Sibor rate is dropping!

[MrTan]

Actually I feel quite frustrated. I believe it would be new fixed rates since my spouse and myself worked in bank back end operation and I believe it would be likely so. Next as rook mentioned, the monthly loan is a challenge and I need to keep that in check. As of last sibor+base of 1.0, I got a nasty whammy 2.21% slap on me for next 3 months now my monthly loan jump to the rough figure as what rook indicated. Going forward if the fixed rate is in the range of 2.0-2.5% I am stuck with huge monthly loan and I am sure it would be very challenging. Car left only 3 years and I intend to sell it off. Probably start driving taxi and park in my landed when not in use. 200km is easily achievable though.

Wow. Both of u work in a bank. Then I'm really amazed at ur level of financial literacy. Also perhaps that's where you have acquired such a big appetite for risk. Both of u work in the same bank? I wonder which bank it is. Hope it's not SCB.

Intend to sell car now or 3 yrs later? It's worth more now than latter when the only value left is scrap value. Maybe can sell car once u get ur taxi. Guess will be the only taxi parked in mt Sinai. How many cars/taxis can u park at ur landed?

[yowetan]

Wow. Both of u work in a bank. Then I'm really amazed at ur level of financial literacy. Also perhaps that's where you have acquired such a big appetite for risk. Both of u work in the same bank? I wonder which bank it is. Hope it's not SCB.

Intend to sell car now or 3 yrs later? It's worth more now than latter when the only value left is scrap value. Maybe can sell car once u get ur taxi. Guess will be the only taxi parked in mt Sinai. How many cars/taxis can u park at ur landed?

The landed can hold up 2 cars. I am intending to sell within this year once I clear the loan. Car is expiring august 2018. Last known price from 2nd car trader is around 35k.

[MrTan]

The landed can hold up 2 cars. I am intending to sell within this year once I clear the loan. Car is expiring august 2018. Last known price from 2nd car trader is around 35k.

Ever thought of having 2 taxis?

[CondoWE]

Ever thought of having 2 taxis?

Parent one taxis and the other is for PIL. Day shift is mother and MIL then night shift father and FIL lor..!

[rook]

Actually I feel quite frustrated. I believe it would be new fixed rates since my spouse and myself worked in bank back end operation and I believe it would be likely so. Next as rook mentioned, the monthly loan is a challenge and I need to keep that in check. As of last sibor+base of 1.0, I got a nasty whammy 2.21% slap on me for next 3 months now my monthly loan jump to the rough figure as what rook indicated. Going forward if the fixed rate is in the range of 2.0-2.5% I am stuck with huge monthly loan and I am sure it would be very challenging. Car left only 3 years and I intend to sell it off. Probably start driving taxi and park in my landed when not in use. 200km is easily achievable though.

Yowetan- Don't sound exasperated...there are still many options you can consider:

- sit with a skilled mortgage consultant and thoroughly explore all the options you have to keep your monthly outflows manageable. You may have to take some calculated risks by going with variable rates instead of fixed (either the FHA or board rates)...but it may buy you some reprieve for 2-3 years . All fixed rates are running into the 2% range.

- There is a guy called Darren who I only know by reading his articles on his website. He sounds as though he has a good grasp of trying to work on a compromised solutions for his clients by taking current and future interest rate scenarios into account. I have not dealt with him at all, so please use your own judgement. You can also consult other mortgage consultants present on this forum.
Darren Goh
(65) 9696 0506
Executive Director
MortgageWise.sg

- You may have additional options by trying to refinance your mortgage by taking some money out of your equity. This may be needed if you need some deposits to meet the TDSR req'ts.....or to help you with your cashflows for a couple of years while you figure other solutions out.

- Don't rush into selling your car and becoming a taxi driver. With your current $4k salary and CPF contribution from your employer, you may already be making $5k overall. I am not sure a taxi driver makes alot more than that by working at least 50% harder. On top of that, a salaried employee qualifies for a mortgage much easier than a self employed person.

Quite honestly, I feel your situation is manageable...but you have to be clear of your cashflow req'ts both in the near term and medium term. Your landed will earn you good returns if you manage to keep it for 10-15 years.....stay the course..

Best luck.

