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Rock-Bottom Fixed Rate At 1.10%!

(This is a time-sensitive article with expiry date for mortgage promotions)

We have talked about this since last year but it still took a little bit of seesawing before we finally get here.  Now we can official make the claim – fixed rate home loan has hit rock bottom in Singapore at 1.10%!  Which means fixed rates can only move sideways or up from here. 

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With US 10-year yields falling back below 1.50%, a few banks here have just dropped their fixed rates this month. This throws up a small window of opportunity for anyone with a minimum loan of $800,000 (for private property $500k-$800k, there’s still 1.10-1.15% fixed rate, contact us for details) to be entitled to these rock-bottom fixed rate. For those with lock-ins ending before Dec 2021, you better make that dash as good things won’t last long.  Such sporadic promotions come and go at short notices and there are closing dates for such applications to reach the bank and be accepted by.

Apply through MortgageWise and let us expedite the entire process for you with our proven network of consultants, bankers, law firms and even financial advisors. Stand to benefit from our rewards (on top of what you get from the banks) and our unique referral scheme since 2014 where you get paid repeatedly and not just for a single mortgage.

LOWEST
2-Year Fixed
LOWEST
3-Year Fixed
Year 1
1.10%
(Fixed)
1.15%
(Fixed)
Year 2
1.10%
(Fixed)
1.15%
(Fixed)
Year 3
1.50-1.60%
1.15%
(Fixed)
Year 4 onwards
1.50-1.80%
1.80%
Lock-in Period
2 years3 years
Min Loan
$500,000$500,000
For
Private propertyPrivate property
Cash Rebate
(for refinancing only)
Up to $2,500Up to $2,500

We have predicted for some time now (if you follow this blog) – floating rate home loans will settle at 1% and fixed rates at around 1.20% for the mass market (private properties). We are now officially at these levels.

Fixed rate home loan has hit rock bottom in Singapore at 1.10%!  Which means fixed rates can only move sideways or up from here. 

And remember what we said about many fits and starts when it comes to the interest rate cycle turning corners.  Just few months ago we’ve seen a jittery financial market unsettled by rising inflation expectation with 10-year yields raging above 1.70% in the U.S. which lead to upward pressure on SIBOR and SORA here.  Banks begin to adjust their 3-year fixed rates up last month.  A month later here we are now with treasury yields dropping below 1.50% and with fixed rates tumbling to the lowest level ever.  Be prepared to see a few more see-sawing of interest rates until US Fed embarked on a sustained path of rates increases likely later part of 2022 (at the earliest we think).  We’ll discuss mortgage strategy for 2nd half of the year next month so stay tuned to this blog.

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low home loan rates singapore

For now, we are happy to make the call that fixed rates in Singapore have touched rock bottom.  If you’re not selling your property anytime soon, or better yet you’ve just gotten the option to your new house, you can now own that “bragging rights” – you locked down the lowest historical fixed rate we’ve ever seen in Singapore!  Not many can boast of this feat honestly as not everyone has lock-in expiring this period or some have just contracted at a higher rate.

If you are currently on floating rate home loans especially SIBOR packages with low spreads, and you are unsure if now is a good time to switch out of floating and lock down this historical-low fixed rate, speak to us quickly.  Let us walk you through the different considerations, most importantly the big picture – the interest rate cycle.  This is especially imperative if you are going to be out of lock-in within the next 6 months (yes even those expiring in December!). 

Over the year, many clients have benefited from our forward-looking and interest-rate-cycle-based approach in giving our professional view on which loan package to take.  And sometimes it’s not just simply going for the lowest headline number.  For example, we think 2-year fixed is still preferred over 3-year in general which goes against what most people would expect.  Find out why.

You can now own that “bragging rights” – you locked down the lowest historical fixed rate we’ve ever seen in Singapore!  Not many can boast of this feat honestly as not everyone has lock-in expiring this period or some have just contracted at a higher rate.

Compare Singapore home loan rates using a comprehensive, fast and free service from MortgageWise.sg, in operations since 2014.  Be it to refinance home loanbuy your next Singapore condo , or even explore commercial property loan, speak to our dedicated team of mortgage consultants at your service today!

Compare All Latest Rates 2021