Fixed monthly repayment on mortgage loan

Dear Mr Tan,

If I take a mortgage loan with a variable interest rate, do I have to pay a higher repayment if the interest rate goes up? How often is this rate adjusted?

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REPLY:

I am not sure about the practice of the lender. I believe that, in most cases, they will allow you to keep the same monthly repayment.

When I took a morgage loan previously, I keep to the same monthly repayment, even though the interest rate changes. I get a statement each year showing my balance, the interest charged for the year, and the repayment made during the year.