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Thread: If you yet to refinance your loan yet...

  1. #121
    teddybear's Avatar
    teddybear is offline Global recession is coming....
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    That is because you are assuming the $1M loan interest rate is 1.5% lah!
    Now SIBOR + 0.9 already almost 2.0%!
    At the rate SIBOR is rising, soon mortgage loan interest rate will hit 3.5%!
    At that rate, I rather sell my bonds (those earning 2.5-3.5% range of coupons) to redeem all my property loans!

    Quote Originally Posted by chestnut View Post
    Food for thought....

    Assume you have 1 mil loan at 1.5% interest.
    Assume you have 1 mil cash which you spread below.
    Assume you put 500k into bonds that earn you 4% per annum (blue chip company)
    Assume you put 250k into fd @ 1%.
    Assume 250k standby in deposit account....

    Is this better or paying off the loan?????
    Would you be able to use the interest to offset the income tax????

    This is just one possible option.... There are others.... Paying up in full is also a viable option.... Many ways to skin a cat.... Hahahahaha...

    It all depends on personal goals.... Some are so worried over mortgage interest rather than trying to figure out how to make money.....

  2. #122
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    Quote Originally Posted by teddybear View Post
    That is because you are assuming the $1M loan interest rate is 1.5% lah!
    Now SIBOR + 0.9 already almost 2.0%!
    At the rate SIBOR is rising, soon mortgage loan interest rate will hit 3.5%!
    At that rate, I rather sell my bonds (those earning 2.5-3.5% range of coupons) to redeem all my property loans!
    Teddy..Your posts very hard to read.. always so "loud"..!! Bold n cap in red almost eveeywhere? R u like that in person.."shouting" in order to be heard?

    Anyway... Redeeming loan means killing off an option n opportunity to allow your money work harder. Of course if cannot tahan the monthly repayments it's best to redeem the loan.

    Both valid options.

  3. #123
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    Quote Originally Posted by MortgageGuru View Post
    just received confirmation from banker that some case board rate increase by 0.8%

    So if they're at 4.5% , it will be 5.3%.

    Now, board rate can be so scary.
    Thing is that all bankers talked n argued the same logic like u...stating that board rate never increased much etc etc

    Now swarp that with FHR n the logic n talk is almost identical. The fact is that you have a vested interest.. N unless you are part of the management team who set the rates etc..what make u so sure that "trend of FHR spread increasing rapidly in recent months just goes to show that they won't be increasing FHR itself"?

    This is statement guaranteed on the contract or its the assumption that you make? If so sure..can bank include such a clause then?

    Almost all people I know.. Bankers included was so cock sure the sibor rates will only increase after fed gives the green light.

    Then the banks starts to increase in "anticipation" of hike n caught consumers off guard.

    Or I should rephrase.. Maybe the bankers all pretend I sound crazy when I suggested that banks will increase before the fed increase..simply because they are out to earn as much profit as possible.
    .

    Lessons learnt..only believe half of what u hear from bankers n banks..especially if they have vested interest.
    Last edited by Yuki; 14-04-15 at 09:00.

  4. #124
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    Quote Originally Posted by Yuki View Post
    Thing is that all bankers talked n argued the same logic like u...stating that board rate never increased much etc etc

    Now swarp that with FHR n the logic n talk is almost identical. The fact is that you have a vested interest.. N unless you are part of the management team who set the rates etc..what make u so sure that "trend of FHR spread increasing rapidly in recent months just goes to show that they won't be increasing FHR itself"?

    This is statement guaranteed on the contract or its the assumption that you make? If so sure..can bank include such a clause then?

    Almost all people I know.. Bankers included was so cock sure the sibor rates will only increase after fed gives the green light.

    Then the banks starts to increase in "anticipation" of hike n caught consumers off guard.

    Or I should rephrase.. Maybe the bankers all pretend I sound crazy when I suggested that banks will increase before the fed increase..simply because they are out to earn as much profit as possible.
    .

    Lessons learnt..only believe half of what u hear from bankers n banks..especially if they have vested interest.
    When everybody is on board the fixed rate ship or FHR or "board rate", the banks will sharpen their knives. Of all the loan rate benchmarks, the most transparent is still sibor/ sor.

    Now they are still herding everyone on board the non-sibor/ sor home loans, once that boat (ie: loan book) is full and it sets sail...ho seh liao.

    The home loan head of every bank only interested in hitting his KPI/ performance bonus.

  5. #125
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    teddybear is offline Global recession is coming....
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    SIBOR also not safe because it is a "THINKING" rate!!!!!!!!!!
    SGD exchange rate goes down vs USD, they increase SIBOR, giving excuse like because SGD down blah blah blah.
    SGD exchange rate goes up (like past few weeks), SIBOR also goes up or stay there!!!!!!!!!!!!
    SIBOR rate is like a 1-way street - UP UP UP, just like GST rate and public transport fare!!!!!!!!!!!!!!!

