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View Full Version : Floating or fixed loan...which one is better?


xtreme_46
03-12-12, 18:48
which one is better?
newbie11
03-12-12, 19:01
You should state what do you want..
Better for everyone means different things
Shanhz
03-12-12, 20:40
which one is better?

Fixed better becoz can lock in and plan finances.
Floating better coz rates lower.
Allthepies
03-12-12, 21:21
Floating for the next few years.
3C
03-12-12, 21:31
Monthly floating compared to 3 monthly floating which is better?
Recently bank offered me monthly instead of in the past 3 monthly
and said monthly is better for me as interest will likely be remain low.
Is it true?:confused:
lionlamb10
03-12-12, 23:04
I think u can ask banker to refer or show u the monthly rate vs 3-mthly rate for past 36-48 mths. I think monthly int is consistently lower.

Personally I go for the lowest final interest rate. Should also compare to variable loan package tied to bank's board rate.
Shanhz
04-12-12, 07:55
Monthly floating compared to 3 monthly floating which is better?
Recently bank offered me monthly instead of in the past 3 monthly
and said monthly is better for me as interest will likely be remain low.
Is it true?:confused:

in times of unstable int rate, monthly you will get hit faster by changes in rates, and your instalment every mth change. if you are the type that can't be bothered with this paperwork it could get irritating.

in stable times, monthly and 3-month not much diff.
1 month SIBOR vs 3 mth SIBOR now is 0.31 vs 0.38. so monthly cheaper.
buttercarp
06-12-12, 16:40
Saw this article which may be useful for those who are deciding which type of loan to get.

http://www.stproperty.sg/articles-property/money-matters/how-to-decide-between-fixed-and-floating-rate-home-loan-packages-in-singapore/a/96742