If you yet to refinance your loan yet...

[MortgageGuru]

dear MortgageGuru,

what is the best Floating rate package available now ?

it depends actually.

Some people still think SIBOR is good especially at the current month whereby SIBOR is at 0.8% region, but we all know this won't last for long.

currently there's attractive board rate going at 1.38,1.58,1.78 for 3 years lock-in, but at the end of day, still recommend to go for fixed rate at 1.78,1.98 2 years even if it means that you're paying higher because once board rate goes up, your lock-in for 3 years ties you down and you can't do anything besides paying reluctantly.

[proud owner]

it depends actually.

Some people still think SIBOR is good especially at the current month whereby SIBOR is at 0.8% region, but we all know this won't last for long.

currently there's attractive board rate going at 1.38,1.58,1.78 for 3 years lock-in, but at the end of day, still recommend to go for fixed rate at 1.78,1.98 2 years even if it means that you're paying higher because once board rate goes up, your lock-in for 3 years ties you down and you can't do anything besides paying reluctantly.

i dont have any mortgage loan myself at the moment ...

Do banks use board rate for housing loan ?

thought they have a separate rates ...

like Sibor + xx % for say 1mth .... this will be the floating rate that i am talking about ..

dont banks have floating rate any more ?

[MortgageGuru]

i dont have any mortgage loan myself at the moment ...

Do banks use board rate for housing loan ?

thought they have a separate rates ...

like Sibor + xx % for say 1mth .... this will be the floating rate that i am talking about ..

dont banks have floating rate any more ?

board rate and sibor/sor pegged rate are all called floating rates as they're not fixed.

bank still have Sibor pegged rate.

[Cool East]

Hi u mentioned 1.78, 1.98, hw abt the 3rd yr onwards? Mind sharing which bank is offering this, pls?

[theodorekh]

There's no SIBOR package at 0.7% throughout.

but there's a alternative one at 0.6 + 12M SIBOR which practically mean you're getting 1.6x fixed 1 year. Lock-in 1 year as well.

thereafter is 0.7,0.8 but 1.25 for the long term.

BoC offers:
3M SIBOR+0.7% for 3 years
or
3M SIBOR+0.75% for 4 years.

[theodorekh]

Hi u mentioned 1.78, 1.98, hw abt the 3rd yr onwards? Mind sharing which bank is offering this, pls?

1.38/1.58/1.78 seems like board rate from UOB.

1.58/1.78/1.98 from OCBC Variable package.

[theodorekh]

I am now offered the following by UOB:

Board rate 4.5 less discounts:

1) 1.38/1.58/1.88 - 3 year lock
2) 1.58/1.88 - 1 year lock
3) 1.68/1.88/2.28 - no lock

Fixed
1) 1.98/1.98 - 2 year lock

All board rate and fixed rate's thereafter rates is 2.65 (current Board rate 4.5-1.85).

Which is a sure bet?

1.98/1.98 looks cheap, but only 2 years.
DBS 3 years 2.18/2.18/2.18
Maybank 3 years 2.14/2.14/2.14
UOB 3 years 2.08/2.08/2.08
OCBC 3 years 1.58/1.78/1.98 (yet to clarify any other addons.)

[proud owner]

BoC offers:
3M SIBOR+0.7% for 3 years
or
3M SIBOR+0.75% for 4 years.

dont banks offer

1m Sibor + 0.x % anymore ?

1m, 3m, 6m, 12m are the most liquid in the cash mkt ...

1m especially is very much determined by short dated O/N-1wk liquidity which usually is good ...


so i wouls go for 1m Sibor + xx% floating package

[wildfaye29]

Quick question - if i am guarantor for my aged parent's car loan, will it affect my tdsr?

[Kelonguni]

Quick question - if i am guarantor for my aged parent's car loan, will it affect my tdsr?

Just a quick answer: it does. May want to consider settling loan (or transfer guarantor) to clear TDSR.

[theodorekh]

dont banks offer

1m Sibor + 0.x % anymore ?