    Quote Originally Posted by sabian View Post
    When everybody is on board the fixed rate ship or FHR or "board rate", the banks will sharpen their knives. Of all the loan rate benchmarks, the most transparent is still sibor/ sor.

    Now they are still herding everyone on board the non-sibor/ sor home loans, once that boat (ie: loan book) is full and it sets sail...ho seh liao.

    The home loan head of every bank only interested in hitting his KPI/ performance bonus.

  6. #126
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  7. #127
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    http://www.talkmarkets.com/content/g...ext?post=58534

    Interest rate is going up because lot of people need to loan money for business because of improve business ????????

  8. #128
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    Quote Originally Posted by Arcachon View Post
    http://www.talkmarkets.com/content/g...ext?post=58534

    Interest rate is going up because lot of people need to loan money for business because of improve business ????????
    So could this be the great asset sale we are waiting for?

    Or does it mean the value of money will plummet further in hyperinflation mode?
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  9. #129
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    Quote Originally Posted by Yuki View Post
    Thing is that all bankers talked n argued the same logic like u...stating that board rate never increased much etc etc

    Now swarp that with FHR n the logic n talk is almost identical. The fact is that you have a vested interest.. N unless you are part of the management team who set the rates etc..what make u so sure that "trend of FHR spread increasing rapidly in recent months just goes to show that they won't be increasing FHR itself"?

    This is statement guaranteed on the contract or its the assumption that you make? If so sure..can bank include such a clause then?

    Almost all people I know.. Bankers included was so cock sure the sibor rates will only increase after fed gives the green light.

    Then the banks starts to increase in "anticipation" of hike n caught consumers off guard.

    Or I should rephrase.. Maybe the bankers all pretend I sound crazy when I suggested that banks will increase before the fed increase..simply because they are out to earn as much profit as possible.
    .

    Lessons learnt..only believe half of what u hear from bankers n banks..especially if they have vested interest.
    I think you don't get how broker works.
    broker have no biased in their comparison, no matter which bank consumer is referred to, broker gets the same rate commission.
    thats the reason why i was rooting for FHR compared to other rates.
    board rate is subjected to SIBOR rise, obviously sibor going up, board rate will go up.
    FHR is different, why FHR?

    FHR been increasing, just that you all don't know, they've been increasing their spread quietly but steadily yet no one noticed.

    6 months ago FHR package...

    1st year:0.85
    2nd year:0.95
    3rd year:1.20
    Thereafter 1.25

    shortly on jan 2015...

    they increased to...

    1st year: 1.0
    2nd year:1.0
    3rd year:1.0
    thereafter:1.45

    and then they increase again to...

    1st year:1.10
    2nd year:1.10
    3rd year:1.10
    thereafter:1.60


    noticed the high spread?
    nobody notice, only thing people noticed was their FHR never increase, will it increase soon?speculating,speculating.....

  10. #130
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    Quote Originally Posted by Kelonguni View Post
    So could this be the great asset sale we are waiting for?

    Or does it mean the value of money will plummet further in hyperinflation mode?
    What is your choice, hold paper money or assets.

  11. #131
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    Default Will Mario Draghi Leave the ECB Without Ever Raising Rates?

    http://www.bloomberg.com/news/articl...raising-rates-

    Here’s one way of measuring how troubled Europe’s economy is: Investors are betting Mario Draghi will complete his eight-year term as head of the European Central Bank in 2019 without ever raising interest rates.
    Money-market derivatives indicate the ECB won’t increase its key rate from 0.05 percent until December 2019 -- two months after Draghi’s tenure is scheduled to end, according to Deutsche Bank AG economist Torsten Slok.
    By contrast, Draghi’s predecessor, Jean-Claude Trichet, raised rates 11 times. Even Ben S. Bernanke got to tighten at the Federal Reserve on three occasions.
    Swaps now suggest the Fed will lift its benchmark by next March, Slok told clients in a report last week. A year ago, markets indicated the Fed and ECB would be acting in unison by November 2016.
    To Slok, the unprecedented divergence between the world’s two biggest central banks means the euro will fall through parity against the dollar and European stocks will continue to draw demand. That outcome may appeal to Draghi as he hopes a cheaper euro and buoyant financial assets will help revive the euro-area economy, vindicating his use of quantitative easing.
    Indeed, he is likely to recommit on Wednesday to buying 1.1 trillion euros ($1.16 trillion) of assets by September 2016 after some suggestions that signs of early success mean the purchases will be tapered at some point.
    A gap of almost four years between rate hikes from the Fed and ECB would nevertheless be a record setter. When the U.S. last began raising rates in June 2004, the ECB followed 18 months later in December 2005.
    Still, not all economists buy the market’s signals.
    Increases Seen
    At Royal Bank of Scotland Group Plc, Richard Barwell says it’s unlikely the euro region will be in such desperate shape for another four years. “More to the point, I don’t believe that modest hikes in official interest rates will crush the life out of the recovery,” he said
    For Holger Schmieding, chief economist at Berenberg Bank, the “best bet remains that the euro zone and the ECB are about two years behind the U.S. and the Fed.”
    Erik Nielsen, chief global economist of UniCredit Bank AG, is worried European officials will wait longer than a year or so before tracking the Fed.
    “If it is any longer than that, the present European combination of negative policy rates, massive QE and misguided financial regulation could well become truly poisonous, sending many pension funds and insurance companies into insolvency,” he said in a report on Sunday.

