View Full Version : Loan package for BRAND NEW property...
Whats the best package to take if buying a BRAND new property...i noticed those type of variable package first 3 years interest average 1 plus % then 4 th year 2 plus and 5 year on 3% plus....:confused:
BUt since brand new property there is a staggered payment where 1st few years installment will be low then when 4th and 5th year hits your monthly is SUPER high...:confused:
Just wonder whats the best option for buying BRAND new property..any bro care to share...:)
sounds like you are preparing to buy a property ! :D
my friends are getting the variable rates cos it gives more flexibility with repayment anytime and free conversion; unlike sibor types which are fixed and allows free conversion only at top. also, get a few friends to combine the loans and submit together for better rates.
sounds like you are preparing to buy a property ! :D
my friends are getting the variable rates cos it gives more flexibility with repayment anytime and free conversion; unlike sibor types which are fixed and allows free conversion only at top. also, get a few friends to combine the loans and submit together for better rates.
was looking at some of the new devts cos resale looks like no hope...then i realised about the finacing part....with the progressive payment thing for new properties...:)
Whats the best package to take if buying a BRAND new property...i noticed those type of variable package first 3 years interest average 1 plus % then 4 th year 2 plus and 5 year on 3% plus....:confused:
BUt since brand new property there is a staggered payment where 1st few years installment will be low then when 4th and 5th year hits your monthly is SUPER high...:confused:
Just wonder whats the best option for buying BRAND new property..any bro care to share...:)
Hope you have found what you are looking for...
I thought the repayment will only start after all the disbursement made? Did not do research on this.
sounds like you are preparing to buy a property ! :D
my friends are getting the variable rates cos it gives more flexibility with repayment anytime and free conversion; unlike sibor types which are fixed and allows free conversion only at top. also, get a few friends to combine the loans and submit together for better rates.
ya i just did a print out using an online calculator....based on ocbc rate of 3.75% for 4th year onwards the mortgage is scaring if u buy a 1mil property...:cool:
Sleepyhead
30-10-12, 00:16
I thought the repayment will only start after all the disbursement made? Did not do research on this.
Huh? Definitely not true! Which bank is willing to give you interest free loan like that? Please recommend?
Repayment begins the moment the bank disburses even the first dollar to the developer.
Hope you have found what you are looking for...
I thought the repayment will only start after all the disbursement made? Did not do research on this.
still looking....but find it a bit complicated for brand new property got this progressive payment thing need to pay small amount when foundation completed then followed by higher payment after that...:confused:
i just feel like first 3 years your interest is low but ur payment is small then when come 4th 5th year interest higher but you need to pay higher for your monthly installment...
ikan bilis
30-10-12, 00:24
Whats the best package to take if buying a BRAND new property...i noticed those type of variable package first 3 years interest average 1 plus % then 4 th year 2 plus and 5 year on 3% plus....:confused:
BUt since brand new property there is a staggered payment where 1st few years installment will be low then when 4th and 5th year hits your monthly is SUPER high...:confused:
Just wonder whats the best option for buying BRAND new property..any bro care to share...:)
later another CMxx come and cannot switch loan then hor ??.... :D :scared-2:
mine 1.5%+SOR 3rd year onwards me already complain expensive...
later another CMxx come and cannot switch loan then hor ??.... :D :scared-2:
mine 1.5%+SOR 3rd year onwards me already complain expensive...
nowadays really must worry about new cm....sianzzz:banghead:
ikan bilis
30-10-12, 00:31
you still eligible for EC or not ??.... :D
you still eligible for EC or not ??.... :D
cannot havent 30mths...:cool:..since i sold my pc...:cool:
cannot havent 30mths...:cool:..since i sold my pc...:cool:
Why must wait till 30mths?
buttercarp
30-10-12, 08:02
Why must wait till 30mths?
That is the rule.
Must wait 30 months after selling private property before can apply for new EC.
buttercarp
30-10-12, 08:06
Hi bro radha, for OCBC fixed loan ....
yes first 3 years very low interest rate less than 1%, but later it shoots up to 3-4 % (exactly how much, i can't remember).
You have one free conversion later.
But if you have cash and apf and you opt to use it to pay first, then the bank won't charge you anything.
Payment to bank starts when they give out the money to the developer.
For new property, you can check whether they have deferred payment scheme, but the selling price is usually higher.
ikan bilis
30-10-12, 08:23
sis, deferred payment scheme boh liow.... one of the very old CM removed it... only EC can have deferred payment scheme....;)
buttercarp
30-10-12, 08:30
sis, deferred payment scheme boh liow.... one of the very old CM removed it... only EC can have deferred payment scheme....;)
Some development still got.
