Home buyers turning to fixed rate loans

Many home buyers prefer fixed rate loans as they lock in the rate for a period. The reason floating rate loans continue to sell is due to their lower cost.
Many home buyers prefer fixed rate loans as they lock in the rate for a period. The reason floating rate loans continue to sell is due to their lower cost.ST PHOTO: MARK CHEONG

Lock-in period could offer more certainty than floating rate loans

More home buyers are looking to fixed rate loans, say banks, as home prices surge.

This is despite floating rate loans being quoted about 20 basis points cheaper than fixed rate loans.

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A version of this article appeared in the print edition of The Straits Times on April 09, 2018, with the headline 'Home buyers turning to fixed rate loans'. Print Edition | Subscribe