The interest rates for floating home loans have reached the lowest this year and as a result of which, more and more homeowners are considering the recourse of refinancing their mortgage.
Several banks in Singapore have decided to slash down their interest rates on loans that correspond to the Singapore interbank offered rate thereby, furnishing homeowners with a chance to subscribe to more advantageous rates. For the uninitiated, the rate at which all banks borrow from one another is known as Sibor rates and presently, they are declining; courtesy, the disruption caused by the coronavirus pandemic.
In May 2019, the Sibor rates stood at its highest (2%) since the 2008 global financial crisis. However, the three-month Sibor which happens to be the most reliable benchmark for pricing most home loans is around 0.56% this month.