what the best home loan package now?

[jencrs]

Any idea on the latest rates? DBS website says SIBOR + 1.25%

HSBC is still offering their 3M SIBOR + .85%, plus quite a number of other freebies. Only thing is, I don't think that they have a fixed rate package should you want to stick to the same bank but change the package.

Anyway, DBS will match HSBC, or even go lower, as far as interest rates goes, but not the rest of the package ie fire insurance, legal etc.

[DC33_2008]

HSBC is still offering their 3M SIBOR + .85%, plus quite a number of other freebies. Only thing is, I don't think that they have a fixed rate package should you want to stick to the same bank but change the package.

Anyway, DBS will match HSBC, or even go lower, as far as interest rates goes, but not the rest of the package ie fire insurance, legal etc.

Is this package of 3M + 0.88% launched recently?

[jencrs]

Been there for many months at least. btw it's .85%.

[Komo]

I thought the best package to take now is fixed sibor+ as interest rate will most probably continue to trend upward from here.

[proud owner]

Been there for many months at least. btw it's .85%.

is it true that to have that HSBC package, one has to open a bank account with them ? or at least have a HSBC credit card to start with ?

[jencrs]

is it true that to have that HSBC package, one has to open a bank account with them ? or at least have a HSBC credit card to start with ?

Not that I'm aware of. I spoke at length with their loan specialist/VP and not once did having to open a bank acct or having a hsbc credit card come up. And I'm not a customer. But maybe they wanted to reel me in hook, line and sinker first.

Just to share a little more on the standard package, now that I have a little more time. It includes

1) 5 yr free fire insurance. The most any other bank i know would offer, without bargaining, is CIMB and that's only 2 years.

2) Legal is SOP, up to 2.5k subject to 3 yr clawback. I know CIMB can reduce the 3 yrs, while hsbc will prob offer more than 2.5k.

3) Some kind of home assistance thing. Basically they have a list of home "emergencies", and if something on that list happens to your home, e.g. A/C compressor spoils, you can call their 24hr hotline and they will send someone over to fix it. And, they will cover the 1st $100 (or $80 can't remember). Can claim up to 5 times in a year.

Some other more minor stuff which I can't remember at the moment.

[DC33_2008]

I thought HSBC package is first yr (0.9 + 3mth sibor); 2nd yr (0.8 + 3mth sibor) and 3rd onwards (0.7 + 3mths sibor)?

[spikey69]

about to secure a 1st yr :SIBOR +0.5%, 2nd yr: 0.6%, with two year lock in. Trying to negotiate legal subsidy now before signing.

[DC33_2008]

about to secure a 1st yr :SIBOR +0.5%, 2nd yr: 0.6%, with two year lock in. Trying to negotiate legal subsidy now before signing.

Is this citibank?

[jencrs]

I thought HSBC package is first yr (0.9 + 3mth sibor); 2nd yr (0.8 + 3mth sibor) and 3rd onwards (0.7 + 3mths sibor)?

Ya that's another one of their packages. But can't take that package if uncompleted project.

[jencrs]

about to secure a 1st yr :SIBOR +0.5%, 2nd yr: 0.6%, with two year lock in. Trying to negotiate legal subsidy now before signing.

After the 2nd year?

[DC33_2008]

HSBC package has no lock in.

[Drez]

HSBC package has no lock in.

That is untrue. Yes, HSBC is offering one of the most competitive rates for SB3. SB3 as at July 2010 is 0.55958%. So do your math The most competitive rates i'll say it'll be the smart mortgage (SMR) package. Basicly your monthly installment will be repaying 100% to principle amount, provided if you have enough cash.

[rusty28]

Hi all, I'm currently in a 2 years lock in period with OCBC. However, I was given a 1 time free home package conversion. The 2 options given for this free conversion are:

Variable
Year 1 -- OCBC reference rate (4.5%) - 3.22% = 1.28%
Year 2 -- OCBC reference rate (4.5%) - 2.82% = 1.68%
Year 3 -- OCBC reference rate (4.5%) - 1.82% = 2.68%

SOR
Year 1 -- 3Months SOR (Current 3M SOR is 0.41%) + 0.75% = 1.16%
Year 2 -- 3Months SOR + 1.00%
Year 3 -- 3Months SOR + 1.25%

All others terms and conditions are the same for both packages.
1.5% Penalty for full repayment within lock in period.
0% Penalty for partial repayment provided loan amounts reminds >50%.

Either 1 of the package will bring down my interest rate from 3.1%.
But I'm not sure if I should go for SOR which is lower than the variable package knowing that SOR is very volatile.

Anyone with some advice would be appricated =)

[isaaclim]

Hi all, I'm currently in a 2 years lock in period with OCBC. However, I was given a 1 time free home package conversion. The 2 options given for this free conversion are:

Variable
Year 1 -- OCBC reference rate (4.5%) - 3.22% = 1.28%
Year 2 -- OCBC reference rate (4.5%) - 2.82% = 1.68%
Year 3 -- OCBC reference rate (4.5%) - 1.82% = 2.68%

SOR
Year 1 -- 3Months SOR (Current 3M SOR is 0.41%) + 0.75% = 1.16%
Year 2 -- 3Months SOR + 1.00%
Year 3 -- 3Months SOR + 1.25%

All others terms and conditions are the same for both packages.
1.5% Penalty for full repayment within lock in period.
0% Penalty for partial repayment provided loan amounts reminds >50%.

Either 1 of the package will bring down my interest rate from 3.1%.
But I'm not sure if I should go for SOR which is lower than the variable package knowing that SOR is very volatile.

Anyone with some advice would be appricated =)

If you don't mind lock in, can go to DBS. They are having a 3 yrs lock in package very attractive.

But, lock in is a big NO for me. I love freedom and the process of switching bank.

