The Last Of Sub-2% Fixed Rates

With UOB ending its direct-to-bank 2-year fixed rate home loan promotion of 1.98% on its website this week, the number of such fixed rate home loan packages at below 2% in Singapore has dwindled to just four.  All 3 local banks have set their fixed rate home loan at 2.18% for 2-year fixed and at 2.38% for 3-year fixed rate.

Compare All Latest Rates 2018

 

In fact, this month October may be the last month for any homeowner still keen to lock down fixed rate at below the psychologically-important 2% mark.  This is so as US 10-year Treasury yields has shot up to above 3.2% this week, a decade high, and recent hawkish comments from the Fed Chair buttress the case for more aggressive rate hikes if needed going into 2019.  Last check 3-month SIBOR in Singapore is still hovering around 1.64% but not for too much longer with the pressure on the dollar.  Here at MortgageWise, we maintained our view that the benchmark interest rate of 3-month SIBOR will continue on its march towards 2% target before the end of the year.

 

Here’s a quick look at the last of 4 remaining banks with fixed rate home loans still at below 2%:

fixed rate home loan singapore

fixed rate home loan singapore

 

If indeed our prediction comes true by end of this month, this will be the first time in a long while that we see almost all fixed interest rates going above 2% in Singapore.  This is a very likely scenario considering CIMB may finish its tranche of funds soon which it will then end its 3-year fixed rate home loan promotion which is attractive now at average of 1.90% over 3-year period for minimum loan amount of $800,000.

 

Homeowners whose lockin expires before March 2019 will do well to act early by contacting us now.  This could be the final chance to lock down sub-2% fixed rate for the next 3 years which will give absolute peace of mind when rates start to go on a tightening path.  Speak to us today as not only do you enjoy the last of such low fixed rates, those refinancing with a minimum loan of $500,000 would receive $250 Tangs voucher from us to help defray their valuation fees, in our zero-cost refinancing promotion.  Not to be missed!

 

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.  Read our clients’ testimonials.

 

Compare All Latest Rates 2018

 

 

 

 

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About Darren Goh

Darren Goh is the Executive Director and founder of MortgageWise.sg, and a thought leader in the Singapore mortgage industry with frequent interviews by the press Business Times, Straits Times, Zaobao and EdgeProperty for his views and analysis on the latest mortgage trends. His article has also been published in The New Paper (formerly TodayOnline). He started his career in consumer banking product development for 6 years, before moving on to an illustrious 10 years sales career in marketing luxury real estate (Ardmore Park) where he set the record sale price (still) of $10.64m and run his own successful boutique agency as KEO. He now combines his knowledge in both financial services and real estate investment to advise clients on mortgage solutions.
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