Housing loans in particular have been spectacularly low, enabling many to realise the dream of owning a property. With interest rates dropping, many switched over from a fixed rate to a floating rate loan. One form of this pegs the loan to the SIBOR, especially the 3-month SIBOR or 12-month SIBOR as this provided greater transparency. For instance, 1.75% + 12-month SIBOR rate.
However, interest rates have started climbing and have started to cause a bit of concerns, particularly for those with very high leverage. They may have problem with their personal cashflow if interest rates climb.
Compounding this is the fact that property values have also started ...
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