Singapore mortgage rates climb as US Fed hike ripples through local market
Home loan rates in Singapore have risen across major banks after the US Federal Reserve’s first rate increase in three years, affecting both fixed and floating-rate packages.
After the US Federal Reserve raised its policy rate for the first time in three years, Singapore’s major banks responded by increasing both fixed and floating home-loan rates. Fixed-rate products from OCBC, Maybank, Citi and Standard Chartered now exceed 2 % for a S$500,000 loan, while floating-rate mortgages have risen as the SORA benchmark approaches 1.2 %. Banks attribute the hikes to higher Singapore dollar Overnight Indexed Swap rates, which reflect their wholesale borrowing costs, and to expectations of further global rate pressure.
Mortgage specialists suggest borrowers consider short-term fixed options to lock in current rates, as longer-term packages may become less attractive. HDB owners still have access to a concessionary loan pegged at 0.1 % above the CPF Ordinary Account rate, which remains at 2.6 %. Overall, the market shift underscores the need for home owners to evaluate total cost, flexibility and potential future rate movements.
