Singapore’s mortgage rate will increase today after the central bank announced that it has risen the 3 month interbank-offered-rate (SIBOR) to 1.0708%. The SIBOR rate is a major component in the calculation of the mortgage rate and is now at its 7 years high since 2008.

Monthly payment of property mortgage debt is expected to increase for new borrowers or those looking to refinance their property loan. Aside from rising mortgage payment, the Singapore currency is expect to fall further as Singapore’s manufacturing sector are posting dismaying results due to the strong currency.

Photo from endofamericandream
Photo from endofamericandream

The United States Federal Reserves is likely to increase lending rate and Singapore will likely follow suit in order to remain competitive.

According to a report by DBS, the Singapore Government has spent S$45.6 billion from the National Reserves quietly since July 2014.

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Singapore Government quietly spent S$45.6 billion from National Reserves to maintain currency value