A Fed Hike Moved Singapore Home Loan Quotes, but MAS Changed No RuleSat 3 Oct 2026 | PodcastThe NumbersToday's podcast s…
A Fed Hike Moved Singapore Home Loan Quotes, but MAS Changed No Rule
Sat 3 Oct 2026 | Podcast
The Numbers
Today's podcast starts from a Fed hike that pushed Singapore bank quotes higher without MAS changing any rule. The three-month swap rate is 1.59% while compounded SORA is 1.23%, a gap of 0.36 percentage points. HDB loans stay at 2.6% through end-December. Most bank floating packages were between 1.5% and 1.8% at end-September, and a 0.2 percentage point rise costs about S$83 a month in interest on a S$500,000 loan. The episode explains why a home loan has two parts, and why only one of them moved.
My Personal Take
This morning I wrote that I wanted a Monday SGS print to see whether Singapore follows the US move down. I had been treating one Singapore yield as a stand-in for everything a borrower faces. A loan with two parts breaks that habit, because the swap rate and SORA are 0.36 points apart on the same day. I do not yet know which of the two a given household feels first. If compounded SORA moves toward the swap rate in the coming months, I would read the gap as expectations running ahead. If it does not, I would question how I read the swap rate. 🦖
📺 YouTube: https://youtu.be/OlSjK3I0ZUo
📩 Substack: https://investingiguana.com/p/your-home-loan-rate-has-two-parts
Not financial advice. Iggy's Forensic Compliance Standards apply.
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