Updated: Aug 9, 2018
Mortgage Consultancy’s research team sharing their insights on the mortgage loan market on 9th July 2018 publication.
Pricier mortgages loom as banks move to offset dismal lending
Some banks have been reportedly scrapping fixed deposit linked packages in favor of Sibor pegged packages.
Banks may compensate for slower loan growth by pricing their mortgage packages higher following surprise policies unveiled by the government to slow down runaway residential prices in Singapore.
Also read: Should Singapore anticipate more cooling measures?
In fact, Mortgage Consultancy Pte Ltd reports that a number of banks have been withdrawing fixed deposit linked packages and replacing them with Sibor pegged and board rate packages that are more in line with market movements.
“Given the extent of the new cooling measures, we expect the home loans demand to be subdued. Our interest rates will continue to be competitive to the market,” OCBC’s head of group of corporate communications Koh Ching Ching said when asked for comment.