Issue 2017/01

Are You Prepared For Interest Rate Hikes?

  1. Some banks are dropping fixed-rate home loans amid uncertainty over interest rate hikes.
  2. Market watchers noted some banks are trying to ensure their margins are not squeezed by cheaply priced fixed packages. Analysts in these banks are likely forecasting the interest rate uptrend to continue and hence have increased rates to protect their margins.
  3. For big ticket loans such as home loans, do ensure that you can continue to service the loan, regardless of whether interest rates rise or fall.
  4. Do note that there may also additional be additional fees such as Amendment fees, Late Payment charges and Default charges.

Reference Article from TNP
Reference Article from MoneySENSE