View Full Version : SOR rate holder- Its high time to manage your loan!
MortgageGuru
06-01-15, 12:16
http://www.abs.org.sg/rates_sibor.php
3M SOR is at 0.73% as of 2nd of Jan 2015.
Its going up rapidly from 0.2% on November.
Spread at 1%, you'll be paying 1.7% at least.
While the low rates are still available now, it will be good to refinance to a lower rate for 3 years.
For a loan that's in $500K based on 25 years.
You'll save approximately $7K based on 1.7%, not to forget that interest rate will only go uphill now, the savings will be even more substantial to $10K & above.
You can enquire more about how refinancing save you from paying thousands of dollars on unnecessary interest.
I'll be glad to help.
Allthepies
06-01-15, 17:33
Wat the best rates now?
Omg, since when did sor spike so much.
MortgageGuru
06-01-15, 18:47
The lowest Can be 1.2%.
Which is really consider low for the current market now.
The average is about 1.7% now.
MortgageGuru
06-01-15, 18:48
Omg, since when did sor spike so much.
SOR started rising from November.
In fact SIBOR also hit 0.5%.
1.2% is for first yr only or what? What's the catch...
The lowest Can be 1.2%.
Which is really consider low for the current market now.
The average is about 1.7% now.
MortgageGuru
06-01-15, 20:57
1.2% is for first yr only or what? What's the catch...
For 3-5 years.
No lock in.
Can be consider as one of the best package right now.
For 3-5 years.
No lock in.
Can be consider as one of the best package right now.
Which bank is that with? Can share more?
yes please share more, I think it is a good deal.
For 3-5 years.
No lock in.
Can be consider as one of the best package right now.
MortgageGuru
07-01-15, 10:15
http://m.todayonline.com/business/higher-mortgages-loom-impending-fed-rate-hike
BY
TAN WEIZHEN
[email protected]: 4:02 AM, JANUARY 7, 2015
SINGAPORE — Home owners will need to brace themselves for even higher mortgage payments this year as an impending interest rate increase in the United States looms closer, prompting some analysts to caution that highly leveraged households sitting on floating rate plans risk being stung.
A key interest rate that the majority of housing loans in Singapore are based on could double by the end of the year and more than triple by the end of next year, possibly increasing monthly repayments by hundreds of dollars, depending on the value of the home.
The three-month Singapore Interbank Offered Rate (SIBOR) rose sharply for the second consecutive day yesterday, jumping 7.4 per cent to 0.62052 per cent from 0.57762 per cent on Monday, Bloomberg data showed. This came after a meteoric 26 per cent increase on Monday from last Friday’s 0.45738 per cent.
With the US Federal Reserve set to raise interest rates by September or October, as Mr Richard Jerram, chief economist at the Bank of Singapore, predicts, industry insiders say SIBOR could rise to 1.2 per cent by the end of this year and 2 per cent by the end of next year.
Commenting on the recent increase in SIBOR, Ms Selena Ling, head of treasury research and strategy at OCBC, said at a seminar organised by the bank yesterday: “It might be overshooting, as it is still the first few trading days and the market is still reacting to conditions in 2015. But I project that SIBOR will be close to 0.7 per cent at mid-year and will rise to between 1 and 1.2 per cent by the end of the year.”
Maybank Kim Eng said in a note in October that it expects SIBOR to rise to 1 per cent by year-end and 2 per cent by the end of next year.
Economists at the seminar noted that the property sector is most vulnerable as it is tied to interest rates, followed by real estate investment trusts.
“If interest rates rise at a slow and steady pace, home owners will be able to adjust,” said Ms Ling. “But if it is unwieldy and volatile, then that makes it a bit more tricky, because what you are seeing now is some correction in terms of property prices.” She added that overstretched and overleveraged home buyers might be more exposed to interest rate hikes.
Additionally, if the rate rises quicker than anyone predicts and passes the 3.5 per cent mark, the financial pain would start to have deeper repercussions.
“Interest rates will have to rise quickly and significantly — for instance, to 3.5 per cent — for bad loans to happen. That is when it will have an impact on the market,” said Mr Colin Tan, director of research and consultancy at Suntec Real Estate. “(But) if the projection is 1.2 per cent, our gross domestic product growth is still higher and if home owners still have a job, then they should be able to service their loans.”
Mr Tan also noted that the Total Debt Servicing Ratio framework implemented in 2013 will do its job of ensuring bad debt is less likely to happen. It uses an implied interest rate of 3.5 per cent to calculate applicants’ loan eligibility, he said.
Economists at the OCBC Seminar, which discussed the impact of the Federal Reserve raising interest rates, anticipate some volatility in the initial period after, but they also noted that things should stabilise after a short period of time as the raising of rates is, after all, a sign of growth.
