The United States Federal Reserve (the Fed) recently cut interest rates by 0.5 per cent. This is a big move, as the Fed typically raises or lowers the interest rate in smaller increments (0.25 per cent). This has a knock-on effect on interest rates in Singapore, and it’s likely that home loan rates will move down, in tandem with US rates. But it may be too quick to break out the proverbial champagne: Singapore has seen the effects of low interest rates before, and it’s not always to the pure advantage of homeowners. Here’s what you need to know: A quick rundown on why the Fed’s rate cut matters to your mortgage For those using bank home loans (not HDB loans), you may be on a SORA loan package. The SORA rate is the rate at which your interest is pegged – as SORA moves up or down, your interest rate will follow. SORA is in turn...