How does US Fed rate hike affect home owners here? http://www.tnp.sg/news/singapore/how-does-us-fed-rate-hike-affect-home-owners-here
After the Fed rates went up last December, the three-month Sibor rose to a year high of 0.9852 per cent on Feb 13, partly on the expectation of more hikes this year.
It now stands at 0.9390, according to lifestyle and personal finance website Get.com, after the weak greenback had eased it down. Experts told The New Paper that they expect Sibor to rise in tandem with the latest interest hike.
ANZ economist Ng Weiwen said the three-month Sibor could rise to as high as 1.85 by the end of the year, with two more likely Fed hikes.
No cause for alarm.
Even if SIBOR increases by 1% in 2017, borrowers will pay just $833 more a month in simple interest, for one-million outstanding loan.
To qualify for one-million loan, a single or couple would likely have over $7000 gross income a month, at least.
After the Fed rates went up last December, the three-month Sibor rose to a year high of 0.9852 per cent on Feb 13, partly on the expectation of more hikes this year.
It now stands at 0.9390, according to lifestyle and personal finance website Get.com, after the weak greenback had eased it down. Experts told The New Paper that they expect Sibor to rise in tandem with the latest interest hike.
ANZ economist Ng Weiwen said the three-month Sibor could rise to as high as 1.85 by the end of the year, with two more likely Fed hikes.
No cause for alarm.
Even if SIBOR increases by 1% in 2017, borrowers will pay just $833 more a month in simple interest, for one-million outstanding loan.
To qualify for one-million loan, a single or couple would likely have over $7000 gross income a month, at least.