1m, 3m, 6m, 12m are the most liquid in the cash mkt ...

1m especially is very much determined by short dated O/N-1wk liquidity which usually is good ...


so i wouls go for 1m Sibor + xx% floating package

They do, but I only consolidated 3M/12M SIBOR for personal references.
1M SIBOR is too volatile for me. =)

[MortgageGuru]

attached FHR trend,

is quite obvious that FD rates is always much lower compared to SIBOR.

you'd rather your thereafter loan to be 0.7 + 3%(SIBOR norm rates) or you prefer 1.6 + 1.8% (2 times of FHR highest)

[theodorekh]

I have attached compilations of 4 category: 12M SIBOR+BOARD/ 3M SIBOR/ FIXED /FHR.


FIXED.JPG

12M BOARD.JPG

FHR.JPG

3M SIBOR.JPG


I do not intend to do partial redemption when int increase, no cash in hand =). Since int is moving upwards, hence 3M SIBOR is out.

Board rates are too vague, not for me.



MortgageGuru,

I'm still contemplating either go with a 12M SIBOR which has better transparency or try out DBS new FHR rates.

I believe FHR rates will be price marginally lower to remain competitive as it is a new product.

Any comments?

[MortgageGuru]

I have attached compilations of 4 category: 12M SIBOR+BOARD/ 3M SIBOR/ FIXED /FHR.


FIXED.JPG

12M BOARD.JPG

FHR.JPG

3M SIBOR.JPG


I do not intend to do partial redemption when int increase, no cash in hand =). Since int is moving upwards, hence 3M SIBOR is out.

Board rates are too vague, not for me.



MortgageGuru,

I'm still contemplating either go with a 12M SIBOR which has better transparency or try out DBS new FHR rates.

I believe FHR rates will be price marginally lower to remain competitive as it is a new product.

Any comments?

I'll still recommend FHR, I have plenty of FHR clients now and I think everyone is pretty satisfied.

I won't really recommend 12M SIBOR. True that you're paying fixed 1.6x % for 1 year, but the chance of SIBOR being on the high in a year time is so high, compared to FHR, there's sort of a slim chance that you might not need to refinance for the next few years given the FD rates being almost 2 times lower than SIBOR now.

[wildfaye29]

Just a quick answer: it does. May want to consider settling loan (or transfer guarantor) to clear TDSR.

Thanks for the quick answer!

[theodorekh]

Which banks provide FHR rates?

Or is it only DBS themselves are able to do so?

[sabian]

Which banks provide FHR rates?

Or is it only DBS themselves are able to do so?

It is DBS' own in-house rate.

[theodorekh]

Thanks.

Thought other banks were offering FHR packages too.

[sabian]

Thanks.

Thought other banks were offering FHR packages too.

Wait for the Retail SG Bonds to debut...maybe have FHR fireworks to see.

[MortgageGuru]

Wait for the Retail SG Bonds to debut...maybe have FHR fireworks to see.

very hard to see any fireworks.

FHR has no lock-in, is already lower than 3M SIBOR and in worst case, you can refinance any time unlike SIBOR having to accommodate to reset date.

[proud owner]

very hard to see any fireworks.

FHR has no lock-in, is already lower than 3M SIBOR and in worst case, you can refinance any time unlike SIBOR having to accommodate to reset date.

the trick is ... to pick up a loan in the middle of the month ...

due to accounting reasons, rate fixings tend to be Higher at Beginning and End of the month ...

[sabian]

the trick is ... to pick up a loan in the middle of the month ...

due to accounting reasons, rate fixings tend to be Higher at Beginning and End of the month ...

Are rate fixing dates usually a preset day/ date of the month? Like the first Monday?

[sabian]

very hard to see any fireworks.

FHR has no lock-in, is already lower than 3M SIBOR and in worst case, you can refinance any time unlike SIBOR having to accommodate to reset date.

Wah. Another round of refinancing (and commission for mortgage brokers) back to sibor?

