If you yet to refinance your loan yet...

[MortgageGuru]

Despite missing on the low interest now and complaining about the new rates of 1.65,1.75,1.85 being high with not much savings.
Start to prepare yourself to pay above 2% monthly on your instalment.
I'll update you guys on which rate to go for if you've missed the current boat.
Please PM me to see how I can help you avoid the next jump on interest.

[MortgageGuru]

Below is a few important documents you'll need to get ready when you refinance.

If your loan has 3 people name, you'll need all 3 of their information.
If its 2, you'll need 2 then.
How many people's name is in it, you'll have to get all of them, as simple as that.

Next, I'll do a list point on the information that you'll need.

•singpass, very important!
This helps you to get all your documents from government portal.

•Identification
Straightforward!

•last 3 month's payslip
Simple, straightforward, just make sure has your company header and is recognised.

•Notice of Assesment
Make sure you report your income tax!

•outstanding loan statement balance
Always keep a copy of the statement sent to you by the bank.keep it in a file.
Having all the documents in standby will help your refinance go a long way!
Note: if you're using I-banking, make sure it states your name in it and the relevant mortgage loan with the name on it. Some bank do not have your name on it and the mortgage loan property as well.
So it's better to keep your hard copy!

•credit card
Always pay your credit card on time, if you don't, you risk the wrath of having a bad credit.
Having a bad credit reputation means you're having a higher chance of rejection for your loan.
Make sure you keep a copy of the statement that bank send to you monthly.
And cancel away all other credit card facility if you do not use them.
No statement for your credit card will mean you're subjected to 2-4 times of your salary multiply by 3% as your commitment which result in a higher percentage of breaching TDSR.

•Tenancy agreement
Always make sure your tenancy is more than six month,
If its not, then get ready to recruit new tenant so that you don't miss out any rental income.
This help your TDSR very much!
Note: rental income is only considered 70%.

•Loan statement
Be it housing loan, car loan, study loan and so on. Get all your loan statement standby as without any of it, you definitely can't take up the loan.

•Letter of Offer
The most important document to have when you want to refinance, if you don't have it, we won't know if you are still in any lock-in or any conditions. After acceptance of your new loan, you'll be paying the penalty if there's any.
Note: your new bank won't be bothered if you're in any lock-in as it does not concern them, their objective is just for you to sign it and earn your money.

Lastly, signing of any forms does not bind you anything as its all not legal binding until you sign your new LO!
And always monitor your loan, and ask yourself if its time to manage it when it's out of lock-in.
Hopefully this information helps you guys.
Cheers!

[Regulators]

Locked in at 1.38% with DBS recently. Last I heard they no longer offer this rate.

[MortgageGuru]

Locked in at 1.38% with DBS recently. Last I heard they no longer offer this rate.

Yes! No more!

Good rate in this current market, at least cover yourself well so cash flow not affected!

[bullman]

Locked in at 1.38% with DBS recently. Last I heard they no longer offer this rate.

I locked in at the same rate too last year. However, its only for 3 years. On hindsight, should have chosen the 5 years fixed rate at 1.68%

[lifeline]

just to add on:

tenancy agreement must be stamped to be recognised. got to show the certificate of stamp duty.

[bargain hunter]

i've heard of this from the banker before but not sure what it means. does it mean the tenancy agreement itself must be brought to iras and stamped? or they will issue u a seperate certificate of stamp duty? how much is the fee?


just to add on:

tenancy agreement must be stamped to be recognised. got to show the certificate of stamp duty.

[MortgageGuru]

i've heard of this from the banker before but not sure what it means. does it mean the tenancy agreement itself must be brought to iras and stamped? or they will issue u a seperate certificate of stamp duty? how much is the fee?

Yes! Forgotten about the stamp duty!
You'll need stamp duty which is usually paid by the tenant.
You can ask your agent to send to you. They definitely will have it.
Unless you didn't get it stamped when you lease out.

[lifeline]

i've heard of this from the banker before but not sure what it means. does it mean the tenancy agreement itself must be brought to iras and stamped? or they will issue u a seperate certificate of stamp duty? how much is the fee?


stamp duty on tenancy is paid by tenant to iras. agent will get it paid... can be done online. then agent will email you the pdf copy.

http://www.iras.gov.sg/irasHome/page04.aspx?id=2132

[bargain hunter]

thanks for the prompt reply bros. should be no issue. will look for mortgageguru in 2017. :)

[MortgageGuru]

thanks for the prompt reply bros. should be no issue. will look for mortgageguru in 2017. :)

6 months in advance before you're out of lock-in :)

Remember there's a need to serve 3 month notice in general cases.

[Regulators]

I regretted not going for floating past few years. The ideal situation would have been to do floating all the way till now and convert to fix thereafter.


I locked in at the same rate too last year. However, its only for 3 years. On hindsight, should have chosen the 5 years fixed rate at 1.68%

[bargain hunter]

its really hard to time, i think last year would have been alright. but by then max we can fix is 3 years at low rates? 5 years fixed rates had increased by then.


I regretted not going for floating past few years. The ideal situation would have been to do floating all the way till now and convert to fix thereafter.

[wildfaye29]

Would like to check on fixed rate packages using local banks' board rates.

OCBC quote board rate of 4.5% (unchanged for a decade) less a discount.

Currently its 3 year lock-in @ 1.28%, 1.48%, 1.78%.

Other banks have such a package using their own board rates too.

Question is, will this rate move? In this economic uncertainty?

Any insight from the gurus' here?

Thanks All!

[MortgageGuru]

Would like to check on fixed rate packages using local banks' board rates.

OCBC quote board rate of 4.5% (unchanged for a decade) less a discount.

Currently its 3 year lock-in @ 1.28%, 1.48%, 1.78%.

Other banks have such a package using their own board rates too.

Question is, will this rate move? In this economic uncertainty?

Any insight from the gurus' here?

Thanks All!

Board rate in general is quite stable, not often that they revise it.

Most bank offers board rate too, its a norm in commercial loan that borrowers take up a board rate, its also called variable as well.

The only catch is you definitely have to refinance after your 3rd year as it will be much higher that the market rate.

For example, most of you who took up board rate for BUC property, you definitely have to do a refinance when you're out of lock-in, else you'll be paying unnecessary to the bank, most owner perceived that when bank revised the interest rate higher, they're paying abit higher on the monthly instalment, but don't know that its actually taking more of the principle amount to pay on the interest which is plain stupid.

This only helps the rich to get richer while the poor are actually the heroes behind the great time stories the rich enjoyed.

[bullman]

its really hard to time, i think last year would have been alright. but by then max we can fix is 3 years at low rates? 5 years fixed rates had increased by then.

The 5 years @1.68% promotion floated in and out of the market. I was able to fix 2 loans at that rate but was too late for the 3rd one. Will be subjected to the wrath of the market rate in 2017.

[MortgageGuru]

The 5 years @1.68% promotion floated in and out of the market. I was able to fix 2 loans at that rate but was too late for the 3rd one. Will be subjected to the wrath of the market rate in 2017.

You can still get yourself into fixed rate now!

[Allthepies]

I hope the 5 years fixed rate @ 1.68% will become available when my turn to refinance.

SOR seems to have come back down though.

[lajia]

what was the lowest fixed rate last yr, any idea?


its really hard to time, i think last year would have been alright. but by then max we can fix is 3 years at low rates? 5 years fixed rates had increased by then.

[MortgageGuru]

Based on current market, maybank is no longer the best package to take up.

[wildfaye29]

So which bank has the best rate now?

[Regulators]

You can try asking dbs if they can still offer you 1.38% 2yr fixed


So which bank has the best rate now?

[MortgageGuru]

DBS can't get 1.38 anymore.
They yet to finalise on the new rate too.

[ahsoh88]

DBS can't get 1.38 anymore.
They yet to finalise on the new rate too.

Hi,Does anyone know about UOB best rates for re-pricing ? thanks

[MortgageGuru]

Hi,Does anyone know about UOB best rates for re-pricing ? thanks

Re-pricing is usually up to the bank to quote you, different people have different pricing.
What's the rate UOB quote you and how much do you have to pay for the admin fees?

[bargain hunter]

not sure if mortgageguru could have gotten a better rate then but if u walk in, it would have been 1.2, 1.3, 1.5 for 1st 3 years.


what was the lowest fixed rate last yr, any idea?

[ahsoh88]

Re-pricing is usually up to the bank to quote you, different people have different pricing.
What's the rate UOB quote you and how much do you have to pay for the admin fees?

