CNA Explains: Will Singapore home loan rates rise after the Fed's rate hike?

The Fed’s latest decision could affect SORA, the benchmark used to price many floating-rate home loans in Singapore, potentially resulting in higher mortgage rates.

Condominiums and HDB blocks in Singapore. (File photo: CNA/Jeremy Long)

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SINGAPORE: Home loan rates in Singapore may eventually edge higher after the US Federal Reserve raised interest rates by 0.25 percentage points on Wednesday (Sep 16).

It marked the first increase since 2023, with Fed policymakers signalling that more increases could follow.

Singapore does not directly follow the US central bank's interest rate decisions. But US rates can influence global funding conditions and, in turn, Singapore's interest rates.

These include the Singapore Overnight Rate Average (SORA) that is used to price many floating-rate home loans.

CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less So how much could the Fed's latest move matter for mortgages here, and should homeowners choose a fixed or floating rate as the outlook shifts? How will the Fed’s interest rates affect Singapore home loans? For borrowers on floating-rate home loans, one figure to watch is SORA. Many such mortgages are priced using compounded SORA plus a margin charged by the bank. As SORA moves, the interest rate paid by these borrowers can therefore rise or fall. But SORA does not simply track the Fed. It is based on actual transactions in Singapore's overnight interbank market and is also affected by factors such as domestic liquidity and broader financial conditions. This means a 0.25 percentage point Fed hike does not automatically translate into an equivalent increase in SORA or Singapore mortgage rates. “When the Fed raises rates, funding costs generally rise, and benchmarks such as SORA may also move higher,” said SingCapital chief executive Alfred Chia. “This can lead to higher mortgage rates and monthly repayments in Singapore.” However, Mr Chia said home loan rates may not move immediately. Any subsequent increase may also not be a direct one-for-one adjustment. “Even if the Fed raises rates by 0.25 percentage points, Singapore mortgage rates will depend on funding costs and competition among banks,” he added. One important consideration is how long rates stay elevated, said Ms Selena Ling, chief economist and head of OCBC Group Research. “Higher-for-longer rates would keep mortgage servicing costs elevated, especially for borrowers on floating-rate mortgages linked to SORA,” she said. "The greatest impact would be on households with large outstanding loans or mortgage repayments that already take up a significant share of income." Homeowners on fixed-rate packages and those with smaller loan burdens are likely to be less affected, she added.

So how much could the Fed's latest move matter for mortgages here, and should homeowners choose a fixed or floating rate as the outlook shifts?

How will the Fed’s interest rates affect Singapore home loans?

For borrowers on floating-rate home loans, one figure to watch is SORA.

Many such mortgages are priced using compounded SORA plus a margin charged by the bank. As SORA moves, the interest rate paid by these borrowers can therefore rise or fall.

But SORA does not simply track the Fed.

It is based on actual transactions in Singapore's overnight interbank market and is also affected by factors such as domestic liquidity and broader financial conditions.

This means a 0.25 percentage point Fed hike does not automatically translate into an equivalent increase in SORA or Singapore mortgage rates.

“When the Fed raises rates, funding costs generally rise, and benchmarks such as SORA may also move higher,” said SingCapital chief executive Alfred Chia. “This can lead to higher mortgage rates and monthly repayments in Singapore.”

However, Mr Chia said home loan rates may not move immediately. Any subsequent increase may also not be a direct one-for-one adjustment.

“Even if the Fed raises rates by 0.25 percentage points, Singapore mortgage rates will depend on funding costs and competition among banks,” he added.

One important consideration is how long rates stay elevated, said Ms Selena Ling, chief economist and head of OCBC Group Research.

“Higher-for-longer rates would keep mortgage servicing costs elevated, especially for borrowers on floating-rate mortgages linked to SORA,” she said.

"The greatest impact would be on households with large outstanding loans or mortgage repayments that already take up a significant share of income."

Homeowners on fixed-rate packages and those with smaller loan burdens are likely to be less affected, she added.

Will banks change their fixed home loan rates?

Some fixed home loan rates had already risen before Wednesday's Fed decision.

MortgageWise.sg executive director Darren Goh said banks had raised their fixed rates by around 0.10 to 0.25 percentage points in anticipation of the Fed hike.

Banks price fixed-rate packages based not only on current interest rates but also on expectations about where rates are heading.

As a result, some expectations of future increases may already be reflected in fixed-rate packages currently on offer, Mr Chia said.

“If inflation remains high and another increase becomes more likely, banks may raise fixed rates further or reduce the attractiveness of promotional packages,” said Mr Chia

“Borrowers should therefore plan for rates to remain higher for longer.”

The Fed's latest projections showed that 16 of 18 policymakers expect the federal funds rate to end the year above its current level, implying at least one further quarter-point increase in their projections.

Mr David Baey, CEO of mortgage broker Mortgage Master, therefore expects fixed home loan rates to go up by slightly over 0.5 percentage points.

Banks will want to raise their rates slightly more than the Fed to capitalise on the increased demand for fixed-rate loans, he explained.

However, Mr Goh cautioned against assuming that another hike this year was a done deal, noting that policymakers' views can change as economic and geopolitical conditions evolve.

