What happened Most of us have lived in periods of low interest rates. With low interest rates, loans were relatively cheap and we did not have to struggle too much. The reality hits us differently. Banks are increasing their loan rates as interest rates rise. DBS just announced that it will raise its fixed home loan rates to 3.5%. This is a whopping 0.75% increase from the previous rate! OCBC told the Straits Times that its two-year fixed rate package offering is 2.98%. I am certain that loan rates will continue going up. (Update as at 4/10 5 pm - UOB just launched two-year fixed-rate packages at 3.75% pa and three-year fixed-rate packages at 3.85% pa. Due to popular demand, I have added a comparison table below and calculated how much more you are paying for your mortgage based on the two rates) Let me use math and show you how much more you are paying with this latest increase.  ...