🏡 Is Waiting 6 Months to Buy Your First Home Costing You Thousands?

With interest rates at historically low levels, many buyers are wondering:  Should I wait a bit longer to buy?

It’s a valid question—but the cost of waiting might be more than you think.

💸  Why Timing Matters More Than Ever

When interest rates are low, your monthly loan repayments shrink—and your loan eligibility grows. This means you can afford a better property or enjoy more manageable monthly payments for the same home.

But once interest rates start climbing again, even a small increase of 0.5–1% could cost you tens of thousands in additional interest over the lifespan of your loan.

💸   Case Study: Did Waiting 6 Months Save This Couple Money — or Cost Them?

Between  September 2023 and March 2024, mortgage rates in Singapore saw a gradual decline as global interest rate pressures began to ease.

This seemed like a great time for first-time buyers to wait for "better" home loan conditions. But in a fast-moving  new launch market, was that wait really worth it?

Let’s break down a real-life-inspired scenario. 

Note: This example is for reference only. Figures are indicative and not financial advice. Always consult a qualified advisor.

📌  Assumptions for This Case Study

• Buyer Profile: Alex (34) & Janice (33), married professionals buying their first home

• Property: 2-Bedroom unit (new launch in July 2023)

• Loan: 75% of $1.45M =  $1.0875M

• Loan Tenure: 25 years

• Mortgage Rate Type:  Floating (3M SORA + bank spread) – as per MAS regulations, new launch loans must be floating

• Interest Rates:

  • Sep 2023: ~ 4.25% effective floating rate

  • Mar 2024: ~ 3.50% effective floating rate

• Price Increase: Project increased from  $2,080 psf in Sep 2023 to  $2,200 psf by Mar 2024 (approx. 5.8% rise)

🧑‍💼 Couple A: Bought in Sep 2023 (Earlier Entry)

• Purchase Price: $1.45M

• Monthly Installment @ 4.25%: ~ $5,821

• Interest over 5 Years (first period): ~$297,480

• Entry Price (2BR): Based on $2,080 psf × 700 sqft =  $1.456M

👩‍💼 Couple B: Waited till Mar 2024

• Purchase Price: $1.54M

• Monthly Installment @ 3.50%: ~ $5,438

• Interest over 5 Years (first period): ~$264,384

• Entry Price (2BR): Based on $2,200 psf × 700 sqft =  $1.54M

💰 Final Comparison: 5-Year (lookahead)

Impact of Waiting for:

Key Insight: Waiting saved Interest, But Lost more in Price

Even though Couple B secured a lower interest rate, they paid  $84,000 more for the same unit. Their  interest savings of ~$33k didn’t offset the price increase, resulting in a  net financial disadvantage of ~$51k over just 5 years.

🧠  So... Is Waiting Always the Smart Move?

In Singapore’s new launch market,  entry price matters more than interest rate movements, especially during early launch phases when developers offer incentives and lower psf pricing.

While interest rates may go up or down,  price increases in high-demand projects are often permanent—you can refinance a loan later, but you can’t "re-enter" at the lower price.

If you're thinking of  waiting for interest rates to drop, remember this:

The real cost could be in the price you pay—not the loan you take.

📩 Got questions? Drop me a message at https://primelaunch.com.sg/contact-me

I’ll help you compare current new launches, track developer pricing, and find the right fit based on your timeline and financial profile. Let’s plan your move with the full picture in mind.