[rusty28]

If you don't mind lock in, can go to DBS. They are having a 3 yrs lock in package very attractive.

But, lock in is a big NO for me. I love freedom and the process of switching bank.

Oh I cant go to another bank. I'm already in a 2 years lock in with OCBC. 7 months more to go. Converting to another plan with OCBC would bring down my interest rate now.

[isaaclim]

Oh I cant go to another bank. I'm already in a 2 years lock in with OCBC. 7 months more to go. Converting to another plan with OCBC would bring down my interest rate now.

That mean you have stay in "the trap" for more than 1 yr. Are you sure you still entitle the one time free conversion?
or is it an offer form OCBC to convert without any charge?

Usually, when you take a loan you have to first ask yourself these questions

1. Do you have any intention to sell the unit within the lock in period?
2. Is this for investment not for own stay?

If there is a yes, then you should not take lock in package.

[azeoprop]

The one I got from UOB for minton is SOR + 0.65% for year 1 to 4. SOR + 1% thereafter.

[isaaclim]

The one I got from UOB for minton is SOR + 0.65% for year 1 to 4. SOR + 1% thereafter.

Was being told that is project specific rate... They can't offer to ready unit.

Is anyone manage to get this package for their ready unit, please do let's me know...

[rusty28]

That mean you have stay in "the trap" for more than 1 yr. Are you sure you still entitle the one time free conversion?
or is it an offer form OCBC to convert without any charge?

Usually, when you take a loan you have to first ask yourself these questions

1. Do you have any intention to sell the unit within the lock in period?
2. Is this for investment not for own stay?

If there is a yes, then you should not take lock in package.

Hi Isaac, yeah it is a 1 time free conversion given after my property has TOP. Both plan are lock in. Just feels that if I continue with my current mortgage plan I'm paying much more. To answer the question, I dont think i have the intention to sell within 2 years and the property is for both own stay and investment(for rent later) =)

[isaaclim]

Hi Isaac, yeah it is a 1 time free conversion given after my property has TOP. Both plan are lock in. Just feels that if I continue with my current mortgage plan I'm paying much more. To answer the question, I dont think i have the intention to sell within 2 years and the property is for both own stay and investment(for rent later) =)

If i am making a choice, I will go for SOR or SIBOR package - more transparency. But will not consider if spread is more than 1%.

I don't have clear view of your situation, so can't really comment. Just a point to note. Due to the volatility of SOR/SIBOR, NO LOCK IN pls...
Getting a SOR/SIBOR with lock in = SUICIDING!

But if my banker offer me those packages you being offered... I sure him!

[rusty28]

If i am making a choice, I will go for SOR or SIBOR package - more transparency. But will not consider if spread is more than 1%.

I don't have clear view of your situation, so can't really comment. Just a point to note. Due to the volatility of SOR/SIBOR, NO LOCK IN pls...
Getting a SOR/SIBOR with lock in = SUICIDING!

But if my banker offer me those packages you being offered... I sure him!

Haha.. thats what I thought so too when she offered me the packages. But since it is like a promo thingy she can only offer this 2. Alternatively I can just continue with my 3.5% for 7 more months and then look to refinance with other bank. Even a variable package based on the bank's reference rate is not good. The bank can up their reference rate anytime.

Appreciate your input, issac.

[water]

Hi,

anyone can advise on the best loan package or promotion for now? TIA!

[DC33_2008]

Is it Maybank? But got to ready carefully the terms of condition.

[water]

Is it Maybank? But got to ready carefully the terms of condition.

Thanks for your response. I got the following quote from one of the local bank. Is this rate good?

Hope some experts can provide some advice.

No lock in 3-months SOR

Year 1: SOR + 0.85%
Year 2: SOR + 0.85%
Year 3: SOR + 0.85%
Thereafter: SOR + 1%

- No full redemption penalty as long as full redemption occurs on rate review date, else 1.5% penalty on amount fully redeemed
- No partial prepayment penalty as long as partial redemption occurs on rate review date, else 1.5% penalty on amount prepaid
- 0.75% cancellation fee if loan is cancelled
- Legal subsidy of 0.5% of loan amount capped at $2500 subjected to 3 years clawback
- Valuation subsidy of $750 subjected to 3 years clawback
- Free 1 year fire insurance for private housing

[x.season]

Hi to all the financial experts and gurus here. Appreciate if you could provide some advice or pointers.

Which package is better?

No lock in 3-months SOR

Year 1: 3M SOR + 0.75%
Year 2: 3M SOR + 0.75%
Year 3: 3M SOR + 0.75%
Thereafter: 3M SOR + 1%

- Valuation subsidy of $750 subjected to 3 years clawback
- Free 1 year fire insurance for private housing


No lock in 1-month SIBOR

Year 1: 1M SIBOR + 0.65%
Year 2: 1M SIBOR + 0.75%
Year 3: 1M SIBOR + 0.8%
Thereafter: 1M/3M/6M/12M SIBOR + 0.9%

- No free fire insurance and valuation subsidy



BTW, still torn between taking SIBOR & SOR. Project expected TOP 2014. No construction work as yet. So I'd expect 1st disbursement to be 1 year later.

TIA !

[leslens]

Hi

I understand standchart to have good variable rates as they have also an interest offset scheme
good for cash rich buyers

im looking at fixed rates as im more conservative and long term view to holding this property >3-5 yrs

1. Citibank 1.2 1.6 1.9
2. Maybank pegged to their board rate
works out similarly to option 1

anyone knows of any banks with better rates than Citibank for 3 years?
signing with them soon

[DC33_2008]

Did you check HSBC?

[x.season]

Did you check HSBC?

HSBC for floating SIBOR?

[DC33_2008]

HSBC for floating SIBOR?

It is quite competitive too.