SINGAPORE - Home loan rates in Singapore have gone past 3 per cent to a new high with the latest move by UOB.

The previous high in recent times was 2.88 per cent in mid-2019.

UOB on Wednesday night (June 29) raised the rate on its three-year fixed rate package to 3.08 per cent per annum, from 2.8 per cent previously.

UOB said there is no change to its floating rate package, which is pegged to the three-month compounded Singapore Overnight Rate Average (Sora) plus a margin of 0.8 per cent.

The rate for its two-year fixed rate package was raised to 2.98 per cent per annum from 2.65 per cent.

Citi has also confirmed with The Straits Times that the rate for its new two-year fixed rate package for Citigold clients is at 2.95 per cent, 0.05 percentage point shy of the 3 per cent mark.

The bank also took away a five-year fixed rate package at 2.05 per cent exclusively for Housing Board home owners.

Home loan rates in Singapore have been on a steady uptrend since the fourth quarter of last year when three-year fixed rates were at 1.15 per cent.

They accelerated higher this year after the United States Federal Reserve began hiking rates aggressively to combat red-hot inflation.

The Fed has raised rates three times so far this year, by a total of 150 basis points or 1.5 percentage points, pushing its benchmark rate to the range of 1.5 per cent to 1.75 per cent.

A lot more at https://www.straitstimes.com/business/property/singapore-home-loan-rates-hit-new-high-of-308-with-latest-move-by-uob