calculating mortgage interests

Refinance Before Rates Should Rise Further

As at last Friday (17 Nov), all four major banks with FDR (fixed deposit rate home loans) packages and OCBC with their unique OHR loan peg have moved up their interest across the board by approximately 20 basis points or 0.20%.

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The prevailing rate for floating FDR packages were at 1.40-1.50% range before, now they are mostly levelled at 1.60-1.70%.  The same can be said for fixed rate where 2-year fixed packages were at 1.40% but now at 1.65%, and 3-year fixed packages were at 1.68% now 1.85%.  There are some lenders with fixed rates at 1.48% subject to certain conditions but time is running out and those who are keen to lock down fixed rates need to act fast before the year is up.

Below is an overview of the latest floating rate FDR/OHR packages as at this new week:

fixed deposit pegged home loans nov 2017

It is as if the banks are forecasting higher cost of funds going into 2018 possibly due to the positive news flow coming out from United States.  Even Singapore is now projecting to overshoot its GDP growth going above 3% for full year of 2017.   And globally expectations are riding high on President Trump’s much promised tax reforms plan which has passed the House going into a Senate vote soon which the Treasury Secretary Steve Mnuchin has promised to get it through before Christmas!

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What does all these mean for the average homeowner?  For those with a maturing mortgage, in other words, one with a fixed rate expiring within the next six months, it makes perfect sense to lock-in fixed rate early.  This is especially so when some fixed rates, which traditionally commands a premium to floating, trades at below prevailing floating rate at the moment.  Which is why we do not expect this trend to stay for much too long.  Contact us today where we will send you our comprehensive Rates Report breaking down for you details of all home loan Singapore packages from lock-ins, legal subsidy (for refinancing), etc for both variable and fixed packages.

Since 2014, 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 deal unlike bankers.  That’s why we always present “whole-of-market” perspective including packages that banks do not pay us.  That’s why many have chosen to work with us in the end notwithstanding the sheer number of brokers and agents out there.

Compare All Latest Rates 2019