If you’ve ever stared at your loan letter and wondered, “So… when does this thing actually change?” you’re not alone. Between SORA, fixed rates, floating rates, “thereafter” rates and lock-ins, Singapore mortgage rates can feel like a soap opera with too many plot twists. The truth is less dramatic but very important: different home loan types change at different times, for different reasons, and you’re expected to keep up.
This guide walks you through how often mortgage interest rates actually change in Singapore, what “rate reset” really means, and when you should be doing your own loan review (even if the bank doesn’t send you a friendly reminder). By the end, rate movements should feel less mysterious and a bit more manageable.
The Three Big Buckets: Fixed, Floating and HDB Loans
Before you can understand how often rates change, you need to know what kind of rate you have. Most home loans in Singapore fall into one of three buckets: fixed-rate packages, floating-rate packages (usually SORA-pegged), and the HDB concessionary loan.
Fixed-rate packages give you a stable interest rate for a specified period, typically 2–5 years. During this fixed period, your mortgage interest rate does not change, even if market rates move. After the fixed period ends, however, your loan often converts to a floating structure, and that’s where resets begin.
Floating-rate packages are usually pegged to a benchmark such as compounded SORA (1M, 3M or 6M SORA) plus a fixed spread. These rates reset periodically, depending on the benchmark tenor. Finally, the HDB concessionary loan is pegged to the CPF Ordinary Account interest rate plus 1%, and in practice has been very stable for a long time. So yes, some rates move a lot, some a little, and some almost never – but let’s break it down properly.
How Often Do Fixed Mortgage Rates Change?
Here’s the easy part: if you’re on a fixed-rate package, your rate doesn’t change during the fixed period. If your letter says you’re locked in at, say, 2.80% p.a. for three years, then for those three years your interest rate is boringly predictable. No monthly suspense, no surprises.
However, “fixed” doesn’t mean fixed forever. Once the fixed period ends, the bank will usually move you to a reversionary rate, which tends to be a floating rate pegged to SORA or some board rate plus a spread. At that point, your interest rate can and will change according to whatever formula is specified in your contract.
So in practice, for a typical 3-year fixed package:
- Years 1–3: Rate doesn’t change (barring some rare, exceptional clauses).
- Year 4 onwards: Your rate behaves like a floating rate, resetting according to the chosen benchmark.
The mistake many homeowners make is assuming that because they started fixed, they can forget about their loan entirely. In reality, you should be planning your first review a good 6–12 months before that fixed period ends, because that’s when the story shifts.
How Often Do SORA-Based Floating Rates Change?
Most modern floating packages in Singapore are linked to compounded SORA (Singapore Overnight Rate Average). The key word here is “compounded” – you’re not changing daily; you’re being charged based on the average of daily overnight rates over a period like 1 month, 3 months, or 6 months.
What matters to you is the tenor of the benchmark you’ve chosen:
- 1M SORA (1-month compounded SORA): Your rate typically resets every month.
- 3M SORA (3-month compounded SORA): Your rate typically resets once every 3 months.
- 6M SORA (6-month compounded SORA): Your rate typically resets once every 6 months.
Each reset date, the bank looks at the relevant SORA rate (according to your contract), adds the agreed spread, and that becomes your new interest rate for the next period. So if you’re on a 3M SORA package, your mortgage interest rate can change up to four times a year.
This is why the phrase “Singapore mortgage rates are going up” can feel vague. What it really means for you is: when your next reset date arrives, if SORA has climbed, your instalment will increase too. The good news is that you’re not blindsided weekly; the bad news is that you can’t ignore the environment forever.
How Often Does the HDB Loan Rate Change?
If you’re on an HDB concessionary loan, your life is simpler. The interest rate is pegged to the CPF OA rate plus 1%. The CPF OA rate itself is reviewed quarterly, but it has remained very stable over long stretches. As a result, HDB loan rates have barely budged for years at a time.
In theory, the rate can change when CPF OA rates change; in practice, it changes rarely. That makes the HDB loan attractive from a predictability standpoint, even if it’s not always the cheapest option compared to competitive bank packages. For many first-time buyers, this stability is worth a lot in terms of budgeting and peace of mind.
Why Your Instalment Doesn’t Change Every Time the News Yells “Rate Hike”
Here’s a common panic scenario: you see headlines about central banks raising interest rates and immediately imagine your monthly instalment exploding tomorrow. In reality, most floating loans only reflect these changes when your reset date comes around.
