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Is fixed or floating rate better for refinancing house loan at the moment? I am stuck with my current bank and the options are limited: either 3M SORA based floating rate or a fixed rate, both with 2 year lock-in period. I am inclined to go with floating one, but then the rates started rising. Any suggestions/predictions about the trend in the next 2 years? Thanks!
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2 Answers

Hi Marek,

I would be most glad to assist you further and please feel free to let me know if you need any assistance. Have a good day ahead. By the way, could I refer you a mortgage broker?

Regards
Aaron Chong
 9730 8455 
aaronchong2774@yahoo.com.sg Read More
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Hi Marek,

1) Floating rate now is still very attractive to stick to.
2) You could have read about the news from the US Fed rate has an intention to make adjustments to their current rate to ease the pressure from their bonds & inflation rate.
3) Although they had not come to any conclusion yet if they adjust their rate upward. This will definitely have a great impact on our bank rate currently having.
4) The bank rate in Singapore has been rising is also due to this recent discussion. You could read what Jerome Powell had said.
https://www.cnbc.com/2022/01/23/inflation-surge-could-push-the-fed-into-more-than-four-rate-hikes-this-year-goldman-sachs-says.html
5) Thus if this going to happen, with 4 rates adjustment in 2022. You could expect those that go for the fixed rate will have a better bargain than those who are with the floating rate.
6) All-in-all shall depend on the inflation situation in the US. If the situation remains stable will give an advantage to those on floating rate.
7) I suggest you monitor the US inflation situation closely so as to stay on safe ground. My thought is if the inflation rate is stable, the Fed will not make any drastic move at the moment.

Hope the above answer your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

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