Floating rates are back on the radar, but fixed mortgages still rule Singapore’s home loans

After several years of rate volatility, many borrowers are placing greater emphasis on certainty

Interest in floating-rate home loans is picking up in Singapore as borrowing costs fall and expectations build for further rate cuts, but fixed-rate mortgages remain the preferred choice for most homeowners amid lingering uncertainty over where rates will settle.

Market observers pointed out that years of rate swings have left borrowers cautious, with many prioritising predictable monthly repayments even as floating rate packages get more attractive.

“Today, after several years of rate volatility, a large segment of borrowers is placing greater emphasis on certainty,” said Clive Chng, head of relations at Redbrick Mortgage Advisory.

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