There are many loan packages to choose from when you buy a house in Singapore. HDB provides concessionary interest rate to eligible flat buyers at 0.1% above the CPF ordinary account rates. It is currently at 2,6%. But, with the low interest rates environment, banks are offering very attractive low interest rates packages from as low as 1.5%. That is 1% lower than the HDB loans that is being offered. However, low interest rates may not be a good thing. They are most likely associated with variable interest rates packages or floating rates packages. What happens to your loans when interest rates goes up? 2 types of loan packages Before we look into what happens if interest rates goes up, let's take a look at 2 typical types of loan packages offered by the banks. The first is short term fixed interest rates and the second is variable ......