“I don’t see this volatility as negative; it could be positive for mid-term investors. If people are heavily invested in equities, they may want to lighten their load. But this is also an opportunity to phase some investments in,” said Mr Vasu Menon, head of content and research for wealth management at OCBC. He estimates that this period of volatility could last between six and nine months.
today SIBOR 3M 0.637, and SOR3M 0.802 already.
every one is expecting SGD to drop
MortgageGuru
07-01-15, 12:59
its a expected increment since SOR been increasing from November.
its too fast for SOR. Might even see 1% end of the month.
its a expected increment since SOR been increasing from November.
its too fast for SOR. Might even see 1% end of the month.
Yah , I kana teruk
I suppose SOR will rise faster than SIBOR when US$ rise against S$?
today SIBOR 3M 0.637, and SOR3M 0.802 already.
every one is expecting SGD to drop
MortgageGuru
07-01-15, 13:16
Yah , I kana teruk
Whats your package?
MortgageGuru
07-01-15, 13:18
I suppose SOR will rise faster than SIBOR when US$ rise against S$?
The trend is always SOR higher when market improving and SOR lower when market is down.
That's the pros and cons for SOR, when market is bad,you are happy. when economy climbs, you sulk badly. that's the reason why refinance kicks in.
US interest rate is just gradually up and SOR becomes double. Got to watch out .....
Just applied for refinance with Maybank..3 yr fixed rate 1.25%, 1.45% and 1.55%....because SOR going up too fast..had to hurry as rates may go up soon as floating higher than fixed now...
Just applied for refinance with Maybank..3 yr fixed rate 1.25%, 1.45% and 1.55%....because SOR going up too fast..had to hurry as rates may go up soon as floating higher than fixed now...
I just did mine with MB too.
Any contacts for MB to call or email for this fixed rate package?
Any contacts for MB to call or email for this fixed rate package?
You can just call Maybank hotline number and someone will call you back very soon which is what I did...very efficient...the guy emailed me the rates soon after I called and stays back late frequently so I could meet him at 8pm tonight..
There r a few packages, some with legal subsidy with sl higher rates, mine has no legal subsidy but he worked out still better so I went with that..
All these refinancing won't work one lah! I mean come'on let's be realistic. How much do you save for another 3yr of fixed rate? Usually when ppl take loan it's more than 20yrs so what's 3yrs? If you can see the direction we're moving towards, it's going to be grim for the next several years. I'm fully prepared for the increased interest rates and like those guys on MCF say, if you can't afford the fuel don't buy a car (referring to those who go to JB for a pump)!
That said, alot of Singaporeans are living on the edge today.
Think people can hedge against rising interest rate? :glee:
All these refinancing won't work one lah! I mean come'on let's be realistic. How much do you save for another 3yr of fixed rate? Usually when ppl take loan it's more than 20yrs so what's 3yrs? If you can see the direction we're moving towards, it's going to be grim for the next several years. I'm fully prepared for the increased interest rates and like those guys on MCF say, if you can't afford the fuel don't buy a car (referring to those who go to JB for a pump)!
That said, alot of Singaporeans are living on the edge today.
yup, i did my refinancing last aug. :)
Think people can hedge against rising interest rate? :glee:
Why hedge when you have a huge cash buffer?
All these refinancing won't work one lah! I mean come'on let's be realistic. How much do you save for another 3yr of fixed rate? Usually when ppl take loan it's more than 20yrs so what's 3yrs? If you can see the direction we're moving towards, it's going to be grim for the next several years. I'm fully prepared for the increased interest rates and like those guys on MCF say, if you can't afford the fuel don't buy a car (referring to those who go to JB for a pump)!
That said, alot of Singaporeans are living on the edge today.
May I know what is the interest you are paying for your mortgage at the moment?
May I know what is the interest you are paying for your mortgage at the moment?
The FED hasn't even touched interest rates and ppl are already fumbling. I can't be bothered with these little savings and went with float. It's actually optional and it keeps my bank happy.
Rates likely to stay low for a very long time and it will be at a NEW NORM (about half of OLD NORM).......... :star:
Those taking fixed rate loan now may not be the right choice after all!
The FED hasn't even touched interest rates and ppl are already fumbling. I can't be bothered with these little savings and went with float. It's actually optional and it keeps my bank happy.
Another day has passed, and SOR shot up again, this time by 15.9% in 1 day!!!!!!! :
3M SIBOR : 0.62052%
3M SOR : 0.92956
Surprisingly SIBOR dropped!
I hard warned about risk of SOR loan before. Hope nobody here took up SOR or could refinance if having SOR floating loan...
If you are with SIBOR, you could hedge it!
today SIBOR 3M 0.637, and SOR3M 0.802 already.
every one is expecting SGD to drop
There r a few packages, some with legal subsidy with sl higher rates, mine has no legal subsidy but he worked out still better so I went with that..
Thanks, waiting for their reply now.
MortgageGuru
08-01-15, 07:43
Thanks, waiting for their reply now.
