Part 4/7:
Offering stability for those who prefer predictable payments, fixed-rate packages often come with lock-in periods—commonly 2 to 3 years. Many banks provide flexibility to convert to floating rates after a year or allow early redemption options, which is ideal for homeowners expecting interest rates to decline.
Floating-Rate Mortgages
Floating packages are tied to 1M or 3M Sora rates:
1M Sora: Monthly rate resets, leading to more volatility.
3M Sora: Rate resets every three months, smoothing out fluctuations but reacting more slowly to drops in global rates.
Choosing a 3M Sora can balance predictability with flexibility, especially if you anticipate interest rates falling.