Currently quoted lock in for 2years based on board rate at 1st year 1.28% , 2nd year 1.68%, 3rd year 2.65%
for fixed rate package is 1.88% for 2 years and 3.75% (3rd year). what is yr advise ? thanks

[MortgageGuru]

Currently quoted lock in for 2years based on board rate at 1st year 1.28% , 2nd year 1.68%, 3rd year 2.65%
for fixed rate package is 1.88% for 2 years and 3.75% (3rd year). what is yr advise ? thanks

Just the third year itself is a definite no already.
You still yet to take into consideration that there'll be $800 admin fee too.

[Regulators]

This fee can be negotiated to a lower sum. I got mine reduced to $500.


Just the third year itself is a definite no already.
You still yet to take into consideration that there'll be $800 admin fee too.

[MoneyGuru]

According to my UOB Banker,
They just launched a BUC Package that claimed to be strongest in the Market now..

No Lock In
1st Year: 1.1%
2nd Year: 1.22%
3rd Year: 1.28%
4th Year: 1.40%
5th Year Onwards: 1.98%

With 2 free conversions meaning client can convert to another package once the loan is disbursed and second time will be between the 3months after TOP.

PM me if this helps.. Will refer you to my banker!

**Sorry Mortgageguru, I chose my Moneyguru nick without knowing your nick exists! I'm a ppty salesperson, so hope ppl don't confuse us :D

[lajia]

wa more and more guru in the forum which is good for us...below quoted looks strongest I think.... but what about those already TOP? the valuation and legal fee? I believe these are the two which we need to pay for refinance right?


According to my UOB Banker,
They just launched a BUC Package that claimed to be strongest in the Market now..

No Lock In
1st Year: 1.1%
2nd Year: 1.22%
3rd Year: 1.28%
4th Year: 1.40%
5th Year Onwards: 1.98%

With 2 free conversions meaning client can convert to another package once the loan is disbursed and second time will be between the 3months after TOP.

PM me if this helps.. Will refer you to my banker!

**Sorry Mortgageguru, I chose my Moneyguru nick without knowing your nick exists! I'm a ppty salesperson, so hope ppl don't confuse us :D

[MortgageGuru]

This is indeed a very good rate.
Anytime there's a revision on their rate, you can switch to other bank too.

[wildfaye29]

OCBC quote a BR less disc for a 3 year lock-in

1) 1.28%
2) 1.48%
3) 1.78%

Average of 1.51%

Also the reprice fee is reduced from $1K to $400.

----

Would like to check is it possible to negotiate with the bank for better reprice rates and waiver of reprice fee?

[MortgageGuru]

OCBC quote a BR less disc for a 3 year lock-in

1) 1.28%
2) 1.48%
3) 1.78%

Average of 1.51%

Also the reprice fee is reduced from $1K to $400.

----

Would like to check is it possible to negotiate with the bank for better reprice rates and waiver of reprice fee?

Take it!
If they're able to give you fixed rate, will be better!

[CondoWE]

According to my UOB Banker,
They just launched a BUC Package that claimed to be strongest in the Market now..

No Lock In
1st Year: 1.1%
2nd Year: 1.22%
3rd Year: 1.28%
4th Year: 1.40%
5th Year Onwards: 1.98%

With 2 free conversions meaning client can convert to another package once the loan is disbursed and second time will be between the 3months after TOP.

PM me if this helps.. Will refer you to my banker!

**Sorry Mortgageguru, I chose my Moneyguru nick without knowing your nick exists! I'm a ppty salesperson, so hope ppl don't confuse us :D

If the loan is 25 years, do you mean 5th yrs to 25th years locked at 1.98%?

[Arcachon]

reprice and refinance again after 5 years.

[MoneyGuru]

If the loan is 25 years, do you mean 5th yrs to 25th years locked at 1.98%?

No idea, please check with my banker if you like! PM me for his details.thanks!

[wildfaye29]

DBS quoted a fixed rate of 1.88% for my reprice! Is this the best rate by DBS now?

[kskong2000]

Need advice from the expert here. My loan is with UOB and link to SOR rate. My loan rate is close to 2%. The good point of my loan is that my deposit can enjoy same rate as my loan up to 75% of the Lian value and currently I ledge deposit up to 75% . Is there any better loan package for my case. Thank you

[wildfaye29]

DBS has another package which is FHR (Fixed Deposit Home Rate)

1st FHR +0.95 =1.35
2nd FHR +1.05 =1.45
3rd FHR +1.25 = 1.65

Current FHR is 0.4%. How often does DBS' FHR change? Is it safe to take this FHR package? Will FHR increase?

Any help appreciated!

[Regulators]

This package seems not bad. You can go ahead.


DBS has another package which is FHR (Fixed Deposit Home Rate)

1st FHR +0.95 =1.35
2nd FHR +1.05 =1.45
3rd FHR +1.25 = 1.65

Current FHR is 0.4%. How often does DBS' FHR change? Is it safe to take this FHR package? Will FHR increase?

Any help appreciated!

[wildfaye29]

The previous 2 rates expired!

Tdy DBS quoted:

Fixed 3 yr lockin @ 1.78 for 3 yrs.

Floating no lockin @ FHR +1.05 for 3 yrs (i.e. 1.45)

[wildfaye29]

I hear UOB incr their BR from 4.5% to 4.8%!

[MortgageGuru]

Yes UOB has increased their board rate, very soon others will follow suit.
Prevailing UOB residential board rate is at 4.8% now.

[Arcachon]

http://www.bloomberg.com/news/videos/2015-02-23/is-another-recession-looming-for-the-u-s-

[Allthepies]

This time very strange phenomenon, long term rate is falling, short term is rising.

[Arcachon]

Let see how long it can go. QE4 is coming end of the year.

[henryhk]

So wat is the net interest rate for uob ?

[Arcachon]

Give up looking at the interest rate, pray hard for the interest to drop.

Should have enough for 3.5% interest rate.

[MortgageGuru]

Quietly, 3M SIBOR has risen up from the 0.65% area to 0.8%.

Expect a 0.2% increase by April to hit 1%.

For borrowers who are still on SIBOR, beware and be ready!

Bank adjustment will be soon again!

[Allthepies]

Still floating around due to locked in.

Hope don't cross 4% so soon, my threshold is 4% : (

[MortgageGuru]

Oh yea your girlfriend told me you just attained top.

[teddybear]

Did you see wrongly? 3M-SIBOR should be 0.703% now (not 0.8%).
3M-SOR is now 0.895%.


Quietly, 3M SIBOR has risen up from the 0.65% area to 0.8%.

Expect a 0.2% increase by April to hit 1%.

For borrowers who are still on SIBOR, beware and be ready!

Bank adjustment will be soon again!

[MortgageGuru]

Thanks for correcting me! didn't realised i posted 0.8, it should be 0.7%

[MortgageGuru]

3M SIBOR up again to 0.73%
3M SOR is in a new high of 0.94%

[MortgageGuru]

News will be spreading that SOR hitting 1% after so many years soon.

[wildfaye29]

I got a 3 yr lock-in for 1M Sibor w Std Chart. Damn sianz. every mth increase.

Got until mar 2017 than can reprice/refinance.

[wildfaye29]

Can Term Loans (property used as collateral) be refinanced?

Does the MAS rules affect such loans. These are not 'Propety Loan' or Housing Mortgage Loan'.

[MortgageGuru]

Yes they can be refinanced but still subjected to TDSR.

[mummy]

Can Term Loans (property used as collateral) be refinanced?

Does the MAS rules affect such loans. These are not 'Propety Loan' or Housing Mortgage Loan'.

I refinanced my equity loan with my mortgage loan with Maybank...

[wildfaye29]

I refinanced my equity loan with my mortgage loan with Maybank...

Does the MAS rules on LTV apply? As it is not a Housing Loan, are they more lax in granting it as it doesn't fall into the framework?

[mummy]

Does the MAS rules on LTV apply? As it is not a Housing Loan, are they more lax in granting it as it doesn't fall into the framework?

Yes, I think they still apply as had to pay valuation fees...

[wildfaye29]

Yes, I think they still apply as had to pay valuation fees...

Hi, I tried to PM to get more info, but your PM box is full.

[mummy]

Sorry, not sure how to use this new interface, dunno how to clear my messages. You can askme here. I dun mind sharing.

[wildfaye29]

Sorry, not sure how to use this new interface, dunno how to clear my messages. You can askme here. I dun mind sharing.

Oh Ok, if you dun mind. :)

1) Your existing property is mortgaged (actual housing loan) to Maybank and the Term loan is also with Maybank?

2) You have only 1 property?

3) Did you use CPF for the repayment of the actual housing loan?

4) When did you first obtain the term loan? Was it before or after the LTV cooling measure on 2nd property?

5) How did Maybank compute the Term loan amount that they grant to you? Was it:

i) Valuation price less CPF(include accrued interest) x their specific LTV?
Eg: (1M - 400K) x 60%? = 360K

ii)Valuation price x their specific LTV less CPF(include accrued interest)
Eg: (1M x 60%) - 400K = 200K?

