Fixed Interest Rate Home Loans

  Fixed-rate mortgage loans make it easier to plan in a financial sense. You’ll always know exactly what you will pay each month for as long as the fixed rate period lasts. These loans are highly popular, especially as interest rates continue to increase. For instance, the typical interest rate now stands at 2% per annum, but it was as low as 0.9% in 2009. If you opt for a fixed-rate loan, you’re able to lock in a good rate.  A fixed-rate loan is always set in stone during the fixed-rate period. Should you go down the route of refinancing or switching to a cheaper loan package during this time, you’ll incur a steep penalty. This normally stands at 1.5% of the outstanding loan amount. As you would expect, it’s never worth paying the lock-in penalty. Fixed-rate loans tend to cost far more compared to mortgage loans in Singapore, especially when factoring in the floating rates the loan will revert to at the end.  Try and look for a fixed interest rate period of two years. Never go beyond this. The reason for it is simple. You cannot refinance without a penalty throughout the fixed rate period. If you’re looking for a housing loan, Property Guru can be of assistance. They compare the best housing loan in Singapore, so you don’t have to.