
- Bonus income and TDSR
- HDB income ceiling
Frequently asked questions
Are 2026 mortgage rates the lowest in history?
Close — the May 2026 floating rate of 1.04% is near the 2021 low. Rates have not been at this level since the post-COVID stimulus period.
Can I lock in a 30-year fixed rate?
No. Most banks cap fixed-rate packages at 2-5 years. The full 30-year tenure is typically structured as a fixed lock-in followed by a floating-rate period.
What documents do I need to apply?
Latest 2 years of NOA (Notice of Assessment), 3-6 months of pay slips, 6 months of bank statements showing the 5% cash component, marriage certificate (if applicable), and the OTP.
Can foreigners get a Singapore home loan?
Yes, but with stricter conditions: typically max LTV 70% and additional bank documentation. Foreign-currency income subject to currency haircut.
How long does loan approval take?
In-principle approval typically 1-3 working days; full approval 2-3 weeks once documents are submitted.