One of the most shared articles in the chat group happens to be an article titled
DBS, OCBC, UOB raise interest rates for fixed home loans to up to 4.5%
- All 4 DBS fixed rate packages are set at 4.25% a year
- The one and two-year fixed rate packages of OCBC are now 4.3% a year (up from 3.35-3.5%)
- UOB 2-year fixed is set at 4.5% a year
- DBS floating rate: SORA + 1%. SORA is now at 2.66%. This means currently 3.66%.
I was a little perplexed about how come this was so widely shared when most realized interest had gone up and may continue to go up for a while.
A couple of my friends explained to me:
- The interest on fixed-rate loans went up from 1.25% to 4.25%. The difference is 3%, and that is a $1,500 a month increase or $18,000 a year.
- For one, when the interest moves from 3.25% to 4.25%, his two-year interest expense increase by $34,000.
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