Fixed-rate mortgages in Singapore seen hurtling towards 3%

MORTGAGE rates have continued to climb in Singapore as lenders here take their cue from the US Federal Reserve, with some market participants projecting fixed rates close to 3 per cent as inflation forces central banks to keep benchmark interest rates high.

Fixed-rate home loans have been on an upward trend since the start of 2022. Among the local banks, OCBC and UOB’s fixed rates for 2-year home loan packages are at 2.65 per cent per annum.

DBS said it is finalising its new fixed rates for private property owners. The 5-year fixed rate of 2.05 per cent per annum currently published on its website is “exclusively for HDB homeowners”.