Thursday, 22 September 2011

Home loan rates likely to climb

Home loan rates will likely climb next year, warn analysts

Analysts warn that Singapore's interest rates will likely climb in March next year, according to a Channel NewsAsia (CNA) report.

This means that loans, which currently range from one to 1.2 percent, will likely increase by as much as 0.3 percentage points by early next year. This comes even if the Singapore interbank offered rate (Sibor) component of mortgage loans remains low.

The report said that refinancing loans in the country is increasing but the rising cost of funds offshore, along with banks' profitability, may force banks to increase rates.

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