SOR rate holder- Its high time to manage your loan!

[MortgageGuru]

http://www.abs.org.sg/rates_sibor.php


3M SOR is at 0.73% as of 2nd of Jan 2015.
Its going up rapidly from 0.2% on November.

Spread at 1%, you'll be paying 1.7% at least.

While the low rates are still available now, it will be good to refinance to a lower rate for 3 years.

For a loan that's in $500K based on 25 years.

You'll save approximately $7K based on 1.7%, not to forget that interest rate will only go uphill now, the savings will be even more substantial to $10K & above.

You can enquire more about how refinancing save you from paying thousands of dollars on unnecessary interest.

I'll be glad to help.

[Allthepies]

Wat the best rates now?

[azeoprop]

Omg, since when did sor spike so much.

[MortgageGuru]

The lowest Can be 1.2%.
Which is really consider low for the current market now.
The average is about 1.7% now.

[MortgageGuru]

Omg, since when did sor spike so much.

SOR started rising from November.
In fact SIBOR also hit 0.5%.

[lajia]

1.2% is for first yr only or what? What's the catch...

The lowest Can be 1.2%.
Which is really consider low for the current market now.
The average is about 1.7% now.

[MortgageGuru]

1.2% is for first yr only or what? What's the catch...

For 3-5 years.
No lock in.
Can be consider as one of the best package right now.

[mummy]

For 3-5 years.
No lock in.
Can be consider as one of the best package right now.

Which bank is that with? Can share more?

[lajia]

yes please share more, I think it is a good deal.

For 3-5 years.
No lock in.
Can be consider as one of the best package right now.

[MortgageGuru]

http://m.todayonline.com/business/hi...-fed-rate-hike

BY
TAN WEIZHEN
[email protected]ISHED: 4:02 AM, JANUARY 7, 2015
SINGAPORE — Home owners will need to brace themselves for even higher mortgage payments this year as an impending interest rate increase in the United States looms closer, prompting some analysts to caution that highly leveraged households sitting on floating rate plans risk being stung.

A key interest rate that the majority of housing loans in Singapore are based on could double by the end of the year and more than triple by the end of next year, possibly increasing monthly repayments by hundreds of dollars, depending on the value of the home.

The three-month Singapore Interbank Offered Rate (SIBOR) rose sharply for the second consecutive day yesterday, jumping 7.4 per cent to 0.62052 per cent from 0.57762 per cent on Monday, Bloomberg data showed. This came after a meteoric 26 per cent increase on Monday from last Friday’s 0.45738 per cent.

With the US Federal Reserve set to raise interest rates by September or October, as Mr Richard Jerram, chief economist at the Bank of Singapore, predicts, industry insiders say SIBOR could rise to 1.2 per cent by the end of this year and 2 per cent by the end of next year.

Commenting on the recent increase in SIBOR, Ms Selena Ling, head of treasury research and strategy at OCBC, said at a seminar organised by the bank yesterday: “It might be overshooting, as it is still the first few trading days and the market is still reacting to conditions in 2015. But I project that SIBOR will be close to 0.7 per cent at mid-year and will rise to between 1 and 1.2 per cent by the end of the year.”

Maybank Kim Eng said in a note in October that it expects SIBOR to rise to 1 per cent by year-end and 2 per cent by the end of next year.

Economists at the seminar noted that the property sector is most vulnerable as it is tied to interest rates, followed by real estate investment trusts.

“If interest rates rise at a slow and steady pace, home owners will be able to adjust,” said Ms Ling. “But if it is unwieldy and volatile, then that makes it a bit more tricky, because what you are seeing now is some correction in terms of property prices.” She added that overstretched and overleveraged home buyers might be more exposed to interest rate hikes.

Additionally, if the rate rises quicker than anyone predicts and passes the 3.5 per cent mark, the financial pain would start to have deeper repercussions.

“Interest rates will have to rise quickly and significantly — for instance, to 3.5 per cent — for bad loans to happen. That is when it will have an impact on the market,” said Mr Colin Tan, director of research and consultancy at Suntec Real Estate. “(But) if the projection is 1.2 per cent, our gross domestic product growth is still higher and if home owners still have a job, then they should be able to service their loans.”

Mr Tan also noted that the Total Debt Servicing Ratio framework implemented in 2013 will do its job of ensuring bad debt is less likely to happen. It uses an implied interest rate of 3.5 per cent to calculate applicants’ loan eligibility, he said.

Economists at the OCBC Seminar, which discussed the impact of the Federal Reserve raising interest rates, anticipate some volatility in the initial period after, but they also noted that things should stabilise after a short period of time as the raising of rates is, after all, a sign of growth.