If not the above, may I know their basis of computing the loan they grant to you?

6) For the granting of the Term Loan, did the bank compute the LTV based on the revised LTV for 2nd/subsequent property?

Sorry for the many questions, because the banks that I have asked are all giving me different answer and very mind boogling.

Valuation fee must be paid because they wan to determine the street value of the property in order to compute the maximum Term Loan that can be granted to you. :)

Hope to hear from you soon.

Cheers!

[mummy]

I have 3 properties. Main one which I live in is a terrace house bought for 1.1 mil, loan 550k left with uob, this terrace so far all paid in cash, no cpf used. Another is a MM 1 bedder condo using cpf, with ocbc mortgage. So term loan was with uob when terrace valuation in 2013 was 2 million. If I remember correctly, they used 60 percent of 2mil, minus 600k outstanding loan of terrace then minus about 200k we used in cpf for our MM to give us 400k equity loan which we then used to buy a jb semid. We refinanced our terrace loan and equity loan with uob to Maybank recently.

[wildfaye29]

I have 3 properties. Main one which I live in is a terrace house bought for 1.1 mil, loan 550k left with uob, this terrace so far all paid in cash, no cpf used. Another is a MM 1 bedder condo using cpf, with ocbc mortgage. So term loan was with uob when terrace valuation in 2013 was 2 million. If I remember correctly, they used 60 percent of 2mil, minus 600k outstanding loan of terrace then minus about 200k we used in cpf for our MM to give us 400k equity loan which we then used to buy a jb semid. We refinanced our terrace loan and equity loan with uob to Maybank recently.

Thanks for the info! Appreciate it!

Its strange the bank considered the other pty's CPF usage, I thought since its separate pty, the CPF usage will be disregarded.

Now my quest is to get a bank to grant a term loan!

[mummy]

But take note that we r not allowed to use equity term loan to purchase local property though unsure how strict they r about this rule.

[2824]

Just curious, is a term loan cheaper than an outright loan on a single property?

[wildfaye29]

But take note that we r not allowed to use equity term loan to purchase local property though unsure how strict they r about this rule.

buy car can? cheaper than car loan. lol

[mummy]

I think buy car should be ok...:)

[Sandiwara]

I have 3 properties. Main one which I live in is a terrace house bought for 1.1 mil, loan 550k left with uob, this terrace so far all paid in cash, no cpf used. Another is a MM 1 bedder condo using cpf, with ocbc mortgage. So term loan was with uob when terrace valuation in 2013 was 2 million. If I remember correctly, they used 60 percent of 2mil, minus 600k outstanding loan of terrace then minus about 200k we used in cpf for our MM to give us 400k equity loan which we then used to buy a jb semid. We refinanced our terrace loan and equity loan with uob to Maybank recently.

:encouragement::encouragement:

[MortgageGuru]

No. It's the same usually.
term loan in this case, it's because your property value increase higher, you're able to cash-out from it. Which means that let's say you bought a property at 1M.
you took up a 80% loan at 800k.
In the case that you did not utilise cpf to fund this purchase.

After maybe 5 years later, your outstanding loan is left with 700K, the valuation of your property increased to 1.2M.

You can cash-out on it meaning taking up a higher loan.
80% of 1.2M = 960K
960K minus away your outstanding loan of 700k, you have 260K cash in hand.

And your new outstanding loan amount will be 960k.
note that if you have utilised cpf, you have to deduct accordingly for the cpf amount you have withdrawn.

[MortgageGuru]

Yes you can! That's what most people do!

[Arcachon]

Buy asset or liability with cash out got to do the sum right, otherwise when the property value drop Bank might hello hello you.

[MortgageGuru]

Unless is a drastic drop, otherwise bank will only call for a margin call if you have a history of not servicing your monthly instalment on time.

[henryhk]

Did u rent out your jb semi D ? Can cover interest?

[mummy]

Yes, renting it out soon. Tenants moving in next mth. Rm2500 so about $950. Definitely can cover interest though not the full mortgage cause 100% loan.

[MortgageGuru]

After mourning for a week for our dear founding father Mr Lee Kuan Yew, its time to hedge yourself against the fast rising interest.
Standard package of 3M SIBOR/SOR soared to 1% high by the end of 1st quarter in 2015, instead of end of 2015 as forecast by many economist and bankers.
If you're still in any of this package, start to do your calculation and assess what's your protection plan to keep your family and you safe from unbearable high interest charge.
You wouldn't want to leave your family in heavy debt should any unforeseen or unfortunate event falls upon you.
Insurance package ranging from Universal Life for high net worth portfolio individual should start to be part of your plan, securing your loved ones a future.
Financing can be as high as 100% from banks and you don't even need to fort out money to protect yourself, no need to worry about loan tenor being shorten when you are ageing on.
How does it works? PM me for more information on how it can help you then for a detailed explanation!
Glad to be sharing another column here with fellow forum members!

[proud owner]

After mourning for a week for our dear founding father Mr Lee Kuan Yew, its time to hedge yourself against the fast rising interest.
Standard package of 3M SIBOR/SOR soared to 1% high by the end of 1st quarter in 2015, instead of end of 2015 as forecast by many economist and bankers.
If you're still in any of this package, start to do your calculation and assess what's your protection plan to keep your family and you safe from unbearable high interest charge.
You wouldn't want to leave your family in heavy debt should any unforeseen or unfortunate event falls upon you.
Insurance package ranging from Universal Life for high net worth portfolio individual should start to be part of your plan, securing your loved ones a future.
Financing can be as high as 100% from banks and you don't even need to fort out money to protect yourself, no need to worry about loan tenor being shorten when you are ageing on.
How does it works? PM me for more information on how it can help you then for a detailed explanation!
Glad to be sharing another column here with fellow forum members!


i have warned of rising interest rates for a few months already ....

just like i have reasoned why i feel some cooling measures may be lifted, sooner than many anticipate ...

[MortgageGuru]

i have warned of rising interest rates for a few months already ....

just like i have reasoned why i feel some cooling measures may be lifted, sooner than many anticipate ...

Yes I do agree on cooling measures to be lifted soon, many are experiencing high interest rate impact, especially people approaching retirement which restricts their tenor to be stretch longer.

[lajia]

and that everyone also know the only unknown is the timing....did anybody tells u the sibor is going to drop within the next few days or weeks?? :numbness:

the 1% sibor is reality and it should stabilize around this even by end of 2015. we cannot be running ahead of the FED and our economy...:2cents:


i have warned of rising interest rates for a few months already ....

just like i have reasoned why i feel some cooling measures may be lifted, sooner than many anticipate ...

[yowetan]

Currently which bank is offering good fixed rate? My existing bank is offering 2 years fixed only at 1.58% and thereafter floating with sibor rate. The increasing sibor is stirring something in my chaotic head now.

[MortgageGuru]

and that everyone also know the only unknown is the timing....did anybody tells u the sibor is going to drop within the next few days or weeks?? :numbness:

the 1% sibor is reality and it should stabilize around this even by end of 2015. we cannot be running ahead of the FED and our economy...:2cents:

Can't agree on that we can't be running ahead of FED, because the fact is that we're already ahead.
As for 1% sibor being stabilised, can't agree either.
FED yet to even increase interest rate and we're already being hit, end of year definitely SIBOR to be at 2% and July will be at least 1.3%.

[teddybear]

The SIBOR jump appears "kelong" to me, given that FD rate don't seem to have moved at all.............
I wonder whether MAS will look into this?
MAS is not known to be pro-active, given precedent like Lehman case where DBS compensates HK clients fully but not SG clients...................


Can't agree on that we can't be running ahead of FED, because the fact is that we're already ahead.
As for 1% sibor being stabilised, can't agree either.
FED yet to even increase interest rate and we're already being hit, end of year definitely SIBOR to be at 2% and July will be at least 1.3%.

[MortgageGuru]

The SIBOR jump appears "kelong" to me, given that FD rate don't seem to have moved at all.............
I wonder whether MAS will look into this?
MAS is not known to be pro-active, given precedent like Lehman case where DBS compensates HK clients fully but not SG clients...................

Do agree it seems abit illogical as FED yet to increase.
but we've seen it before it takes some time to drop after leh man case. So climbing upwards in advance is not that shock after all as consumer is always at the receiving end.

[ggmount]

Currently which bank is offering good fixed rate? My existing bank is offering 2 years fixed only at 1.58% and thereafter floating with sibor rate. The increasing sibor is stirring something in my chaotic head now.


I also interested to know !

Or anyone who recently refinance can share?

