Sorry to disturb everyone again. Is it better to take 1 month or 3 month Sibor?
Sorry to disturb everyone again. Is it better to take 1 month or 3 month Sibor?
My opinion, take 1 mth sibor, refresh every 3 mth.
Originally Posted by Stockbroker
Agree with that strategy.Originally Posted by lajia
Assuming all things equal, 1m is 20*% lower than 3m. So why not..
Thanks everyone for the support! Find A Home Loan is Standard Chartered #1 broker in 2013.
Apologies but I dun understand why 20 percent lower than 3M average SIBOR ?Originally Posted by newbie11
Here :Originally Posted by danguard
http://singaporesiborwatch.com/singa...t-sibor-rates/
Pros is 1mth sibor is usually lower than 3mth sibor
Cons
- 1mth sibor loan get refixed every month, so there is a bit of "volatility" in the interest rates of the loan you are paying, whereas 3mth sibor loan get refixed every 3 month, hence interest rates stay constant for every 3 months.
- there are situations when you pay more in 1mth sibor loan than 3mth sibor loan.
E.g. US Fed wakes up tomorrow and start hiking fed fund rates while market is still thinking this will happen in 2015, then the 1 mth sibor will be going higher every month, whereas the 3mth sibor which get fixed at low rate last month stays constant for next 3 month.
I can live with the cons - so I will go for 1mth sibor loan
Thanks bro for the detailed explanationOriginally Posted by k00L
Thanks bro later I open small window see in office this hehOriginally Posted by chestnut
Thanks bro later I open small window see in office this hehOriginally Posted by chestnut
ANZ uses SOR. Also has a SOR/Sibor combo package. Anyone using them or has a view on this?