# Renting could beat buying private property if home loan rates rise

- **Source:** The Business Times
- **Published:** 2026-10-05T03:42:32.000Z
- **Author:** Leslie Yee
- **Original:** https://www.businesstimes.com.sg/opinion-features/renting-could-beat-buying-private-property-if-home-loan-rates-rise
- **Topics:** Market Updates

## Featured rationale

Higher borrowing costs could weaken private-home buying demand and encourage some households to rent, potentially affecting transaction activity and buyer decisions.

## AI summary

Renting could be financially preferable to buying private property if home-loan rates rise, allowing equity otherwise committed to a residence to fund retirement investments.

## Original article

[SINGAPORE] Interest-rate movements in Singapore are not directly correlated with those in the US.

Still, could the US Federal Reserve’s hike of its benchmark overnight interest rate in mid-September with indications of further hikes in the coming months herald an era of higher interest rates over a prolonged period in many places including Singapore?

For sure, retirees here may welcome higher interest rates as they can get better returns from safe instruments such as Singapore-dollar fixed deposits or treasury bills.

## Chinese translation

> Translation model: openai_codex_cli

### 如果住房贷款利率上升，租房可能胜过购买私人住宅

用于购买住宅的股本可被用来建立由优质股票组成的退休储备金

[新加坡] 新加坡的利率走势并不与美国利率走势直接相关。

不过，美国联邦储备局在9月中旬上调其基准隔夜利率，并暗示未来数月还会进一步加息，这是否可能预示着包括新加坡在内的许多地方将进入一个长期较高利率的时代？

可以肯定的是，本地退休人士可能会欢迎较高利率，因为他们可以从新元定期存款或国库券等安全工具中获得更好的回报。