[leesg123]

Gurus, is FHR recommended now over Sibor? DBS banker told me they apply tdsr too, even for refinancing, which I told them MAS says no. Am I correct??

[Kelonguni]

Gurus, is FHR recommended now over Sibor? DBS banker told me they apply tdsr too, even for refinancing, which I told them MAS says no. Am I correct??

MAS has an exemption clause for TDSR until 30 June 2017 if you meet certain criteria, such as owner occupied

[MortgageGuru]

MAS has an exemption clause for TDSR until 30 June 2017 if you meet certain criteria, such as owner occupied

Yes.
good explanation there.

[gavan]

I am one of the Citibank customer that is affected.
I want to go for collective loan with other bank
I created facebook group "Singapore home grouploan"
Welcome all person to join me and any interested borrower to join.
Hope grouploan work as well as groupbuy.
Cheers!!!

[amk]

Gurus, is FHR recommended now over Sibor? DBS banker told me they apply tdsr too, even for refinancing, which I told them MAS says no. Am I correct??

MAS "exemption": yes owner occupied ones. but banks can choose not to "exempt" a case. it's at bank's option. i.e. if the bank likes you. :)

FHR is new, no track record to speak about. You need to know the composition of FHR itself is not guaranteed. I think it's less transparent than SIBOR. but it's DBS, Temasek bank. *maybe* it's more ethical than the others.

I still prefer SIBOR as it is more transparent. never mind the fixing process now which needs improvement, but I'm pretty sure when ICE makes the major move on Libor, SIBOR will follow quickly.

[teddybear]

I noticed that FHR long-term spread (from Year 3 or 4 onwards) has been increasing like crazy!
It was previously 1.25% and now it has been increased to 1.6%.

Whether FHR is worth is or not will depends on FHR difference from SIBOR and their respective spreads.

I would generally gauge that:

If ((SIBOR - FHR) + SIBOR_spread < FHR_spread

then SIBOR loan is cheaper.
Otherwise FHR loan may be more worth it, assuming both FHR and SIBOR should move together (theoretically).



MAS "exemption": yes owner occupied ones. but banks can choose not to "exempt" a case. it's at bank's option. i.e. if the bank likes you. :)

FHR is new, no track record to speak about. You need to know the composition of FHR itself is not guaranteed. I think it's less transparent than SIBOR. but it's DBS, Temasek bank. *maybe* it's more ethical than the others.

I still prefer SIBOR as it is more transparent. never mind the fixing process now which needs improvement, but I'm pretty sure when ICE makes the major move on Libor, SIBOR will follow quickly.

[MortgageGuru]

MAS "exemption": yes owner occupied ones. but banks can choose not to "exempt" a case. it's at bank's option. i.e. if the bank likes you. :)

FHR is new, no track record to speak about. You need to know the composition of FHR itself is not guaranteed. I think it's less transparent than SIBOR. but it's DBS, Temasek bank. *maybe* it's more ethical than the others.

I still prefer SIBOR as it is more transparent. never mind the fixing process now which needs improvement, but I'm pretty sure when ICE makes the major move on Libor, SIBOR will follow quickly.

FHR past 10 years historical high is only at 0.875, SIBOR was at 7.75 at the same period of time.

True that FHR is only introduced in the market a couple of years only and we won't be able to see the long term track record.
But since its from government bank, what are the chances of government killing its country people?

[teddybear]

FHR highest 0.875%? Thought I have received 3.2% FD before?


FHR past 10 years historical high is only at 0.875, SIBOR was at 7.75 at the same period of time.

True that FHR is only introduced in the market a couple of years only and we won't be able to see the long term track record.
But since its from government bank, what are the chances of government killing its country people?

[MortgageGuru]

I have the graph clearly stating that FHR was at highest 0.875 in 2005.
your FD probably is more than 10 years ago?

[sabian]

Highest is 0.875 in 2005 is bec of deliberate low interest rate policy regime.

What happens when policy is reversed?

Housing loan is long term marathon.

[newbie11]

Dbs state they do not track prior to 2007.

[MortgageGuru]

It's about time you check with a higher personnel in dbs then.
I have the historical graph from 2005.
people who know me in here knows that my dbs network is my strongest network of all bank.

[teddybear]

past 10 years historical high for SIBOR was at 7.75%?
Did you make a mistake?
Please look at the attached chart. 3M SIBOR highest in past 10 years was only about 3.5%!
10065



FHR past 10 years historical high is only at 0.875, SIBOR was at 7.75 at the same period of time.

True that FHR is only introduced in the market a couple of years only and we won't be able to see the long term track record.
But since its from government bank, what are the chances of government killing its country people?

[amk]

FHR past 10 years historical high is only at 0.875

You cannot make such statement. FHR does not exist prior to 2014.

What you are saying, is a *simulated back testing" result. That is, if we simulate a FHR in the past, with *current promotional composition*, which is subjected to change anytime, what it *would have been* for the past x years.

This is akin of selling a new fund, and saying according to the fund's "current composition", it WOULD have had a past x yrs stellar "performance" of ###%.
Do you know the above way of selling a fund is EXPLICITLY forbidden by MAS ? (because funds selling is a "regulated" activity i.e. u need a license to do it). What it is doing, is taking KNOWN past performance to sell an unknown product. Whoever doing that will have his license revoked by MAS. Simple reason: you can always formulate/"engineer" a product using past records to make it look good/attractive.

I am not saying FHR is a bad rate. I am saying you cannot use simulated past years results as an argument. Especially FHR can be changed solely by one bank at any time and there is no regulation on that. It is easy to have low FHR when rates are predominantly low ("everybody is low anyway"). It remains to be seen when rates start rising, what FHR will behave, will DBS change its composition, etc. FHR has no track record. It's a matter of your judgment and trust. (For example: can DBS commit there is only ONE FHR across the board, not every one having his own "FHR", like "board rate" ?)

[MortgageGuru]

You cannot make such statement. FHR does not exist prior to 2014.

What you are saying, is a *simulated back testing" result. That is, if we simulate a FHR in the past, with *current promotional composition*, which is subjected to change anytime, what it *would have been* for the past x years.

This is akin of selling a new fund, and saying according to the fund's "current composition", it WOULD have had a past x yrs stellar "performance" of ###%.
Do you know the above way of selling a fund is EXPLICITLY forbidden by MAS ? (because funds selling is a "regulated" activity i.e. u need a license to do it). What it is doing, is taking KNOWN past performance to sell an unknown product. Whoever doing that will have his license revoked by MAS. Simple reason: you can always formulate/"engineer" a product using past records to make it look good/attractive.

I am not saying FHR is a bad rate. I am saying you cannot use simulated past years results as an argument. Especially FHR can be changed solely by one bank at any time and there is no regulation on that. It is easy to have low FHR when rates are predominantly low ("everybody is low anyway"). It remains to be seen when rates start rising, what FHR will behave, will DBS change its composition, etc. FHR has no track record. It's a matter of your judgment and trust. (For example: can DBS commit there is only ONE FHR across the board, not every one having his own "FHR", like "board rate" ?)

Yes what you say is true as well.
as a consumer, I will rather go for fhr than sibor in this market.
If you ask me about transparency, apparently there's none in all eventually because all the rates is still at the bank's mercy, it's only which bank sells you a better pitching.

[newbie11]

Just look at dbs factsheet

[teddybear]

Can provide the factsheet here?


Just look at dbs factsheet

[newbie11]

Eh better not la. Later kena complain haha. Find a dbs customer to show la

[sabian]

Vested interests.
So smelly. Information also skewed to suit your pitch.

[teddybear]

Care to share:
1) Who has vested interests?
2) Which piece of information has been skewed to suit whose pitch?

You by making those post is like never post at all because it doesn't clarify anything and never reveal any useful information...........
Please clarify because NO gentleman will act sneakily like that.......... :scared-2:


Vested interests.
So smelly. Information also skewed to suit your pitch.

[sabian]

Brokers, agents, middlemen, whatever you like to call them love churn.

When banks start to play punk, the herd will all start to look fixed rate.

Guess who benefits? So you can see why so much smoke and mirrors? Why must discuss via private messaging?

If banks are taken to task for not keeping to the spirit of the onerous loan contract they drafted, do you think there will be so many enquiries on fixed loan?

So who is the one wearing the shortest cheerleader skirt and swinging the biggest pom pom?

[highboy]

Ladies and Gentlemen, it is still not too late to sub-sale your units if you foresee your calculations not adding up as expected with the rising interest rates. Think wisely and make the right decisions!

[Reisor]

I also interested to know !

Or anyone who recently refinance can share?

Repriced from existing mortgage within bank D's FHR package towards end 2014.

