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Borrowers feel rate hike pinch as banks step up mortgage repricing

Writing has been on the wall, given MAS's earlier caution to home buyers about rising rate scenario

Singapore

AS interest rates hit a 10-year high, banks are increasingly firing off missives to home loan borrowers informing them that their loans have been repriced.

For some, it will be the second repricing letter this year as interest rates continue their relentless climb.

The key 3-month Sibor or Singapore interbank offered rate - a common benchmark used to price home loans - rose to 1.64 per cent over a week ago, back to levels last seen in September 2008. At 1.64 per cent, it has gained some 50 basis points from late last year.

For many borrowers the applicable interest rate hike is between 20 and 40 basis points since the beginning of 2018, which can translate into several hundred dollars more...

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