Have to ask the developer.
Have not sought for new home finance or refinancing for a while. This kind of package is really an obstacle to invest in properties.
Whats the best package to take if buying a BRAND new property...i noticed those type of variable package first 3 years interest average 1 plus % then 4 th year 2 plus and 5 year on 3% plus....:confused:
BUt since brand new property there is a staggered payment where 1st few years installment will be low then when 4th and 5th year hits your monthly is SUPER high...:confused:
Just wonder whats the best option for buying BRAND new property..any bro care to share...:)
For new properties that are BUC, typically the first 3 years is SIBOR + 0.75%.
Fourth year thereafter, the spread starts to widen i.e. SIBOR + 1.25%
Then again, disbursement during the first 3 years is minimal, hence you don't really enjoy the savings even if you found one with a smaller spread.
So the package where the spread is the smallest for the 4th year onwards is key.
Other than that, the lock-in period, free changes of the interest rate package are considerations too. :D
Hi bro radha, for OCBC fixed loan ....
yes first 3 years very low interest rate less than 1%, but later it shoots up to 3-4 % (exactly how much, i can't remember).
You have one free conversion later.
But if you have cash and apf and you opt to use it to pay first, then the bank won't charge you anything.
Payment to bank starts when they give out the money to the developer.
For new property, you can check whether they have deferred payment scheme, but the selling price is usually higher.
tks will do that...;)
Bro bro, very simple for u case.
Just ignore the first 3 yrs rates. Focus on the one that gives u best 'thereafter' rate. I think now still got sibor+1.00 maybe?
Bro bro, very simple for u case.
Just ignore the first 3 yrs rates. Focus on the one that gives u best 'thereafter' rate. I think now still got sibor+1.00 maybe?
yup i know but seems like for variable rates package most of banks offer a package wherby the interest from 4th year onwards is 3% plus...:scared-1:..if you buy a 1 mil property with 800k loan monthly is $4k plus...that figure a bit scaring...really dont know if low interest enviroment can hold forever...some say yes some say no...:doh:..thats why so difficult for me to decide to buy...:banghead:
yup i know but seems like for variable rates package most of banks offer a package wherby the interest from 4th year onwards is 3% plus...:scared-1:..if you buy a 1 mil property with 800k loan monthly is $4k plus...that figure a bit scaring...really dont know if low interest enviroment can hold forever...some say yes some say no...:doh:..thats why so difficult for me to decide to buy...:banghead:
Can't be lah. I just signed one a couple of weeks back. 4th year onwards is SIBOR + 1%. Monthly SIBOR now is about 0.3% so it's about 1%. Can't be 3 to 4 so high lah....
For selected projects, For new properties that are BUC, the first 3 years is SIBOR + 0.75%. Fourth year thereafter, it is SIBOR + 1
OCBC provides conversion and repayments even durin lock in. No penalty if sell
Can't be lah. I just signed one a couple of weeks back. 4th year onwards is SIBOR + 1%. Monthly SIBOR now is about 0.3% so it's about 1%. Can't be 3 to 4 so high lah....
Ya lor. What kind of bank he go to??
Bank Of New Kingsland (BONK) issit...
yes, 3 to 4% seems quite high. for mine, from year 1 to 6, the interest is 1.1%plus to 1.6% plus, that is if sibor stays low.
Can't be lah. I just signed one a couple of weeks back. 4th year onwards is SIBOR + 1%. Monthly SIBOR now is about 0.3% so it's about 1%. Can't be 3 to 4 so high lah....
ocbc bank variable rate package based on 21 year loan for $800k for UNCOMPLETED new property 1 st year 1.08 2nd 1.18 3rd 1.38 fourth 2.65 and 5th year on 3.75 ...works out to $4k plus on 5th year onwards...:cool:
buttercarp
30-10-12, 09:58
Ya lor. What kind of bank he go to??
OCBC variable rate housing loan is liddat one.
http://www.ocbc.com/personal-banking/Loans/calculators/variablerate.html
Actually I took it up :o .
So looks like have to convert on the 3rd year.
sometimes they have customised packages with better rates for selected new launches. so do check with any of the bankers from the main banks on available loan packages for their particular launch when you are at the showflat.
ocbc bank variable rate package based on 21 year loan for $800k for UNCOMPLETED new property 1 st year 1.08 2nd 1.18 3rd 1.38 fourth 2.65 and 5th year on 3.75 ...works out to $4k plus on 5th year onwards...:cool:
OCBC variable rate housing loan is liddat one.
http://www.ocbc.com/personal-banking/Loans/calculators/variablerate.html
Actually I took it up :o .
