Following after DBS, last week OCBC announced hikes across most of its mortgage loan base (except for SIBOR home loans which are market-driven and already risen) of approximately 0.55%, which is to take effect on 16 January 2019.  With two out of the three major mortgage lenders in Singapore announcing increases in its mortgage interest rate in the month of December which also saw US Federal Reserve hiking rates to near 2.50% in the US, there is no prize for guessing who will be the next to announce hikes.

Here’s a snapshot of the tranches affected:

Mortgage Pegs	Old Value	New Value	Increase By	Effective Date
15FDMR	0.55%	1.25%	0.70%	16 Jan 2019
36FDMR	0.95%	1.55%	0.60%	16 Jan 2019
48FDMR	1.25%	1.75%	0.50%	16 Jan 2019

Being a thought leader in the mortgage space in Singapore, we take it upon ourselves to track any movements in the home loans market by any lenders when they make announcements on changes to their published mortgage rates – primarily FDR or fixed deposit rate mortgage pegs.  The complexity of tracking increases when it comes to BOARD rates which are internal lending rates not published anywhere on the bank’s website.  We only hear about such increases from customers we spoke with.

MortgageWise will only be able to track the 5-year historical trending of FDRs from the various banks and map the movements of a single FDR tranche (initial launch tranche) from each bank against the benchmark 3-month SIBOR which you can find it here (Latest increases on OCBC home loans reflected only after 16 January 2019).

With the latest round of rate adjustments from banks in December, most homeowners on floating rates would likely see their mortgage interest rising up to near 2%-2.20% level by our estimates, which is basically in-line with the prevailing floating rates (use our interactive Rates Display below to see the latest fixed and floating rates).

We will give our take on how we see interest rate moving in 2019 when we come back in the new year, so stay tuned to this blog.

At this moment, we do sense there is some resistance to refinancing to fixed rates which starts at 2.33-2.38%.  Not surprising given how much fixed rates have risen over the months.  And with uncertainties looming large in the global economy from trade rows between US and China, potential Brexit fallout from EU, a slowing economy in China, etc, we see more homeowners taking bets on floating rate home loans as we end the year with a stock market rout.  One thing for sure, it is getting harder to forecast on interest rate movements.

If your lock-in is expiring within the next six months or so, why not contact us now to stay abreast of the latest mortgage promotions from the various banks in 2019.  With a trusted mortgage advisor giving you the latest scoops on rate hikes and deviated rates promotion (for a limited period), you keep all your options open in a volatile market, be it fixed or floating rate home loans.

Since 2014, MortgageWise.sg has provided thought leadership in the mortgage planning space in Singapore, taking deep dives into the latest developments in the industry, providing useful mortgage tips, and making sense of rate movements.  We seek to build trust with clients over the longer term instead of doing product-peddling for quick one-time deals.  That’s why we always present “whole-of-market” perspective including home loan packages that some banks do not pay us.