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Thread: Impact of interest rate change on monthly bank loan repayment

  1. #1
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    Default Impact of interest rate change on monthly bank loan repayment

    Any experts can advise wat would be extra that i would have to pay if interest rate increase by 1%, assuming i take up a loan of $1mil?

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    Around 500, depends on term.

    Google 'using the loan amortization'

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    Default upswing

    Remember that interest rate could go up not by 1% but maybe 3%! over the next few years.

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    Quote Originally Posted by Localite
    Remember that interest rate could go up not by 1% but maybe 3%! over the next few years.
    die! die! fire sale fire sale!!!

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    Quote Originally Posted by august
    die! die! fire sale fire sale!!!
    But it will be long long before the fire sale is caused by int rate rocketing.

    I was just cautioning those looking to plan based on their income vs interest rate.

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    Quote Originally Posted by Localite
    But it will be long long before the fire sale is caused by int rate rocketing.

    I was just cautioning those looking to plan based on their income vs interest rate.
    sorry, lost my cool for a min ...

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    Future interest rate hike is inevitable. If it is accompanied by good economic prospect, fundamentals and gd rental yield, it will not be a problem.

    We should be fearful of Stagflation.

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    Quote Originally Posted by Localite
    But it will be long long before the fire sale is caused by int rate rocketing.

    I was just cautioning those looking to plan based on their income vs interest rate.
    interest rate definitely will rise. we should plan the loan based on worst case scenario, with the 3-4% SIBOR in mind. current low interest regime wont last forever

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    Quote Originally Posted by marktkt22
    interest rate definitely will rise. we should plan the loan based on worst case scenario, with the 3-4% SIBOR in mind. current low interest regime wont last forever
    Now bears start to shout double dip oredi....EUR zone..PIGS...G 'settled'...who's next?

    It W or worse...V+L....interest rate may stay low longer....

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    Quote Originally Posted by marktkt22
    interest rate definitely will rise. we should plan the loan based on worst case scenario, with the 3-4% SIBOR in mind. current low interest regime wont last forever
    Why is it called "worst case" scenario?

    It is a good thing for interest rates to go up above 10%.

    It'll be back to the exciting times of the 1970's and 80's when you see property values going up by 10 times!

    In fact I have come up with a formula: The number of times that the value of your property can potentially multiply is equal to the SIBOR rate in percentage terms!








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    So one plate of chicken rice will be selling for $20 at normal foodcourt?

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    Quote Originally Posted by jlrx
    Why is it called "worst case" scenario?

    It is a good thing for interest rates to go up above 10%.

    It'll be back to the exciting times of the 1970's and 80's when you see property values going up by 10 times!

    In fact I have come up with a formula: The number of times that the value of your property can potentially multiply is equal to the SIBOR rate in percentage terms!

    ]
    agree that with normal economic growth, property values would rise as interest rates move up...

    but what if there is stagflation(inflation coupled with no economic growth)?...i think it would then be a different scenario...

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    Quote Originally Posted by dnomyarw
    agree that with normal economic growth, property values would rise as interest rates move up...

    but what if there is stagflation(inflation coupled with no economic growth)?...i think it would then be a different scenario...
    You don't have to worry about that.

    The West has landed themselves into this dead corner with all their decades of welfare systems that our prudent Government here had avoided at all costs.

    Now they're going to pay for this BIG TIME.

    The only thing they can do now is the only thing left to do - print money.

    Where is the €110 billion (S$200 billion) Greece rescue package coming from? Gold bars? No. Iron Ore? No. Oil? No.

    Fake money or what is known as fiat currency.

    Just see what's happening to the Euro and the Pound?

    It's called a "death plunge" and the Singapore dollar is being dragged down the shit hole (although ironically our Sing dollar appears to be rising, but it's only relative to their currency).

    I have been reproducing some quotations from wise men, some of whom lived many centuries ago. Maybe it's time to take another look at what they said.

    “The problem with fiat money is that it rewards the minority that can handle money, but fools the generation that has worked and saved money.”
    - Adam Smith (16 June 1723 – 17 July 1790)


    “The modern banking process manufactures currency out of nothing.”.
    - Lord Josiah Stamp, Former Director of the Bank of England (1937)

    “At the end fiat money returns to its inner value—zero.”
    - Voltaire (21 November 1694 – 30 May 1778)

    "So one plate of chicken rice will be selling for $20 at normal foodcourt? "
    - devilplate (joined Apr 2010)

  14. #14
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    Quote Originally Posted by jlrx

    "So one plate of chicken rice will be selling for $20 at normal foodcourt? "
    - devilplate (joined Apr 2010)
    Err...i certainly no wise man...Only a minor mortal that worrys about inflation on our daily needs...

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