Hi I understand you're a owner at Minton, we're helping Minton owner to do a mass refinancing for even lower rate.
Please PM me for low preferential rates, no cost!
MortgageGuru
08-01-15, 07:47
You can just call Maybank hotline number and someone will call you back very soon which is what I did...very efficient...the guy emailed me the rates soon after I called and stays back late frequently so I could meet him at 8pm tonight..
This is what banker does, that's the only thing that they can do for you within their bank capacity.
What we're doing is fighting for a even lower rate which is what you can't get just by calling.
1.25,1.45,1.55 is just their standard rate.
MortgageGuru
08-01-15, 07:54
The FED hasn't even touched interest rates and ppl are already fumbling. I can't be bothered with these little savings and went with float. It's actually optional and it keeps my bank happy.
I believe you didn't make a good calculation on it.
Just for 3 years the savings can even hit 10k and above for some case.
It's pretty simple calculation, if your monthly instalment is $2000, $800 goes to interest and only $1200 goes to your principle.. Against another package at $1800 monthly instalment, $500 goes into your interest and $1300 pays off your principle.
It's obvious isn't it? Especially interest that you're paying is at a all time low and the only way is up.
If you want to be a smart aleck that pays additional few hundreds a month or rather few thousands a year to the bank just to keep your bank happy, I rather you bring your family for a holiday every month, this will then be the one that's worth making happy.
Bank don't give shit about who you are, however rich you are, there's someone richer.
MortgageGuru
08-01-15, 08:19
Just to share with you guys as a mortgage broker,
I've seen many many countless property owners that think they're very clever, telling us that they have their own 'special rates' with the bank because they have business relationship with the bank.
Most of the time, it turns out that the interest they're paying is ridiculously high, the reason why they hold on to it is because they're afraid other bank won't loan them the money they wanted.
In the end, most of them turned their back and came to us asking for help to refinance their loans to other bank as they realised having a Relationship Manager(RM) doesn't actually gives them much benefit.
So don't always have a prejudice view on any matters as you won't be sure what good it can help to you.
For most of you who called maybank and get 1.25,1.45,1.55,
I can even get the banker down to your home anytime you like and assist you on your loan immediately at a even lower rate.
This is the difference between using a broker and going to the bank directly.
If you encounter TDSR issue, we help you reduce your commitment percentage to below 60% with our expertise in this area so that you won't have problems taking up the loan.
All these done being FOC.
If you're using maybank directly, you can check with the banker which broker just gave them a $10million case from one of the established interior design firm in Singapore.
Now, you see the difference between a broker and DIY.
We care for your pocket, we fight for your pocket because we got negotiation power.
Thanks for sharing!
Just to share with you guys as a mortgage broker,
I've seen many many countless property owners that think they're very clever, telling us that they have their own 'special rates' with the bank because they have business relationship with the bank.
Most of the time, it turns out that the interest they're paying is ridiculously high, the reason why they hold on to it is because they're afraid other bank won't loan them the money they wanted.
In the end, most of them turned their back and came to us asking for help to refinance their loans to other bank as they realised having a Relationship Manager(RM) doesn't actually gives them much benefit.
So don't always have a prejudice view on any matters as you won't be sure what good it can help to you.
For most of you who called maybank and get 1.25,1.45,1.55,
I can even get the banker down to your home anytime you like and assist you on your loan immediately at a even lower rate.
This is the difference between using a broker and going to the bank directly.
If you encounter TDSR issue, we help you reduce your commitment percentage to below 60% with our expertise in this area so that you won't have problems taking up the loan.
All these done being FOC.
If you're using maybank directly, you can check with the banker which broker just gave them a $10million case from one of the established interior design firm in Singapore.
Now, you see the difference between a broker and DIY.
We care for your pocket, we fight for your pocket because we got negotiation power.
smellyfish
08-01-15, 10:31
the problem with the SG fix is that it is a fix for 3 years, so not exactly sure what we are fixing when the mortgage is 25 yrs.
MortgageGuru
08-01-15, 10:42
the problem with the SG fix is that it is a fix for 3 years, so not exactly sure what we are fixing when the mortgage is 25 yrs.
every 3 year thereafter you can do a refinance or repricing too, depending on the market.
I believe you didn't make a good calculation on it.
Just for 3 years the savings can even hit 10k and above for some case.
It's pretty simple calculation, if your monthly instalment is $2000, $800 goes to interest and only $1200 goes to your principle.. Against another package at $1800 monthly instalment, $500 goes into your interest and $1300 pays off your principle.
It's obvious isn't it? Especially interest that you're paying is at a all time low and the only way is up.
If you want to be a smart aleck that pays additional few hundreds a month or rather few thousands a year to the bank just to keep your bank happy, I rather you bring your family for a holiday every month, this will then be the one that's worth making happy.
Bank don't give shit about who you are, however rich you are, there's someone richer.