Well done!

Need to claw back legal or pay legal at the next bank or not har?

What about processing fee if refinance to SIBOR with the same bank?

[MortgageGuru]

the trick is ... to pick up a loan in the middle of the month ...

due to accounting reasons, rate fixings tend to be Higher at Beginning and End of the month ...

You can't catch it easily. When you first take up a loan for a BUC, how do you know when developer gonna call for money?

[MortgageGuru]

Wah. Another round of refinancing (and commission for mortgage brokers) back to sibor?

Well done!

Need to claw back legal or pay legal at the next bank or not har?

What about processing fee if refinance to SIBOR with the same bank?

seems like you're prejudice against broker.

you prefer a round 2 or client complaining when SIBOR rise?

Members in the forum knows that I've no bias towards any bank.Most went to maybank for fixed rate 3 years, why don't you pick this up and comment about it?

[wildfaye29]

Just a quick answer: it does. May want to consider settling loan (or transfer guarantor) to clear TDSR.

Actually all my currents loans are in lock-or already refinanced.

I am thinking of changing a new car for my parents, as they are aged, confirm cant take loan, I will end up as guarantor.

When I reprice 2-3 years down the road, the TSDR will be affected due to this new car loan as a guarantor.

Dilemma.

[proud owner]

You can't catch it easily. When you first take up a loan for a BUC, how do you know when developer gonna call for money?

you are right

for BUC you wont know

but say if you refinance with another bank ... just dont do it at the beginning or end of mth ...

say have fixing date 30 or 31 of mth or 1st of mth ... always very high ...

Or quarterly closing like 31 Mar, Jun, Sep, Dec ..


due to month end closing, quarterly, yearly book closings... theres always a demand for cash ... so Sibor tend to inch up on those dates

[proud owner]

seems like you're prejudice against broker.

you prefer a round 2 or client complaining when SIBOR rise?

Members in the forum knows that I've no bias towards any bank.Most went to maybank for fixed rate 3 years, why don't you pick this up and comment about it?

dont worry bro .... people are like that one ...

they HAPPILY pay money GST to govt but will SQUEEZE blood out of stones when it comes to others ...

Go cold storage L L pay full ...

Go wet market ...bargain ,... LOL

[sabian]

seems like you're prejudice against broker.

you prefer a round 2 or client complaining when SIBOR rise?

Members in the forum knows that I've no bias towards any bank.Most went to maybank for fixed rate 3 years, why don't you pick this up and comment about it?

Mai sensitive lah. Pointing out the obvious mah. See you always cheerleading for FHR. But same same for any fixed rate. As long as got refinance (comm) after lock in period and teaser rate expries, Ho Sei Liao! Right?

Die die cannot mention those packages from ANZ and BOC where spread is constant throughout the loan tenure. Wait no more refinance cases, then eat grass?

PO cheerleading for you now. Woot!

[MortgageGuru]

Mai sensitive lah. Pointing out the obvious mah. See you always cheerleading for FHR. But same same for any fixed rate. As long as got refinance (comm) after lock in period and teaser rate expries, Ho Sei Liao! Right?

Die die cannot mention those packages from ANZ and BOC where spread is constant throughout the loan tenure. Wait no more refinance cases, then eat grass?

PO cheerleading for you now. Woot!

if the market point towards SIBOR of course i'll recommend for SIBOR pegged rate isn't it?
识时务者为俊杰
In fact, most people are ignorant and think that with a spread of 0.7% + SIBOR, they already made a huge gain compared to other rates like FHR whereby the spread is currently at 1.1% for early years.
I have a client that's a MNC CFO earning close to 100k monthly and he himself opted for fixed rate even though his spread was at 0.7% + SIBOR.
Its the same, just like how I earlier recommended for fixed rate at maybank even though FHR was still low, if you are paying only at below 1.6% on 2017, compared to SIBOR, which one is better?
2017 paying 3% above for SIBOR pegged rates is not an impossible thing.