Fixed Rate Mortgage Singapore: Fixed vs Floating for a New Launch Condo

A fixed rate mortgage in Singapore locks your interest rate for a set period, usually two or three years, before it turns floating. A floating package moves with a benchmark, almost always compounded SORA. For a buyer at LinkTown Residences (Hougang Central Residences), the choice is shaped by one fact: loans for condos still under construction are mostly floating. So the real decision is less “fixed or floating on day one” and more “what to do when the project nears completion”.

How each type works

Fixed

The bank sets one rate for the first two or three years. Your instalment stays the same during that time. After it, the loan moves to a thereafter rate, which is usually floating (SORA plus a spread, or a bank board rate). Lock-ins on fixed packages commonly match the fixed period.

Floating

The rate is 1M or 3M compounded SORA plus a spread. It resets monthly or quarterly. When SORA falls, you pay less at the next reset; when it rises, you pay more. Some floating packages have short lock-ins or none. Our SORA guide explains how the benchmark is built.

Why new launch buyers usually start floating

A mortgage tracker updated on 4 September 2026 (PropertyNet) listed fixed packages from 1.40% for completed private homes, but stated that fixed rates were not available for properties under construction, where the lowest floating offer was 3M SORA plus 0.20%. That matches the pattern banks have shown for some years.

The reason is timing. A bank lending on a new launch pays the developer in stages over several years. Fixing a rate on money it has not yet lent, and may not lend until 2030 or later, is a risk most banks prefer not to take.

It also matters less than it seems. During construction you pay interest only on the amount drawn, so the rate on a small balance makes little difference. Our home loan rates guide shows how the instalment builds stage by stage.

When a fixed rate makes sense

Once the property is completed and the loan is fully drawn, fixed packages are back on the table. Fixing may suit you if:

• Your budget has little room for a higher instalment, for example if one income carries most of the loan.
• You are juggling other big commitments in the same period, such as a renovation loan or school fees.
• The fixed rate on offer is close to the floating rate, so the premium for certainty is small.
• You would rather not watch SORA every quarter.

Floating may suit you if you have a cash buffer, want a short or no lock-in so you can refinance freely, or the fixed premium is wide.

A two-year scenario

Compare a 2-year fixed rate of 1.7% with a floating rate that starts at 1.4%:

Scenario	Year 1	Year 2	Two-year difference
Fixed at 1.7%	S$4,510 a month	S$4,510 a month	Baseline
Floating, SORA flat (1.4%)	S$4,327	S$4,327	Floating saves about S$4,400
Floating, rises 0.5 point in year 2 (1.9%)	S$4,327	S$4,635	Floating still saves about S$700
Floating, rises 1 point in year 2 (2.4%)	S$4,327	S$4,957	Floating costs about S$3,200 more

The fixed rate is a kind of insurance premium: here, about S$180 a month in year 1 buys protection against a rise in year 2. A small rise leaves floating slightly ahead; a larger one tips the balance to fixed. Whether that is worth it depends on your buffer and your view of rates, and no one can say in advance which row will happen. After the fixed period, both borrowers face the market again.

Traps in the fine print

• Thereafter rate: a low fixed rate can revert to a high floating one. Compare the rate for every year of the package.
• Lock-in vs fixed period: check they end together. A lock-in longer than the fixed period ties you to a floating rate you did not choose.
• Clawback: legal and valuation subsidies may be repayable if you leave early.
• Conversion: ask whether you can switch between the bank’s own packages, and at what cost. For a new launch, a free conversion around TOP is useful.
• Partial prepayment: some packages charge for paying down the loan during lock-in.

A plan for a LinkTown Residences buyer

1. At booking: take the floating package with the best spread and the shortest practical lock-in, and check whether the lock-in starts from first drawdown or from completion.
2. During construction: instalments are small; build a cash buffer rather than chasing tiny rate gaps.
3. A few months before TOP: ask your bank for repricing and conversion options, compare the market, and decide whether to fix.
4. After CSC: the loan is fully drawn; review again when each lock-in ends.

LinkTown Residences is expected to launch in early 2027, and UOL’s August 2026 results guide a 2H 2027 launch, with completion expected around 2030/2031. The rates on offer then will differ from today’s. Your maximum loan is set separately, by LTV and the 4% stress test in our TDSR guide. For every step from approval to completion, read the home loan guide.

The progressive schedule behind these drawdowns is on our payment scheme page, and indicative layouts for the unit sizes used here are on the floor plans page. Verify with MAS and your bank before you sign any letter of offer.

Register to get Hougang Central Residences prices and the payment schedule as soon as they’re released.

Frequently asked questions

Can I get a fixed rate mortgage for a new launch condo in Singapore?

It is uncommon. Loans for uncompleted properties are mostly floating and pegged to SORA. A September 2026 rate tracker listed no fixed packages for properties under construction. Most buyers consider fixing once the project reaches TOP. Check with your bank at the time.

How long is a fixed rate in Singapore?

Fixed home loan packages usually fix the rate for the first two or three years, after which the loan reverts to a floating thereafter rate set out in the letter of offer.

Is fixed or floating cheaper?

Neither is cheaper in every case. A fixed rate costs more if rates stay flat or fall, and less if rates rise sharply during the fixed period. Compare the total interest over the lock-in using a few rate scenarios.

Does a fixed rate change how much I can borrow?

No. Your loan limit is set by LTV and by TDSR, which banks test at a 4% floor or the thereafter rate, whichever is higher. The package rate affects your instalment, not the maximum loan.