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Is it time to refinance your mortgage loan today?

Updated: Apr 13




6 potential rate hikes ahead in 2022



With inflation raging in the U.S. at all time highs since the 1980s, the Fed Reserve has begun rising interest rates since March 2022, with 6 more expected hikes ahead at each of its remaining meetings in 2022.




Interest rates in Singapore are largely influenced by US interest rates

As we can see over a 25-year period, Singapore's interest rates track US interest reates and are highly correlated.


Despite the fact that it took 10 years for interest rates to climb back to 2% after the 2008 Global Financial Crisis, there is a high probability that rates will continue rising in 2022 due to record high inflationary pressures globally and it is wise to refinance today to take advantage of current lower interest rate packages.



Options available to property owners


There are 2 main options available for loan refinancing and they are categorised into fixed and variable packages.

Depending on a client's near term plans on whether to dispose a property, repay the loan or draw out equity, and their risk tolerance, each type of loan package has its distinct pros and cons.


For example: For a retiree couple who is planning to cash out their property in the next couple of years, they may want to consider getting a variable traditional floating rate where there is no lock-in period and they can at any time choose to end the loan.



Average home loan interest rates as of April 2022


Current interest rates are still low by historical standards and it highly recommended to source for the best loan package among the many international and local banks as it will potentially save you thousands of dollars a year by locking in favourable rates today.


Summary

When we plan a property purchase with our clientele - it is a lifelong journey where we guide them through the various lifecycle of the property and advise on proper financing methods tailored to their own needs.


Let us do the work for you - save precious time and hassle by reaching out to us to find out the best package suitable for you and identify the lowest interest rate packages among the 14 banks in Singapore painlessly.














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