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Singapore Banks’ Mortgage Hikes Near Affordability Tipping Point

  • DBS, UOB and OCBC lifted their mortgages rates on Tuesday
  • A rate of about 4% is seen as crucial level for affordability

Singapore’s near decade-long spell of low interest rates has ended, with mortgage rates nearing an affordability tipping point that may hit borrowers’ disposable income and dent buyer demand.

The country’s biggest lender, DBS Group Holdings Ltd., raised the fixed rate on all of its home loan packages to 3.5% on Tuesday, according to its website. United Overseas Bank Ltd. bumped up its rates to as high as 3.85% for its three-year fixed product, while Oversea-Chinese Banking Corp. upped its two-year product to 3.5%.