“I don’t see this volatility as negative; it could be positive for mid-term investors. If people are heavily invested in equities, they may want to lighten their load. But this is also an opportunity to phase some investments in,” said Mr Vasu Menon, head of content and research for wealth management at OCBC. He estimates that this period of volatility could last between six and nine months.

[amk]

today SIBOR 3M 0.637, and SOR3M 0.802 already.

every one is expecting SGD to drop

[MortgageGuru]

its a expected increment since SOR been increasing from November.
its too fast for SOR. Might even see 1% end of the month.

[Nman]

its a expected increment since SOR been increasing from November.
its too fast for SOR. Might even see 1% end of the month.

Yah , I kana teruk

[teddybear]

I suppose SOR will rise faster than SIBOR when US$ rise against S$?

today SIBOR 3M 0.637, and SOR3M 0.802 already.

every one is expecting SGD to drop

[MortgageGuru]

Yah , I kana teruk

Whats your package?

[MortgageGuru]

I suppose SOR will rise faster than SIBOR when US$ rise against S$?

The trend is always SOR higher when market improving and SOR lower when market is down.
That's the pros and cons for SOR, when market is bad,you are happy. when economy climbs, you sulk badly. that's the reason why refinance kicks in.

[prop1688]

US interest rate is just gradually up and SOR becomes double. Got to watch out .....

[mummy]

Just applied for refinance with Maybank..3 yr fixed rate 1.25%, 1.45% and 1.55%....because SOR going up too fast..had to hurry as rates may go up soon as floating higher than fixed now...

[Ling Ping]

Just applied for refinance with Maybank..3 yr fixed rate 1.25%, 1.45% and 1.55%....because SOR going up too fast..had to hurry as rates may go up soon as floating higher than fixed now...

I just did mine with MB too.

[azeoprop]

Any contacts for MB to call or email for this fixed rate package?

[mummy]

Any contacts for MB to call or email for this fixed rate package?

You can just call Maybank hotline number and someone will call you back very soon which is what I did...very efficient...the guy emailed me the rates soon after I called and stays back late frequently so I could meet him at 8pm tonight..

[mummy]

There r a few packages, some with legal subsidy with sl higher rates, mine has no legal subsidy but he worked out still better so I went with that..

[pmet]

All these refinancing won't work one lah! I mean come'on let's be realistic. How much do you save for another 3yr of fixed rate? Usually when ppl take loan it's more than 20yrs so what's 3yrs? If you can see the direction we're moving towards, it's going to be grim for the next several years. I'm fully prepared for the increased interest rates and like those guys on MCF say, if you can't afford the fuel don't buy a car (referring to those who go to JB for a pump)!

That said, alot of Singaporeans are living on the edge today.

[teddybear]

Think people can hedge against rising interest rate?

All these refinancing won't work one lah! I mean come'on let's be realistic. How much do you save for another 3yr of fixed rate? Usually when ppl take loan it's more than 20yrs so what's 3yrs? If you can see the direction we're moving towards, it's going to be grim for the next several years. I'm fully prepared for the increased interest rates and like those guys on MCF say, if you can't afford the fuel don't buy a car (referring to those who go to JB for a pump)!

That said, alot of Singaporeans are living on the edge today.

[prop1688]

yup, i did my refinancing last aug.

[pmet]

Think people can hedge against rising interest rate?

Why hedge when you have a huge cash buffer?

[Ling Ping]

All these refinancing won't work one lah! I mean come'on let's be realistic. How much do you save for another 3yr of fixed rate? Usually when ppl take loan it's more than 20yrs so what's 3yrs? If you can see the direction we're moving towards, it's going to be grim for the next several years. I'm fully prepared for the increased interest rates and like those guys on MCF say, if you can't afford the fuel don't buy a car (referring to those who go to JB for a pump)!

That said, alot of Singaporeans are living on the edge today.

May I know what is the interest you are paying for your mortgage at the moment?

[pmet]

May I know what is the interest you are paying for your mortgage at the moment?

The FED hasn't even touched interest rates and ppl are already fumbling. I can't be bothered with these little savings and went with float. It's actually optional and it keeps my bank happy.

[teddybear]

Rates likely to stay low for a very long time and it will be at a NEW NORM (about half of OLD NORM)..........
Those taking fixed rate loan now may not be the right choice after all!

The FED hasn't even touched interest rates and ppl are already fumbling. I can't be bothered with these little savings and went with float. It's actually optional and it keeps my bank happy.

[teddybear]

Another day has passed, and SOR shot up again, this time by 15.9% in 1 day!!!!!!! :

3M SIBOR : 0.62052%
3M SOR : 0.92956

Surprisingly SIBOR dropped!
I hard warned about risk of SOR loan before. Hope nobody here took up SOR or could refinance if having SOR floating loan...
If you are with SIBOR, you could hedge it!

today SIBOR 3M 0.637, and SOR3M 0.802 already.

every one is expecting SGD to drop