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Thread: Loan's interest rate going up!

  1. #1
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    Default Loan's interest rate going up!

    Received letter from bank stating interest rate on my house loan will go up Translated to few hundred dollars increase monthly! Sh*t.

    If you haven't received news from your bank, maybe want to consider locking in rate. I'm considering re-financing or locking rate after CNY.

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    how much % increase?

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    Quote Originally Posted by JuzMe
    Received letter from bank stating interest rate on my house loan will go up Translated to few hundred dollars increase monthly! Sh*t.

    If you haven't received news from your bank, maybe want to consider locking in rate. I'm considering re-financing or locking rate after CNY.
    my guess is SOR rather than SIBOR linked loan?

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    Quote Originally Posted by JuzMe
    Received letter from bank stating interest rate on my house loan will go up Translated to few hundred dollars increase monthly! Sh*t.

    If you haven't received news from your bank, maybe want to consider locking in rate. I'm considering re-financing or locking rate after CNY.
    yup refinance if you can. and if you are on SOR, switch to SIBOR or take up any of the more competitive board rates.

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    Almost sign the SOR package, lucky did not believe agents or bankers. They are bunch of liars liars pants on fire.
    Affordable means small

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    Take up a 2 yr SIBOR to cushion against further increase in next 2 years, which is highly likely...

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    I'm on 1 month sibor, last 3 months rates has been going up, at about 0.01% though each time. My guess is rates will start the quick ascend end of this year when the euro and us situation becomes clearer.

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    SORF3M:IND 0.44245 0.00516 1.15%
    seems ok leh

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    Quote Originally Posted by flagship74
    SORF3M:IND 0.44245 0.00516 1.15%
    seems ok leh

    sor 0.44 is low liao..

    feb 07 was sor 3.5..

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    Quote Originally Posted by rick1
    sor 0.44 is low liao..

    feb 07 was sor 3.5..
    ya lor...

    I can't imaging what will happen to those people who have heavy loans. People is taking these super low interest rate for granted.

    When the interest rates goes back to "normal" range, I wonder if the rental yield can even cover the interests.

    I am just hoping that these interest rates can stay as long as possible while I clear off my housing loan.

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    Quote Originally Posted by wind30
    ya lor...

    I can't imaging what will happen to those people who have heavy loans. People is taking these super low interest rate for granted.

    When the interest rates goes back to "normal" range, I wonder if the rental yield can even cover the interests.

    I am just hoping that these interest rates can stay as long as possible while I clear off my housing loan.
    ya lor.. up abit nia cannot tong.. if back to normal plus alot of margin calls outside.. need 200k hard cash to pay lor.. even more jia lak..

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    jiak lat leh..interest up a bit pple start to KPKB..

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    Quote Originally Posted by flagship74
    jiak lat leh..interest up a bit pple start to KPKB..
    I clearly remember in channel 8 news few days ago on watertown shui zi du interview with buyers. Got people praise the potential of the development. Got one even shout cheap. Where got kpkb.
    Affordable means small

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    Quote Originally Posted by yjcai
    I clearly remember in channel 8 news few days ago on watertown shui zi du interview with buyers. Got people praise the potential of the development. Got one even shout cheap. Where got kpkb.
    pple kpkb abt interest rate and not px of the property lah..

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    Quote Originally Posted by flagship74
    jiak lat leh..interest up a bit pple start to KPKB..
    if goes back to 5% how ah?

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    What is the interest rate if one down 20%,

    And what is the rate if one down 10%?

    Under the earlier 90% loan, few of colleagues down 10% and loan 90%

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    Quote Originally Posted by rick1
    if goes back to 5% how ah?
    Fire sales.

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    Bernanke giving Ang Pow again, this coming Wed 25/01/2012, Huat Ah.



    Fed Begins an Effort to Remove All Doubt on What It’s Doing

    http://www.nytimes.com/2012/01/23/bu...l?ref=business

    WASHINGTON — The Federal Reserve, which does not like to surprise financial markets, has worked unusually hard to prepare the public for the changes to its communications policies that it plans to introduce on Wednesday.

