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Thread: What will trigger interest rates hike?

  1. #1
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    Default What will trigger interest rates hike?

    Especially SIBOR and SOR and board rates.

  2. #2
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    Quote Originally Posted by cnud
    Especially SIBOR and SOR and board rates.
    When USA starts to boom again?

  3. #3
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    Someone told me before rates has nothing to do with macro economies. In fact the ones that set the rates are the ABS (Association of the Banks in Singapore).

    Does MAS has control over it?

    With the new CM, borrowers are screwed if the banks suka suka raise rates and we can't re-finance!

  4. #4
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    In Singapore context, imposition of capital control.

  5. #5
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    Quote Originally Posted by cnud
    Someone told me before rates has nothing to do with macro economies. In fact the ones that set the rates are the ABS (Association of the Banks in Singapore).

    Does MAS has control over it?

    With the new CM, borrowers are screwed if the banks suka suka raise rates and we can't re-finance!
    u seriously think our good govt would let that happen and everything collapse...

  6. #6
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    Quote Originally Posted by radha08
    u seriously think our good govt would let that happen and everything collapse...
    And why not?

  7. #7
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    Quote Originally Posted by cnud
    Someone told me before rates has nothing to do with macro economies. In fact the ones that set the rates are the ABS (Association of the Banks in Singapore).

    Does MAS has control over it?

    With the new CM, borrowers are screwed if the banks suka suka raise rates and we can't re-finance!
    bro, dont panic... rule no 1 dont panic, if panic refer to rule no2, which is dont panic.

    Speak to your banker. if not talk to mortgage broker. Newie11 is a good one. So far his response very solid.

  8. #8
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    I mean they decide amongst themselves what rates to charge the public. There is nothing to stop them.

    Much like the FED.

  9. #9
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    Quote Originally Posted by cnud
    I mean they decide amongst themselves what rates to charge the public. There is nothing to stop them.

    Much like the FED.
    If interest rate reach super high. Pay down.

    There will be banks which do not have a big installed based and wants this biz. (competition). Look for those banks. If you currently have 35 yr loan, too bad. you need to pay down for the transfer of bank. You also need to pay legal fee, valuation fee to move from 1 bank to another. So you are right. All this, many people do not take into consideration. Thats why i tell you all to look at all options and plan for things like this. If you dont plan, 2 yrs time when lock-in over, interest rate jump up. you go crazy.

    There are many people who are pure lazy and do not even do refinancing and paying thru their nose to the banks.

    I hope I answered your question.

  10. #10
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    Quote Originally Posted by chestnut
    If interest rate reach super high. Pay down.

    There will be banks which do not have a big installed based and wants this biz. (competition). Look for those banks. If you currently have 35 yr loan, too bad. you need to pay down for the transfer of bank. You also need to pay legal fee, valuation fee to move from 1 bank to another. So you are right. All this, many people do not take into consideration. Thats why i tell you all to look at all options and plan for things like this. If you dont plan, 2 yrs time when lock-in over, interest rate jump up. you go crazy.

    There are many people who are pure lazy and do not even do refinancing and paying thru their nose to the banks.

    I hope I answered your question.
    Repricing is a good option too. i repriced mine even before lockin over and got a better deal even after factor in repricing fee.

  11. #11
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    Q: What will trigger interest rates hike?

    A: When the economy improves, positive market sentiments encourage more spendings. This will stimulate inflation that causes increase in interest rate.

  12. #12
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    Quote Originally Posted by leesg123
    Repricing is a good option too. i repriced mine even before lockin over and got a better deal even after factor in repricing fee.
    Same here. Repricing is a good alternative!

  13. #13
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    I remeber the interest rate of my properties ranges from 0.98% to 1.65% on the 1st year from 2002 to 2004.

    Interest rates start to pick up from 2005. My mortgagee bank would send me an 'interest rate correction' letter every few months. By 2006, the interest rates have climbed to 4%.

    That made me refinance three properties one by one and managed to start again at around 2% on the first year.

    I also learned the lesson that borrowers should pick local over foreign banks. The latter are more aggressive with their offers and packages. But once there's any hike in interest rates, they are the first ones to increase the rates.

  14. #14
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    Quote Originally Posted by vip
    I also learned the lesson that borrowers should pick local over foreign banks. The latter are more aggressive with their offers and packages. But once there's any hike in interest rates, they are the first ones to increase the rates.
    Bro, your statement not applicable to SIBOR based rates, isnt it?
    Unless you talking about internal rates.

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