So looks like have to convert on the 3rd year.
Gee. The spreads have become quite shitty.
ocbc bank variable rate package based on 21 year loan for $800k for UNCOMPLETED new property 1 st year 1.08 2nd 1.18 3rd 1.38 fourth 2.65 and 5th year on 3.75 ...works out to $4k plus on 5th year onwards...:cool:
friends' latest neg can go down to 1.05, 1.15, 1.30; still neg on the 3rd year with bundle loans going in together.
need to ensure that for all loans - best to make sure that loan kicks in from 1st disbursement and not from signing the loan package.
" best to make sure that loan kicks in from 1st disbursement and not from signing the loan package"
i thought this is standard? you mean there are loans for which you start making payments and interest when loan is signed but not drawn down yet?
friends' latest neg can go down to 1.05, 1.15, 1.30; still neg on the 3rd year with bundle loans going in together.
need to ensure that for all loans - best to make sure that loan kicks in from 1st disbursement and not from signing the loan package.
shareidiot
30-10-12, 10:14
Have.... 4th year +1%. My staff just secured it with a local bank.
Bro bro, very simple for u case.
Just ignore the first 3 yrs rates. Focus on the one that gives u best 'thereafter' rate. I think now still got sibor+1.00 maybe?
buttercarp
30-10-12, 10:15
friends' latest neg can go down to 1.05, 1.15, 1.30; still neg on the 3rd year with bundle loans going in together.
need to ensure that for all loans - best to make sure that loan kicks in from 1st disbursement and not from signing the loan package.
Your friend must be a frequent customer to be able to negotiate!
The last time they refused to for me.
The loan officer at first said that there is a possiblity of negotiating as a premier banking customer but in the end, there was no room for it.
I always assume the loan will kick in only from 1st disbursement?
If not, then it is like some kind of trick :scared-3: ......
http://www.smartloans.sg/homeloan#
BTW, not related to the website above. Registration is free so go and make a comparison among the banks.
ya me too. alot of banks have these rates as well. i think it's a special loan package for selected new launches.
Have.... 4th year +1%. My staff just secured it with a local bank.
shareidiot
30-10-12, 10:34
It is a blessing that I secured my loan package @ sibor + 0.65 (throughout the entire tenor of loan period !!!). I guess I feel secured. ;)
ya me too. alot of banks have these rates as well. i think it's a special loan package for selected new launches.
yup i know but seems like for variable rates package most of banks offer a package wherby the interest from 4th year onwards is 3% plus...:scared-1:..if you buy a 1 mil property with 800k loan monthly is $4k plus...that figure a bit scaring...really dont know if low interest enviroment can hold forever...some say yes some say no...:doh:..thats why so difficult for me to decide to buy...:banghead:
actually whatever the loan rates are, most certainly will have to reprice or refinance in the 3rd year or maybe 4th year. so dun scare yourself by doing all those calculations based on their quoted 3rd or 4th year.
however just need to consider what if the real interest rate actually rises much higher? after repricing, can still stomach the rates or not?
when buy buc, what everyone here is happy about is that they lock in a low sibor spread (for sibor loans). though need to remember that sibor can change and will change too. though variable rate is less transparent, cos based on board rate, my friends feel that it tends to move slower relative to sibor.
When did you secure this loan? sounds like great rates!
It is a blessing that I secured my loan package @ sibor + 0.65 (throughout the entire tenor of loan period !!!). I guess I feel secured. ;)
shareidiot
30-10-12, 10:58
From a local bank (I wonder if I m supposed to disclose such information online. Will bank "come after" me?).
I secured the loan package 15 months ago, when I just bought my PC.
Recently, I recommended my staff to this bank. I understand that similar deal (a deal that has the same spread throughout tenor) is no longer in existence.
When did you secure this loan? sounds like great rates!
oh no worries. i think some banks will offer some promotion packages from time to time to stimulate uptake for loans. haha i knew it wouldn't be a recent thing. the rates your staff managed to get are considered good rates in the current climate.
From a local bank (I wonder if I m supposed to disclose such information online. Will bank "come after" me?).
I secured the loan package 15 months ago, when I just bought my PC.
Recently, I recommended my staff to this bank. I understand that similar deal (a deal that has the same spread throughout tenor) is no longer in existence.
oh no worries. i think some banks will offer some promotion packages from time to time to stimulate uptake for loans. haha i knew it wouldn't be a recent thing. the rates your staff managed to get are considered good rates in the current climate.
If you are not 'brand' conscious so to speak, go to the more 'obscure' foreign banks like ANZ, BOC for better rates.