[MrTan]

Yowetan- Don't sound exasperated...there are still many options you can consider:

- sit with a skilled mortgage consultant and thoroughly explore all the options you have to keep your monthly outflows manageable. You may have to take some calculated risks by going with variable rates instead of fixed (either the FHA or board rates)...but it may buy you some reprieve for 2-3 years . All fixed rates are running into the 2% range.

- There is a guy called Darren who I only know by reading his articles on his website. He sounds as though he has a good grasp of trying to work on a compromised solutions for his clients by taking current and future interest rate scenarios into account. I have not dealt with him at all, so please use your own judgement. You can also consult other mortgage consultants present on this forum.
Darren Goh
(65) 9696 0506
Executive Director
MortgageWise.sg

- You may have additional options by trying to refinance your mortgage by taking some money out of your equity. This may be needed if you need some deposits to meet the TDSR req'ts.....or to help you with your cashflows for a couple of years while you figure other solutions out.

- Don't rush into selling your car and becoming a taxi driver. With your current $4k salary and CPF contribution from your employer, you may already be making $5k overall. I am not sure a taxi driver makes alot more than that by working at least 50% harder. On top of that, a salaried employee qualifies for a mortgage much easier than a self employed person.

Quite honestly, I feel your situation is manageable...but you have to be clear of your cashflow req'ts both in the near term and medium term. Your landed will earn you good returns if you manage to keep it for 10-15 years.....stay the course..

Best luck.

I believe he meant being a part time taxi driver during non office hours on top of being a salaried employee, though another forummer has a better suggestion.

His situation is manageable. Just need to keep in check his appetite.

[MortgageGuru]

didn't hear any packages for 1.58 with a spread of 1%, i've deviated rates at 1.48% but the thereafter spread is still at 1.25% at least.
your SCB might be from hongkong instead of singapore branch i guess...

[MrTan]

didn't hear any packages for 1.58 with a spread of 1%, i've deviated rates at 1.48% but the thereafter spread is still at 1.25% at least.
your SCB might be from hongkong instead of singapore branch i guess...

SCB Singapore is QFB. SCB Hong Kong is QFB meh? Can give out home loan meh? If can, r they bounded by the CMs?

[Yuki]

Actually I feel quite frustrated. I believe it would be new fixed rates since my spouse and myself worked in bank back end operation and I believe it would be likely so. Next as rook mentioned, the monthly loan is a challenge and I need to keep that in check. As of last sibor+base of 1.0, I got a nasty whammy 2.21% slap on me for next 3 months now my monthly loan jump to the rough figure as what rook indicated. Going forward if the fixed rate is in the range of 2.0-2.5% I am stuck with huge monthly loan and I am sure it would be very challenging. Car left only 3 years and I intend to sell it off. Probably start driving taxi and park in my landed when not in use. 200km is easily achievable though.

i remember reading somewhere you were looking to purchase another condo.

I hope with this experience you have changed your mind.

Leverage is a double edged sword.

[pmet]

Yowetan is the perfect example of a college of mine who stays in D10 landed but sting on every little thing. He has little left after paying his mortgage and doesn't even bring his kids to MCD citing high cost of living. What for become asset rich and monetarily poor? Singaporeans really poor and unhappy despite being asset rich!

Suggestion is to cut loss on your extra property and sell out at a 15% loss rather than holding onto a depreciating asset and paying unnecessary interest only to find out later that you can't afford and then foreclosure. Tell you, 3% interest rates is not far from reality. Probably 2-3yrs time AT MOST. Sounds like you will be crushed by then with 4% total interest on your loan balance (3% + 1% spread).

No money don't play property (but most Singaporeans have followed the herd anyway)!

[yowetan]

didn't hear any packages for 1.58 with a spread of 1%, i've deviated rates at 1.48% but the thereafter spread is still at 1.25% at least.
your SCB might be from hongkong instead of singapore branch i guess...

1st year 1.58%
2nd year 1.58%
Thereafter Base 1.0% + sibor 1 mth.

They even have the print out to me in hard copies. We signed and we quickly submitted the forms to them. They wanted:

CPF statement
Latest payslip
Credit card statement
Car loan outstanding statement

[yowetan]

Yowetan is the perfect example of a college of mine who stays in D10 landed but sting on every little thing. He has little left after paying his mortgage and doesn't even bring his kids to MCD citing high cost of living. What for become asset rich and monetarily poor? Singaporeans really poor and unhappy despite being asset rich!

