“As long as property sentiments are positive, I do not see interest rates as being a very big deterrence for people buying property,” said Mr Paul Ho chief officer at iCompareLoan.

The home loan fixed interest rate hike have not affected the public housing resale market substantially, as the loan quantum of most HDB flats is not high, and most homeowners are not over-leveraged.

“As for the private residential property market, most existing homeowners should be able to service their home loans now. However, the home loan fixed interest rate hike are more likely to be keenly felt once they edge past the 3,5 or 4 per cent mark,” said Mr Ho.

The total debt servicing ratio (TDSR) threshold for property loans uses a stringent 3.5 per cent interest rate computation which should be sufficient buffer for rates to move before monthly mortgage obligations exceed borrowers’ gross monthly income.

“For buyers of HDB flats and are taking up an HDB loan, the good thing about it is that they have the flexibility of refinancing to a bank loan if they ever change your mind because it does not have a lock-in period. But if they are taking a bank loan, there is no way they can refinance to an HDB loan,” said Mr Ho.