SORA Mortgage Calculator Singapore 2026
3-Month Compounded SORA + Bank Spread — Rate Scenario Stress Table & Fixed/HDB Comparison
Calculate your monthly mortgage instalment based on the 3-month compounded SORA (Singapore Overnight Rate Average) plus your bank’s spread. SORA replaced SIBOR in 2024 as Singapore’s benchmark for floating-rate home loans. This calculator shows your instalment at the current SORA level, a rate-scenario stress table across 8 SORA levels (1.0% to 4.5%) so you can see how your payment changes if rates rise or fall, and a side-by-side comparison with fixed-rate and HDB concessionary loan alternatives.
Your effective rate = 3M compounded SORA + bank spread. SORA is published daily by MAS on the MAS website. The bank spread is fixed for your lock-in period but SORA fluctuates. Typical bank spreads in 2026: 0.65%–1.00% during lock-in, 0.80%–1.20% thereafter. Your effective rate is SORA + spread (e.g., 2.50% + 0.75% = 3.25% effective).
Enter a fixed-rate package offer to compare monthly instalment and total interest against the SORA floating rate. Leave blank to skip. HDB 2.6% is always shown for reference.
Enter your loan amount, current 3M SORA, and bank spread to see your instalment, total interest, and the rate-scenario stress table showing how your payment changes across 8 SORA levels.
SORA Mortgage Singapore 2026 — How 3-Month Compounded SORA Works for Home Loans & Why It Replaced SIBOR
Since the full transition from SIBOR in 2024, virtually all floating-rate home loans in Singapore are pegged to the 3-month compounded SORA (Singapore Overnight Rate Average). SORA is a backward-looking rate based on the volume-weighted average of actual overnight interbank borrowing transactions in Singapore — making it more robust, transparent, and harder to manipulate than the old forward-looking SIBOR. Your mortgage rate is: 3M compounded SORA + bank spread. The SORA component fluctuates with market conditions (broadly tracking US Federal Reserve rate movements), while the bank spread is contractually fixed for the lock-in period. Understanding this split is critical for budgeting: the spread is within your control (you negotiate it with the bank), but SORA is determined by the market.
How SORA Loan Packages Are Structured
| Component | Description | 2026 Typical Range |
|---|---|---|
| 3M compounded SORA | Market benchmark, published daily by MAS | ~2.0%–3.0% |
| Bank spread (lock-in) | Fixed for 2–3yr lock-in, negotiable | 0.65%–1.00% |
| Bank spread (thereafter) | Steps up after lock-in, higher | 0.80%–1.20% |
| Effective rate | SORA + spread | ~2.65%–4.00% |
| MAS stress rate (TDSR) | Max(effective, 4%) for TDSR assessment | 4.00% |
SORA vs Fixed Rate vs HDB: When to Choose Which
| Feature | SORA Floating | Fixed Rate | HDB 2.6% |
|---|---|---|---|
| Rate risk | Fluctuates with market | Locked for 2–3yr | Very stable |
| Initial rate | Usually lowest | Slightly higher | 2.6% (CPF+0.1%) |
| Best when | Rates falling / stable | Rates rising / uncertain | Eligible HDB buyer |
| TDSR assessment | At 4% (stress) | At actual rate | At 2.6% |
| Prepay penalty | ~1.5% during lock-in | ~1.5% during lock-in | None |
How This SORA Calculator Works — Rate Breakdown, Stress Scenarios & Alternative Comparison
Step 1 — Enter Loan and SORA Components
Enter your loan amount, the current 3-month compounded SORA (check MAS website or your bank’s latest statement), and the bank spread from your loan package. The calculator adds them to get your effective rate and computes the monthly instalment, total interest, and total repaid.
Step 2 — Review the Rate Scenario Stress Table
The stress table shows your instalment at 8 SORA levels (1.0% to 4.5% in 0.5% steps), with your current SORA highlighted. This lets you see how much your payment would increase if SORA rises by 0.5% or 1.0%, or how much you would save if it falls. The difference column shows the change from your current instalment. This is essential for budgeting: know your worst-case payment before it happens.
Step 3 — Compare with Fixed and HDB Alternatives
Optionally enter a fixed-rate package offer to compare. The calculator always shows the HDB 2.6% benchmark as a reference. The comparison box reveals the monthly and total interest difference between all three options at a glance.
3 Real Singapore SORA Examples — New Condo, HDB Switcher & Rate Rise Stress Test
New Condo, SORA 2.5% + 0.75%
HDB Switcher, SORA 2.0% + 0.65%
Stress: S$600K if SORA Hits 4.5%
3 Expert SORA Tips — Spread Negotiation, the 4% Stress Trap & When Fixed Beats Floating
Negotiate the Spread, Not the SORA — It Is the Only Part You Control
SORA is set by the market — you cannot negotiate it. The bank spread is the only negotiable component. A difference of 0.10% in spread on a S$750,000 loan over 25 years = approximately S$14,500 in total interest. During the lock-in, competing banks offer spreads ranging from 0.65% to 1.00% — a 0.35% range that translates into S$50,000+ in total interest difference. Always compare at least 3–4 bank packages on the spread (not just the headline rate, which changes with SORA). After lock-in, the spread typically steps up by 0.15%–0.25% — this “thereafter spread” is equally important and often overlooked in the initial comparison. Use a mortgage broker to access the most competitive spreads without visiting every bank.
The 4% Stress Trap: SORA Packages Reduce Your Maximum Borrowing
MAS requires banks to assess TDSR at the higher of your effective rate or 4% for SORA loans. If your effective rate is 3.25%, the bank assesses TDSR at 4% — a significantly higher instalment. This reduces your maximum borrowable amount compared to: (1) a fixed-rate package (assessed at the actual fixed rate, e.g., 3.20%); (2) an HDB loan (assessed at 2.6%). On a S$10,000 income, the TDSR-based max loan at 4%/25yr = about S$760,000, but at 3.20% fixed = about S$845,000 — an extra S$85,000 borrowing capacity just from the assessment rate. This is one reason some buyers choose a fixed package even if SORA is lower: to maximise their TDSR headroom and qualify for a larger loan.
When Fixed Beats Floating: The Rate Environment Decision
Choose SORA floating when: rates are stable or falling, you are comfortable with payment volatility, and you want the lowest possible initial rate. Choose fixed when: rates are rising or uncertain, you value payment certainty (e.g., for tight budget planning), or you want to maximise TDSR borrowing capacity (assessed at actual rate, not 4%). In Singapore’s 2026 environment, with SORA broadly tracking US Fed movements, the decision depends on your view of global rate direction. A pragmatic approach: take a 2–3 year fixed package for certainty during the initial ownership period (when cash is tightest due to renovation and moving costs), then reassess at lock-in expiry. Use this calculator’s stress table to see if you can handle the worst-case SORA scenario — if the highest stress payment is still comfortable, SORA floating may be the cheaper long-term choice.