Suggestion is to cut loss on your extra property and sell out at a 15% loss rather than holding onto a depreciating asset and paying unnecessary interest only to find out later that you can't afford and then foreclosure. Tell you, 3% interest rates is not far from reality. Probably 2-3yrs time AT MOST.

No money don't play property (but most Singaporeans have followed the herd)!

Ya. Spot on. I actually bought Philips air-fryer and get patties from Sheng Siong supermart and air fry and wallop two bread between to make a burger for my two toddler boys.

[MrTan]

Yowetan is the perfect example of a college of mine who stays in D10 landed but sting on every little thing. He has little left after paying his mortgage and doesn't even bring his kids to MCD citing high cost of living. What for become asset rich and monetarily poor? Singaporeans really poor and unhappy despite being asset rich!

Suggestion is to cut loss on your extra property and sell out at a 15% loss rather than holding onto a depreciating asset and paying unnecessary interest only to find out later that you can't afford and then foreclosure. Tell you, 3% interest rates is not far from reality. Probably 2-3yrs time AT MOST. Sounds like you will be crushed by then with 4% total interest on your loan balance (3% + 1% spread).

No money don't play property (but most Singaporeans have followed the herd anyway)!

What extra property? Got meh?

[yowetan]

What extra property? Got meh?

I have only one, and that is in Mt Sinai. My dream home.

[pmet]

What extra property? Got meh?

thought he took the plunge into another property... if not like that more jia lat liao

[MrTan]

Ya. Spot on. I actually bought Philips air-fryer and get patties from Sheng Siong supermart and air fry and wallop two bread between to make a burger for my two toddler boys.

Ya. And next time you have to make burgers for your nephews and nieces too.

[Yuki]

Ya. Spot on. I actually bought Philips air-fryer and get patties from Sheng Siong supermart and air fry and wallop two bread between to make a burger for my two toddler boys.

Its wiser if you can deleverage while you can. Having to live on a merge savings after paying all the mortgage installment is very hard...

[minority]

didn't hear any packages for 1.58 with a spread of 1%, i've deviated rates at 1.48% but the thereafter spread is still at 1.25% at least.
your SCB might be from hongkong instead of singapore branch i guess...

SCB Rates now have moved to 1.98% no more 1.58% for fix 2 yrs.

[TABee]

26 MAY 2015 >>> 3-month Sibor down 20% from April High

SCB Rates now have moved to 1.98% no more 1.58% for fix 2 yrs.

[MortgageGuru]

SCB Rates now have moved to 1.98% no more 1.58% for fix 2 yrs.

was referring while it was still 1.58%, the lowest it can go is only 1.48% with 1.25% for the thereafter.
No chance of a 1.00% thereafter.

[3C]

26 MAY 2015 >>> 3-month Sibor down 20% from April High

Really? What's happening. Prediction that sibor can only go up is not true after all..

[sabian]

Really? What's happening. Prediction that sibor can only go up is not true after all..

Aiyah

Almost everybody kenna CONvinced to refinance to fixed rate liao mah.

The bogeyman's job is done. Can keep in the cupboard until they need to meet their KPI again.

[TABee]

Aiyah

Almost everybody kenna CONvinced to refinance to fixed rate liao mah.

The bogeyman's job is done. Can keep in the cupboard until they need to meet their KPI again.

Which bank will be the first to advertise a lower FIXED rate given this latest development?

[proud owner]

Aiyah

Almost everybody kenna CONvinced to refinance to fixed rate liao mah.

The bogeyman's job is done. Can keep in the cupboard until they need to meet their KPI again.

in another thread on rates ... i asked whats the advantage of Fixed vs float ... no one could answer me


in my experience... i have NEVER ever use FIXED rate ...

regardless rates up trend or down trend ...


always go for Float ..

[3C]

Aiyah

Almost everybody kenna CONvinced to refinance to fixed rate liao mah.

The bogeyman's job is done. Can keep in the cupboard until they need to meet their KPI again.

Where is our guru? Please come out to explain. Don't hide

[Kelonguni]

Where is our guru? Please come out to explain. Don't hide

Give people a chance lah. Scully next thing shoot up also hard to say. By year end lots of things can change.

