Singapore Mortgage Rates Rise After US Fed Hike

The US Federal Reserve's recent interest rate hike has led to higher mortgage rates in Singapore. At least four fixed-rate options for a S$500,000 loan on new private properties and HDB flats have crossed the 2% mark, according to Mortgage Master's website.

Maybank is charging an interest rate of 2.55% for a three-year fixed-rate package, while OCBC is offering 2.08%. Citi has a 2.2% two-year fixed-rate package, and Standard Chartered recently raised its one- and two-year fixed-rate packages by 0.2 percentage points to 2% on October 1.

Maryanne Phua, head of home loans at OCBC, said the bank adjusted its home loan rates following a 0.25 percentage point interest rate hike in the US on September 17. She noted that markets are expecting higher interest rates, pointing to the rise in Singapore dollar Overnight Indexed Swap rates across the one- to three-year tenors.

As banks adjust their fixed-rate options, floating interest rates are also rising. The Singapore Overnight Rate Average (SORA) is the primary floating-rate benchmark for Singapore dollar loans, including floating-rate home and car loans. Joanne Goh, senior investment strategist at DBS Bank, said that following the recent US rate hike, markets are expecting one more increase in 2026 and another by the first quarter of 2027.