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Thread: How much would interest rates rise? and what should be a normal interest rate?

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    Default How much would interest rates rise? and what should be a normal interest rate?

    How much would interest rates rise? and what should be a normal interest rate in the long run?

    If rise is not substantial, is it wise to just stick to floating rates over SIBOR?

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    ah ben and ah yellen already state that low interest rates are to stay for a long time. how long is long - that's the crux

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    Ah Ben probably thrown some figure during his private talk (his opinion, but highly reliable)................
    1 thing I know from his talk is that low rate is the new norm!

    Caveat Emptor: the "low rate" refers to SIBOR........... Not FHR, Board Rate or any other fanciful names coined by banks.................

    Quote Originally Posted by eng81157 View Post
    ah ben and ah yellen already state that low interest rates are to stay for a long time. how long is long - that's the crux

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    Feasible to have low rates for few more years???

    Quote Originally Posted by teddybear View Post
    Ah Ben probably thrown some figure during his private talk (his opinion, but highly reliable)................
    1 thing I know from his talk is that low rate is the new norm!

    Caveat Emptor: the "low rate" refers to SIBOR........... Not FHR, Board Rate or any other fanciful names coined by banks.................

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    dbs dare to do 1.88% for 5 years.

    maybank bank dare to lock in 3 years at <1.5%.

    their view of interest rate rise over the next few years is probably for gradual rises to still <2%?

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    I read that ah Ben say won't see high rates in his lifetime... Any truth?



    Quote Originally Posted by teddybear View Post
    Ah Ben probably thrown some figure during his private talk (his opinion, but highly reliable)................
    1 thing I know from his talk is that low rate is the new norm!

    Caveat Emptor: the "low rate" refers to SIBOR........... Not FHR, Board Rate or any other fanciful names coined by banks.................
    if you dont't own any property, you're short. take cover quickly

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    Quote Originally Posted by auroraborealis View Post
    I read that ah Ben say won't see high rates in his lifetime... Any truth?
    In the period of high rates, people will keep their money in the bank earning interest. Banks will be swamp with money, but who will borrow these money from the banks at the high rates?

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    Quote Originally Posted by bargain hunter View Post
    dbs dare to do 1.88% for 5 years.

    maybank bank dare to lock in 3 years at <1.5%.

    their view of interest rate rise over the next few years is probably for gradual rises to still <2%?
    DBS is 2.18% not 1.88%

    http://www.dbs.com.sg/personal/homel...e/default.page

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    Ah Ben say that low rate is the new norm! Also, it will not be rised in near term and will be very slow to rise!
    People who say it is a matter of time before rate goes back to the old norm is just scare-mongering....................

    Quote Originally Posted by auroraborealis View Post
    I read that ah Ben say won't see high rates in his lifetime... Any truth?

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    This is what I heard:
    SIBOR likely to stay below 1% by end 2016.
    SIBOR likely to still be below 2% by end 2018.

    Quote Originally Posted by Wolverine23 View Post
    Feasible to have low rates for few more years???

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    wow, they are sharks. last month was still 1.88. raise by 0.3 per year for 5 years?!

    maybank only raising by 0.1% per year for the 3 years fixed FROM JUNE. whoever needs a property loan better lock it in fast!


    Quote Originally Posted by Reuben View Post

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    last i read, folks here were congratulating themselves for securing a fixed loan saying rates would shoot up to even, i dare say 5% means they kana smoke by gossip mongers

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    Quote Originally Posted by Reuben View Post
    They really increased to 2.18%???

    hmm...

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    No wonder my bankers ask me to do nothing for now for my loan taken up between 2008 and 2011 period.

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    Quote Originally Posted by bargain hunter View Post
    wow, they are sharks. last month was still 1.88. raise by 0.3 per year for 5 years?!

    maybank only raising by 0.1% per year for the 3 years fixed FROM JUNE. whoever needs a property loan better lock it in fast!
    There are better deals

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    Quote Originally Posted by DC33_2008 View Post
    No wonder my bankers ask me to do nothing for now for my loan taken up between 2008 and 2011 period.
    No need to refinance?

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    Quote Originally Posted by Wolverine23 View Post
    No need to refinance?
    Some of the loans taken during the last 5 years can be as low as 0.65%-0.75% + sibor throughout the entire tenure of the loan.... So doing refinance now is worst off....

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    Yup. Some even lower and all the perts like bank paid for legal fee and first year of fire insurance. Hence interest is about 1%.
    Quote Originally Posted by chestnut View Post
    Some of the loans taken during the last 5 years can be as low as 0.65%-0.75% + sibor throughout the entire tenure of the loan.... So doing refinance now is worst off....

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    yes, hope the others go through you to find the better deals.

    Quote Originally Posted by newbie11 View Post
    There are better deals

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    Anyone can ad advise which bank offer better housing loan now?

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    if currently 0.9% + sibor for 1st 3 years and thereafter, 1% + sibor, do I still need to refinance?

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    check with newbie11, he's the forum's resident mortgage consultant.

    Quote Originally Posted by Werther View Post
    Anyone can ad advise which bank offer better housing loan now?

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    But he/she not transparent lah, don't tell us all the rates of the best packages here and need us to ask him/her....................... Lei chei..................

    Quote Originally Posted by bargain hunter View Post
    check with newbie11, he's the forum's resident mortgage consultant.

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    hehe, he/she also need to make a living leh. but point is, the banks will pay him/her, not forumers.

    Quote Originally Posted by teddybear View Post
    But he/she not transparent lah, don't tell us all the rates of the best packages here and need us to ask him/her....................... Lei chei..................

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    Interest rates will likely stay low for at least another 12-18 months. But be prudent in your calcs - make sure you can support your mortgage if rates move to say 3.5%. Unlikely rates will do so, but you live in less stress if your mortgage is easily handled in this scenario. Everyone thinks their salaries will keep going up, but they don't always do, especially for those with commission based income ...

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    lock in 3 years at 1.4% levels should be good now?

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    looks like it. 1 week left to lock in maybank at 1.2, 1.4, 1.5 for 3 years. after that its 1.3, 1.5 and 1.6.

    Quote Originally Posted by Wolverine23 View Post
    lock in 3 years at 1.4% levels should be good now?

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    Quote Originally Posted by bargain hunter View Post
    looks like it. 1 week left to lock in maybank at 1.2, 1.4, 1.5 for 3 years. after that its 1.3, 1.5 and 1.6.
    just wondering...bank is in the business of making business...does it mean that the interest rates highly unlike to raise beyond 11.2, 1.4, 1.5 for the next 3 years?

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    Most banks seem to have increase their spread for floating rates and fixed rates have increased. DBS used to offer 1.68% for 5 years which on hind sight looks very good. Now is 2.18% for 5 years.

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    Quote Originally Posted by propertychap View Post
    Most banks seem to have increase their spread for floating rates and fixed rates have increased. DBS used to offer 1.68% for 5 years which on hind sight looks very good. Now is 2.18% for 5 years.
    Hi...meaning that the actual interest rates is beyond 1.68% and thus one offered by DBS is a good deal since its lower?

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