Yes, some banks may have interest rate starts 3 months or 6 months after LO is signed. They call it sth like Interest-rate Commence Date
" best to make sure that loan kicks in from 1st disbursement and not from signing the loan package"
i thought this is standard? you mean there are loans for which you start making payments and interest when loan is signed but not drawn down yet?
buttercarp
30-10-12, 11:16
If you are not 'brand' conscious so to speak, go to the more 'obscure' foreign banks like ANZ, BOC for better rates.
But what is the catch, if any?
buttercarp
30-10-12, 11:18
Yes, some banks may have interest rate starts 3 months or 6 months after LO is signed. They call it sth like Interest-rate Commence Date
Then I hope the loan officer should specifically point it out to the customer.
When did you secure this loan? sounds like great rates!
I got mine at sibor+0.75 throughout in March this year. I guess he got his 0.65 much earlier.
shareidiot
30-10-12, 11:27
The standard spread (at that time) was 0.75. I negotiated ... :ashamed1:
I got mine at sibor+0.75 throughout in March this year. I guess he got his 0.65 much earlier.
wow you are good! next time i will negotiate very hard as well!
The standard spread (at that time) was 0.75. I negotiated ... :ashamed1:
But what is the catch, if any?
No catch, just that they are hungrier for business and need market share to build up their loan portfolio.
The standard spread (at that time) was 0.75. I negotiated ... :ashamed1:
1 or 3 mth sibor? Mine 1 mth leh.
" best to make sure that loan kicks in from 1st disbursement and not from signing the loan package"
i thought this is standard? you mean there are loans for which you start making payments and interest when loan is signed but not drawn down yet?
for BUC with progressive payment and eg 60% LTV, the loan disbursement will not kick in yet until completion of foundation work which may be 1 to 2 years depending on project.
http://www.ura.gov.sg/lad/HBG/progressPayments.htm
however if your 1st year interest rate starts counting from date of signing, then effectively lose out on the lower better rate, which is based on lower quantum disbursed anyway. i am not sure which banks start that 1st year from signing but highlighting for all to verify and be sure, cos a couple of bankers told me that some banks practise this.
1 of the foreign bank gave
sibor (or sibor/sor combo) 3m + 0.8 for 1st 3 years
followed by +0.9 thereafter
this is still more than the variable rate in the 1st year, which also allows for free conversion anytime, even to sibor later if need be (of course spread then will be different).
can the mortgage broker here help to clarify?
shareidiot
30-10-12, 12:03
I guess the art of negotiation is NOT to bullshit to the other party. As long as there is valid fact/point about why you think 0.65 is attainable, negotiate based on that.
As far as I am concerned, at that time, there was a bank (whom I don't think I should name it here) who offered me 0.65% over the phone. What I did, was just to ask my preferred bank to match.
I heard there were even cases where home owners secured @ 0.55% (I heard only ....)
wow you are good! next time i will negotiate very hard as well!
shareidiot
30-10-12, 12:04
To clarify, my deal @ 3 months sibor + 0.65 ;)
1 or 3 mth sibor? Mine 1 mth leh.
Your friend must be a frequent customer to be able to negotiate!
The last time they refused to for me.
The loan officer at first said that there is a possiblity of negotiating as a premier banking customer but in the end, there was no room for it.
I always assume the loan will kick in only from 1st disbursement?
If not, then it is like some kind of trick :scared-3: ......
So does being a premier banking customer help with ocbc to
Secure lower interest...i am actually one but never knew
The benefits. ..
:beats-me-man:
buttercarp
30-10-12, 13:53
So does being a premier banking customer help with ocbc to
Secure lower interest...i am actually one but never knew
The benefits. ..
:beats-me-man:
It did not help in my case although the banker offered a glimmer of hope initially.
Maybe I should have tarik harga and should not have agreed to the loan so fast.
So does being a premier banking customer help with ocbc to
Secure lower interest...i am actually one but never knew
The benefits. ..
:beats-me-man:
it will. though the rates mentioned above is already better that those for premier customer, according to the banker. more importantly, if there are a few loans that can apply for processing together (ie higher loan quantum), previous loan records with the bank, etc.
Bro, go to a mortgage broker - give you name :
Jeff Tan - 9366 3355. He is from mortgage direct.
Get various rates from him. Come back to this forum with the best rate and see if anyone here can match that rate. Then you can begin from there. Another broker is Newbie11. Send him a pm to discuss best rate. Do this if you serious. If you just doing tcss, then no need to call. btw, I not in this field but i keep certain names and numbers handy for me to check things out. Like lawyer number, agent number, etc....
So does being a premier banking customer help with ocbc to
Secure lower interest...i am actually one but never knew
The benefits. ..