Is it better to get a fixed or floating home loan now?

There is no single package that is best for every borrower, analysts said, adding that borrowers should consider several factors.

A fixed-rate package gives homeowners certainty over their monthly repayments during the fixed-rate period.

Mr Chia said this may be more suitable for homeowners who do not intend to sell their property in the short term, want stable monthly repayments or have limited room in their budgets to absorb further increases.

A floating-rate loan, meanwhile, may suit borrowers who plan to sell in the short term and can accept some volatility.

It could also appeal to borrowers who expect rates to decline over time and are prepared to accept the risk that they may instead rise further.

Such loans may also provide greater flexibility, depending on their package terms, Mr Chia said.

Another factor to watch is how SORA responds to the Fed's rate hike, Mr Goh told CNA, adding that he does not expect a big change.

Mr Baey, who believes the economy is headed towards a recession, said he favours fixed-rate loans that do not extend beyond a two-year lock-in period. This would give borrowers an opportunity to reassess their mortgage after two years and potentially benefit if interest rates are lower by then.

The decision ultimately depends on each homeowner's circumstances.

"Ultimately, the decision should be based on the homeowner's cash flow, risk tolerance, plans for the property and expectations about how long they will keep the loan," Mr Chia said.

Should borrowers refinance ahead of further hikes?

Analysts agreed that this is a good time for homeowners to take stock of their loans and consider refinancing.

“Homeowners whose lock-in periods are ending should review their loans now rather than wait for another increase," said Mr Chia, adding that refinancing could allow borrowers to secure a more competitive rate or greater certainty over their repayments.

However, he pointed out that a lower advertised rate does not necessarily translate into meaningful overall savings.

“(Homeowners) should first consider any lock-in penalty, legal and valuation costs, clawback provisions and the remaining loan amount,” he said.

Mr Goh advised homeowners to preserve flexibility, given the uncertainty over where interest rates could head in 2027.

This could reduce the risk of making the wrong call when deciding between a fixed or floating home loan while refinancing, he said.

“(The) bottom line is do not overcommit on a mortgage package, and we favour shorter lock-ins unless there's optionalities built in,” he said.

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美联储的最新决定可能会影响新加坡的SORA（新加坡许多浮动利率住房贷款的定价基准），从而可能导致抵押贷款利率上升。

新加坡的公寓和组屋。（资料照片：CNA/Jeremy Long）

这段音频由人工智能工具生成。

新加坡：继美联储周三（9月16日）将利率提高0.25个百分点后，新加坡的房屋贷款利率最终可能会小幅走高。

这是自 2023 年以来的首次加息，美联储决策者暗示未来可能会有更多加息。

新加坡并不直接遵循美国央行的利率决策。但美国利率会影响全球融资环境，进而影响新加坡的利率。

其中包括新加坡隔夜平均利率（SORA），该利率用于对许多浮动利率房屋贷款进行定价。

CNA游戏 猜词游戏 逐行破解单词 流行词游戏 用给定的字母组成单词 迷你数独 小谜题，脑力挑战 迷你填字游戏 小方格，大挑战 单词搜索 尽可能多地找出单词 显示更多 显示更少 那么，美联储的最新举措对新加坡的抵押贷款究竟有多大影响？随着经济前景的变化，房主应该选择固定利率还是浮动利率？美联储的利率将如何影响新加坡的房屋贷款？对于浮动利率房屋贷款的借款人来说，需要关注的一个指标是SORA。许多此类抵押贷款的定价都基于SORA的复利加上银行收取的利差。因此，随着SORA的变动，这些借款人支付的利率可能会上升或下降。但SORA并非简单地跟随美联储的政策。它基于新加坡隔夜银行间市场的实际交易，并且还受到国内流动性和更广泛的金融状况等因素的影响。这意味着美联储加息0.25个百分点并不会自动转化为SORA或新加坡抵押贷款利率的同等增长。 “美联储加息时，融资成本通常会上升，SORA等基准利率也可能随之走高，”新加坡资本（SingCapital）首席执行官谢先生表示。“这可能导致新加坡的抵押贷款利率和每月还款额上涨。” 然而，谢先生指出，房屋贷款利率可能不会立即上涨。任何后续的加息也可能不会是直接的等额调整。“即使美联储加息0.25个百分点，新加坡的抵押贷款利率也将取决于融资成本和银行间的竞争，”他补充道。华侨银行集团研究部首席经济学家兼主管林女士表示，一个重要的考虑因素是利率维持高位的时间。“利率长期维持在高位将推高抵押贷款服务成本，尤其是对于那些与SORA挂钩的浮动利率抵押贷款借款人而言，”她说道。“受影响最大的将是那些未偿贷款额较大或抵押贷款还款额已占收入很大比例的家庭。” 她补充说，固定利率贷款方案的房主以及贷款负担较小的房主受到的影响可能较小。

