Shop around for the best private HDB home loans
Even as gobal interest rates start to decline and with the 3 month Sibor rate at a near all time low, it’s still prudent to shop around for the best home mortgage rate. Interest rates based on Sibor have been steadily rising because banks have increasing turned cautious over lending.
Last July, someone taking out a mortgage with DBS Bank would have paid a rate of Sibor plus 1.25 percentage points for an 80 per cent loan.
Today, DBS‚ mortgage rates start at Sibor plus 1.75 percentage points, with no lock-in period.
That means the total interest rate paid would now be 2.43 per cent, up from 2.25 per cent last July.
So, if you’re in the market to get a private HDB home loan, you may want to consider a fixed rate mortgage where interest rates is fixed and guaranteed in the first few years.
Definitely shop around and ask for the best home loan rate. You may be able to get a loan below the published rates.
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