Reviewed September 2026. Mortgage products, benchmarks and rates change. This is general education, not independent financial advice.
Fixed and floating describe how pricing changes
A fixed-rate package offers payment certainty for a stated period, not necessarily the full loan. A floating package can move with its benchmark and spread. Both may include lock-ins, repricing rules, legal subsidies, clawbacks and fees.
Compare the complete package
- Record the benchmark, spread, fixed period and reversion formula.
- Calculate total interest and cash flow across several rate scenarios.
- Check lock-in, prepayment, sale, repricing and refinancing terms.
- Allow for valuation, legal and administrative costs.
- Match certainty to income stability, liquidity and expected holding period.
A lower initial rate is not automatically cheaper over the relevant period. Use current written lender offers, check CPF's Home Purchase Planner, and obtain regulated advice for the household before selecting a package.