[proud owner]

Give people a chance lah. Scully next thing shoot up also hard to say. By year end lots of things can change.

this is my take ...


if rates are falling ... confirm wont take fixed rate right ? so go for float

if rates are rising ... the premium added on protects the bank at least for the first few years ... meanwhile you take fixed and pay MORE for 2 to 3 years...

housing loans are one of the most prolific dept in banks ...
especially in singapore ... so few default ... even those default, the property gets repossess by the bank ... and they will still 'make back' ..

why one shud take Floating rate...

falling rates ... obviously go for Float
rising rates ... going for FLoat ... you still pay less than those who opted for Fixed ...

when rates gets too high ... Refinance with another bank ...


i can assure you ... in a rising rate scenario ... you can always find a bank that will offer a lower rate than rest ...

[Kelonguni]

OK let me experiment with that next time.

I have always thought both rates are comparable if even out over the long term. Fixed is more for confirmed projection of expenditure.

Are floating rates lower or higher or comparable for let's say BUC property? For built up property? Or for all?

this is my take ...


if rates are falling ... confirm wont take fixed rate right ? so go for float

if rates are rising ... the premium added on protects the bank at least for the first few years ... meanwhile you take fixed and pay MORE for 2 to 3 years...

housing loans are one of the most prolific dept in banks ...
especially in singapore ... so few default ... even those default, the property gets repossess by the bank ... and they will still 'make back' ..

why one shud take Floating rate...

falling rates ... obviously go for Float
rising rates ... going for FLoat ... you still pay less than those who opted for Fixed ...

when rates gets too high ... Refinance with another bank ...


i can assure you ... in a rising rate scenario ... you can always find a bank that will offer a lower rate than rest ...

[sabian]

in another thread on rates ... i asked whats the advantage of Fixed vs float ... no one could answer me


in my experience... i have NEVER ever use FIXED rate ...

regardless rates up trend or down trend ...


always go for Float ..

Yup. The thing is we don't have a long dated fixed rate home loan like they do in the US. (The long dated T Bills facilitates this).

So what's the next best thing? A floating rate with a reasonable constant spread is the next best thing IMHO.

If you want to compare fairly, you have to take the same starting point to compare floating and fixed rate housing loans.

The interest rate movement is not in a straight line. It will move in a lumpy manner like we saw in the last quarter of 2014.

Those who have incentives to CONvince you to make the switch (the banks and their brokers) will make you think the interest rate movement last quarter is representative of the how it will be rising every quarter and we will hit the roof in no time.

If and when rates stay stagnant again, you'll find a different song emerging from the banks: like how you shd switch to floating since rates are stable.

Everytime you switch, the bank earns and the brokers get their comm.

All rates are tied to the Fed rate. So in a rising rate environment, there is no escape whether you are on fixed or floating.

If you intend to pay down your loan over the long haul and you're sitting on a home loan with a reasonable constant spread for the entire duration of the loan (like the ones BOC and ANZ are offering), ask yourself if you're willing to take the risk of jumping onto the fixed rate bandwagon and not being to go back to a floating package with a low spread when the fixed rate expires. If you're, go ahead.

The only scenario where I would advise someone to switch to fixed rate is when he intends to pay off the loan fully within a few years and wants a certainty to his loan payments during this period and will not face the problem of refinancing since he's paying off fully and the fixed rate product matches his needs correctly.

[stl67]

this is my take ...


if rates are falling ... confirm wont take fixed rate right ? so go for float

if rates are rising ... the premium added on protects the bank at least for the first few years ... meanwhile you take fixed and pay MORE for 2 to 3 years...

housing loans are one of the most prolific dept in banks ...
especially in singapore ... so few default ... even those default, the property gets repossess by the bank ... and they will still 'make back' ..

why one shud take Floating rate...

falling rates ... obviously go for Float
rising rates ... going for FLoat ... you still pay less than those who opted for Fixed ...

when rates gets too high ... Refinance with another bank ...


i can assure you ... in a rising rate scenario ... you can always find a bank that will offer a lower rate than rest ...

Actually quite true.. a few years back, I always ask for refinance when the lock-in period is over. Now cannot do anymore due to TDSR... "hai see lang"...