Fixed vs Floating Home Loan Rate: Which Saves More?
Model your home loan with any fixed and floating rate scenario. See total interest paid under each option and a full year-by-year amortisation schedule.
Home Loan Comparison
Fixed vs floating rate · Full amortisation
Fixed 3yr + Float
$2,319 (fixed)
$2,556 (float)
Total Interest
$258,121
All Fixed @ 2.8%
$2,319
Total Interest
$195,700
All Floating @ 3.8%
$2,556
Total Interest
$275,200
Choosing fixed+floating over all-floating saves $17,079 in interest over 25 years (assuming rates don't change).
Show year-by-year repayment schedule
| Year | Phase | Monthly | Year Interest | Balance |
|---|---|---|---|---|
| 1 | Fixed | $2,319 | $13,821 | $485,993 |
| 2 | Fixed | $2,319 | $13,424 | $471,589 |
| 3 | Fixed | $2,319 | $13,015 | $456,776 |
| 4 | Floating | $2,556 | $17,123 | $443,228 |
| 5 | Floating | $2,556 | $16,599 | $429,155 |
| 6 | Floating | $2,556 | $16,055 | $414,538 |
| 7 | Floating | $2,556 | $15,490 | $399,356 |
| 8 | Floating | $2,556 | $14,903 | $383,586 |
| 9 | Floating | $2,556 | $14,293 | $367,207 |
| 10 | Floating | $2,556 | $13,660 | $350,195 |
| 11 | Floating | $2,556 | $13,002 | $332,525 |
| 12 | Floating | $2,556 | $12,318 | $314,171 |
| 13 | Floating | $2,556 | $11,609 | $295,108 |
| 14 | Floating | $2,556 | $10,872 | $275,308 |
| 15 | Floating | $2,556 | $10,106 | $254,742 |
| 16 | Floating | $2,556 | $9,311 | $233,380 |
| 17 | Floating | $2,556 | $8,485 | $211,193 |
| 18 | Floating | $2,556 | $7,627 | $188,148 |
| 19 | Floating | $2,556 | $6,736 | $164,211 |
| 20 | Floating | $2,556 | $5,810 | $139,349 |
| 21 | Floating | $2,556 | $4,849 | $113,526 |
| 22 | Floating | $2,556 | $3,850 | $86,704 |
| 23 | Floating | $2,556 | $2,813 | $58,845 |
| 24 | Floating | $2,556 | $1,736 | $29,908 |
| 25 | Floating | $2,556 | $617 | $0 |
Floating rate is an assumption — actual floating rates (SORA-pegged) change with market conditions. Lock-in periods and clawback clauses may apply. Consult your bank for exact terms.
Home Loan Rates — Frequently Asked Questions
What is SORA and how does it affect my home loan?
SORA (Singapore Overnight Rate Average) replaced SIBOR as the main floating rate benchmark for Singapore home loans from 2024. Most bank floating rate packages are now pegged to 3-month compounded SORA plus a spread (typically 0.5–1.5%). As SORA changes with market conditions, your floating rate mortgage payment will change accordingly.
Is a fixed or floating home loan better in Singapore?
Fixed rates (typically 2–5 years) offer payment certainty and protection against rate rises, but start higher than floating rates. Floating rates start lower but carry interest rate risk. In a rising rate environment, fixed is safer; in a falling rate environment, floating benefits you more. Most borrowers choose a fixed period of 2–3 years then refinance.
Can I refinance my HDB loan to a bank loan?
Yes, you can refinance from an HDB loan to a bank loan at any time after fulfilling HDB's minimum occupancy period (typically 5 years for resale, or after key collection for BTO). Bank loans offer lower initial rates but require at least 5% cash downpayment on the outstanding loan amount and have TDSR requirements.
What are typical home loan lock-in periods in Singapore?
Most Singapore bank home loans have lock-in periods of 2–5 years. During this period, prepayment, redemption, or refinancing typically incurs a penalty of 0.75–1.5% of the loan amount redeemed. After the lock-in period, you can refinance freely, though legal and valuation costs apply.
How much does it cost to refinance a home loan in Singapore?
Refinancing costs include legal fees ($2,000–$3,000), valuation fees ($200–$600), and potentially a prepayment penalty if within lock-in. However, many banks offer legal fee subsidies to attract refinancing customers. Net savings from refinancing need to exceed these costs to make sense — typically only worthwhile if rates differ by at least 0.5%.