If you’re on 3M SORA and your last reset was in January, a rate hike in February won’t hit your instalment until your next reset in April (or whenever your contract specifies). So you get a bit of delay and a bit of smoothing. It’s still real money, but not instant whiplash.
That said, if there’s a series of hikes between resets, you may see a more noticeable jump at your next review. This is why it’s important to look at Singapore mortgage rates not just as isolated numbers, but as part of a trend. A single movement is less worrying than a clear upward (or downward) path.
How Often Should You Review Your Mortgage – Even If the Bank Doesn’t Force You?
Rate resets are what the bank does automatically. Reviews are what you do deliberately. They’re not the same thing. You don’t need to review your loan every time the benchmark moves, but you also shouldn’t wait a decade and hope for the best.
A sensible review rhythm for most homeowners looks like this:
- Before lock-in ends: Start checking options 6–12 months before your lock-in or fixed period expires. This is prime time for refinancing or repricing.
- Every 2–3 years: Even within a longer tenure, do a quick “health check” every couple of years. Compare your current rate against what new customers are getting.
- After major life or market changes: If your income changes significantly, you’ve had a child, or rates move sharply, it’s worth taking another look.
Remember, reviewing doesn’t mean you must act. Sometimes the conclusion is “Actually, my package is still pretty good.” That’s still a win because now you know you’re not quietly overpaying.
How Rate Resets Affect Your Monthly Instalment
When your rate resets, your monthly repayment can change – but how much depends on a few things:
- Loan size: Bigger loan, bigger impact per 0.1% change.
- Remaining tenure: Longer tenures spread changes over more years, softening the monthly impact.
- Current rate level: A jump from 1.5% to 2.5% feels very different from a move from 3.5% to 3.7%.
For example, on a large loan, even a 0.5% increase after a reset can add a few hundred dollars a month. It’s not apocalypse-level, but it’s enough to squeeze your budget if you’re already stretched.
This is why, when you’re looking at Singapore mortgage rates, you shouldn’t only ask “What’s the rate now?” but also “What happens if this goes up (or down) by 0.5–1.0% at the next reset?” A simple mental stress test helps you decide whether you’re comfortable with a floating package or whether you’d prefer the stability of a fixed rate for a few years.
Can You Change How Often Your Rate Resets?
In some cases, yes. You can restructure your loan by refinancing to another bank or repricing with your existing bank to switch from, say, 1M SORA to 3M or 6M SORA, or from floating to fixed. This effectively changes how frequently your rate can move and how directly you feel short-term swings.
Shorter-tenor benchmarks (like 1M SORA) track the market more closely and can adjust quickly when rates fall – great in a declining environment, less fun in a rising one. Longer-tenor benchmarks (like 6M SORA) adjust more slowly, smoothing out volatility but sometimes lagging behind when conditions improve.
Switching benchmarks or structures typically involves some paperwork, and sometimes fees. You’ll want to weigh any savings or stability benefits against the cost of making the change. But the key point is: you’re not stuck with your original reset frequency forever.
Common Misconceptions About How Often Rates Change
Let’s quickly clean up a few myths:
- “My loan is fixed forever.” No. It’s fixed for the fixed period. After that, it usually reverts to a floating structure, and rate resets come into play.
- “Floating means my rate can change anytime.” Not exactly. It changes according to your benchmark and reset schedule (e.g., every 3 months), not randomly every week.
- “If the market moves, I’ll feel it immediately.” Only if your reset date coincides with that movement. Otherwise, there’s a delay until your next scheduled reset.
- “I can’t do anything about rate changes.” You can’t control the market, but you can choose your structure, benchmark, tenure, and whether to refinance or reprice when it makes sense.
Understanding these basics doesn’t stop rates from moving, but it does stop you from being surprised by how and when they hit your wallet.
Putting It All Together: A Calm Way to Live With Moving Rates
Mortgage interest rates in Singapore do change – sometimes slowly, sometimes in noticeable steps – but they don’t have to run your life. Once you understand how your particular loan works (fixed vs floating vs HDB), what benchmark it uses, and how often it resets, you’re in a much better position to plan.
Treat rate resets as scheduled events, not random lightning strikes. Build reviews into your calendar. Keep an eye on broader trends in Singapore mortgage rates, but don’t panic over every headline. And when your fixed period or lock-in is coming to an end, see it as an opportunity to optimise, not a crisis.
In short: you don’t need to predict every twist in the interest rate saga. You just need to understand the rhythm of your own loan – and be ready to make a few well-timed moves when the music changes.
