Floating rates as low as 1.55% first 3 years (locked 2 years, no lock rate applicable as well)
2 years fixed rate 1.68%
3 years fixed rate 1.88%
Cash rebate $1500 for 700k - 1m loan amount
Newbie
Floating rates as low as 1.55% first 3 years (locked 2 years, no lock rate applicable as well)
2 years fixed rate 1.68%
3 years fixed rate 1.88%
Cash rebate $1500 for 700k - 1m loan amount
Senior
http://business.asiaone.com/news/sin...lowdown-pm-lee
How to go up when Singapore must prepare for economic slowdown
Ultimate Underdog
Don't know whether to be happy if interests stay low for another decade...
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Newbie
During the Asian Financial crisis, interest rate did went up even though we were having a recession. So never say never.
Newbie
AFC got QE meh? Dun any how compare leh. We solve financial problem fundamentally.
Newbie
Just like a man going bankrupt instead of cutting down his expenses and work double hard, he borrow more to repay his debt. Btw I dun advocate interest rate will not go up. Like what they said it is sooner or later. No timeframe. Talk machiam no talk.
Ultimate Underdog
I do hope for interest rate to rise for prudent borrowing.Originally Posted by Khng8
My worry is the competitive easing undergone by all the major economies worldwide after US.
Yesterday, there was also this news that US has passed a bill to increase its debt limit. What it means is that instead of clearing any existing ones, they are allowing their economy to accumulate even more debts. China has also further cut its reserve ratio very recently.
So we might end up with a triple whammy of poor economy, massive and competitive currency devaluation (easing), and increase in interest rates (even though this appears limited at the moment).
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Newbie
Tdsr already prevent that. It is more for the inflation and balance economy.
Ultimate Underdog
Yes, prudent borrowing for the economy and enterprises.
Individual extremely hard to be imprudent in borrowing with the tough measures. Yowetan would have had his third property if not for TDSR.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Junior
I am struggling to find way to get the 2nd one. Currently my option is running out.
Junior
The cooling measure that put a loan limit has blocked most buyers out of the market already. Those buying now are mostly capable to service their loan. So no worries of over borrowing.
Junior
Interest rate will not go up soon. All around the world economy so weak.
Newbie
interest has already went up recent months for sure.
Senior
http://www.channelnewsasia.com/news/...-a9Fo.facebook
No worry, war coming, interest rate going up to pay for the War.
Junior
Interest rate going up yes but very little. I only consider alot if it went to 4%.
Ultimate Underdog
The current war is who can devalue faster. After this move (in a big way) then we talk about raising interest rates.
http://www.straitstimes.com/business...onetary-policy
10 things you should know about Singapore's monetary policy
by Ann Williams
SINGAPORE - Singapore's central bank is expected by economists to ease monetary policy on Wednesday (Oct14) - in effect, allowing the Singapore dollar to weaken - to support a struggling economy.
1. What is monetary policy?
The way a country controls the supply of money to consumers and businesses, often targeting an inflation rate or interest rate, to encourage prices of goods and service to remain stable and promote economic growth.
2. Who controls monetary policy in Singapore?
Its central bank - the Monetary Authority of Singapore or MAS.
3. How does MAS manage its monetary policy?
Most countries, including the United States and China, adopt an interest rate policy where central banks raise or cut interest rates.
Singapore is the only major economy in the world to use the exchange rate, guiding the Singdollar higher or lower.
MAS says the exchange rate is the best tool for a small, open economy like Singapore. It is a more effective way to manage inflation, as much of the country's consumer goods are imported.
4. So if MAS does not set interest rates in Singapore, who does?
MAS has effectively given up control of domestic interest rates. Instead, borrowing costs are largely determined by US interest rates and investors' expectations of the future movement of the Singapore dollar.
5. How does MAS' exchange-rate policy work?
MAS lets the Singdollar rise or fall against an undisclosed basket of currencies of its main trading partners, intervening when needed to keep the exchange rate within its unspecified target band.
To deter speculation and be more effective, MAS does not disclose what is in its basket of currencies or specify its trading band.
It adjusts the pace of appreciation or depreciation of the Singdollar by changing the slope, width and centre of this trading band.
The exchange rate that MAS targets is trade weighted such that the currencies of Singapore's larger trading partners bear more weight. This trade-weighted exchange rate is known as the Singapore dollar nominal effective exchange rate or S$NEER.
6. What's happening on Wednesday (Oct 14)?
MAS reviews its monetary policy twice a year - in April and October - to ensure that it is consistent with economic fundamentals and market conditions.
On Wednesday, MAS will announce its monetary policy stance for the next six months.
It will also explain the reasons for its decision in terms of its assessment of Singapore's economic and inflation outlook.
7. What is MAS' current policy stance?
Since October 2012, MAS' broad policy stance has been of a "modest and gradual appreciation" of the Singdollar.
But on Jan 28, it made an unscheduled move to ease monetary policy, the first since July 2005, after Singapore's economic growth sagged in 2014 to its weakest in five years. MAS reduced the slope of its policy band, in effect slowing the pace of the Singdollar's gains versus the currencies of its main trading partners.
In April, at the first of this year's two scheduled meetings, MAS refrained from further action.
