Originally Posted by
lifeline
Hi Panerex77,
I know what you are asking about.
Your 1st year interest of 1% (in your example) will start from the time of 1st disbursement, after your 40% is paid up. This will depend on the construction schedule and speed. This also means that you do not need to be in a hurry to get that loan yet (if you do not need yet, and you think the rates will go down further, unlikely though; else can lock in the best offer at your selected timing).
Usually you look at mainly the 1st 2 years of loan rates, cos after that you can refinance already; but still get a lower 3rd year, just in case. Go with your regular banker that you already had a relationship with, if any. If your friend or relative are also getting a loan, apply together and bargain for a better rate on the basis of a higher loan quantum. For me, it has been OCBC, slightly better than market.
Happy shopping,
lifeline