A growing rate of inflation is taking a toll on our household expenses and our personal savings are taking a big hit. The situation looks even gloomier when you have a housing loan to repay. Thus, it becomes even more important to compare mortgage rates in Singapore before buying property so that you get the best deal. Tracking housing loan rates gives you a head start when you start searching for a home loan in Singapore. Here is a list of reasons to keep track of housing loan rates:
It helps you choose your rate
If you’re up to date with the home loan market in Singapore, you may not face any trouble while choosing the perfect home loan rate. That’s why you need to carefully compare mortgage rates in Singapore to seal the best deal. Here are some benefits if you compare home loan rates:
- Lower rate of interest
- Current borrowers may avail lower interest rate by reducing the repaying tenure
- You can choose between floating interest rate or fixed interest rate as per your requirements
It helps you understand the interest rate vis-à-vis market condition
You must compare mortgage rates in Singapore even if you’re well aware with the market rates. The fixed interest rate is normally higher than the floating interest rate. Comparing the two options will leave you with choice to decide which one you need. Comparing the different rates provided by different banks makes it easy for you to understand the market condition, on which the floating interest rate depends. On the other hand, if you’re choosing a fixed rate interest, make sure to study the market as well because the fixed interest rate can also vary as per the clause of the respective banks.
It helps changing the loan type
Keeping track of the housing loan rates is important even after you’ve made your choice of home loan. You can compare mortgage rates in Singapore even if you’ve already made a choice and you’ve taken a loan on the basis of either fixed interest rate or floating interest rate. Comparing the current rates will let you change your decision and you can shift from one loan type to another. Make sure to calculate what you’re paying now and what you’ll be paying after before changing the loan type.
Helps opt for the lowest interest rate
The most common reason for choosing to refinance a mortgage loan is to reduce the burden of monthly interest that you’ve been paying against your home loan. You’ll get to know the differences between the interest rate that you’ve been paying and the interest rate that you’re offered currently. Calculate the different interest rates offered by different banks and financial companies to choose the best available option.