OCBC NEW Reducing MBR rate

[LongTomCat]

hi,

any one heard of the new OCBC reducing MBR rate?

1st year MBR - 3.8=0.7
2nd year MBR -3.85= 0.65
3rd year MBR -3.9=3.90
4th year MBR -0.55=3.95
AFTER MBR-2.95=1.55%

4 YEARS LOCK IN

WHAT anyone think about it for property BUC but TOP soon?

[MortgageGuru]

For BUC only

OCBC Step down mortgage board rate*

Year 1: 0.7% (MBR - 3.80%)
Year 2: 0.65% flat (MBR - 3.85%)
Year 3: 0.6% flat (MBR - 3.90%)
Year 4: 0.55% flat (MBR - 3.95%)
Thereafter: 1.55% flat (MBR -2.95%)

🔹Free conversion should rate increase before TOP, or within 6m from TOP

🔹Waiver of mortgagee insurance policy

🔹4 years lock in period.

🔸Interest rates *drop down* for year 1-4 as disbursement gets larger thus less interest chargeable on larger $

*terms and conditions apply. All rates subjected to change without notice.

All loan to be accepted by 17 March 2017




Not really wise to be tempted into the thereafter low rate as once board rates goes up, you're stuck to it since the lock in is for 4 years. Not forgetting interest rate are considered low now and facing a ever-increasing environment.

[LongTomCat]

For BUC only

OCBC Step down mortgage board rate*

Year 1: 0.7% (MBR - 3.80%)
Year 2: 0.65% flat (MBR - 3.85%)
Year 3: 0.6% flat (MBR - 3.90%)
Year 4: 0.55% flat (MBR - 3.95%)
Thereafter: 1.55% flat (MBR -2.95%)

🔹Free conversion should rate increase before TOP, or within 6m from TOP

🔹Waiver of mortgagee insurance policy

🔹4 years lock in period.

🔸Interest rates *drop down* for year 1-4 as disbursement gets larger thus less interest chargeable on larger $

*terms and conditions apply. All rates subjected to change without notice.

All loan to be accepted by 17 March 2017




Not really wise to be tempted into the thereafter low rate as once board rates goes up, you're stuck to it since the lock in is for 4 years. Not forgetting interest rate are considered low now and facing a ever-increasing environment.

That what was my concern as well, but the person selling telling me that I can keep the free conversion any time after TOP should MBR goes up, though its advertised as 6month after TOP. not sure what is true.

[MortgageGuru]

That what was my concern as well, but the person selling telling me that I can keep the free conversion any time after TOP should MBR goes up, though its advertised as 6month after TOP. not sure what is true.

I think you misunderstood. It means from date of TOP attained, you have 6 months to do the conversion for free.

[LongTomCat]

I think you misunderstood. It means from date of TOP attained, you have 6 months to do the conversion for free.

Well the person who try to sell me this keep saying i can keep the freee conversion . So if it's true then would be interesting, if just 6 months then I would not even touch it. :D

[MortgageGuru]

Well the person who try to sell me this keep saying i can keep the freee conversion . So if it's true then would be interesting, if just 6 months then I would not even touch it. :D

Even if it's for a longer period, what's the use of it? You're still tied to a 4 years lock-in where you're subjected to all kinds of possibilities from the bank.

[LongTomCat]

Even if it's for a longer period, what's the use of it? You're still tied to a 4 years lock-in where you're subjected to all kinds of possibilities from the bank.

well, its quite a substantial saving provided the bank doesn't change the MBR. As I was told that it carry on even after TOP, so for a almost TOP property its rather good. and there always chance to change to other plans ma

[MortgageGuru]

It's not really a substantial savings in the long run, nobody takes up board rate these days anymore. It's the only package that goes up and never come down. By the time you get your free conversion , are you expecting interest package by then to remain in a low environment like now?

[LongTomCat]

It's not really a substantial savings in the long run, nobody takes up board rate these days anymore. It's the only package that goes up and never come down. By the time you get your free conversion , are you expecting interest package by then to remain in a low environment like now?

well, the promise is that if board rates goes up I can change to other plan, only concern is that can they change to discount portion.