Board rate Vs SIBOR

[litechaser]

hi all,

Can I seek the experts' advice regarding bank loan ? Am now torn between taking on a loan package using SIBOR and another one using one of the local bank's board rate.

Which is better in this increasing interest rate environment?

I mean will board rate be adjusted to meet SIBOR in the event that SIBOR spike up sharply ? or will board rate increase slowly since the bank will take time to adjust it ?

Thanks.

[smallant]

Board rate no transparency. . Suka suka.. bank can go up rate... imho...

[henryhk]

Ya, board rate like shit, kana cheated bfo, I change to sibor rate, after 2 years then see how,

[teddybear]

NEVER EVER EVER take Board rate housing loan or their re-incarnation (FHA or whatever)!
Always go for SIBOR and you will never go wrong!

hi all,

Can I seek the experts' advice regarding bank loan ? Am now torn between taking on a loan package using SIBOR and another one using one of the local bank's board rate.

Which is better in this increasing interest rate environment?

I mean will board rate be adjusted to meet SIBOR in the event that SIBOR spike up sharply ? or will board rate increase slowly since the bank will take time to adjust it ?

Thanks.

[newbie11]

Fact remains some board rates are not changed since crisis. I prefer fixed. Premium over floating is not big

[teddybear]

So you are telling us that when the interest rates like SIBOR come down to near ZERO since the crisis, board rates didn't come down and remains NOT CHANGED?

Fact remains some board rates are not changed since crisis. I prefer fixed. Premium over floating is not big

[Luke65]

Fact remains some board rates are not changed since crisis. I prefer fixed. Premium over floating is not big

Omg, board rate supporter....... By comparing SIBOR and board rate, i have not taken board rate before

[Reuben]

Sorry to ride on this question. May I know if you were to change from fixed to sibor or vice versa. Do you have to pay legal fees again for

1. Change with same bank
2. Change with different bank

[Luke65]

Sorry to ride on this question. May I know if you were to change from fixed to sibor or vice versa. Do you have to pay legal fees again for

1. Change with same bank
2. Change with different bank

Depends on your contract with the bank, if they allow you to change with fees or free...

[litechaser]

Thanks for all the sharing and advice . Appreciate them all

Read in an earlier post by forummer Di regarding using CPF to pay off loan...just thinking if for instance someone has CPF of 500K, is it wise to loan a higher amount e.q 800K ? Let the 500K earn CPF interest at 2.5% and pay bank loan interest at maybe 1.6%.

At the same time, use rental returns of eg 3% to pay off the balance loan of 300K (800k less 500k) interest of 1.6%?

Of course if bank interest rate goes above 2.5% , then better to use CPF to partial pay off the loan asap

[newbie11]

Omg, board rate supporter....... By comparing SIBOR and board rate, i have not taken board rate before

I share facts. I only support my customers

[matrix0405]

NEVER EVER EVER take Board rate housing loan or their re-incarnation (FHA or whatever)!
Always go for SIBOR and you will never go wrong!

Agree. Board rate has no transparency as it is determine by the bank itself. Avoid board rate.