home loan question

[ninelives]

nowaday banks offered those sibor + 1.0%( or 1.3%) which is quite a good deal because sibor is less than 1% now. But the highest record was around 10% in 1999 or 1998. you will jump down from highest floor if you have to pay 11% for interest rate.

other plans are like 1.xx% for 1st and 2nd year then 3.75% thereafter.

i dont know which plan to take, any financial expert here? is sibor going to shoot up coming 2-3 years?

Thanks.

 

[Adam Goi]

Wah ... so settling down ah?

 

[ziploc]

Sibor will go up & down according to inflation and will always be higher then the inflation, as the bank will need to make sure the loan given out will at least cover the inflation plus some earnings. From my conversations with a loan officer from UOB, she actually advised me to take the loan that is based on the mortgage rate, as the mortgage rate does not fluctuate as much as Sibor. If you're looking to take up a housing loan, why not talk to the loan officers from the banks? They will be able to give you the best advice.

 

[alantkh]

I thought the lock in is only like 2 years. If sibor goes up a lot, one can just refinance to another loan package right?

 

[CS TAN]

If you are worry about the rise of interest rate, then go for a loan that do not have a lock-in period. That way, you only need 3-months notice to switch to another loan if you are uncomfortable with interest rate tied to SIBOR.

 

[ConnorMcLeod]

nowaday banks offered those sibor + 1.0%( or 1.3%) which is quite a good deal because sibor is less than 1% now. But the highest record was around 10% in 1999 or 1998. you will jump down from highest floor if you have to pay 11% for interest rate.

other plans are like 1.xx% for 1st and 2nd year then 3.75% thereafter.

i dont know which plan to take, any financial expert here? is sibor going to shoot up coming 2-3 years?

Thanks.

Go to the banks you see offering a mortgage plan you see fit your needs.
They will provide you a spreadsheet which models their package.

since you have ninelives, you can afford to jump of high floors 8 more times than we mere mortals.

But seriously 11% is no joke.

Personally I am hoping that mortgage rate / interest rate / economic performance go up and down in tandem. I might be wrong and even if I am, there will be exceptions!

 

[ninelives]

actually i spoke to few bankers already but problem is they wont tell you the penalty until you ask...very dishonest one..also the bank might tell you the lock in period is 1 year, but they never tell you the claw back clause(which is usually 2-3 yrs)..

newspaper also got published before, some people got "cheated" by bank, coz those people are like me , dunno what to ask.

anyway, thanks for the advise, i will source for few bankers again.

 

[ConnorMcLeod]

actually i spoke to few bankers already but problem is they wont tell you the penalty until you ask...very dishonest one..also the bank might tell you the lock in period is 1 year, but they never tell you the claw back clause(which is usually 2-3 yrs)..

newspaper also got published before, some people got "cheated" by bank, coz those people are like me , dunno what to ask.

anyway, thanks for the advise, i will source for few bankers again.

Ah, what is 'claw back clause'? Never heard this before.

Actually a colleague told me I can reprice my mortgage. But when I ask the bank about it, the person said the interest rate etc are the same so no ponit to reprice. This was last year. Anyone can tell what exactly is reprice about?

 

[ninelives]

Ah, what is 'claw back clause'? Never heard this before.

Actually a colleague told me I can reprice my mortgage. But when I ask the bank about it, the person said the interest rate etc are the same so no ponit to reprice. This was last year. Anyone can tell what exactly is reprice about?

claw back is u have to pay back the legal fee, usually less the 2k. reprice is change of the package plan the bank offered, for example from fixed interest to floating. refinance is change of bank.

 

[baggiolee]

why bank?

 

[dreaming]

why bank?

likely TS not eligible for HDB loan lor. or buying private / landed property..

BTW, if i get loan from bank. Term of the Loan is 30years. can i top up when i have cash to shorthen the term? any penalty for that?