Never A Better Time For Home Loans?

Source : TODAY, Wednesday, January 9, 2008

With rising inflation and escalating asset prices, prospective homebuyers should take advantage of relatively low interest rates to finance their purchases, according to UOB’s head of loans Kevin Lam.Mr Lam said the economy had developed into a “negative interest-rate situation”, where asset prices rise very quickly while interest rates remained low.

“With interest rates at 3 to 4 per cent, inflation loosely predicted to be 4 to 5 per cent and mortgage rates at 3.5 to 4 per cent, homeowners enjoy effectively negative interest rates,” he said.

UOB has launched a loan product called the FlexiMortgage that enables borrowers to use an overdraft facility as a low-interest credit line.