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Thread: Banks say loan repayment ability still key even with easing of total debt servicing r

  1. #1
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    Default Banks say loan repayment ability still key even with easing of total debt servicing r

    http://www.businesstimes.com.sg/bank...debt-servicing

    Banks say loan repayment ability still key even with easing of total debt servicing ratio

    Saturday, March 11, 2017

    by Siow Li Sen
    [email protected]
    @SiowLiSenBT


    THE government's easing of the debt ratio will give flexibility to home owners looking to monetise their property but borrowers need to think of their repayment ability, banks said on Friday.

    The total debt servicing ratio (TDSR) will no longer be applied from March 11 for mortgage equity withdrawal loans that have a loan-to-value (LTV) ratio of 50 per cent and below, the government said.

    This move gives homeowners, especially business owners and people in semi-retirement, an added option to generate cash flow by monetising the value of their properties, said a DBS Bank spokesman. The 50 per cent loan-to-value limit will encourage homeowners to continue to practise financial prudence and do not overleverage, he said.

    "A mortgage equity withdrawal loan is still a mid to long term financial commitment which requires monthly loan repayments. We advise all homeowners to exercise financial prudence."

    Relaxing the TDSR on mortgage equity withdrawal loans does not mean banks will ease up on their credit assessment and the amount borrowers can unlock from their property would depend on factors such as age, said one industry source. Borrowers would still have to demonstrate their ability to repay the loan, and that would depend on their income stream. Retirees intending to monetise their property will also face limits due to their age.

    The DBS spokesman added that borrowers need to fully understand their needs and think how they will be using this increased cash flow. He said that the mortgage equity withdrawal loans would be term loans that require monthly repayments and the tenure depends on the age of the customer, like a housing loan.

    "We encourage them to speak with their banker to explore possible options including understanding how such a loan could increase their monthly financial commitment," he said.

    The Monetary Authority of Singapore (MAS), together with the ministries of finance and national development said in a joint statement that the current set of property market measures "remain necessary to promote a sustainable residential property market and financial prudence among households".

    On the TDSR, MAS said that borrowers had given feedback that the current framework had limited their flexibility in monetising their properties in their retirement years.

    A Maybank spokeswoman said that the revision in the TDSR framework for equity withdrawal loans was positive news for private property home owners with low leverage on their property. "Notwithstanding that there may be no requirement to apply the TDSR framework to mortgage equity withdrawal loans with LTV ratios of 50 per cent and below, the bank will rely on its internal credit assessment when evaluating such cases."

  2. #2
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    Relaxing the TDSR on mortgage equity withdrawal loans does not mean banks will ease up on their credit assessment and the amount borrowers can unlock from their property would depend on factors such as age, said one industry source. Borrowers would still have to demonstrate their ability to repay the loan, and that would depend on their income stream. Retirees intending to monetise their property will also face limits due to their age.

    The DBS spokesman added that borrowers need to fully understand their needs and think how they will be using this increased cash flow. He said that the mortgage equity withdrawal loans would be term loans that require monthly repayments and the tenure depends on the age of the customer, like a housing loan.

    Agree, Banker always thought of the borrower interest first before their interest. Like they loan to a 75 years old with 25 years loan before the Control measure. The banker is the good people that think for the borrower.

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    Sibor appears to not have moved much from Dec 2016, in fact falling marginally.

    http://www.mortgagewise.sg/our-predi...-rate-in-2017/

    At the same time, there was a weakening of USD to SGD when the interest rate increased. What is happening anyone?
    The three laws of Kelonguni:

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

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    Normal

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    Default Don't play play with the Chinese, they know how to print.


  6. #6
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    Quote Originally Posted by Kelonguni View Post
    Sibor appears to not have moved much from Dec 2016, in fact falling marginally.

    http://www.mortgagewise.sg/our-predi...-rate-in-2017/

    At the same time, there was a weakening of USD to SGD when the interest rate increased. What is happening anyone?