    Ben Bernanke, the Federal Reserve chairman, is focusing on improving Fed communications with the economy out of crisis mode.
    While the changes could make it easier for the Fed to move ahead with another round of asset purchases later this year, by helping to explain why the economy needs additional stimulus, officials have indicated that any such plans remain on the back burner, and may stay there so long as the economy continues to recover.

    Indeed, the Fed is able to focus on communication in part because it is no longer devoting all of its energies to crisis management. These are improvements that the Fed’s chairman, Ben S. Bernanke, has waited five years to make, reflecting his vision for how the Fed should operate in periods of calm, too.

    The centerpiece of the new policies is a plan to publish the predictions of senior Fed officials about the level at which they intend to set short-term interest rates over the next three years — including when they expect to end their three-year-old commitment to keep rates near zero. The Fed also will describe the expectations of those officials for the management of the central bank’s vast investment portfolio.

    The first forecast will be published after a two-day meeting, starting on Tuesday, of the Federal Open Market Committee, which sets policy for the central bank. The committee also is considering the publication of a statement describing the Fed’s goals for the pace of inflation and level of unemployment, which it has never formalized.

    “Our moves toward greater openness in recent years have made our policies more effective and helped the public understand the Fed’s actions better,” John C. Williams, president of the Federal Reserve Bank of San Francisco, said in a recent speech.

    Any bolder steps, he said, “will depend on how economic conditions develop.”

    This is not the first time the Fed has tried to get past crisis management. And after several false starts in which it overestimated the strength of the recovery, officials have been careful to insist that they still stand ready to do more if necessary.

    The economy, after all, is merely muddling along. While economists calculate that fourth-quarter growth was relatively strong, most forecasters expect a much slower pace of growth in the new year. The Fed’s own forecast, which will be updated Wednesday, anticipates growth of up to 2.9 percent. Most other guesses are lower.

    Unemployment also remains a deep and prevalent affliction. Almost 24 million Americans could not find full-time work in December; the unemployment rate has ticked downward in part because many people have stopped looking for work.

    Senior Fed officials have also sought to focus attention in recent months on the depressed condition of the housing market, arguing that other parts of the government can and should do more to help homeowners and revive sales. Some Fed officials have advocated that the Fed buy large quantities of mortgage-backed securities, which could further reduce interest rates on mortgage loans.

    But several Fed officials have said in recent speeches that they are hesitant to support new efforts to improve growth, because they think monetary policy has exhausted most of its power, and because they are worried about inflation.

    “Steady even if unspectacular growth accompanied by inflation in the neighborhood of 2 percent justifies some reluctance to change, in either direction, the F.O.M.C.’s accommodative policy,” Dennis P. Lockhart, president of the Federal Reserve Bank of Atlanta, said in a speech this month.

    Mr. Lockhart added a standard caveat for Fed officials, that the persistence of high unemployment required the Fed to keep thinking about doing more.

    “Now is not a time to lock into a rigid position,” he said.

    But Fed officials have made clear that high unemployment is an insufficient cause for additional action, at least as long as inflation remains near 2 percent.

    Sandra Pianalto, president of the Federal Reserve Bank of Cleveland, said in a recent speech that the economy would not create enough jobs to return unemployment to normal levels for “perhaps even four or five years.”

    “Sooner, of course, would be better for everyone,” she said. “But I want to be on a path toward full employment that
    doesn’t create an inflation problem down the road.”

    The communications changes that the Fed plans to announce Wednesday mark the furthest advance in a 20-year-old campaign to increase the transparency of its decision-making as a means to increase the impact of its policies. As recently as the early 1990s, the Fed still did not regularly announce the decisions reached at its policy meetings. Now it plans to start publishing predictions about the outcomes of future meetings to guide investor expectations.

    The Fed disclosed its plans this month when it released a description of the committee’s most recent meeting, in December. On Friday it followed up by releasing the templates that will be used to publish the predictions.

