View Full Version : Which Bank to loan from?
investinvestinvest
26-03-13, 11:03
I am looking for financing for my 400++sq ft showbox. Is there any particular bank which offers attractive rates?
I am looking for financing for my 400++sq ft showbox. Is there any particular bank which offers attractive rates?
call all the banks and ask for quotes....and then make a comparison.
then choose the 1-month SIBOR (rather than 3-month SIBOR or SOR) + the lowest margin for the "thereafter years".
starrynight
26-03-13, 16:30
This website is quite good: http://findahomeloan.sg/new-home-loan-calculator - shows you all the banks' packages.
I'm not related to nor benefit from them.
call all the banks and ask for quotes....and then make a comparison.
then choose the 1-month SIBOR (rather than 3-month SIBOR or SOR) + the lowest margin for the "thereafter years".
when u call the bank..they won't tell you over the phone..they will ask you come down speak to the banker personally
when u call the bank..they won't tell you over the phone..they will ask you come down speak to the banker personally
Not sure about now... in 2011, all of the banks i targeted gave me the terms over the phone, although BOC took a few days to get back to me. I didn't went to any bank personally to get a quote. All was done via phone, except the signing.
when u call the bank..they won't tell you over the phone..they will ask you come down speak to the banker personally
Which bank asked u to come down?
investinvestinvest
26-03-13, 21:05
call all the banks and ask for quotes....and then make a comparison.
then choose the 1-month SIBOR (rather than 3-month SIBOR or SOR) + the lowest margin for the "thereafter years".
I am thinking about holding on to my shoebox and selling it about 8-10 years later. do I still go for 1-month SIBOR?
I went to the website and tried to key in the loan amount under the loan size but they kept asking me to key in the loan size. What should i key in? Eg: 500,000?
Which bank asked u to come down?
RHB and OCBC
I am thinking about holding on to my shoebox and selling it about 8-10 years later. do I still go for 1-month SIBOR?
I went to the website and tried to key in the loan amount under the loan size but they kept asking me to key in the loan size. What should i key in? Eg: 500,000?
Unless u going for a swap (ie. fixed rate), then for floating rate, it is commonly either 1 month, 3 month, SIBOR or SOR or average of SIBOR/SOR.
For floating rate, my preference is 1 month SIBOR as my back of the envelope calculation back in 2011 (basis 2 years trend) is averaging 0.1% lower than 3 month SIBOR. This link shows you the current spread between 1 and 3 months SIBOR. http://www.loanguru.com.sg/sibor which shows 1 month SIBOR is still lower.
1 month is of course more volatile than 3 month and 3 month more volatile than 6 months and so forth.
The 10 year USD swap rate is hovering around 2% only which means it is unlikely there will be a spike in interest rate adjustment by Fed in the medium term and likewise SGD swap rate will remain low. If you are of the view that SGD swap rate will remain low, then my inking is to go for the lowest short term rate fixing (ie. 1 month) rather than go for 3/6/12 month where they priced in the forward yield.
Choosing 1 or 3 month is really up to your belief. The more important is the margin in the "thereafter years". Don't get tempted by the low margin offered by them in the initial 3 or 4 years and then followed by a higher margin in the "thereafter years". You will not save much interest in the initial years as the drawdown amount is progressive. The bulk of your interest payment is upon TOP and this is where the margin for the "thereafter years" comes in.
As for SIBOR vs SOR, there are people who believe in SOR. For myself, I stick to SIBOR.
On your loan amount, it is 80% of the purchase price (if you are only paying 20% downpayment
most banks are currently offering 3M SIBOR + 0.9% now ...
take note i think HSBC does not offer loans for units < 500 sqft
BOC still best rte?
I just did a compriso online and seems like Citibank, HSB and ANZ is best so far.
Is their service good?
Depend on your loan amt, type of prop, size and completion status
shareidiot
01-04-13, 15:21
I signed up my loan with a local bank. the spread is maintained (same) throughout tenor.
I believe it is a good deal .... :rolleyes:
shareidiot
01-04-13, 15:50
most banks are currently offering 3M SIBOR + 0.9% now ...
take note i think HSBC does not offer loans for units < 500 sqft
wow. spread is already @ 0.9% ? that's fast acceleration. :scared-3:
I signed up my loan with a local bank. the spread is maintained (same) throughout tenor.
I believe it is a good deal .... :rolleyes:
which bank and what's the spread?
shareidiot
02-04-13, 11:48
which bank and what's the spread?
a local bank .... spread @ 0.65%
i did mention before in my previous posts
bakasa2002
02-04-13, 12:00
a local bank .... spread @ 0.65%
i did mention before in my previous posts
which local bank? Pls share., :)
shareidiot
02-04-13, 14:28
which local bank? Pls share., :)
Please see my following comment last year.
http://forums.condosingapore.com/showthread.php?p=325122#post325122
I am thinking about holding on to my shoebox and selling it about 8-10 years later. do I still go for 1-month SIBOR?
Bro, don't tell me you're depending on the rent to pay the mortgage? :scared-5:
Please see my following comment last year.
http://forums.condosingapore.com/showthread.php?p=325122#post325122
you still didn't really share le. but i guess yu managed to negotiate. good for you!
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