    YOu should ask MortgageGuru ........

    hes been saying rates will go up since early 2016 ...

  7. #7
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    what's the current sibor after the latest fed rate hike?

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    Quote Originally Posted by bargain hunter View Post
    what's the current sibor after the latest fed rate hike?
    3 months Sibor (%)

    Nov 2016 - 0.87
    Dec 2016 - 0.93
    Jan 2017 - 0.97
    Feb 2017 - 0.96
    Mar 2017 (today) - 0.94
    The three laws of Kelonguni:

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

  9. #9
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    Quote Originally Posted by Kelonguni View Post
    3 months Sibor (%)

    Nov 2016 - 0.87
    Dec 2016 - 0.93
    Jan 2017 - 0.97
    Feb 2017 - 0.96
    Mar 2017 (today) - 0.94
    bro, where did u get the latest sibor rate from? ie the (today). i searched the web but all gave me delayed.

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    Quote Originally Posted by bargain hunter View Post
    bro, where did u get the latest sibor rate from? ie the (today). i searched the web but all gave me delayed.
    Sorry sorry typed too fast.

    The March rate is not today. It was just March index. Maybe we watch and see.
    The three laws of Kelonguni:

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

  11. #11
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    Quote Originally Posted by proud owner View Post
    YOu should ask MortgageGuru ........

    hes been saying rates will go up since early 2016 ...
    Sibor will be going up in the upcoming months. You will see the movement soon now that banks are preparing to increase rates are signs that it's going north.

  12. #12
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    Sibor rates for the various terms O/N 1wk 1mth 2 mth 3mth 6 mth 9mth 12mth are fixed EVERY bank working day at 11am.

    When one takes a 3 mth loan ...starting 24th March .... the 3mth sibor fixing on 22nd Mar will be used.
    these rates are published daily.

    3mth rates for month of Mar will be the AVERAGE rates of all the 3mths in the entire month ... for your info



    Bank staffs will have inhouse assess.

    Even ABS - Association of Banks in Singapore publishes these rates 7 days later...

    check with your friends in banking ...
    you can get them daily ...

  13. #13
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    15th March after the Fed rates increased is 0.94.

    http://sibor.sg/

    Let's look forward in the upcoming months. If no movement will surely refinance to Sibor rates.
    The three laws of Kelonguni:

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

  14. #14
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    Quote Originally Posted by Kelonguni View Post
    15th March after the Fed rates increased is 0.94.

    http://sibor.sg/

    Let's look forward in the upcoming months. If no movement will surely refinance to Sibor rates.
    thanks!

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    Quote Originally Posted by bargain hunter View Post
    thanks!
    Got increase

    16 Mar

    0.942%

    Increase by 0.002 to 0.004%!

    https://abs.org.sg/rates-sibor
    The three laws of Kelonguni:

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

  16. #16
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    Quote Originally Posted by Kelonguni View Post
    Got increase

    16 Mar

    0.942%

    Increase by 0.002 to 0.004%!

    https://abs.org.sg/rates-sibor


    i week delay


    Business times publishes EVERYDAY ...

    no need to wait 1 wk

  17. #17
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    Got free link bo?

    Quote Originally Posted by proud owner View Post
    i week delay


    Business times publishes EVERYDAY ...

    no need to wait 1 wk
    The three laws of Kelonguni:

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

  18. #18
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    Interest Rate Should increase in Singapore, people got money cannot buy Property due to CM, Bank should increase interest rate so that they can earn interest in the Bank.

  19. #19
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    Quote Originally Posted by Kelonguni View Post
    Got free link bo?
    my friend said 0.9375 in today's BT but he is unsure if he is looking at the correct rate or not.

  20. #20
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    Quote Originally Posted by bargain hunter View Post
    my friend said 0.9375 in today's BT but he is unsure if he is looking at the correct rate or not.
    Should be correct. Other than USD depreciation, can also increase spread.
    The three laws of Kelonguni:

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

  21. #21
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    when is the next hike? June?

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