Newbie
I have a loan of approx. 220K left and soon to be out of lock in. About 12 years left. UOB.
There are certain loan rules from UOB:
a) min loan size 200k
b) partial payment penalty of 1.5% below 200k
c) cancellation fee
etc etc
How best can I manage the remaining 200K loan and not be subjected to the penalties whenever I reprice with the bank (to take advantage of ever changing rates in this volatile market)?
TIA
Ultimate Underdog
Refinance at higher loan quantum continually but shorten the tenure if you have to.
Originally Posted by wildfaye29
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Newbie
Go for the low spread at dbs fhr, definitely beats sibor.
Once your loan is lower than 200k, not much bank gonna take in your loan either, so be prepared to pay high.
Senior
Ask your MP.
Tell your MP, banks, the govt approved lenders, do not allow refinancing of loan of amt < 200k.
Are the banks forcing you to go to 'Ah Long"?
What is MAS doing about such cases, where banks only want to do 'big deal' and smaller amt, they add alot of criteria
Newbie
The thing is nobody ask you to borrow in the first place.
If you're capable of borrowing for private property, you can sell since you're considered at least above average household.
If you're taking bank loan for hdb, you can take up hdb loan in the first place, reason that you're taking bank loan shows that your income is probably better than those hdb loans.
Anyway, bank will only do margin call when you have a bad record and have a higher probability to default.
And that's the last thing they wish to do, because as long as you're paying the loan monthly, why would they want to cut off their income.
Ultimate Underdog
The focus for TS is to take advantage of the low rates rather than not being able to pay. This point must be made clear.
CPF rate is minimum 2.5% and 3.5% if over 55 (if I am not mistaken). Any interest the bank charges below, it's more worth to use bank's money.
Senior
No everyone likes to use Bank money.
If Bank can still loan me money I will still buy property.
Senior
Not everyone likes to use Bank money.
If Bank can still loan me money I will still buy property.
Newbie
I'm not sure if I was unclear in my original post. Whether its HDB or Pte, I think it doesn't matter. For this, its an own stay pty, fyi, so selling is not an option. There is also good and bad debt, which imho for my case, its good debt. Some mortgagees like myself are able to fund the monthly instalments but unable to come up with the lump sum to fully redeem.
Usually in the loans packages, eg. 1.6%, 1.8%, 2.0% (1,2,3 years), after lock-in it will be maybe 2.8% thereafter and/or when the banks decide to tekan you by increasing the rates. More so if its below the 200k min loan after the lock in period and the borrower gets penalized with 1) reprice fee 2) partial repayment fee (because <200k), 3) shorten tenure fee 4) no suitable loan package etc and you are expected to continue the loan on the 2.8% thereafter rates.
Trying to check out the viable options to reduce interest on the remaining 200k which will still take about 10yrs to fully redeem.
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