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    So... what is your (aka readers') view?

    If the market is talking about it, we are already behind the leaders.

  13. #133
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    hi everyone here, any advice on refinance options?

    outstanding bank loan(hdb) = $290k
    current rate: 3mth sibor + 1% (there after)

    - call bank repricing: not offer better rates
    - surfing www.moneysmart.sg/home-loan and findahomeloan.co havent find better options

    should just stay on current package?

  14. #134
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    Quote Originally Posted by taggy View Post
    hi everyone here, any advice on refinance options?

    outstanding bank loan(hdb) = $290k
    current rate: 3mth sibor + 1% (there after)

    - call bank repricing: not offer better rates
    - surfing www.moneysmart.sg/home-loan and findahomeloan.co havent find better options

    should just stay on current package?
    HDB best to refinance.

  15. #135
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    Quote Originally Posted by taggy View Post
    hi everyone here, any advice on refinance options?

    outstanding bank loan(hdb) = $290k
    current rate: 3mth sibor + 1% (there after)

    - call bank repricing: not offer better rates
    - surfing www.moneysmart.sg/home-loan and findahomeloan.co havent find better options

    should just stay on current package?

    Hi Taggy, do clear your inbox as I can't reply you right now.

  16. #136
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    Quote Originally Posted by MortgageGuru View Post
    Hi Taggy, do clear your inbox as I can't reply you right now.
    paise, clear liao.

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    Refinance not so straightforward right? Must give notice X months and then may have repricing fees?

  18. #138
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    Quote Originally Posted by TABee View Post
    Refinance not so straightforward right? Must give notice X months and then may have repricing fees?
    3 months notice to be served in usual case.

    yes there'll be cost definitely.

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    Quote Originally Posted by MortgageGuru View Post
    3 months notice to be served in usual case.

    yes there'll be cost definitely.
    Hi Mortgage Guru, I have a property in the west area to refinance.
    Can you assist on refinancing of commercial/ industrial property?

    Please PM me.

    Thanks

  20. #140
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    I am now offered the following by UOB:

    Board rate 4.5 less discounts:

    1) 1.38/1.58/1.88 - 3 year lock
    2) 1.58/1.88 - 1 year lock
    3) 1.68/1.88/2.28 - no lock

    Fixed
    1) 1.98/1.98 - 2 year lock

    All board rate and fixed rate's thereafter rates is 2.65 (current Board rate 4.5-1.85).

    Which is a sure bet?

  21. #141
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    To add:

    Board rate got 0.4% subsidy - clawback period is 3 yr. Must maintain min 200k loan balance if wan to partial repay. Once subsidy clawback period over, no need to care the min 200k balance.

    Fixed rate no subsidy.

    For my case. I'm taking a 263k loan for 13 years. I wan to partial repay as such as possible and clear out asap.

  22. #142
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    nope, the sure thing about board rate is that it will increase within a year definitely.

  23. #143
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    How about UOB homestar package.

  24. #144
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    nothing special.. same as stanchart mortgageone interest offset package.

  25. #145
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    Since it is the same. Then go with UOB. SC pull stunts like Citi before when things don't suit them. Don't say never warn.

  26. #146
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    Considering an interesting package for refinance.....

    Fixed spread of 0.75% throughout tenure

    3 month SIBOR+ 0.75 %

    No lock in. no prepayment penalty..
    Just what I am looking for

    Bagus ? ..Discuss

  27. #147
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    I have clients that have outstanding loan of $10M and their interest rate is 1m sibor +0.7 throughout.
    and yes.. he refinance..

  28. #148
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    @MortgageGuru
    Are there currently 0.7 % spread throughout ,no lock in, no prepayment ? SiBOR any tenure is fine.

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    dear MortgageGuru,

    what is the best Floating rate package available now ?

  30. #150
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    Quote Originally Posted by gsmsimmax3 View Post
    @MortgageGuru
    Are there currently 0.7 % spread throughout ,no lock in, no prepayment ? SiBOR any tenure is fine.
    There's no SIBOR package at 0.7% throughout.

    but there's a alternative one at 0.6 + 12M SIBOR which practically mean you're getting 1.6x fixed 1 year. Lock-in 1 year as well.

    thereafter is 0.7,0.8 but 1.25 for the long term.

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