The Mortgage Corporation today announced that the Fixed-rate Mortgage Pilot Scheme will be extended for one year to October 30, 2021.
In response to the change in market interest rates, mortgage interest rates will be adjusted.
The interest rates per annum for 10, 15 and 20 years are 1.99%, 2.09% and 2.19%.
The Fixed-rate Mortgage Pilot Scheme provides an alternative financing option to homebuyers for mitigating their risks arising from interest rate volatility, thereby enhancing banking stability in the long run.
The aggregate loan amount of the scheme is $1 billion, subject to a maximum loan amount of each private residential mortgage of $10 million.
As the borrowers will be insulated from interest rate movement under the fixed-rate period which is 10 years or longer, agreement has been obtained from the Monetary Authority that borrowers will not be required to meet the stress testing against interest rate rise, but the current debt-to-income ratio will still be applicable.