Well said. Those who said waste time to refinance are perhaps those who cant refinance.
If a person have huge cash buffer then that person will go for fixed rate to buy themselves a peace of mind instead of "gamling" on float rate hoping to gain on small savings.
MortgageGuru
08-01-15, 11:28
Well said. Those who said waste time to refinance are perhaps those who cant refinance.
If a person have huge cash buffer then that person will go for fixed rate to buy themselves a peace of mind instead of "gamling" on float rate hoping to gain on small savings.
Everyone can refinance as long as they they do not breach TDSR, there's way to bypass TDSR issues.
thanks for sharing your role as a broker. I think 1.25 to 1.55 for the next 3 yrs is pretty attractive as we believe the rate is going up but how high and how fast, yet to be seen and no one knows. The more concern part is after the 3rd year, it is going to be 2.5 and above??
Unless there is no lock in period which then could works towards our advantage and be flexible to change. Is there a lock in period?
Just to share with you guys as a mortgage broker,
I've seen many many countless property owners that think they're very clever, telling us that they have their own 'special rates' with the bank because they have business relationship with the bank.
Most of the time, it turns out that the interest they're paying is ridiculously high, the reason why they hold on to it is because they're afraid other bank won't loan them the money they wanted.
In the end, most of them turned their back and came to us asking for help to refinance their loans to other bank as they realised having a Relationship Manager(RM) doesn't actually gives them much benefit.
So don't always have a prejudice view on any matters as you won't be sure what good it can help to you.
For most of you who called maybank and get 1.25,1.45,1.55,
I can even get the banker down to your home anytime you like and assist you on your loan immediately at a even lower rate.
This is the difference between using a broker and going to the bank directly.
If you encounter TDSR issue, we help you reduce your commitment percentage to below 60% with our expertise in this area so that you won't have problems taking up the loan.
All these done being FOC.
If you're using maybank directly, you can check with the banker which broker just gave them a $10million case from one of the established interior design firm in Singapore.
Now, you see the difference between a broker and DIY.
We care for your pocket, we fight for your pocket because we got negotiation power.
MortgageGuru
08-01-15, 13:45
thanks for sharing your role as a broker. I think 1.25 to 1.55 for the next 3 yrs is pretty attractive as we believe the rate is going up but how high and how fast, yet to be seen and no one knows. The more concern part is after the 3rd year, it is going to be 2.5 and above??
Unless there is no lock in period which then could works towards our advantage and be flexible to change. Is there a lock in period?
Yes, after 3rd year will be at 2.5% (board rate -1.25%)
By then interest will be stable down and will be a good time to refinance to floating rates since it's forecast to 2017-18 the hike will stop.
If you want more benefits for taking up the loan, can PM me as we can negotiate even lower rates.
bargain hunter
08-01-15, 14:58
thanks for sharing! why didn't u join the forum earlier?!?!?!?! :0 then all our condosingapore.com members can collectively loan at super low rates during the 2009 low. :smile-new:
Just to share with you guys as a mortgage broker,
I've seen many many countless property owners that think they're very clever, telling us that they have their own 'special rates' with the bank because they have business relationship with the bank.
Most of the time, it turns out that the interest they're paying is ridiculously high, the reason why they hold on to it is because they're afraid other bank won't loan them the money they wanted.
In the end, most of them turned their back and came to us asking for help to refinance their loans to other bank as they realised having a Relationship Manager(RM) doesn't actually gives them much benefit.
So don't always have a prejudice view on any matters as you won't be sure what good it can help to you.
For most of you who called maybank and get 1.25,1.45,1.55,
I can even get the banker down to your home anytime you like and assist you on your loan immediately at a even lower rate.
This is the difference between using a broker and going to the bank directly.
If you encounter TDSR issue, we help you reduce your commitment percentage to below 60% with our expertise in this area so that you won't have problems taking up the loan.
All these done being FOC.
If you're using maybank directly, you can check with the banker which broker just gave them a $10million case from one of the established interior design firm in Singapore.
Now, you see the difference between a broker and DIY.
We care for your pocket, we fight for your pocket because we got negotiation power.
MortgageGuru
08-01-15, 15:00
thanks for sharing! why didn't u join the forum earlier?!?!?!?! :0 then all our condosingapore.com members can collectively loan at super low rates during the 2009 low. :smile-new:
I wish to too!
But right now you all are still eligible for it! :)
Thanks for your recognition too, makes me feel worthy for these postings!
MortgageGuru
08-01-15, 22:55
Hi everyone, I just received information from Banker that they'll remove the low rate from Maybank tomorrow.
Please do contact me soonest possible if you have intention to refinance to Maybank.
MortgageGuru
08-01-15, 23:25
Hi everyone, I just received information from Banker that they'll remove the low rate from Maybank tomorrow.
Please do contact me soonest possible if you have intention to refinance to Maybank.
I have really quite a few PMs from you guys and I'm sorry if I left out on any of you.
