I recalled that just one year ago, most banks were offering Low rates for home loans at 1%+. Today, we are seeing a new high in home loan interest rates with most banks offering at 2%. Through our observation, there’s some fixed rate packages being offered at 2.68% and 2.7% respectively, which is very closed with some banks’ personal loan rates at 3%+.
Several home loan interest rates in Singapore are tied to floating packages like Singapore Interbank Offered Rate (Sibor) or another floating rates pegged to banks fixed deposits or board rate. If the United States Federal Reserve Board continues increasing their interest basis point, very likely our home loan rates here will follow.
Refinancing to a lower interest rate is one solution that all home owners should look at. Talk to a mortgage broker who can help you to compare packages and rates from various ways so that you will not miss out any good deals. You may also like to consider to extending your loan tenure to bring down the monthly instalment amount or paying down to bring down the overall loan amount which will help to lower down the monthly instalment. In any way you do, a mortgage broker will be able to help you assess which works best for you.
This post was written by our Mortgage Advisory Manager in Mortgage Consultancy Pte Ltd. To get in touch with our guest writer, you may like to PM us at +65 85565271.