homeowner with stone on back: bearing weight of rising interest rate

More Interest Rate Hikes..

With SIBOR rising significantly this year (3-month SIBOR 1.629 as at 26 July), it seems every other month, some banks will be adjusting their mortgage interest.  So let me just say this is not peculiar to UOB and OCBC who are the latest to announce hikes to selective tranches as follows:

BankMortgage Peg*Date*Old RateNew RateIncrease By
OCBC36FDMR2 Aug0.650.950.30
OCBCOHR16 Aug1.001.300.30
UOB15FDPR27 Jul0.250.700.45
UOB14FDPR27 Jul0.250.600.35

* Note: This is indicative date based on information we gather on best effort basis, which might differ slightly in some instances especially for OHR which is not published on the website.  The dates shown might be announcement dates or effective dates as some banks announce the hike much earlier.  As most banks need to give at least a one month notice in writing to customers, these might or might not be the exact date where their mortgage repayments would be revised.

As a responsible mortgage blog, we have a duty to keep the market informed of all the latest interest rate revisions from all lenders in the market.  Follow this blog to stay abreast of interest rate trends.

Strictly speaking, OHR is not an FDR (Fixed Deposit Rate) home loan mortgage peg but more like a BOARD rate, but we are tracking it just as well as that has been the pre-dorminant loan peg for OCBC in the past year, but is now no longer in the offering.  We track it also because it remains a singular mortgage peg as far as we know, unlike conventional BOARD rate which has reference quote based on dates range hence any subsequent revisions by batches (depends on which period one signs up) remains elusive to the public.

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With the US Fed indicating two more hikes this year (increased from 3 to 4 after the Jun FOMC) with one looming just ahead next month in Sep, indeed we have been warning for a while now that this current uptrend might just be different from the “false alarm” back in 2016.  Already 3-month SIBOR has exceeded the last peak of 1.25% reached in Apr 2016 by a significant margin.  Nothwithstanding the risk of the current spat between US and China ballooning into a full-bloom global trade war and derailing economic growth, the consens is that SIBOR should continue on its upward trajectory.  At MortgageWise, we maintain our forecast that it would hit 2% before end of the year.

Those who are out of lock-in might want to consider switching to a fixed rate home loan quickly while there are still handful of sub-2% packages in offer.  Speak to your current bank first for a good repricing offer, then contact us for a lowdown on all the available packages in the market fixed and floating. We can help you make an informed decision quickly, with our arsenal of interest-tracking tools (since 2014), interest simulation showing you how much you stand to save and the costs involved, not to mention our almost Zero-Cost refinancing home loan promotion which we just rolled out in May this year.  Seize it.

Since 2014, MortgageWise.sg has provided thought leadership in the mortgage planning space in Singapore, taking deep dives into the latest trends in the industry, providing useful mortgage tips, and making sense of rate movements.  We aim to build trust with clients for longer-term partnership and not just do product-pushing for a one-time deals unlike bankers.  That’s why we always present “whole-of-market” perspective including packages that banks do not pay us.

Compare All Latest Rates 2020