I'll reply soonest possible and it will be good to quote your nick so I know who are you.
Hopefully everyone can avoid the interest hike together!
Well said. Those who said waste time to refinance are perhaps those who cant refinance.
If a person have huge cash buffer then that person will go for fixed rate to buy themselves a peace of mind instead of "gamling" on float rate hoping to gain on small savings.
Think you should read all my previous posts. Since you just joined this forum, let me tell you that I'm one who long predicted QE was ending and interest rates is on its way up. Since that's the case it's no for small gains. I'm just not cheapskate as some who tries to save a few hundred to go on a holiday. If that's an issue, I suggest you do not get yourself into that million dollar mess/loan. I keep my bankers happy by taking up a loan and with all honesty I don't care about the interest rates I'm paying. If it goes up, I can redeem it.
I believe you didn't make a good calculation on it.
Just for 3 years the savings can even hit 10k and above for some case.
It's pretty simple calculation, if your monthly instalment is $2000, $800 goes to interest and only $1200 goes to your principle.. Against another package at $1800 monthly instalment, $500 goes into your interest and $1300 pays off your principle.
It's obvious isn't it? Especially interest that you're paying is at a all time low and the only way is up.
If you want to be a smart aleck that pays additional few hundreds a month or rather few thousands a year to the bank just to keep your bank happy, I rather you bring your family for a holiday every month, this will then be the one that's worth making happy.
Bank don't give shit about who you are, however rich you are, there's someone richer.
If you have to be cheapskate and stinge on a fraction of a percent, you don't have the criteria to be a property investor. Which I suspect alot of ppl on this forum are and are living on the edge. In that case, a rise in interest rates of 1% would definitely push them over. Also in that case, this is the best place for you to market your product!
MortgageGuru
09-01-15, 01:20
If you have to be cheapskate and stinge on a fraction of a percent, you don't have the criteria to be a property investor. Which I suspect alot of ppl on this forum are and are living on the edge. In that case, a rise in interest rates of 1% would definitely push them over. Also in that case, this is the best place for you to market your product!
Good day to you.
If you're interested, I can meet you up and show you how one of the established ID firm managed to refinance and save half a million for their loan.
Lastly, the last known investor or rather, all the investor that I've met, I remember they all shared the same character, humility.
MortgageGuru
09-01-15, 09:50
Hi guys,
received confirmation from Maybank Banker rates changed to 1.65,1.75,1.85.
If there's intention to capitalise on the previous low rate, have to submit application soonest possible.
Good day to you.
If you're interested, I can meet you up and show you how one of the established ID firm managed to refinance and save half a million for their loan.
Lastly, the last known investor or rather, all the investor that I've met, I remember they all shared the same character, humility.
well said!!
In fact when people get richer, they will also get smarter and "tighter" with their money, especially comes to borrowing cost.
MortgageGuru
09-01-15, 14:33
Hi everyone I've just cleared my PM.
You can try send in again.
well said!!
In fact when people get richer, they will also get smarter and "tighter" with their money, especially comes to borrowing cost.
I agree on this. The people who really pay the highest interest rates at the current climate pay 2.6%. But with a sort of a guarantee that their home can never be taken away from them.
MortgageGuru
09-01-15, 14:42
I agree on this. The people who really pay the highest interest rates at the current climate pay 2.6%. But with a sort of a guarantee that their home can never be taken away from them.
You will be shock some that are paying above 3% and they still don't know about it.
I've met some bosses and they're just like 'why the hell am I paying so much and yet my loan still have a long way to go' until they realized most of the monthly installment goes into their interest payment which is for absolutely nothing,worst still, they're tagged with a RM.
You will be shock some that are paying above 3% and they still don't know about it.
I've met some bosses and they're just like 'why the hell am I paying so much and yet my loan still have a long way to go' until they realized most of the monthly installment goes into their interest payment which is for absolutely nothing,worst still, they're tagged with a RM.
Yes I truly am. Usually the realization kicks in only when they counted how much extra they paid over the years.
It really depends on the quantum loaned and the tenure. But typically the loan is over 500K over 25 years or more, so even a 0.5% interest hike could translate into a few thousand difference every year. Better to use it to pay maintenance or to pare down loan. The loans I am involved in are fixed between 1.2 to 1.5% for the next 3 years. Until then...
MortgageGuru
09-01-15, 15:25
Yes I truly am. Usually the realization kicks in only when they counted how much extra they paid over the years.
It really depends on the quantum loaned and the tenure. But typically the loan is over 500K over 25 years or more, so even a 0.5% interest hike could translate into a few thousand difference every year. Better to use it to pay maintenance or to pare down loan. The loans I am involved in are fixed between 1.2 to 1.5% for the next 3 years. Until then...
You done your homework pretty well!
congrats on securing a low interest loan!
cheers!
wildfaye29
09-01-15, 18:18
Hi, I just kena 1.92% (1 + SOR)! It just so happens my quarterly reprice day was on the most expensive day! OUCH!
