What it should have been
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In the story, "Money tips to note when mortgage rates rise", on Sunday, it was stated that the HDB loan rate of 2.6 per cent, which is pegged at 0.1 per cent above the Central Provident Fund's (CPF) rate of 2.5 per cent, is likely to remain stable because the CPF's rate is based on the returns of special Singapore securities guaranteed by the Government.
The CPF Board has clarified that the rate of return that is pegged to the Singapore Government Securities applies to only the CPF Special, MediSave and Retirement accounts. Savings in the Ordinary Account earn the three-month average of major local banks' interest rates, subject to the legislated minimum interest of 2.5 per cent per annum.
