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.
Fixed vs Floating: What the Rate Difference Means in Real Money
Bank home loans in Singapore are priced off SORA (Singapore Overnight Rate Average), which moves with global rate cycles. Fixed-rate packages lock your rate for 2–3 years, providing payment certainty but usually at a slight premium over the prevailing floating rate. After the fixed period, most packages convert automatically to a floating rate pegged to SORA.
The key question: how much does monthly payment certainty matter to you over the next 2–3 years? A 1% rate rise adds roughly $200–$400/month to a $500k loan depending on tenure. If you're stretching near the MSR limit, that swing can stress household cash flow. If you have a comfortable buffer, floating rates have historically averaged lower than fixed over 10+ year horizons, but past cycles don't guarantee future outcomes.
Worked example, $500,000 loan, 25-year tenure
Predictable. $55,752 paid over 2 years. Converts to floating after lock-in ends.
Higher now, but falls if SORA drops. $60,072 over 2 years at current rates.
Floating worst case, $65,784 over 2 years, ~$10k more than the fixed option.
Use the calculator above to model your actual loan size. Rates shown are indicative, confirm current fixed and floating spreads with your bank before committing.