I have a 40year 1mil loan that has completed 4 years now w OCBC.
Can I still refinance?
Forest ang
09-01-15, 19:02
Hi , Mai I know if I need to engage a lawyer to full settle a private housing loan or I can simply tell the bank myself
MortgageGuru
09-01-15, 19:27
You need to serve 1-3 months written notice depending on your condition from the LO.
Forest ang
09-01-15, 20:02
Thanks. Can I do it myself by instructing the bank, or must I engage a lawyer to do it?
MortgageGuru
09-01-15, 20:55
Thanks. Can I do it myself by instructing the bank, or must I engage a lawyer to do it?
You can just do it yourself by sending the bank email.
MortgageGuru
09-01-15, 20:56
You can just do it yourself by sending the bank email.
Obviously no!
Have to be by mail and sign by borrower!
Forest ang
09-01-15, 21:05
Ok. But I was told I need a lawyer to collect the title deed from the bank. The bank wont give it to me. Is it true?
MortgageGuru
09-01-15, 21:35
No need to engage lawyer.
Can do it yourself without any cost.
Yup. Capital repayment when necessary. Banks will make more when 3-year fixed rate lapses. They are the legalized loan sharks.
Think you should read all my previous posts. Since you just joined this forum, let me tell you that I'm one who long predicted QE was ending and interest rates is on its way up. Since that's the case it's no for small gains. I'm just not cheapskate as some who tries to save a few hundred to go on a holiday. If that's an issue, I suggest you do not get yourself into that million dollar mess/loan. I keep my bankers happy by taking up a loan and with all honesty I don't care about the interest rates I'm paying. If it goes up, I can redeem it.
MortgageGuru
10-01-15, 16:09
The low rate given previously will be phased out next week and the new rate will commenced from Friday 16/1/2015. Have to submit FULL SET application to the bank before Wednesday to lock your spot.
Please PM me soon so I can help you guys arrange the banker to collect documents soonest possible to secure your loan.
The low rate given previously will be phased out next week and the new rate will commenced from Friday 16/1/2015. Have to submit FULL SET application to the bank before Wednesday to lock your spot.
Please PM me soon so I can help you guys arrange the banker to collect documents soonest possible to secure your loan.
Are the rates mentioned the standard rates from Maybank or do you have better rates as mentioned in your earlier posts? Can you PM me details? Thanks.
MortgageGuru
12-01-15, 19:13
Just received news from DBS banker that existing low rates will phase out this week too.
Latest submission Thursday.
Do PM me if you need help.
MortgageGuru
12-01-15, 21:12
On a side note.
Borrower should always manage your loan and follow on the current affairs.
Make regular visits to Association of Banks in Singapore to check on the market rates.
Always review your loan after 2-3 years, do a calculation using the offered rate against your current rate and see how much savings if you refinance.
As for commercial property owner, its even simple.
Every 2-3 years you MUST refinance your loan because commercial rates increase by a much more significant amount compared to residential.
Hope this piece of managing your loan tips will go a long way aiding you to keep your cash flow strong and steady!
Hi , my lock in 3 years end on July and when is the right time to look for refinance again ?
MortgageGuru
13-01-15, 09:32
Hi des_khor,
you can actually refinance now and serve 6 months redemption notice.
Thanks Mortgageguru for alerting me and advising me on Maybank's low rates...my banker just told me my loan approved under the prev low rates of 1.25, 1.45 and 1.55% so I dun have to worry for the next 3 years....
MortgageGuru
15-01-15, 23:19
Thanks Mortgageguru for alerting me and advising me on Maybank's low rates...my banker just told me my loan approved under the prev low rates of 1.25, 1.45 and 1.55% so I dun have to worry for the next 3 years....
Appreciate it.
In any case, Maybank banker are rushing the night now at this hour to get the loans done.
I hope that I manage to help you guys out here!
Thanks for the recognition, motivates me to post more here!
Cheers!
MAS just did a surprise move yesterday, to weaken SGD (or to be more correct, "reduce the rate of appreciation").
SGD will go down quick.
and SIBOR will go up.
This guy thinks differently: http://tradehaven.net/market/fx/a-last-word-the-end-of-higher-sibor/
I wish he is right. the market thinks differently. After the MAS statement, the SGS note auction closed today sees the yield jumping immediately :
This is today's auction result for 2Y notes:
http://www.sgs.gov.sg/~/media/SGS/SGS%20Announcements%20pdf/Bonds%20PDF/N710100Z%20Reopen%20Result.pdf
This is the last one :
http://www.sgs.gov.sg/~/media/SGS/SGS%20Announcements%20pdf/Bonds%20PDF/NY01100F%20Reopen%20Result.pdf
yield jumps from 0.47 to 0.7. This is a pure domestic SGD note no fx involved, it reflects ppl demanding higher yields from SGD money mkt instruments knowing SGD is depreciating. In secondary market the SGS notes yield jump too.
