There will be 6 potential rate hikes ahead in 2022.
With inflation raging in the US at all time highs since the 1980s, the Fed Reserve has begun rising interest rates since March 16 2022, with 6 more expected hikes ahead at each of its remaining meetings in 2022.
So basically any interest rates adjustments by the US will result in a similar move here in Singapore.
Despite the fact that it took 10 years for interest rates to climb back to 2% after the 2008 Global Financial Crisis, there is a high probability that rates will continue rising in 2022 due to record high inflationary pressures globally and it is wise to refinance today to take advantage of current lower interest rate packages.
So depending on the near term plans on whether to dispose a property, repay the loan or draw out equity, and their risk tolerance, each type of loan package has its distinct pros and cons.
Current interest rates are still low by historical standards and it highly recommended to source for the best loan package among
the many international and local banks as it will potentially save you thousands of dollars a year by locking in favourable rates today.
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