Should I choose fixed or floating (SORA) in Singapore in 2026?

Choose fixed if you need payment certainty or your buffers are thin. Choose floating if you can tolerate volatility, have cash buffers, and can reprice/refinance quickly when conditions change.

Is floating always cheaper over the long run?

Not always. Floating can be cheaper on average, but the main risk is cashflow stress during rate spikes. If a rate spike forces you to sell assets or change plans, the 'cheaper rate' can become the more expensive outcome.

What buffer should I hold if I take a floating home loan?

A practical rule is to size your buffer so you can handle a 1.5%–2.0% rate increase without lifestyle panic, and still keep 6–12 months of total household runway (depending on job stability and other liabilities).

Can I switch from fixed to floating later?

Yes, but check lock-ins, penalties, and whether your bank offers repricing. Many borrowers use fixed for the first 1–3 years to stabilise cashflow, then switch when optionality matters more.

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Property / Comparisons

Fixed vs Floating Home Loan (Singapore, 2026)

Decision comparison · Last updated: February 2026

You don’t win this decision by predicting rates. You win by choosing the structure that keeps your household anti-fragile when rates move.

Mortgage interest mechanics Property hub

The decision in one line

If you need payment certainty, have thin buffers, or rates are low: fix.
If you have buffers, can refinance quickly, and can tolerate volatility: floating can win.

The real risk people underestimate

It is not “rates might go up”. It is cashflow fragility: a higher instalment forces you to cut spending, sell investments, or panic-sell property at the wrong time.

Fixed buys you a ceiling on pain.
Floating buys you optionality (reprice/refinance), but you must survive the spikes.

A simple decision framework (use this, not forecasts)

Stress test your instalment at +1.5% and +2.0% from today’s rate.
If that stress test causes lifestyle panic or forces you to sell assets: prefer fixed.
If you can absorb it comfortably and have a plan to reprice/refinance: floating is viable.

What “buffer” actually means

Cash buffer: enough liquid cash to handle rate spikes without missing payments.
Psychological buffer: you won’t panic when the instalment rises.
Optionality buffer: you can switch packages (reprice/refinance) when the tradeoff flips.

If you don’t have all three, fixed is often the lower-regret choice even if the headline rate is higher.

Common strategies that reduce regret

Stabilise then optimise: choose fixed for 1–3 years, then reassess and switch if appropriate.
Floating with guardrails: floating package + strict buffer rule + calendar reminder to review every 6–12 months.
Avoid long lock-ins unless the discount is large and your timeline is stable.

FAQ

What if I think rates will fall?

Don’t bet your household stability on a forecast. If you go floating, make sure you can survive if you’re wrong.

What if I might sell/upgrade soon?

Prefer optionality: lower penalties, clearer exit terms, and avoid long lock-ins.

A practical framework (Singapore)

Define your buffer: 6–12 months of instalments in cash/near-cash if floating; 3–6 months if fixed.
Define your horizon: if you expect to sell/upgrade/refinance within ~2–3 years, flexibility matters more.
Stress test: ask “If instalment rises by +20–30%, do we still sleep at night?”

Common Singapore patterns

First home, young kids, single income risk → fixed (or partial fix) is often rational.
High-income dual earners, large buffers → floating with discipline can be fine.
Rates feel “low” → fixing can be cheap insurance.

What to do next

Start here (10‑minute decision paths)
Decision comparisons hub (other forks)
Property hub (mechanics + numbers)

If you notice something off, tell me what you were trying to decide and your constraints (timeline, risk tolerance, cashflow).

TL;DR

Fixed buys stability. Choose it if cashflow shock would hurt you or you value certainty more than squeezing the last basis point.
Floating can be cheaper on average, but you must survive volatility. Choose it if you have buffer, flexibility, and a plan if rates spike.
Don’t pick based on “today’s rate”. Pick based on what you will do if rates move against you.

How to decide in 60 seconds

If a +1.5% rate shock breaks your budget → choose Fixed.
If you have 12–24 months buffer and can prepay if needed → Floating is viable.
If you expect to sell/refinance soon → avoid long lock-ins; optimise for flexibility.

What “fixed” really means in Singapore

What “floating” really means

When fixed usually wins

When floating usually wins

The real question: what’s your “shock rate”?

Your shock rate is the highest interest rate you can absorb without lifestyle damage or forced selling.