How Singapore home-loan packages work, what drives your rate, and a sample comparison to orient you before you speak to a banker or broker.
A fixed-rate package locks your interest for an initial period (often 2–3 years), giving predictable instalments — useful when you value certainty. A floating-rate package is usually pegged to SORA (the Singapore Overnight Rate Average) plus a spread; it moves with the market, so it can be cheaper when rates fall and dearer when they rise. Whichever you choose, remember the bank assesses your eligibility at the 4% stress rate, not the headline rate.
| Package type | Typical structure | Best for | Illustrative rate* |
|---|---|---|---|
| 2-year fixed | Fixed for 24 months, then floating | Certainty over the near term | ~2.4–3.0% |
| 3-year fixed | Fixed for 36 months, then floating | Longer peace of mind | ~2.5–3.2% |
| SORA floating | 3M SORA + spread (e.g. +0.7%) | Rate optimists; flexibility | 3M SORA + ~0.7% |
| Board / hybrid | Bank-set or part-fixed/part-float | Bespoke needs | Varies |
*Illustrative only — not quotes. Rates as marketed by lenders fluctuate.
Many owners refinance when their lock-in ends to secure a better rate. Watch for lock-in periods, legal subsidy clawbacks, and valuation costs — the cheapest headline rate is not always the cheapest package once fees are counted.
Not sure what you qualify for? Start with the affordability calculator to see your loan ceiling, then get live quotes from at least two or three lenders or a mortgage broker.