Some board rates come with no lock-in and refinancing options.
For pre-TOP units, board rate still ok. Can slowly understand the market and switch when the time comes. The sums involved are also tiny.
![Quote](images/SultanThemeVB4R/misc/quote_icon.png)
Originally Posted by
amk
You should educate your customers like this:
"Board Rate" is an arbitrary number set by the bank, at any time the bank wants, at any number he wants, in any way he wants.
"Board Rate" can , and will, change every day, even for the same project, submitted on the same day, even for the same buyer (of multiple units).
The so-call "discount over board rate" is completely meaningless and even moot. An unknown number ("board rate") minus a fixed number ("discount") is still an unknown number.
So mathematically, your rate today is an unknown number X - 3% = 1.28%. Tomorrow, I don't know. Since number X is not fixed and can be anything, the "3% discount" is completely meaningless. For example, tomorrow bank can say the X applicable to you is 10% so you pay 7% now.
Taking "Board Rate" is equivalent of you signing a blank cheque to the bank, and say to the bank "please, write whatever rate you want to charge me, and I will take it" !
Sorry to the TS, I just cannot believe, at this time and day, there are still people taking "board rates" ! Any other package, be it SIBOR, FHR, FDMR or something, etc are better.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.