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Anonymous

13 Apr 2021

βˆ™

Property

Is it better to go for 5-year fixed or 2-year fixed mortgage loan now?

Mortgage loan based on current interest rates

Discussion (2)

What are your thoughts?

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Peter Lin

13 Apr 2021

Brand Comms Lead at Mortgage Master

Excellent question!

Fixed mortgage rates are best when you expect interest rates to rise in the near future. It's hard to predict exactly when rates will rise, but there are enough indicators that they will increase sooner than later, such as the rising long-term US interest rates.

Banks are also anticipating that interest will rise sooner than later. For example, DBS recently increased their 1.50% 5-year fixed package to 1.68%. It's still a good rate (throughout your loan tenure, most home loan rates average out between 1.6% to 1.8%) but it is a recognition that rates will not stay low in the near future.

Hope this helps!

Depends on if you think interest rates may decrease further in the near to mid term.

I would think now is a pretty good time to fix your interest rates. So personally I would go with 5 years :D

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