Low mortgage rates help; but be cautious in pursuing condo dreams as economic outlook weakens

[SINGAPORE] With home loan rates expected to soften as overnight bank lending rates ease, homeowners and potential homebuyers have reason to cheer.

The current three-month compounded Singapore Overnight Rate Average (Sora) of 2 per cent per annum is down by about 100 basis points (bps), versus around 3 per cent per annum at the start of the year. The three-month compounded Sora was about 3.7 per cent per annum at the start of 2024.

As many home loan packages here are priced against the three-month compounded Sora, the rate’s decline will cheer homeowners and potential homebuyers.