    The predictions themselves could have a mild effect on markets. The Fed said this summer that it would maintain short-term rates near zero through middle of 2013, at least. Mr. Bernanke has since underscored the words “at least,” and analysts expect the forecast will show that most members of the committee intend to hold rates near zero into 2014.

    Pushing back that timetable will tend to reduce interest rates, but the impact is likely to be minor, as asset prices already reflect an expectation that rates will not rise before 2014.

    “In policy terms, this is a historic change,” Paul Ashworth, chief North American economist at Capital Economics, wrote in a note to clients. “In practical terms, however, the change isn’t going to have any major impact.”

    A version of this article appeared in print on January 23, 2012, on page B3 of the New York edition with the headline: Fed Begins an Effort to Remove All Doubt on What It’s Doing.

  19. #19
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    How to stem inflation like this. High land price, high building costs and price to sell to continue.
    Affordable means small

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    Quote Originally Posted by yjcai
    How to stem inflation like this. High land price, high building costs and price to sell to continue.
    High land price, high building costs is due to money printing in the US and Europe, MAS need to print in order for the SGD not to be overvalue.

    It is not the land price and building cost increase, it the money depreciate due to excess printing. Those who keep their money in the bank Haut Ah.

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    There is no bubble yet in the Singapore property market, said Minister Mentor Lee Kuan Yew.

    http://www.propertyguru.com.sg/prope...le-yet-says-mm

    The sharp price increases that have been experienced were "part of the total liquidity in the whole world system", said Mr. Lee, adding that foreigners still see properties as affordable and interest rates are still low.

    "Even if we cap our excess, people in Hong Kong, Indonesia, will say, compared to what I have to pay, Singapore is cheap, let’s buy it," he said. "And apart from landed properties, they can buy into any condos."

    Mr. Lee said the Singapore government is convinced that there is an underlying demand for residential property. "So it’s probably not a bubble yet."

    He stressed that the Singapore government has taken measures to address concerns regarding the market overheating such as releasing more land to property developers and putting in place more stringent policies for homebuyers when borrowing from banks to acquire a property.

    "More land is being released, to dampen the enthusiasm of everybody rushing for the latest release, and we’ve told the banks to be more prudent and have a higher downpayment," said Mr. Lee.

    "These are the precautions we can take, but it does not stop the Indonesians or the Thais or the Malaysian Chinese or the Filipino Chinese from coming here and saying, ‘Compared to what I have to pay in my country, this is cheap’."

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    The news is out-dated in Jun 2010. Buy property with care in 2012 due to massive supplies of PCs and ECs. Interest seems to be creeping up too. Not recommending buying for rental or sub-sales.

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    Quote Originally Posted by hyenergix
    The news is out-dated in Jun 2010. Buy property with care in 2012 due to massive supplies of PCs and ECs. Interest seems to be creeping up too. Not recommending buying for rental or sub-sales.
    June 2010 QE1, QE2. Since then 8 Dec 2011 ECB printing money 468 Billion loan to 500 banks, this Wed Bernanke going to print money again in a different way, low interest for the next 3 years. Put money in the bank less than 1 %, inflation more than 2 % sure Huat ah. The news may be out-dated but the old man can see far, his son after G20 meeting in France came back with ABSD.

    The out-dated news is just a reminder to those who think Land price and building cost have went up.
    Last edited by Arcachon; 23-01-12 at 18:42.

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    Quote Originally Posted by Arcachon
    June 2010 QE1, QE2. Since then 8 Dec 2011 ECB printing money 468 Billion loan to 500 banks, this Wed Bernanke going to print money again in a different way, low interest for the next 3 years. Put money in the bank less than 1 %, inflation more than 2 % sure Huat ah. The news may be out-dated but the old man can see far.
    Economy is very volatile now. 2010 and 2012 are very different periods to me.

    Whether it is bubble or not, you can decide from the comments by other seasoned forumers on rental demand and sub-sales/re-sales activities, and developers' appetite for land.

    I believe we are in an early stage of bubble from 2H 2011, but the government is taking care not to prick it or inflate it until it bursts. Hence property investment carries a much bigger risk compared to 2010.

