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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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Good things won’t last long.  OCBC has just announced a short window of opportunity for anyone with a minimum loan of $500,000 to be entitled to these rock-bottom fixed rate (see packages below).  At 1.10%, that’s the rate normally reserved for bigger loans like above a million.  Now it’s accessible for most homeowners.  For those with lock-ins ending by Dec 2021, you better make that dash as all complete applications must reach the bank by 18 Jun and must be approved and accepted no later than 22 Jun (subject to bank’s approval who reserve the right to withdraw the rates anytime without notice). We can only hope it might get extended but don’t count on it.

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OCBC Home Loan
2-Year Fixed
OCBC Home Loan
3-Year Fixed
Mortgage Peg
MBR (BOARD)
MBR (BOARD)
Year 1
1.10%
(Fixed)
1.15%
(Fixed)
Year 2
1.10%
(Fixed)
1.15%
(Fixed)
Year 3
1.60
(MBR + 0.60)
1.15%
(Fixed)
Year 4 onwards
1.80
(MBR + 0.80)
1.80
(MBR + 0.80)
Lock-in Period
2 years3 years
Min Loan
$500,000$500,000
For
Private property & HdbPrivate property & Hdb
Cash Rebate
(for refinancing only)
>=$500k: $2,000
>=$1.5m: $2,500

>$300k-$1,800 (for hdb)
>=$500k: $2,000
>=$1.5m: $2,500

>$300k-$1,800 (for hdb)

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 albeit for a week (unless it’s extended).

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.

Compare All Latest Rates 2021

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