Updated 19 Oct 2026: SORA has risen to about 1.24%, and fixed packages jumped to 1.80% to 1.90%, so the cheapest window is closing. When this article was first published in August, rates were close to their lowest point of the year. That is no longer the case.
The 3 month compounded SORA hit a low of about 1.05% in mid 2026. It was 1.2325% on 5 Oct and 1.2418% on 15 Oct (MAS data). Over the same weeks, banks repriced their fixed packages upward. This is not a "should you refinance" article with hand waving. It sets out what changed, the maths, and where refinancing may still work or may not.
What Is SORA? Why It Matters Now
SORA (Singapore Overnight Rate Average) is the interbank lending rate that replaced SIBOR in 2024. It reflects what banks pay each other to borrow overnight. The lower SORA drops, the cheaper it is for banks to fund mortgages—and that savings (usually) flows to borrowers.
Your actual mortgage rate = SORA + bank spread. Right now:
- 3M compounded SORA: about 1.24% (1.2418% on 15 Oct 2026), up from a mid 2026 low of about 1.05%
- Lowest floating packages: 1.43% for condos (HSBC and Maybank, 3M SORA + 0.20%) and 1.46% for HDB flats (HSBC, 1M SORA + 0.20%)
- Why it moved: the US Fed raised its target range to 3.75% to 4.00% on 16 Sep 2026, its first hike since 2023
Fixed packages repriced upward in October 2026:
- HSBC condo fixed: 1.40% to 1.80%
- Citi condo fixed: 1.40% to 1.90%
- HSBC HDB fixed: 1.45% to 1.85%
- Lowest fixed now: about 1.70% for condos (StanChart 2 year) and 1.65% for HDB flats (Hong Leong)
The window is narrowing. SORA is already up from its low, and UOB forecasts 3M SORA at around 1.40% by end 2026. That is a forecast, not a certainty.
Who May Still Benefit from Refinancing?
1. Owners on older packages well above today's rates
If your current rate is still far above the packages listed above, even the repriced fixed rates may leave a gap. It is worth reviewing the numbers with your banker or agent before more packages reprice.
2. Owners whose package is expiring soon
Your rate is about to reset or has already reset. Compare the lowest floating packages against the repriced fixed packages side by side. Floating moves with SORA, fixed does not, and each suits a different tolerance for rate risk.
3. Stress test and serviceability
Banks assess new mortgages at a stress rate well above the market rate. If you refinance and your debt servicing ratio (TDSR) improves, you may have more approval headroom for a second property. Your banker can confirm how this applies to you.
4. Cashflow planning for portfolio builders
Refinancing property #1 to a lower rate can free up monthly cashflow that supports property #2. This works best while the gap to your current rate is still wide, so timing matters.
Real Cashflow Analysis: The Numbers
Illustration: S$1 million loan, 20 years remaining. The older rate of 3.2% is a hypothetical for comparison. The new rate uses the HSBC condo fixed package at 1.80%. Figures are calculated, rounded, and assume the rate stays the same.
For reference, the lowest floating package today (1.43%) would work out to about S$4,793/month on the same loan, but a floating rate moves with SORA.
Subtract refinance costs
| Cost item | Typical range |
|---|---|
| Early repayment penalty (if applicable) | 0–S$3,000 |
| Legal fees (new deed, discharge) | S$600–1,000 |
| Valuation fee | S$300–600 |
| Bank application + processing | Free–S$500 |
| Total upfront cost | S$900–5,100 |
Breakeven timeline: At S$682/month savings, you recover S$1,500 in costs in about 2.2 months. At the high end (S$5,100), you break even in about 7.5 months.
Payoff in context: The smaller the gap to your current rate, the longer breakeven takes. Check your own numbers with your banker before deciding.
When Refinancing Doesn't Make Sense
1. Already on a rate close to today's lowest packages
You refinanced recently or grabbed a good deal early. With fixed packages now repriced higher, refinancing again may make little sense unless you can get a meaningfully better spread (most banks won't budge for a 0.1–0.2% improvement).
2. Very short tenure remaining (less than 3–5 years)
If you're in year 20 of a 22 year mortgage, the total cashflow relief (S$1,500 × 24 months = S$36,000) barely covers closing costs and hassle. Not worth your time.
3. Brutal early repayment penalties
Some fixed rate packages lock you in with S$5,000–10,000 penalties or interest rate adjustment clauses. Do the maths: (Remaining tenure in years × penalty) must be less than annual savings. If penalty > annual savings, walk away.
4. Rates are still moving
SORA has risen from its low, the US Fed has started raising rates, and UOB forecasts 3M SORA around 1.40% by end 2026 (a forecast only). A floating package will follow SORA up if that happens, and more fixed packages may reprice. Weigh that before choosing between floating and fixed.
The Refinance Timeline: What to Expect
Week 1: Submit application to new lender. You'll need latest valuation, payslips, CPF statement, and existing mortgage deed.
