Newbie
本地房屋贷款利率出现上调
2013年1月30日 20时50分
（联合早报网讯）美国经济复苏情况更趋明朗，带动利率看涨，本地房屋贷款利率最近似乎也开始向上走。
与上个月相比，一些银行的利率出现上调，调整幅度介于0.1％至0.3％之间。
调整幅度比较显著的是中国银行（Bank of China），上个月浮动利率配套是前三年原本是在同业拆息率（SIBOR）或新元掉期利率（SOR）的基础上加0.7％，三年后则在此基础上加1.1％。不过今年1月开始，前三年在同业拆息率或新元掉期利率基础上加0.75％至0.85％，三年后则在此基础上加1.25％。
大华银行 (UOB) 首三年的浮动利率配套上个月是同业拆息率（SIBOR）加0.85％，现在是在此基础上加0.95％。
《联合早报》
Newbie
how come?... that means the bank can anyhow increase interest rate>?
Newbie
Will have to read the T&C of the loan package signed with the banks. For those with lock-in periods, there will be an upward adjustment of interest rates after the locked in. Some also have interest rates capped at 1.4x%.
Just my 2 cent worth..
Spread has increased.
Newbie
can i view it this way?Originally Posted by Douk
The banks do not see sibor/sor increasing in the near future, so they increase spread to protect their margin.
if sibor/sor are really not increasing in the near future, then this is good news for existing home owners with outstanding loans.
Newbie
But I don't understand. Who decide the sibor? FED already say will let the rate remain low but why bank can increase increase rate?
Junior
bank is increasing their spread (ie: profit over their costs), not the SIBOR/SOR which is decided more or less by the market.
Newbie
With increasing spread, it will be more difficult to refinance your loans when the spread increases from 3rd or 4th year onwards. Dont think it is exactly gd news.can i view it this way?
The banks do not see sibor/sor increasing in the near future, so they increase spread to protect their margin.
if sibor/sor are really not increasing in the near future, then this is good news for existing home owners with outstanding loans.
Newbie
But how come and when can the bank interest be increased? There should be a rule right? Now with SSD, owner cannot sell fast due to tax, if bank can anyhow increase interest rate to me it is not fair
Junior
this is for new loan. old loan status quo.
what we are saying is our old loan, when time to re-finance, will become new loan, and therefore subjected to these changes.
Newbie
ok agreed not exactly good news....
but at least can see banks are no longer betting sibor/sor rates will go up lah
Newbie
Existing loans won't be affected.
If you had taken a loan e.g. 0.8% + SIBOR
SIBOR is determined by interbank lending rates and is very transparent. This is a variable component and will change as it always has.
The topic discussed here is on the 0.8%, which is the spread or the margin that the bank put in place. This is the one that is creeping upwards.
So it won't affect you if you have existing loan as the rates are already locked in. It will only affect you if you intend to refinance your loan in the future. If the spread gets too high, it may be better to stick to existing loan and not do a refinance.
Newbie
I think the govt keep raising ABSD finally make banks realize they are suckers for not charging buyers more. If buyers can pay, why not?
Newbie
But housing loan first three years the interes rate is low and four years onwards the interests rate is high... How not to refinance...? And the loan normally kick in after 3 to 4 years after TOP.. If dun refinance shiong leh
Newbie
Not sure about the loan package that you took up, but if based on recent rates, the spread increase 0.1~0.4% after 1st 3 years for local banks like dbs, hsbc, etc. Actually this is not much if compared to SIBOR, which can increase a lot more if the US economy picks up.
Newbie
I have not taken any loan but should be taking in the near future. I alway though only SIBOR can affect me but did not know that the bank can also increase when they like.. Then it may come to a point that it is not longer worth it to refinance and have to continue with the higher interest instead of enjoying the low interest for a few years when refinancing... Haiz...
Newbie
I have not taken any loan but should be taking in the near future. I alway though only SIBOR can affect me but did not know that the bank can also increase when they like.. Then it may come to a point that it is not longer worth it to refinance and have to continue with the higher interest instead of enjoying the low interest for a few years when refinancing... Haiz...
Even if you don't refinance, depending on the loan agreement, it doesn't mean that you can continue paying the same rate.
See clause 7.1, they can anytime change your loan interest rate by giving you a notice.
http://trial.w-sn.dbs.com/sg/persona...rtgageloan.pdf
Variation of Interest and Instalment Repayment on the Facility
7.1 Notwithstanding the interest rates stated in the Letter of Offer, we may vary the interest rate of the Loan Facility at any time by
giving you one (1) month’s notice or such other period as we may determine. However, we do not need to give you any notice if
there is a change in the Prime Rate and any interest rate which is based on the Prime Rate. The Prime Rate may be changed by us
at any time without earlier notice.
Last edited by sgbuyer; 31-01-13 at 10:09.
Newbie
serious? But all banks have the same clauses?
Newbie
Exactly. And most banks have the re-finance clause. Something like we can opt to re-finance with minimal/or no penalties between TOP to 6 months after TOP.
Junior
if you go into T&C of all the loans, there are many onerous ones. usually bank will not exercise their rights, but in extreme circumstances, you will be f-ked.
if you want to go thru each clause and ask bank to amend, you might as well go for 0% LTV. this is our consumer rights in sgp.
Newbie
Really depends on the package you get. Mine was sibor+0.75 throughout i.e. no spread change, only sibor change.
Junior
yes, my spread only increase from 0.8% to 1.0% after 3rd year. the greater impact should come from SIBOR increase, not fr the spread.
Newbie
Loan books are getting big, this is a way for banks to reduce risk. Those with Non competitive rates r trying to say, pls dun come to us
Senior
When there are huge liquidity , bank will lower rates, reduce spread to induce more loans
If rates stay flattish, but increase in spread, there are a few reasons:
Their loans book is getting too big
The risk is getting too high ( can mean the banks assessment show that prop mkt is peakish)
The liquidity is falling ( funds withdrawing )
Music of the night
Risk on as simple as that
Ride at your own risk !!!
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