Stanchart offers 1.5% fixed mortgage interest rate

[mr funny]

http://www.businesstimes.com.sg/sub/...32276,00.html?

Published May 11, 2009

Stanchart offers 1.5% fixed mortgage interest rate


(SINGAPORE) Standard Chartered Bank has introduced a mortgage package at a fixed rate of 1.5 per cent per annum for the first year for any new mortgage taken up with the bank from May 10 to June 15, 2009.

For the second year onwards, customers pay a rate of three-month Sibor plus 1.35 per cent per annum.

Dennis Khoo, general manager of retail banking products, said: 'Our customers have been the heartbeat of Standard Chartered over the last 150 years in Singapore. To thank our customers, we are offering exceptional value in the form of a fixed first-year mortgage loan at 1.5 per cent until 15 June 2009. This allows our customers to lock-in best-in-value and low rates for the next year. With this offer, they can enjoy more flexibility in their finances to be more agile and responsive to market changes.'

Mr Khoo added that Standard Chartered has become the largest qualifying full bank (QFB) in the Singapore mortgage market over the years.

This package is offered in conjunction with the bank's 150th anniversary in Singapore this year.

In addition, Priority Banking customers who hold the Standard Chartered Visa Infinite Card and take up the fixed rate package will get bonus points of 100,000 air miles.

[mezo]

Need expert advice here :

Buying property that cost $1M and TOP in 13 months time.

Choosing between IAS (by OCBC) and progressive payment(by SC).
Do not have problem paying 20% and start progressive payment now. Estimate payment at 45% if i choose progressive payment.

OCBC interest rate is 3.25%, 3.5% and 3.75%
SC rate as mentioned above

Which is better? The interest saved during the 13 months of IAS compared to progressive payment but lower interest rate?

Thank you.

[oxboy99]

Usually I would suggest you take the IAS as you can always switch to a lower SIBOR rate loan when it obtains TOP as the 2 year lock-in period would have expired and you can switch to another bank or renegotiate(refinance) your loan rate with your existing bank.

However, you are caught between a rock and a hard place as it is possible the development may obtain TOP in 1 year.

As such, the only logical solution is to start progressive payment. However, note that this is to your detriment and you should let your seller know.

Ask the bank for a 1 year lock-in under IAS and allow you to switch to SIBOR after TOP. That would be the ideal solution so that you can enjoy IAS as well as the low interest rates under SIBOR subsequently after TOP.

Before buying, ask if the development is having a hard time selling the units. If they are, they might be willing to offer you more benefits 'cause I don't see any upside to you buying this unit otherwise. It's recession and property market is down - they should be bending over backwards to sell you this unit.

You should not be caught in such a situation in the market.

[hmsg]

Applied for the SC loan... straight forward case bu still waiting for letter of offer after 1 week!!! PIA gotten 2 days ago... this is taking too long!!!

[Acer]

Applied for the SC loan... straight forward case bu still waiting for letter of offer after 1 week!!! PIA gotten 2 days ago... this is taking too long!!!

take 1 week to approve the loan?

That's long

[hmsg]

yes, was told there was a long backlog due to its attractive package.... in the end, went for another bank... only 3 days to get letter of offer... which is the usual time norm...