And in swap market (where DBS take you mortgage in floating and hedge to fixed rate ) the swap rate 2Y also jumps, from 0.9% to 1.1%.
I wish he is right. the market thinks differently. After the MAS statement, the SGS note auction closed today sees the yield jumping immediately :
This is today's auction result for 2Y notes:
http://www.sgs.gov.sg/~/media/SGS/SGS%20Announcements%20pdf/Bonds%20PDF/N710100Z%20Reopen%20Result.p
pdf
This is the last one :
http://www.sgs.gov.sg/~/media/SGS/SGS%20Announcements%20pdf/Bonds%20PDF/NY01100F%20Reopen%20Result.pdf
yield jumps from 0.47 to 0.7. This is a pure domestic SGD note no fx involved, it reflects ppl demanding higher yields from SGD money mkt instruments knowing SGD is depreciating. In secondary market the SGS notes yield jump too.
And in swap market (where DBS take you mortgage in floating and hedge to fixed rate ) the swap rate 2Y also jumps, from 0.9% to 1.1%.
Too chim.
I wonder Does it mean that sibor will only go higher or lower?
I only understand Singapore interest rates are tied to the strength of the US dollar and will move further up even in the absence of rate hikes from the US Federal Reserve.
Wouldn't this move hurt the property market even further?
No Lah, interest rate go up more people have money, they go out and spend.
Once interest rate goes up to 3% or more, Singaporeans will hoard money in Fixed Deposits (as usual), kiao ka do nothing and collect FAT INTERESTs and ZERO RISK!
Who so stupid to give them such deal with so much SGD deposit and liquidity sloughing around? For that, if I am quite sure interest rate won't go up too much in Singapore! 3M SIBOR unlikely to go up above 2% by 2017...... :teapot:
No Lah, interest rate go up more people have money, they go out and spend.
The whole world talking about interest rate going up, we should also follow.
Durian dropping quick get ready.......
Too chim.
I wonder Does it mean that sibor will only go higher or lower?
Higher....
Although in all honesty, "higher" is relative. A yield from 0.47 to 0.7 is a massive 50%, but the magnitude is just 0.23. It matters more to fix income funds holding large amt of SGS bonds as this is an immediate MTM loss. But for average mortgage payment, the increase is negligible. SIBOR will go up, but IMO it will take a very long time to reach back 3-4% level. All other central banks are lowering rates, and even the fed dare not raise rate too fast or too high to jeopardize the fragile US recovery.
wah sianz liao.. the good times of super low interest rate is over..
Over liao loh!
SGD drop means SIBOR and SOR up! :panda:
This will help banks like DBS etc to earn more money from higher SIBOR and SOR!
All you property owners WILL DIE PAIN PAIN!!!!
wah sianz liao.. the good times of super low interest rate is over..
proud owner
30-01-15, 22:58
Over liao loh!
SGD drop means SIBOR and SOR up! :panda:
This will help banks like DBS etc to earn more money from higher SIBOR and SOR!
All you property owners WILL DIE PAIN PAIN!!!!
Sibor should still be lower than SOR ...
I never like SOR ... USD IR up ... USD/SGD up ...SOR chiong ....
I suppose so...............
There will always be times when SIBOR is higher than SOR (like 1-2 years ago) but that was when SGD is appreciating against USD. When the trend reverses, SIBOR should always be lower than SOR..........
Sibor should still be lower than SOR ...
I never like SOR ... USD IR up ... USD/SGD up ...SOR chiong ....
Remember, do not pay up the loan when you have cash....Use the cash to generate money more than the interest rate....
When u pay up the loan, assuming when u are 65 and need money, do you think you can mortgage your house????? Check it out.
The rates are so low now.... Look at past rates.... This are great times if you know what to do with cash.... If you don't know what to do with cash, please pay up your loan and don't invest......
There are always choices.... No one way is correct....
Remember, do not pay up the loan when you have cash....Use the cash to generate money more than the interest rate....
When u pay up the loan, assuming when u are 65 and need money, do you think you can mortgage your house????? Check it out.
The rates are so low now.... Look at past rates.... This are great times if you know what to do with cash.... If you don't know what to do with cash, please pay up your loan and don't invest......
There are always choices.... No one way is correct....
A very plausible view.
A good friend of mine has an interesting way to look at this in the reversed way. He advises to keep putting money max in SRS account until retirement.
So two opposite strategies here:
1. Hold cash, properties and max loan.
2. Zero loan and pay CPF until retirement.
I think both have their merits.
A very plausible view.
A good friend of mine has an interesting way to look at this in the reversed way. He advises to keep putting money max in SRS account until retirement.
So two opposite strategies here:
1. Hold cash, properties and max loan.
2. Zero loan and pay CPF until retirement.
I think both have their merits.