1st 3 years: FHR+0.9%
Thereafter: FHR+1.25%

Was not the best then as there were many sibor based floating package which were slightly lower.
However, it sure looks like a good deal for now as long as FHR stays at current rate of 0.4%. (Effective rate 1.3%)
Don't think bank is offering that spread now.

Good luck in the search.
cheers.

[teddybear]

Oh I see, Thanks for the clarification. What you said is illuminating and makes lots of sense! :star:


Brokers, agents, middlemen, whatever you like to call them love churn.

When banks start to play punk, the herd will all start to look fixed rate.

Guess who benefits? So you can see why so much smoke and mirrors? Why must discuss via private messaging?

If banks are taken to task for not keeping to the spirit of the onerous loan contract they drafted, do you think there will be so many enquiries on fixed loan?

So who is the one wearing the shortest cheerleader skirt and swinging the biggest pom pom?

[amk]

...as long as FHR stays at current rate of 0.4%.


You all should know there is a game changer now: MAS is issuing this new Singapore Savings Bonds. For as little as $500, you can get 0.9% for 1Y. 1.5% for 2Y. More over, every month you can take out the funds without paying any penalty. It is as if MAS is doing a FD promotion for all. Why would any one place a FD with DBS for 0.25% for 1Y and 0.55% for 2Y ? Some more DBS FD sure has penalty if you early withdraw.

How is DBS going to keep the FD rate at 0.25% ? I really dun see how it can maintain it. DBS will have to raise the FD interest rate to be at least on par with SSB. To be honest I am not sure if this is a policy intention.

Think about what is going to happen to "FHR"....

[teddybear]

I concur with you the effect of SSB on FHR and all Fix Deposit rates.

Only thing I am not sure is: What will likely be a stable spread between FHR and SIBOR? As of today, 3M SIBOR = 1.0% and FHR = 0.4% (so spread is 0.6%). Previously, the spread has hit a low of 0.1% or even less. So will this spread stabilize at 0.60% or will it narrow? What is your view?



You all should know there is a game changer now: MAS is issuing this new Singapore Savings Bonds. For as little as $500, you can get 0.9% for 1Y. 1.5% for 2Y. More over, every month you can take out the funds without paying any penalty. It is as if MAS is doing a FD promotion for all. Why would any one place a FD with DBS for 0.25% for 1Y and 0.55% for 2Y ? Some more DBS FD sure has penalty if you early withdraw.

How is DBS going to keep the FD rate at 0.25% ? I really dun see how it can maintain it. DBS will have to raise the FD interest rate to be at least on par with SSB. To be honest I am not sure if this is a policy intention.

Think about what is going to happen to "FHR"....

[wildfaye29]

UOB increase board rate to 5.15 from 4.8.

[Kelonguni]

I am seriously thinking its better to be loan-free.

[Yuki]

Was told that bank loan rates high..but the FdD rates are very pretty high too...

That's coming from people who have went through a few rounds of property bust n bloom. N FHR do not exist back then.

So looking at only one aspect of the equation is very risky.



FHR past 10 years historical high is only at 0.875, SIBOR was at 7.75 at the same period of time.

True that FHR is only introduced in the market a couple of years only and we won't be able to see the long term track record.
But since its from government bank, what are the chances of government killing its country people?

[MortgageGuru]

Was told that bank loan rates high..but the FdD rates are very pretty high too...

That's coming from people who have went through a few rounds of property bust n bloom. N FHR do not exist back then.

So looking at only one aspect of the equation is very risky.

Yes agreed,

but the trend of FHR spread increasing rapidly in recent months just goes to show that they won't be increasing FHR itself.

Just like how SIBOR been rising but bank do not increase the spread(note that I'm referring to new loan taken up for SIBOR packages, its spread still low at 0.8% from most bank)

In any case, the trend is there plainly for everyone to see that SIBOR is always going to be much higher if FHR were to go up too.

[henryhk]

UOB increase board rate to 5.15 from 4.8.
Will the customers receive letter for the increase?

[chestnut]

I am seriously thinking its better to be loan-free.


Food for thought....

Assume you have 1 mil loan at 1.5% interest.
Assume you have 1 mil cash which you spread below.
Assume you put 500k into bonds that earn you 4% per annum (blue chip company)
Assume you put 250k into fd @ 1%.
Assume 250k standby in deposit account....

Is this better or paying off the loan?????
Would you be able to use the interest to offset the income tax????

This is just one possible option.... There are others.... Paying up in full is also a viable option.... Many ways to skin a cat.... Hahahahaha...

It all depends on personal goals.... Some are so worried over mortgage interest rather than trying to figure out how to make money.....

[MortgageGuru]

UOB increase board rate to 5.15 from 4.8.

just received confirmation from banker that some case board rate increase by 0.8%

So if they're at 4.5% , it will be 5.3%.

Now, board rate can be so scary.

[teddybear]

That is because you are assuming the $1M loan interest rate is 1.5% lah!
Now SIBOR + 0.9 already almost 2.0%!
At the rate SIBOR is rising, soon mortgage loan interest rate will hit 3.5%!
At that rate, I rather sell my bonds (those earning 2.5-3.5% range of coupons) to redeem all my property loans!


Food for thought....

Assume you have 1 mil loan at 1.5% interest.
Assume you have 1 mil cash which you spread below.
Assume you put 500k into bonds that earn you 4% per annum (blue chip company)
Assume you put 250k into fd @ 1%.
Assume 250k standby in deposit account....

Is this better or paying off the loan?????
Would you be able to use the interest to offset the income tax????

This is just one possible option.... There are others.... Paying up in full is also a viable option.... Many ways to skin a cat.... Hahahahaha...

It all depends on personal goals.... Some are so worried over mortgage interest rather than trying to figure out how to make money.....

[Yuki]

That is because you are assuming the $1M loan interest rate is 1.5% lah!
Now SIBOR + 0.9 already almost 2.0%!
At the rate SIBOR is rising, soon mortgage loan interest rate will hit 3.5%!
At that rate, I rather sell my bonds (those earning 2.5-3.5% range of coupons) to redeem all my property loans!

Teddy..Your posts very hard to read.. always so "loud"..!! Bold n cap in red almost eveeywhere? R u like that in person.."shouting" in order to be heard?

Anyway... Redeeming loan means killing off an option n opportunity to allow your money work harder. Of course if cannot tahan the monthly repayments it's best to redeem the loan.

Both valid options.

[Yuki]

just received confirmation from banker that some case board rate increase by 0.8%

So if they're at 4.5% , it will be 5.3%.

Now, board rate can be so scary.

Thing is that all bankers talked n argued the same logic like u...stating that board rate never increased much etc etc

Now swarp that with FHR n the logic n talk is almost identical. The fact is that you have a vested interest.. N unless you are part of the management team who set the rates etc..what make u so sure that "trend of FHR spread increasing rapidly in recent months just goes to show that they won't be increasing FHR itself"?

This is statement guaranteed on the contract or its the assumption that you make? If so sure..can bank include such a clause then?

Almost all people I know.. Bankers included was so cock sure the sibor rates will only increase after fed gives the green light.

Then the banks starts to increase in "anticipation" of hike n caught consumers off guard.

Or I should rephrase.. Maybe the bankers all pretend I sound crazy when I suggested that banks will increase before the fed increase..simply because they are out to earn as much profit as possible.
.

Lessons learnt..only believe half of what u hear from bankers n banks..especially if they have vested interest.

[sabian]

Thing is that all bankers talked n argued the same logic like u...stating that board rate never increased much etc etc

Now swarp that with FHR n the logic n talk is almost identical. The fact is that you have a vested interest.. N unless you are part of the management team who set the rates etc..what make u so sure that "trend of FHR spread increasing rapidly in recent months just goes to show that they won't be increasing FHR itself"?

This is statement guaranteed on the contract or its the assumption that you make? If so sure..can bank include such a clause then?

Almost all people I know.. Bankers included was so cock sure the sibor rates will only increase after fed gives the green light.

Then the banks starts to increase in "anticipation" of hike n caught consumers off guard.

Or I should rephrase.. Maybe the bankers all pretend I sound crazy when I suggested that banks will increase before the fed increase..simply because they are out to earn as much profit as possible.
.

Lessons learnt..only believe half of what u hear from bankers n banks..especially if they have vested interest.

When everybody is on board the fixed rate ship or FHR or "board rate", the banks will sharpen their knives. Of all the loan rate benchmarks, the most transparent is still sibor/ sor.

Now they are still herding everyone on board the non-sibor/ sor home loans, once that boat (ie: loan book) is full and it sets sail...ho seh liao.

The home loan head of every bank only interested in hitting his KPI/ performance bonus.