:beats-me-man:
buttercarp
30-10-12, 14:55
Bro, go to a mortgage broker - give you name :
Jeff Tan - 9366 3355. He is from mortgage direct.
Get various rates from him. Come back to this forum with the best rate and see if anyone here can match that rate. Then you can begin from there. Another broker is Newbie11. Send him a pm to discuss best rate. Do this if you serious. If you just doing tcss, then no need to call. btw, I not in this field but i keep certain names and numbers handy for me to check things out. Like lawyer number, agent number, etc....
Wow bro, you are so helpful.
Should have known you before I got my loan :( .
Wow bro, you are so helpful.
Should have known you before I got my loan :( .
Sis, as a consumer, you need to get the best deal. OK, I share with you all how to get best deal.
Option 1
Go to a mortgage broker. Some mortgage brokers only do with certain banks. They may - I repeat may (not will) push certain banks harder.
Option 2
More work - call up as many banks as u can. Narrow down to the best 2 or 3 and use it to nego for better rates. But this one u really need to work. You must also know the package you going for so you can compare apple to apple.
This applies to car purchase as well. If Merc knows you test driving Audi and BMW, they also scared and will give you sweetener wat. But if you show interest in only 1 car, you liao !!! Why need to give discount? So must show some interest, but tell them straight - price very important hor, i will go for best price. Then everyone will try their best to give you best price and best service. Remember, they also have quota to meet.
Bro, go to a mortgage broker - give you name :
Jeff Tan - 9366 3355. He is from mortgage direct.
Get various rates from him. Come back to this forum with the best rate and see if anyone here can match that rate. Then you can begin from there. Another broker is Newbie11. Send him a pm to discuss best rate. Do this if you serious. If you just doing tcss, then no need to call. btw, I not in this field but i keep certain names and numbers handy for me to check things out. Like lawyer number, agent number, etc....
Tks bro yup i also got contact with a nice dude from housingloan.singapore
But i quite like dealing with ocbc...just a personal choice dunno maybe
Cos my experience witg tgem has been good...but i know its a very
Competitive mkt out there everyone wantss a piece of the pie...;)
:cool:
It did not help in my case although the banker offered a glimmer of hope initially.
Maybe I should have tarik harga and should not have agreed to the loan so fast.
Ya i know what u mean but some
People just cannot be bothered
To shop around like my wife...she really don't
Care about these type of financial things
As long as sounds ok she will sign the
Papers...
Tks bro yup i also got contact with a nice dude from housingloan.singapore
But i quite like dealing with ocbc...just a personal choice dunno maybe
Cos my experience witg tgem has been good...but i know its a very
Competitive mkt out there everyone wantss a piece of the pie...;)
Bro, bro, bro... dont let emo get in the way of saving money.:doh::doh::doh:
You are not young anymore. Everybit counts. Whoever gives the best rate wins. I asked OCBC to match the rate given by another bank. The banker from OCBC worked like crazy on my case.... I tell the banker - u match, I give to you. The banker tell me" Cannot match, please go to the other bank. I understand.".
I said - "I am glad you understand and I went to the other bank".
But again, hey, the choice is yours. I just sharing my experience and TCSS. I do understand how you fee. Sometimes it is the HweeLing involved. Hahahahaha
:cheers5:
buttercarp
30-10-12, 18:26
:cool:
Ya i know what u mean but some
People just cannot be bothered
To shop around like my wife...she really don't
Care about these type of financial things
As long as sounds ok she will sign the
Papers...
Aiyo, my husband is also like that.
When we were shopping for the loan, he compared OCBC and 2 other banks, then he said so tiring and waste his time and that they should be about the same so he settled for OCBC cos he also likes that bank.
Bro, bro, bro... dont let emo get in the way of saving money.:doh::doh::doh:
You are not young anymore. Everybit counts. Whoever gives the best rate wins. I asked OCBC to match the rate given by another bank. The banker from OCBC worked like crazy on my case.... I tell the banker - u match, I give to you. The banker tell me" Cannot match, please go to the other bank. I understand.".
I said - "I am glad you understand and I went to the other bank".
But again, hey, the choice is yours. I just sharing my experience and TCSS. I do understand how you fee. Sometimes it is the HweeLing involved. Hahahahaha
:cheers5:
tks bro....:cheers4:...there was a famous saying before when i used to be in the airforce and go overseas for detachments...no money no honey:D
Aiyo, my husband is also like that.
When we were shopping for the loan, he compared OCBC and 2 other banks, then he said so tiring and waste his time and that they should be about the same so he settled for OCBC cos he also likes that bank.
very true what they say...opposites attract...:D:D:D
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