Rates change, and your loan will outlast any forecast. Here is how to think about interest rates for a new launch like One Chuan Grove.
1. You borrow gradually
During construction, the bank only disburses the loan as each stage is billed. In year one you might owe interest on just 10–20% of the loan. Rate changes matter much less before TOP than after it.
2. Package types
| Type | How it works | Suits |
|---|---|---|
| Floating (SORA-linked) | Rate = SORA + a fixed spread; moves with the market | Buyers comfortable with changes; often lower when rates fall |
| Fixed (2–5 years) | Rate fixed for a period, then floats | Buyers who want predictable instalments |
| Hybrid | Part fixed, part floating | Buyers who want a balance |
3. Watch the lock-in
Many packages have a 2–3 year lock-in, with a penalty (often 1.5%) for repricing or refinancing early. For a new launch, a package with a short or no lock-in during construction gives you freedom to reprice near TOP, when the loan is fully drawn.
4. Stress-test yourself
Banks already test you at 4% under TDSR. Do the same for your own comfort: can you manage the instalment at 4%? Use the mortgage calculator to compare.
5. Reprice or refinance at TOP
As TOP approaches, compare your current bank’s repricing offer with other banks’ refinancing packages. Remember that refinancing involves legal and valuation costs, which some banks subsidise.