[teddybear]

SIBOR also not safe because it is a "THINKING" rate!!!!!!!!!!
SGD exchange rate goes down vs USD, they increase SIBOR, giving excuse like because SGD down blah blah blah.
SGD exchange rate goes up (like past few weeks), SIBOR also goes up or stay there!!!!!!!!!!!! :scared-3:
SIBOR rate is like a 1-way street - UP UP UP, just like GST rate and public transport fare!!!!!!!!!!!!!!! :hell-hath-no-fury:


When everybody is on board the fixed rate ship or FHR or "board rate", the banks will sharpen their knives. Of all the loan rate benchmarks, the most transparent is still sibor/ sor.

Now they are still herding everyone on board the non-sibor/ sor home loans, once that boat (ie: loan book) is full and it sets sail...ho seh liao.

The home loan head of every bank only interested in hitting his KPI/ performance bonus.

[Arcachon]

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2015/02/20150209_bdiy.jpg

[Arcachon]

http://www.talkmarkets.com/content/global-markets/if-you-listen-carefully-the-bankers-are-actually-telling-us-what-is-going-to-happen-next?post=58534

Interest rate is going up because lot of people need to loan money for business because of improve business ????????

[Kelonguni]

http://www.talkmarkets.com/content/global-markets/if-you-listen-carefully-the-bankers-are-actually-telling-us-what-is-going-to-happen-next?post=58534

Interest rate is going up because lot of people need to loan money for business because of improve business ????????

So could this be the great asset sale we are waiting for?

Or does it mean the value of money will plummet further in hyperinflation mode?

[MortgageGuru]

Thing is that all bankers talked n argued the same logic like u...stating that board rate never increased much etc etc

Now swarp that with FHR n the logic n talk is almost identical. The fact is that you have a vested interest.. N unless you are part of the management team who set the rates etc..what make u so sure that "trend of FHR spread increasing rapidly in recent months just goes to show that they won't be increasing FHR itself"?

This is statement guaranteed on the contract or its the assumption that you make? If so sure..can bank include such a clause then?

Almost all people I know.. Bankers included was so cock sure the sibor rates will only increase after fed gives the green light.

Then the banks starts to increase in "anticipation" of hike n caught consumers off guard.

Or I should rephrase.. Maybe the bankers all pretend I sound crazy when I suggested that banks will increase before the fed increase..simply because they are out to earn as much profit as possible.
.

Lessons learnt..only believe half of what u hear from bankers n banks..especially if they have vested interest.

I think you don't get how broker works.
broker have no biased in their comparison, no matter which bank consumer is referred to, broker gets the same rate commission.
thats the reason why i was rooting for FHR compared to other rates.
board rate is subjected to SIBOR rise, obviously sibor going up, board rate will go up.
FHR is different, why FHR?

FHR been increasing, just that you all don't know, they've been increasing their spread quietly but steadily yet no one noticed.

6 months ago FHR package...

1st year:0.85
2nd year:0.95
3rd year:1.20
Thereafter 1.25

shortly on jan 2015...

they increased to...

1st year: 1.0
2nd year:1.0
3rd year:1.0
thereafter:1.45

and then they increase again to...

1st year:1.10
2nd year:1.10
3rd year:1.10
thereafter:1.60


noticed the high spread?
nobody notice, only thing people noticed was their FHR never increase, will it increase soon?speculating,speculating.....

[Arcachon]

So could this be the great asset sale we are waiting for?

Or does it mean the value of money will plummet further in hyperinflation mode?

What is your choice, hold paper money or assets.

[Arcachon]

http://www.bloomberg.com/news/articles/2015-04-14/will-mario-draghi-leave-the-ecb-without-ever-raising-rates-

Here’s one way of measuring how troubled Europe’s economy is: Investors are betting Mario Draghi will complete his eight-year term as head of the European Central Bank in 2019 without ever raising interest rates.
Money-market derivatives indicate the ECB won’t increase its key rate from 0.05 percent until December 2019 -- two months after Draghi’s tenure is scheduled to end, according to Deutsche Bank AG economist Torsten Slok.
By contrast, Draghi’s predecessor, Jean-Claude Trichet, raised rates 11 times. Even Ben S. Bernanke got to tighten at the Federal Reserve on three occasions.
Swaps now suggest the Fed will lift its benchmark by next March, Slok told clients in a report last week. A year ago, markets indicated the Fed and ECB would be acting in unison by November 2016.
To Slok, the unprecedented divergence between the world’s two biggest central banks means the euro will fall through parity against the dollar and European stocks will continue to draw demand. That outcome may appeal to Draghi as he hopes a cheaper euro and buoyant financial assets will help revive the euro-area economy, vindicating his use of quantitative easing.
Indeed, he is likely to recommit on Wednesday to buying 1.1 trillion euros ($1.16 trillion) of assets by September 2016 after some suggestions that signs of early success mean the purchases will be tapered at some point.
A gap of almost four years between rate hikes from the Fed and ECB would nevertheless be a record setter. When the U.S. last began raising rates in June 2004, the ECB followed 18 months later in December 2005.
Still, not all economists buy the market’s signals.
Increases Seen
At Royal Bank of Scotland Group Plc, Richard Barwell says it’s unlikely the euro region will be in such desperate shape for another four years. “More to the point, I don’t believe that modest hikes in official interest rates will crush the life out of the recovery,” he said
For Holger Schmieding, chief economist at Berenberg Bank, the “best bet remains that the euro zone and the ECB are about two years behind the U.S. and the Fed.”
Erik Nielsen, chief global economist of UniCredit Bank AG, is worried European officials will wait longer than a year or so before tracking the Fed.
“If it is any longer than that, the present European combination of negative policy rates, massive QE and misguided financial regulation could well become truly poisonous, sending many pension funds and insurance companies into insolvency,” he said in a report on Sunday.

[TABee]

So... what is your (aka readers') view?

If the market is talking about it, we are already behind the leaders.

[taggy]

hi everyone here, any advice on refinance options?

outstanding bank loan(hdb) = $290k
current rate: 3mth sibor + 1% (there after)

- call bank repricing: not offer better rates
- surfing www.moneysmart.sg/home-loan and findahomeloan.co havent find better options

should just stay on current package?

[MortgageGuru]

hi everyone here, any advice on refinance options?

outstanding bank loan(hdb) = $290k
current rate: 3mth sibor + 1% (there after)

- call bank repricing: not offer better rates
- surfing www.moneysmart.sg/home-loan and findahomeloan.co havent find better options

should just stay on current package?

HDB best to refinance.

[MortgageGuru]

hi everyone here, any advice on refinance options?

outstanding bank loan(hdb) = $290k
current rate: 3mth sibor + 1% (there after)

- call bank repricing: not offer better rates
- surfing www.moneysmart.sg/home-loan and findahomeloan.co havent find better options

should just stay on current package?


Hi Taggy, do clear your inbox as I can't reply you right now.

[taggy]

Hi Taggy, do clear your inbox as I can't reply you right now.

paise, clear liao.

[TABee]

Refinance not so straightforward right? Must give notice X months and then may have repricing fees?

[MortgageGuru]

Refinance not so straightforward right? Must give notice X months and then may have repricing fees?

3 months notice to be served in usual case.

yes there'll be cost definitely.

[investhor]

3 months notice to be served in usual case.

yes there'll be cost definitely.

Hi Mortgage Guru, I have a property in the west area to refinance.
Can you assist on refinancing of commercial/ industrial property?

Please PM me.

Thanks

[wildfaye29]

I am now offered the following by UOB:

Board rate 4.5 less discounts:

1) 1.38/1.58/1.88 - 3 year lock
2) 1.58/1.88 - 1 year lock
3) 1.68/1.88/2.28 - no lock

Fixed
1) 1.98/1.98 - 2 year lock

All board rate and fixed rate's thereafter rates is 2.65 (current Board rate 4.5-1.85).

Which is a sure bet?

[wildfaye29]

To add:

Board rate got 0.4% subsidy - clawback period is 3 yr. Must maintain min 200k loan balance if wan to partial repay. Once subsidy clawback period over, no need to care the min 200k balance.

Fixed rate no subsidy.

For my case. I'm taking a 263k loan for 13 years. I wan to partial repay as such as possible and clear out asap.

[MortgageGuru]

nope, the sure thing about board rate is that it will increase within a year definitely.

[sgp_condo]

How about UOB homestar package.

[MortgageGuru]

nothing special.. same as stanchart mortgageone interest offset package.

[sabian]

Since it is the same. Then go with UOB. SC pull stunts like Citi before when things don't suit them. Don't say never warn.

[gsmsimmax3]

Considering an interesting package for refinance.....

Fixed spread of 0.75% throughout tenure

3 month SIBOR+ 0.75 %

No lock in. no prepayment penalty..
Just what I am looking for

Bagus ? ..Discuss

[MortgageGuru]

I have clients that have outstanding loan of $10M and their interest rate is 1m sibor +0.7 throughout.
and yes.. he refinance..