Week 2–3: Bank orders valuation (S$300–600). Property valued, credit check runs.
Week 3–4: Bank approves in principle. You lock in rate. Legal team prepares discharge and new mortgage deed.
Week 4–6: Settlement. Old lender discharged. New mortgage registered. Funds disbursed.
Critical: No loan suspension occurs during handover. Your old bank continues to collect payment until new lender takes over. There is no gap.
Rate lock window: Lock in your rate the day you apply. SORA can move daily; spreads can widen. The sooner you're in the system, the sooner you're protected.
Winfred's Analysis Angle: What This Means for Your Situation
For existing clients
If you refinanced years ago, or your package is due to reset, it is worth recalculating where you stand now that SORA has risen and fixed packages have repriced. I can run a mortgage comparison for you, and your banker can confirm what applies to your loan.
For new buyers
Banks stress test your loan at a rate well above the market rate. Rates have just started to rise, so it is worth modelling your cashflow at a higher rate than today's package, not only at today's rate. Borrowing right up to your stress test limit leaves little buffer if rates keep climbing.
For portfolio builders
Refinancing property #1 (or your investment properties) to free up monthly cashflow is a common acquisition strategy. That cashflow becomes your deposit and serviceability case for property #2.
Want to review your refinancing options while packages are still low?
I run a no obligation cashflow analysis. Takes 20 minutes. Book a call or message me on WhatsApp with your mortgage details.
FAQ: 8 Questions About SORA Refinancing
The cheapest part of the window has likely passed. 3M SORA hit a low of about 1.05% in mid 2026 and is now about 1.24%, and fixed packages have repriced to 1.80% to 1.90% at several banks. Packages are still low compared with older rates, and the lowest floating packages sit around 1.43% to 1.46%. Whether it still makes sense depends on your current rate, remaining tenure and penalties, so it is worth reviewing with your banker or agent.
Your new mortgage rate = SORA + bank spread. If SORA rises 0.5%, your floating rate rises 0.5%. That is the trade off of a floating rate. As a reference point, UOB forecasts 3M SORA at around 1.40% by end 2026, which is a forecast and not a certainty. A fixed package avoids SORA moves for the fixed period, but fixed rates have just repriced higher.
Yes. Your current lender has no hold on you. Shop rates—DBS, OCBC, UOB, Standard Chartered, and smaller lenders all compete on spread. A 0.2% difference on a S$1 million mortgage is about S$167 a month, worth shopping for. Banks approve cross refinancing routinely (legal discharge, new deed, same process).
4–6 weeks from application to settlement. Valuation is the longest step (2 weeks). Legal and approval can both run in parallel. If you're organized (have payslips, latest valuation, CPF statement ready), 4 weeks is realistic. Don't push it—early repayment penalties may apply if you discharge before a certain date.
Refinance first. Freeing up S$1,500/month improves your serviceability case for the second mortgage (banks look at existing debt servicing ratio; lower expenses = higher approval limit). Refinance property #1, bank the cashflow relief for 2–3 months, then apply for property #2 with a cleaner debt picture. This is the standard portfolio expansion playbook.
Refinancing is still allowed—most banks hold to 80% loan to value (LTV) ratios, not 100%. If your property dropped S$100k and you owe S$800k on a S$1M property, new LTV is 80%. Refi proceeds. If you owe more than 80% of current value, you may not qualify for top ups, but straight refinancing (same loan amount, new rate) is usually fine. Get a fresh valuation.
No. Your new bank handles the legal discharge. It's a clean handover—the old bank loses your mortgage, the new bank gains it. Your current bank is notified by lawyers (via discharge paperwork), not by you. You continue paying the old bank until the new one takes over. After settlement, you owe the new bank exclusively.
Yes. If SORA keeps rising, a floating rate follows and your monthly savings shrink. A fixed rate removes that risk for the fixed period, but at the higher repriced level. Also: legal paperwork, 4 week hassle, and valuation fees. For properties with short tenure remaining or huge early repayment penalties, the math might not work. Run the numbers first.
Sources & References
- Monetary Authority of Singapore (MAS) — SORA rates, policy guidance, mortgage stress testing (2024–2026)
- 3M compounded SORA history, MAS data via straitsdata.com/finance/mas (checked 15 Oct 2026)
- propertynet.sg/latest-bank-mortgage-loan-rates-across-singapore — bank package rates (checked mid Oct 2026)
- US Federal Reserve press release, 16 Sep 2026 (federalreserve.gov/newsevents/pressreleases/monetary20260916a1.htm)
- UOB forecast of 3M SORA around 1.40% by end 2026 (forecast, not fact)
- Housing Development Board (HDB) — SORA to SIBOR transition timeline (completed 2024)
- Urban Redevelopment Authority (URA) — property valuation methodology
- PropertyGuru Singapore — mortgage rate trends, lender comparisons (August 2026)
- 99.co — refinancing guide and cost breakdown (2026)