    In short, most people cannot escape from this inflation trap. Due to the globally linked monetary system, we are just forced to work harder to help other countries pay off their debts.

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    Quote Originally Posted by Arcachon
    There is no bubble yet in the Singapore property market, said Minister Mentor Lee Kuan Yew.

    http://www.propertyguru.com.sg/prope...le-yet-says-mm

    The sharp price increases that have been experienced were "part of the total liquidity in the whole world system", said Mr. Lee, adding that foreigners still see properties as affordable and interest rates are still low.

    "Even if we cap our excess, people in Hong Kong, Indonesia, will say, compared to what I have to pay, Singapore is cheap, let’s buy it," he said. "And apart from landed properties, they can buy into any condos."

    Mr. Lee said the Singapore government is convinced that there is an underlying demand for residential property. "So it’s probably not a bubble yet."

    He stressed that the Singapore government has taken measures to address concerns regarding the market overheating such as releasing more land to property developers and putting in place more stringent policies for homebuyers when borrowing from banks to acquire a property.

    "More land is being released, to dampen the enthusiasm of everybody rushing for the latest release, and we’ve told the banks to be more prudent and have a higher downpayment," said Mr. Lee.

    "These are the precautions we can take, but it does not stop the Indonesians or the Thais or the Malaysian Chinese or the Filipino Chinese from coming here and saying, ‘Compared to what I have to pay in my country, this is cheap’."
    if you keep loaning out at 1% to FTs.. comfirmed bubble is building liao.. imagine banks here loaning out 116 billion of residential loans..

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    Quote Originally Posted by rick1
    if you keep loaning out at 1% to FTs.. comfirmed bubble is building liao.. imagine banks here loaning out 116 billion of residential loans..
    That is why 10% Additional Buyer's Stamp Duty, we want them to loan SGD at the same time tax them 10%.

    Do you want loan money and then tax 10%?

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    Quote Originally Posted by hyenergix
    Economy is very volatile now. 2010 and 2012 are very different periods to me.

    Whether it is bubble or not, you can decide from the comments by other seasoned forumers on rental demand and sub-sales/re-sales activities, and developers' appetite for land.

    I believe we are in an early stage of bubble from 2H 2011, but the government is taking care not to prick it or inflate it until it bursts. Hence property investment carries a much bigger risk compared to 2010.

    In short, most people cannot escape from this inflation trap. Due to the globally linked monetary system, we are just forced to work harder to help other countries pay off their debts.
    Developer appetite for land depend on the demand, bubble or no bubble they will have the appetite if there is demand.

    Government is taking care they have a constant stream of income from the property market whether bubble or no bubble.

    We don't need to work harder, we need work smarter and make our money work harder.

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    Quote Originally Posted by Arcachon
    That is why 10% Additional Buyer's Stamp Duty, we want them to loan SGD at the same time tax them 10%.

    Do you want loan money and then tax 10%?
    i also dunno how many ppl actually know about the risk when loaning money for properties.. asked around and alot of ppl never heard of margin call.. thought that 1% to 5% is only abit and not many times more..

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    Quote Originally Posted by rick1
    i also dunno how many ppl actually know about the risk when loaning money for properties.. asked around and alot of ppl never heard of margin call.. thought that 1% to 5% is only abit and not many times more..
    Bank interest depends on a lot of factors.

    May be someone can share the factors that affect the interest rate?

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    http://www.investopedia.com/articles...#axzz1kINcxTlU

    The interest rate that applies to investors is the U.S. Federal Reserve's federal funds rate. This is the cost that banks are charged for borrowing money from Federal Reserve banks. Why is this number so important? It is the way the Federal Reserve (the "Fed") attempts to control inflation. Inflation is caused by too much money chasing too few goods (or too much demand for too little supply), which causes prices to increase. By influencing the amount of money available for purchasing goods, the Fed can control inflation. Other countries' central banks do the same thing for the same reason.

    Read more: http://www.investopedia.com/articles...#ixzz1kIOSjE00

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