[gsmsimmax3]

@MortgageGuru
Are there currently 0.7 % spread throughout ,no lock in, no prepayment ? SiBOR any tenure is fine.

[proud owner]

dear MortgageGuru,

what is the best Floating rate package available now ?

[MortgageGuru]

@MortgageGuru
Are there currently 0.7 % spread throughout ,no lock in, no prepayment ? SiBOR any tenure is fine.

There's no SIBOR package at 0.7% throughout.

but there's a alternative one at 0.6 + 12M SIBOR which practically mean you're getting 1.6x fixed 1 year. Lock-in 1 year as well.

thereafter is 0.7,0.8 but 1.25 for the long term.

[MortgageGuru]

dear MortgageGuru,

what is the best Floating rate package available now ?

it depends actually.

Some people still think SIBOR is good especially at the current month whereby SIBOR is at 0.8% region, but we all know this won't last for long.

currently there's attractive board rate going at 1.38,1.58,1.78 for 3 years lock-in, but at the end of day, still recommend to go for fixed rate at 1.78,1.98 2 years even if it means that you're paying higher because once board rate goes up, your lock-in for 3 years ties you down and you can't do anything besides paying reluctantly.

[proud owner]

it depends actually.

Some people still think SIBOR is good especially at the current month whereby SIBOR is at 0.8% region, but we all know this won't last for long.

currently there's attractive board rate going at 1.38,1.58,1.78 for 3 years lock-in, but at the end of day, still recommend to go for fixed rate at 1.78,1.98 2 years even if it means that you're paying higher because once board rate goes up, your lock-in for 3 years ties you down and you can't do anything besides paying reluctantly.


i dont have any mortgage loan myself at the moment ...

Do banks use board rate for housing loan ?

thought they have a separate rates ...

like Sibor + xx % for say 1mth .... this will be the floating rate that i am talking about ..

dont banks have floating rate any more ?

[MortgageGuru]

i dont have any mortgage loan myself at the moment ...

Do banks use board rate for housing loan ?

thought they have a separate rates ...

like Sibor + xx % for say 1mth .... this will be the floating rate that i am talking about ..

dont banks have floating rate any more ?


board rate and sibor/sor pegged rate are all called floating rates as they're not fixed.

bank still have Sibor pegged rate.

[Cool East]

Hi u mentioned 1.78, 1.98, hw abt the 3rd yr onwards? Mind sharing which bank is offering this, pls?

[theodorekh]

There's no SIBOR package at 0.7% throughout.

but there's a alternative one at 0.6 + 12M SIBOR which practically mean you're getting 1.6x fixed 1 year. Lock-in 1 year as well.

thereafter is 0.7,0.8 but 1.25 for the long term.



BoC offers:
3M SIBOR+0.7% for 3 years
or
3M SIBOR+0.75% for 4 years.

[theodorekh]

Hi u mentioned 1.78, 1.98, hw abt the 3rd yr onwards? Mind sharing which bank is offering this, pls?


1.38/1.58/1.78 seems like board rate from UOB.

1.58/1.78/1.98 from OCBC Variable package.

[theodorekh]

I am now offered the following by UOB:

Board rate 4.5 less discounts:

1) 1.38/1.58/1.88 - 3 year lock
2) 1.58/1.88 - 1 year lock
3) 1.68/1.88/2.28 - no lock

Fixed
1) 1.98/1.98 - 2 year lock

All board rate and fixed rate's thereafter rates is 2.65 (current Board rate 4.5-1.85).

Which is a sure bet?


1.98/1.98 looks cheap, but only 2 years.
DBS 3 years 2.18/2.18/2.18
Maybank 3 years 2.14/2.14/2.14
UOB 3 years 2.08/2.08/2.08
OCBC 3 years 1.58/1.78/1.98 (yet to clarify any other addons.)

[proud owner]

BoC offers:
3M SIBOR+0.7% for 3 years
or
3M SIBOR+0.75% for 4 years.


dont banks offer

1m Sibor + 0.x % anymore ?

1m, 3m, 6m, 12m are the most liquid in the cash mkt ...

1m especially is very much determined by short dated O/N-1wk liquidity which usually is good ...


so i wouls go for 1m Sibor + xx% floating package

[wildfaye29]

Quick question - if i am guarantor for my aged parent's car loan, will it affect my tdsr?

[Kelonguni]

Quick question - if i am guarantor for my aged parent's car loan, will it affect my tdsr?

Just a quick answer: it does. May want to consider settling loan (or transfer guarantor) to clear TDSR.

[theodorekh]

dont banks offer

1m Sibor + 0.x % anymore ?

1m, 3m, 6m, 12m are the most liquid in the cash mkt ...

1m especially is very much determined by short dated O/N-1wk liquidity which usually is good ...


so i wouls go for 1m Sibor + xx% floating package


They do, but I only consolidated 3M/12M SIBOR for personal references.
1M SIBOR is too volatile for me. =)

[MortgageGuru]

attached FHR trend,

is quite obvious that FD rates is always much lower compared to SIBOR.

you'd rather your thereafter loan to be 0.7 + 3%(SIBOR norm rates) or you prefer 1.6 + 1.8% (2 times of FHR highest)

[theodorekh]

I have attached compilations of 4 category: 12M SIBOR+BOARD/ 3M SIBOR/ FIXED /FHR.


10249

10248

10247

10246


I do not intend to do partial redemption when int increase, no cash in hand =). Since int is moving upwards, hence 3M SIBOR is out.

Board rates are too vague, not for me.



MortgageGuru,

I'm still contemplating either go with a 12M SIBOR which has better transparency or try out DBS new FHR rates.

I believe FHR rates will be price marginally lower to remain competitive as it is a new product.

Any comments?

[MortgageGuru]

I have attached compilations of 4 category: 12M SIBOR+BOARD/ 3M SIBOR/ FIXED /FHR.


10249

10248

10247

10246


I do not intend to do partial redemption when int increase, no cash in hand =). Since int is moving upwards, hence 3M SIBOR is out.

Board rates are too vague, not for me.



MortgageGuru,

I'm still contemplating either go with a 12M SIBOR which has better transparency or try out DBS new FHR rates.

I believe FHR rates will be price marginally lower to remain competitive as it is a new product.

Any comments?

I'll still recommend FHR, I have plenty of FHR clients now and I think everyone is pretty satisfied.

I won't really recommend 12M SIBOR. True that you're paying fixed 1.6x % for 1 year, but the chance of SIBOR being on the high in a year time is so high, compared to FHR, there's sort of a slim chance that you might not need to refinance for the next few years given the FD rates being almost 2 times lower than SIBOR now.

[wildfaye29]

Just a quick answer: it does. May want to consider settling loan (or transfer guarantor) to clear TDSR.

Thanks for the quick answer!

[theodorekh]

Which banks provide FHR rates?

Or is it only DBS themselves are able to do so?

[sabian]

Which banks provide FHR rates?

Or is it only DBS themselves are able to do so?

It is DBS' own in-house rate.

[theodorekh]

Thanks.

Thought other banks were offering FHR packages too.

[sabian]

Thanks.

Thought other banks were offering FHR packages too.

Wait for the Retail SG Bonds to debut...maybe have FHR fireworks to see.

[MortgageGuru]

Wait for the Retail SG Bonds to debut...maybe have FHR fireworks to see.

very hard to see any fireworks.

FHR has no lock-in, is already lower than 3M SIBOR and in worst case, you can refinance any time unlike SIBOR having to accommodate to reset date.

[proud owner]

very hard to see any fireworks.

FHR has no lock-in, is already lower than 3M SIBOR and in worst case, you can refinance any time unlike SIBOR having to accommodate to reset date.


the trick is ... to pick up a loan in the middle of the month ...

due to accounting reasons, rate fixings tend to be Higher at Beginning and End of the month ...

[sabian]

the trick is ... to pick up a loan in the middle of the month ...

due to accounting reasons, rate fixings tend to be Higher at Beginning and End of the month ...

Are rate fixing dates usually a preset day/ date of the month? Like the first Monday?

[sabian]

very hard to see any fireworks.

FHR has no lock-in, is already lower than 3M SIBOR and in worst case, you can refinance any time unlike SIBOR having to accommodate to reset date.
Wah. Another round of refinancing (and commission for mortgage brokers) back to sibor?

Well done!

Need to claw back legal or pay legal at the next bank or not har?

What about processing fee if refinance to SIBOR with the same bank?

[MortgageGuru]

the trick is ... to pick up a loan in the middle of the month ...

due to accounting reasons, rate fixings tend to be Higher at Beginning and End of the month ...

