Anonymous

25 Feb 2020

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Should you choose a fixed or floating interest rate when borrowing to buy a condo?

I understand that floating interest rate can fluctuate. But apparently, so can fixed interest rate. In that case, doesn't it render the security of fixed interest rate worthless?

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Davin

25 Feb 2020

Fixed rate cannot change unless u r talking bout rate that pegged to fixed deposit rate. They are totally different.
In current situation whereby fixed rate is lower than floating, most ppl go for fixed rate.

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Lim Boon Tat

19 Jan 2020

Mathematics at Cambridge University

Fixed rates are generally higher because you pay for the stability (bank takes the risk of runaway interest rates). In the case of singapore, most mortgage packets convert to a floating rate after 2 or 3 years anyway. For first time owners and young adults still building up their net worth, i would just shop around for the best fixed rates, and go for one - then you wouldn’t have to worry about interest rates going up or down in the next 2-3 years, and you can focus on your career.

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