Debated in Parliament on 20 Oct 2022.
Mr Chua Kheng Wee Louis asked the Prime Minister of the current outstanding mortgage loans financed by commercial banks, what is the percentage of borrowers who are on fixed rate mortgages and floating rate mortgages for (i) HDB flats and (ii) private residential properties respectively.
Based on latest available data, as of the second quarter of 2022, about 20% of loans extended for HDB flat purchases by financial institutions (FIs) were on floating rate packages that move in tandem with market interest rates. The remaining 80% were either on (i) rates linked to board rates or fixed deposit rates, which track market interest rates but with some lag, or (ii) fixed interest rates over the first few years of their loan.
As of the second quarter of 2022, about 37% of loans extended for private residential property purchases by FIs were on floating rate packages while the remaining 63% were either on (i) rates linked to board rates or fixed deposit rates, which track market interest rates but with some lag, or (ii) fixed interest rates over the first few years of their loan.
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