Repricing home loan: Fixed or floating?
I have 2 offers to reprice my current mortgage loan:
1.8% pa fixed for 2 years
Or
0.4% + 3M SORA for 2 years
0.5% + 3M SORA for 3rd year
Both lock in for 2 years. Floating option has free conversion after 6 months.
I am planning to quit/fire next month so the floating option is a bit attractive to me in the sense that I can enjoy the lower rates for 3 years instead of only 2 years (provided SORA doesn't go up crazily in 2028 to 2029. But even if it did, refinancing in 2028 would also be high, and i would need to deal with the 3% repayment due to not meeting tdsr requirement.)
However, i am worried about the ME conflict prolonging and causing inflation and pushing rates up in the next 2 years.
Would love to hear your views on which choice to take. Thank you!