8. What do economists expect MAS to announce on Wednesday and why?
A majority of economists surveyed by Bloomberg and Reuters expect MAS to ease monetary policy for a second time this year as Singapore's economic performance has worsened since its last review in April.
As with much of the rest of Asia, Singapore's trade-dependent economy has been knocked by a sharper-than-expected slowdown in China and uncertain recoveries in US and Europe. A Reuters poll of economists forecast third-quarter GDP to have shrunk 0.1 per cent from the previous quarter, after a 4 per cent contraction in April-June.
That would meet the definition of a technical recession, the first for Singapore since the depths of the financial crisis in 2008-early 2009.
MAS' current policy setting does not allow for further depreciation of the Singdollar, which would help Singapore's exports, a key driver of economic growth.
With Singapore consumer prices having fallen for 10 straight months to August, the threat of imported inflation from a weaker Singdollar has been reduced, allowing more room for MAS to ease.
But some economists say there is a more-than 50 per cent chance of no MAS move on Wednesday. They point to MAS' last review in which it emphasised the risks of a tight labour market driving up inflation.
9. If it eases, how exactly will MAS do it?
Here are some moves the MAS could make, and what they would mean.
a. Lower the upward slope of the band
Reducing the slope of the band allows for slower gains in Singdollar over time.
This was an option the MAS exercised in January when it joined a wave of global monetary easing. The unscheduled move helped send the Singdollar to its weakest level since 2009 against its US dollar.
b. Move the centre of the band lower
This would signal the exchange rate should remain on the weak side in the near future. Re-centering the policy band lower by half a band would be equivalent to a one-off devaluation of the Singdollar by 2 per cent, DBS Group Holdings senior currency economist Philip Wee said in a note on Oct 6.
c. Widen the band
Increasing the width of the band is technically a neutral stance intended to allow more volatility in the local dollar. However, a Nomura Holdings survey of its clients in September showed 92 out of 100 polled anticipated the Singdollar nominal effective exchange rate will weaken at least 0.1 per cent immediately if such action was taken.
10. What does easing mean for the Singdollar and you?
The Singdollar has fallen about 5 per cent against the US dollar so far this year. It will probably depreciate about 8 per cent in total this year to $1.44 versus the US dollar, according to analysts surveyed by Bloomberg.
If MAS eases, it could weaken the Singdollar further. This will have wide-ranging knock-on effects from the prices of imported products in shops to more expensive overseas vacations and studies.
A weaker Singdollar and expectations of more depreciation will push local interest rates higher, affecting home loans and all other consumer and business loans.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Ultimate Underdog
Devaluation of SGD (my interpretation only) means it's going to get more costly (spend more SGD) to buy other countries goods.
If the other countries currency also devalue, that means it's going to get more costly (spend more of other currencies to change SGD) to buy our goods.
What is the likely consequence of continued and competitive easing in this manner over a long time?
If we and other developed countries all simultaneously devalue 8%, that only means that for every currency in every country, we need to pay 8% more to get any goods we want?
That does leave some ground for interest rates to rise.
Is my understanding flawed?
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Senior
at that time, there was no knowing which bank would be belly up next, hence banks REFUSED to lend.
The liquidity dried up....
Thai Over night loans rate shot up to 1000 %
people (banks ) were afraid to lend ...
so it was a totally different situation...
Newbie
Seems like interest rise on December is a sure thing now, anyone with different view?
Junior
Will there be any meltdown or firesales thereafter?
Ultimate Underdog
A few possible scenarios to consider in your risk assessment:
1. Interest goes up by 0.25%-0.50% over two quarters, then stuck for the rest of the year and several years later (another decade?).
2. Interest goes up by 0.25%, then have to come down again, and then up again, and then down again.
3. Interest goes up a full percent in 1 year, but prices and CMs stay, and demand miraculously starts to pick up due to unforeseen and unannounced measures.
4. Interest goes up a full percent in 1 year, CMs get removed and demand speeds up to match supply.
5. Interest goes up a full percent in 1 year, CMs get removed but demand is still too weak, resulting in further price falls.
Which scenario you predict determines your next move.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Newbie
Thanks to MortgageGuru , for the refinance .
Fixed rate 1.68% 2 years
Newbie
Thank you for your support as well.
Fixed rate 1.68% removed from ocbc for about a week now. Bankers are not doing 1.68% because they said bank are not earning.
Senior
What is a Bank?
Bank is a place where you print money.
How can they not earn? They should say earn less.
Newbie
does anyone have any idea when will the lawyer conveyance fee, plus something else of 2500+500 be deducted?
Newbie
After loan approval usually.
Newbie
70% chance of US Fed raising interest rate in mid Dec, following which we are probably looking at 0.25% increase per quarter. This is according to consensus views by most analysts. This means in Q4 2016, rates will probably be 1% - 1.25% higher as compared to now. If you are looking to refinance your mortgage, send me a PM and I can help.
Newbie
Don't think so that if US fed increase by 0.25% singapore will follow the same at 0.25, definitely much higher.
Newbie
Of course , Local banks already increased rate before FED. They are just like Yao Gui.
Newbie
I'm not sure about the floating rates given the economic situation now. 3-month SIBOR has reached 7-year high last quarter and it's showing no sign of going down. Many Singaporeans are still slow to react to the rising SIBOR. If anyone of you want to look into refinancing options, I'll be happy to answer your questions and get you good rates.
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