You can't catch it easily. When you first take up a loan for a BUC, how do you know when developer gonna call for money?

[MortgageGuru]

Wah. Another round of refinancing (and commission for mortgage brokers) back to sibor?

Well done!

Need to claw back legal or pay legal at the next bank or not har?

What about processing fee if refinance to SIBOR with the same bank?

seems like you're prejudice against broker.

you prefer a round 2 or client complaining when SIBOR rise?

Members in the forum knows that I've no bias towards any bank.Most went to maybank for fixed rate 3 years, why don't you pick this up and comment about it?

[wildfaye29]

Just a quick answer: it does. May want to consider settling loan (or transfer guarantor) to clear TDSR.

Actually all my currents loans are in lock-or already refinanced.

I am thinking of changing a new car for my parents, as they are aged, confirm cant take loan, I will end up as guarantor.

When I reprice 2-3 years down the road, the TSDR will be affected due to this new car loan as a guarantor.

Dilemma.

[proud owner]

You can't catch it easily. When you first take up a loan for a BUC, how do you know when developer gonna call for money?



you are right

for BUC you wont know

but say if you refinance with another bank ... just dont do it at the beginning or end of mth ...

say have fixing date 30 or 31 of mth or 1st of mth ... always very high ...

Or quarterly closing like 31 Mar, Jun, Sep, Dec ..


due to month end closing, quarterly, yearly book closings... theres always a demand for cash ... so Sibor tend to inch up on those dates

[proud owner]

seems like you're prejudice against broker.

you prefer a round 2 or client complaining when SIBOR rise?

Members in the forum knows that I've no bias towards any bank.Most went to maybank for fixed rate 3 years, why don't you pick this up and comment about it?



dont worry bro .... people are like that one ...

they HAPPILY pay money GST to govt but will SQUEEZE blood out of stones when it comes to others ...

Go cold storage L L pay full ...

Go wet market ...bargain ,... LOL

[sabian]

seems like you're prejudice against broker.

you prefer a round 2 or client complaining when SIBOR rise?

Members in the forum knows that I've no bias towards any bank.Most went to maybank for fixed rate 3 years, why don't you pick this up and comment about it?
Mai sensitive lah. Pointing out the obvious mah. See you always cheerleading for FHR. But same same for any fixed rate. As long as got refinance (comm) after lock in period and teaser rate expries, Ho Sei Liao! Right?

Die die cannot mention those packages from ANZ and BOC where spread is constant throughout the loan tenure. Wait no more refinance cases, then eat grass?

PO cheerleading for you now. Woot!

[MortgageGuru]

Mai sensitive lah. Pointing out the obvious mah. See you always cheerleading for FHR. But same same for any fixed rate. As long as got refinance (comm) after lock in period and teaser rate expries, Ho Sei Liao! Right?

Die die cannot mention those packages from ANZ and BOC where spread is constant throughout the loan tenure. Wait no more refinance cases, then eat grass?

PO cheerleading for you now. Woot!

if the market point towards SIBOR of course i'll recommend for SIBOR pegged rate isn't it?
识时务者为俊杰
In fact, most people are ignorant and think that with a spread of 0.7% + SIBOR, they already made a huge gain compared to other rates like FHR whereby the spread is currently at 1.1% for early years.
I have a client that's a MNC CFO earning close to 100k monthly and he himself opted for fixed rate even though his spread was at 0.7% + SIBOR.
Its the same, just like how I earlier recommended for fixed rate at maybank even though FHR was still low, if you are paying only at below 1.6% on 2017, compared to SIBOR, which one is better?
2017 paying 3% above for SIBOR pegged rates is not an impossible thing.

[DC33_2008]

Bro, the client of yours does not need to worry so much as he/she can do capital repayment anytime when interest rate goes north.
if the market point towards SIBOR of course i'll recommend for SIBOR pegged rate isn't it?
识时务者为俊杰
In fact, most people are ignorant and think that with a spread of 0.7% + SIBOR, they already made a huge gain compared to other rates like FHR whereby the spread is currently at 1.1% for early years.
I have a client that's a MNC CFO earning close to 100k monthly and he himself opted for fixed rate even though his spread was at 0.7% + SIBOR.
Its the same, just like how I earlier recommended for fixed rate at maybank even though FHR was still low, if you are paying only at below 1.6% on 2017, compared to SIBOR, which one is better?
2017 paying 3% above for SIBOR pegged rates is not an impossible thing.

[teddybear]

Think BOC 3M SIBOR + 0.90% throughout is very attractive compared to FHR + 1.6% over long-term................. :02.47-tranquillity:

At these rates, it means FHR needs to be less than 3M SIBOR+0.7% to be worth the while.................................................!!!!

With the Government's Singapore Savings Bonds coming in later part of the year, FHR will not stay low for long because SSB will be competing for cash with FHR!


Mai sensitive lah. Pointing out the obvious mah. See you always cheerleading for FHR. But same same for any fixed rate. As long as got refinance (comm) after lock in period and teaser rate expries, Ho Sei Liao! Right?

Die die cannot mention those packages from ANZ and BOC where spread is constant throughout the loan tenure. Wait no more refinance cases, then eat grass?

PO cheerleading for you now. Woot!

[bacteria]

Hi anyone know currently which bank giving the best loan rate at this moment? will it be better to choose fix rate or floating rate? thanks for your kind input.

[stockbrain]

Anybody sign up UOB homestar 50% Loan ?

[TABee]

Why SIBOR Should Not Go Up

Sept rate hike chances fade as markets plunge

GLOBAL stocks tumbled on Friday after the weakest manufacturing data from China since 2009 exacerbated negative sentiment. Singapore's benchmark Straits Times Index (STI) fell through its 3,000-point support to end the week at 2,971.01 points. ...

http://www.businesstimes.com.sg/stocks/sept-rate-hike-chances-fade-as-markets-plunge


Fixed or floating is better? Who knows really? It's just hedging life's risks.

[TABee]

It is last quarter of 2015.


Fed Held Rates Steady Over Concerns About Weak Growth Abroad

So why has SIBOR gone up?
IS ABS/MAS watching the rates closely?
Is it not fear mongering that at the start of the year, scare people to have FIXED rates?

[Arcachon]

It is last quarter of 2015.


Fed Held Rates Steady Over Concerns About Weak Growth Abroad

So why has SIBOR gone up?
IS ABS/MAS watching the rates closely?
Is it not fear mongering that at the start of the year, scare people to have FIXED rates?

MAS have no control on the rate. Same with the Bank loan.

They can only control indirectly by control measure and Bonds.

[Yuki]

It is last quarter of 2015.


Fed Held Rates Steady Over Concerns About Weak Growth Abroad

So why has SIBOR gone up?
IS ABS/MAS watching the rates closely?
Is it not fear mongering that at the start of the year, scare people to have FIXED rates?

If MAS weakened Sgd..the bank loan rates will still go up right?

[Advisor101]

Hi fellow members, sharing on some on my insider news on packages that are about to phase/re-adjust out soon

UOB homestar package 1.38 1.58 1.78 No lock in ( great package for owners that are planning to sell/Fully-redeem property )

package is going to phase out on 22/10. Cut off date probably is on 15/10, unless UOB decides to further extend package.

Extra info: Current lowest across most of the banks OCBC commercial( for operating company) rate of 1.68 1.88 2.18 is going to re-adjust to 1.78 1.88 2.28.on this 16/10. ( still fantastic rates )

I may not be able to confirm 100% but hope this info is helpful! will keep you ladies&gentlemen's updated. cheers!!

[jeaprp]

Can refinance if borrower is not working?

[Arcachon]

Can, my wife not working but she pay Income Tax.

[MortgageGuru]

Yes in some cases exemptions can be made. It depends largely on each and individuals case.

[jeaprp]

Yes in some cases exemptions can be made. It depends largely on each and individuals case.

Can u pm me , trying to do refinancing.

[MortgageGuru]

Can u pm me , trying to do refinancing.

You got mail.

[jeaprp]

You got mail.

thanks. called but no answer

[medallion]

Loan and Project funding program. We offer flexible loans and funding for various projects by passing the usual rigorous procedures.This Funding program allows a client to enjoy low interest payback for as low as 3 – 4% per annum for a period of 2-30 years. We can approve a loan/funding for up to USD 500,000,000.00 or more depending on the nature of business. We are currently funding for:

* Starting up a Franchise
* Business Acquisition
* Business Expansion
* Commercial Real Estate purchase
* Contract Execution
* Personal loan

We are open to having a good business relationship with you. If you think you have a solid background and idea of making good profit in any venture, please do not hesitate to contact us for possible business co-operation: [email protected]

[donald_12]

Can u pm me , trying to do refinancing.