Banks in Singapore put brakes on fixed-rate home loans amid surging cost of funds

SOME banks in Singapore have suspended fixed-rate home loan packages amid rising interest rates. 

While the lenders said they made these moves as fixed-rate packages have become less attractive for clients, mortgage brokers explained that the rising cost of funds may also have prompted these suspensions, especially among the foreign banks.

Since the end of last year, brokers have been advising those concerned with rising rates and who want peace of mind to consider fixed-rate packages, which offer a flat interest rate, usually for up to 3 years.