Every January, we promise ourselves a fresh start. We declutter our homes, reset our fitness goals, plan our holidays, and recalibrate our finances. Yet ironically, many homeowners skip one of the most impactful financial reviews they could make, their property loan.
In a year where stability, opportunity, and financial discipline will define the lives of many Singaporean families, one simple question can dramatically shift your 2026 trajectory: Is your home loan still working for you, or are you unknowingly working for your home loan?
As the world steps into a new interest rate cycle and Singapore’s property market continues to evolve, now is the moment to take a closer look at the mortgage sitting quietly behind your monthly GIRO deductions. A well-timed adjustment today could unlock savings, free up capital for investment, or reposition you for your next property move. But staying passive could mean missing out on opportunities that only come once every cycle.
Below are the key pillars every homeowner should revisit as the new year unfolds.
1. Are You Still Paying a Competitive Interest Rate?
Interest rates have been anything but predictable over the past few years. Many homeowners locked in packages when volatility was high, only to discover that the market has since shifted. If your loan was last reviewed in 2023 or 2024, where interest rates were as high as 3.98%, you would be paying more than what the banks are offering today.
Even a seemingly minor rate difference, say 0.20% can translate to thousands of dollars saved over the course of the lock in period. Banks today are rolling out increasingly competitive packages as the market stabilizes, and refinancing has once again become a strategic move rather than a reactive one.
A lower interest rate doesn’t just save money, it creates financial space. Space to invest. Space to save. Space to breathe. With property loans typically stretching 20 to 35 years, even a modest rate difference compounds into substantial long-term savings. A January review ensures you’re not unknowingly overpaying.
2. SORA Trends in 2026: Stability at Last, but Not Forever
After a rollercoaster of rate hikes and economic uncertainty, SORA finally entered 2025 on a more stable, downward-sloping path. Entering 2026, this trend offers homeowners something they haven’t felt in a while: predictability.
But stability can create complacency. Stability shouldn’t be misinterpreted as permanence. Floating rates may look attractive today, but the global economy remains sensitive to inflation risks, geopolitical shifts, and central bank reactions.
Understanding SORA trends is crucial because it affects your monthly instalment if you’re on a floating package, it influences whether fixing your rate now is wise and it shapes decisions around refinancing timing. In addition, understanding where SORA is heading in the next 12 to 18 months isn’t about predicting the future, it’s about deciding what level of risk and fluctuation you’re comfortable living with.
Homeowners who keep their fingers on the pulse of SORA trends will always make more informed decisions than those who make decisions based on guesswork or outdated assumptions.
3. Reassess Your Long-Term Property Game Plan
A new year brings new ambitions. For some, 2026 may be the year to upgrade to a bigger home as the family expands. For others, it could be the time to right-size, relocate closer to work or school, or enter the investment market.
Your mortgage should never work against your life plans. For instance, if you’re planning to move / upgrade in the next 12 – 24 months, it may not be ideal to lock yourself into a long fixed-rate package with hefty penalties; certain bank packages do offer penalty waivers if you sell property. Conversely, if stability and budgeting clarity are top priorities, a well-structured fixed rate may provide peace of mind throughout the year.
The key is synchronizing financial structure with life structure, something most homeowners overlook until it’s too late. Your property journey isn’t static, your financing shouldn’t be either.
4. Can Refinancing Supercharge Your 2026 Financial Goals?
Refinancing is often misunderstood as simply swapping to cheaper rates. In reality, it is a financial instrument, one that can unlock strategic advantages when used wisely.
Lower instalments free up liquidity that can be channeled into investments, emergency funds, or children’s education. For others, refinancing becomes the starting point for a planned property upgrade, helping them manage cash flow before taking on a larger mortgage.
Some homeowners use refinancing to extend their loan tenure and ease monthly commitments during transitional life phases. Others shorten their tenure to accelerate equity building.
Refinancing is not just a numbers game, it’s a roadmap, and reviewing your options in January allows you to align the entire year’s financial trajectory with precision.
5. Should You Switch From Floating to Fixed?
In a stabilizing interest rate environment, many homeowners are rethinking their mortgage strategy. Floating rates offer potential savings when rates dip, but fixed rates offer something priceless: certainty.
If 2026 is a year where you plan to grow your family, take on additional commitments, start a business, or simply want predictability in your cash flow, switching to a fixed package could give you the stability you need. But if you have the flexibility and appetite to ride short-term fluctuations, because you’re renting out your property, floating rates may still present opportunities.
Choosing between fixed and floating is not just a numbers decision. It’s a lifestyle decision that depends on your tolerance for uncertainty, stage of life, cash flow stability and upcoming commitments (e.g., newborn, new business, career shift)
6. Your Home Equity May Be Worth More Than You Think
The last few years have seen property values in Singapore continue to climb. Many homeowners assume that unless they are selling, rising valuations don’t matter. But they do.
A higher valuation can open the door to an equity term loan, one of the most powerful financial tools available to private property owners. With loan tenures stretching up to age 75 and interest rates similar to home loans, equity loans can be used in many ways to support your financial planning. Whether you’re supporting your children’s education, expanding your investment portfolio, or even making a CPF refund so that it earns a higher interest than the bank loan, your home equity may be that financial tool that you’ve been looking for.
Understanding your Loan-to-Value position today gives you clarity on how much financial flexibility you truly possess.
7. Keep an Eye on Regulatory Shifts
Singapore’s property regulations evolve with economic cycles. As cooling measures adjust and new frameworks are introduced, homeowners can be affected in ways they do not anticipate.
Changes to TDSR, LTV limits, Buyers Stamp Duty / Additional Buyers Stamp Duty, loan tenure caps, Income-weighted average age requirements, or refinancing eligibility can impact whether you qualify for certain loan structures.
A yearly review helps ensure that you don’t get locked out of opportunities, that you remain compliant with the latest rules and that you stay proactive instead of reactive. Regulations may not change monthly, but when they do, the impact can be immediate.
Your Mortgage Is Not a Subscription. It’s a Strategy
Too many homeowners treat their mortgage like a gym membership they forget about after signing up. But your home loan is one of the biggest financial commitments in your life. It deserves periodic attention, evaluation, and optimization.
A yearly review, especially at the start of a new year helps ensure two things:
You are not overpaying, and you are not missing opportunities.
If 2026 is the year you want to strengthen your finances, plan your next move, or simply bring more clarity into your life, start with the foundation: your home loan.
And when you’re ready, Redbrick Mortgage Advisory is here to guide you through every angle, every option, and every decision so you can start the year right, and stay ahead all year long.
