No need to panic but exercise care as home loan interest rates rise

The Singapore property market could also take a breather as buyers digest the prospect of higher rates. PHOTO: ST FILE
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SINGAPORE - For those used to sub-2 per cent interest rates, DBS Bank's move to hike rates for home loans and drop its five-year fixed-rate package is as stark a sign as any that the era of cheap financing is over.

Singapore's biggest lender lifted its fixed rates on mortgages to 2.75 per cent, following on the heels of OCBC Bank which offered a fixed-rate package at 2.65 per cent. At 2.75 per cent, a couple with a $400,000 loan over 25 years will pay around $1,845 a month.

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