Bro, put max srs if income tax is at top bracket.... If not, not worth it.
Cpf - will the ceiling keep rising???? Cpf money will be locked till what age??? If a person don't mind having cpf locked in - sure, by all means....
Some people sleep well with no loans.... I used to be like that. Hahahahaha.... Not anymore....
I have another friend who wants to house everyone under same roof. So he needs to find a landed property with many bed rooms. The budget is $4mio and he can easily buy a semi-d freehold. But he very heart ached to pump 4mio into a house as the 4mio could generate more income through other investment. So in the end, he asked his agent to help him look far an old corner terrace with only 30+years left. Paid 400+k (if I remember correctly) and another 100+k to renovate. Remaining 3+ mio go and invest in stocks, bonds.. he retires in luxury now with all the coupons, fees collected....
My thought to him was not many people know how to invest, so sometime better buy the 4mio semi-d and let it appreciate overtime...
Different strokes for different person.
flagship74
12-02-15, 19:42
i rather use the $$$ loan to people..20% interest and why not?
WARNING!!! ALERT!!!
Interest rates is increasing across the board. I'm not helping TS clinch more business but rather, offering a piece of advise here -- if you can't pay, don't buy.
Property market is done!
POSB offering 1.88% 12mth FD when others are offering 1.4%. No terms attached and min deposit is 1k. What do the banks know that we don't?
http://www.posb.com.sg/personal/promotion/savings-promo
What go up will come down.
Did the World change over night ?
US have stop printing money and EU take over the printing.
US dollar become stronger and oil price reduce by 50%, did US debt become less over night ?
Japan is still printing and China is still printing, so is the world having less money or more money ?
Iphone is still make in Taiwan not US.
Earning from US company is less due to exchange rate.
US company is still in oversea tax haven.
What have change is still no change.
So those taking DBS FHR housing loan will DIE because need to pay FHR+1.25% = 3.13% (FHR = 12mth FD !!!!!)?
WARNING!!! ALERT!!!
Interest rates is increasing across the board. I'm not helping TS clinch more business but rather, offering a piece of advise here -- if you can't pay, don't buy.
Property market is done!
POSB offering 1.88% 12mth FD when others are offering 1.4%. No terms attached and min deposit is 1k. What do the banks know that we don't?
http://www.posb.com.sg/personal/promotion/savings-promo
Tell the Greece interest Rate is going up and see how they react.
https://www.youtube.com/watch?v=KC3gJYoEMiY
Allthepies
15-02-15, 12:56
Think DBS FHR is tied to fixed deposit rate, the 1.88% promotion is for saving account, FHR still safe for now : )
So those taking DBS FHR housing loan will DIE because need to pay FHR+1.25% = 3.13% (FHR = 12mth FD !!!!!)?
My banker informed me that UOB has just upped their saving/FD rate. As for DBS, just wait for them to update their FD rate. But in any case, the 1.88% promo is already a form of FD.
Think DBS FHR is tied to fixed deposit rate, the 1.88% promotion is for saving account, FHR still safe for now : )
Normally FD is above savings, so DBS might just up their FD in due time.
DBS FHR housing loan is interesting, but I am concerned of 2 things:
1) FHR rate is entirely up to DBS, if you get locked in and they arbitrarily increase, you can only cry father and cry mother but can't do anything about it! (In comparison, SIBOR is set by many participating banks and closely watched by MAS...)
2) spread is bigger than SIBOR
So, even if FHR is same as SIBOR, FHR loan will still be more expensive!
Normally FD is above savings, so DBS might just up their FD in due time.
wildfaye29
17-02-15, 08:19
Stress leh, currently signing up for a DBS FHR package.
MortgageGuru
17-02-15, 08:56
The good thing about FHR is that it takes the last 12 & 24 months average as benchmark.
So even if the rates were to increase, you're still given ample time to take due course of action.
FHR there's no lock in, please do not be misunderstood.
In the current market, FHR is still one of the best rate for floating.
MortgageGuru
09-03-15, 17:16
3M SIBOR hit 0.8%.
It's expected to further hit 0.9% once first quarter ends, and further rise to above 1% by end of year but MortgageGuru forecast by July, 1% will be the new 3M SIBOR.
proud owner
22-03-15, 21:08
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MortgageGuru
23-03-15, 18:16
With SIBOR hitting 1% soon, there's no doubt that holder of SIBOR/SOR borrowers are feeling the pinch now.
Fixed rates are increasing higher and higher and there won't be much savings in this case.
The solution now is to refinance to the lowest board rate in the market now, only if you use it for investment purpose as low fixed rate in the market like RHB doesn't accept investment property.
I've recently tied up with suitecapital, which is one of the advertiser here as you can see in the forum.
You may contact me directly for lower rate instead of walk-in standard rate.
We help you get the best package, allowing your cash flow to be stronger to expand your wealth!
cheers!
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