Some board rates come with no lock-in and refinancing options.
For pre-TOP units, board rate still ok. Can slowly understand the market and switch when the time comes. The sums involved are also tiny.
Originally Posted by
amk
You should educate your customers like this:
"Board Rate" is an arbitrary number set by the bank, at any time the bank wants, at any number he wants, in any way he wants.
"Board Rate" can , and will, change every day, even for the same project, submitted on the same day, even for the same buyer (of multiple units).
The so-call "discount over board rate" is completely meaningless and even moot. An unknown number ("board rate") minus a fixed number ("discount") is still an unknown number.
So mathematically, your rate today is an unknown number X - 3% = 1.28%. Tomorrow, I don't know. Since number X is not fixed and can be anything, the "3% discount" is completely meaningless. For example, tomorrow bank can say the X applicable to you is 10% so you pay 7% now.
Taking "Board Rate" is equivalent of you signing a blank cheque to the bank, and say to the bank "please, write whatever rate you want to charge me, and I will take it" !
Sorry to the TS, I just cannot believe, at this time and day, there are still people taking "board rates" ! Any other package, be it SIBOR, FHR, FDMR or something, etc are better.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.