Banks in Singapore have warned that interest rates on loans could rise to more than 3 percent in the next six months.
It will be an echo of the US Federal Reserve’s recent rate hike.
Banks have designed different types of credit packages to cope with the increase customers.
Rents for private homes have risen to levels not seen in the last 30 years.
But the loan interest rate has doubled in the last 6 months.
It is still likely to increase.
Local banks such as UOB and DBS have come up with new schemes to repay home loans.
One of them is to pay off half of the debt at an unchanged rate and the rest at a variable rate.
Thus it is hoped that the property owners will be able to cope with the situation to some extent. Banks say such schemes are well received.