那么，美联储的最新举措对本地抵押贷款市场究竟有多大影响？随着市场前景的变化，房主们应该选择固定利率还是浮动利率？

美联储的利率政策将如何影响新加坡的住房贷款？

对于浮动利率住房贷款的借款人来说，需要关注的一个指标是 SORA。

许多此类抵押贷款的定价采用复利SORA加上银行收取的利差。因此，随着SORA的变动，这些借款人支付的利率也会随之上升或下降。

但SORA并非仅仅追踪美联储的行动。

它基于新加坡隔夜银行间市场的实际交易，同时也受到国内流动性和更广泛的金融状况等因素的影响。

这意味着美联储加息0.25个百分点并不会自动转化为新加坡抵押贷款和抵押贷款利率的同等增长。

“美联储加息时，融资成本通常会上升，SORA等基准利率也可能走高，”新加坡资本市场首席执行官谢先生表示。“这可能导致新加坡的抵押贷款利率和每月还款额上升。”

然而，谢先生表示，房屋贷款利率可能不会立即调整。任何后续的上涨也可能不会是直接的一对一调整。

“即使美联储加息0.25个百分点，新加坡的抵押贷款利率也将取决于融资成本和银行间的竞争，”他补充道。

华侨银行集团研究部首席经济学家兼主管林思琳表示，一个重要的考虑因素是利率高企的持续时间。

她表示：“利率长期维持在高位将导致抵押贷款服务成本居高不下，尤其是对于与SORA挂钩的浮动利率抵押贷款的借款人来说。”

“受影响最大的将是那些背负大量未偿贷款或抵押贷款还款的家庭，这些贷款或还款已经占据了他们收入的很大一部分。”

她补充说，采用固定利率贷款方案的房主以及贷款负担较小的房主受到的影响可能较小。

银行会调整固定住房贷款利率吗？

在美联储周三做出决定之前，一些固定住房贷款利率已经上涨。

MortgageWise.sg 执行董事 Darren Goh 表示，由于预期美联储加息，各银行已将固定利率上调了约 0.10 至 0.25 个百分点。

银行在制定固定利率贷款方案时，不仅会考虑当前的利率，还会考虑对未来利率走势的预期。

Chia先生表示，因此，目前提供的固定利率套餐可能已经反映了对未来利率上涨的一些预期。

谢先生表示：“如果通胀居高不下，且通胀再次上涨的可能性增大，银行可能会进一步提高固定利率，或降低促销方案的吸引力。”

“因此，借款人应该做好利率长期维持在高位的准备。”

美联储最新预测显示，18 位政策制定者中有 16 位预计联邦基金利率将在年底前高于当前水平，这意味着他们的预测中至少还会再上调 0.25 个百分点。

因此，抵押贷款经纪公司 Mortgage Master 的首席执行官 David Baey 先生预计，固定住房贷款利率将略微上涨 0.5 个百分点以上。

他解释说，银行希望比美联储略微提高利率，以利用固定利率贷款需求的增加。

然而，吴先生提醒大家不要想当然地认为今年再次加息已成定局，并指出随着经济和地缘政治形势的变化，政策制定者的观点可能会改变。

现在选择固定利率房屋贷款还是浮动利率房屋贷款更好？

分析人士表示，没有一种贷款方案是适合所有借款人的最佳选择，并补充说，借款人应该考虑多种因素。

固定利率方案可以让房主在固定利率期限内确定每月还款额。

Chia先生表示，这可能更适合那些短期内不打算出售房产、希望每月还款额稳定的业主，或者预算空间有限，无法承受进一步上涨的业主。

与此同时，浮动利率贷款可能适合计划短期内出售房产且能够承受一定波动性的借款人。

这也可能吸引那些预期利率会随着时间推移而下降，并愿意承担利率可能进一步上涨风险的借款人。

Chia先生表示，此类贷款也可能提供更大的灵活性，具体取决于贷款方案的条款。

吴先生告诉亚洲新闻台，另一个值得关注的因素是SORA对美联储加息的反应，并补充说他预计不会有太大变化。

贝伊先生认为经济正走向衰退，他表示自己倾向于利率固定期限不超过两年的贷款。这样一来，借款人可以在两年后重新评估其抵押贷款，如果届时利率下降，他们就有可能从中受益。

最终决定取决于每位房主的具体情况。

Chia先生表示：“最终，这项决定应该基于房主的现金流、风险承受能力、房产规划以及对贷款期限的预期。”

借款人是否应该在利率进一步上涨之前进行再融资？

分析人士一致认为，现在是房主评估贷款情况并考虑再融资的好时机。

Chia先生表示：“锁定期即将结束的房主应该现在就审查他们的贷款，而不是等待下一次涨价。”他还补充说，再融资可以让借款人获得更有竞争力的利率或更大的还款确定性。

但他指出，较低的广告价格并不一定能转化为实际的整体节省。

“（房主）首先应该考虑任何锁定罚款、法律和评估费用、追回条款以及剩余贷款金额，”他说。

鉴于 2027 年利率走势的不确定性，吴先生建议房主保持灵活性。

他表示，这可以降低在进行房屋再融资时，在固定利率或浮动利率房屋贷款之间做出错误选择的风险。

“（的）底线是不要在抵押贷款方案上过度承诺，​​我们倾向于较短的锁定期，除非其中包含可选条款，”他说。

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