If you are familiar with trends in international banking and finance, you already know that changes in Singapore's interest rates (SIBOR and SOR) are typically correlated to those of interest rates in the United States. Given the United States Federal Reserve has increased its target interest rate to 2.25%, Singaporeans should expect to see SIBOR and SOR rates increase in the coming weeks. But what exactly does this mean for individuals in Singapore?

For most Singaporeans, rising interest rates shouldn't cause too much concern. However, higher rates mean that the cost of borrowing will increase, which impacts nearly all individuals, whether they are borrowers or not.

Homeowners are perhaps the most likely to feel the impact of rising interest rates. This is because mortgage interest rates change more frequently than other loans, and even