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Good question @Gine. I think all of us wish we have a crystal ball to predict the trajectory of interest rates in the next few years before making this decision
I think some things you can consider before making your decision is to ask yourself:-
How much is the loan? If you're getting a loan that's say more than S$500,000, you have more to lose if floating rates are unfavourable to you in the future. A smaller loan quantum, on the other hand, may overall yield a lower market-indexed floating rate home loan spread.
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Is this a property that you plan to live in for a long time, or sell?
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What is your personality like? If you do not mind the potential top-up of additional fees depending on how the market goes. For some, peace of mind and not having to think about hedging against rising rates is truly priceless!
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I would prefer a Fixed Rate Package, as there's more stability in terms of amount payable per month. Of course, with the talks of rising interest rates to come, it's better to lock in the lower rates now rather than see my MI increases while I'm still locked in!
