What Interest Rates Are You Paying?

[random_username 0]

^^^ is there a minimum amount of outstanding loan for refinancing?

Edited June 6, 2010 by random_username

[B2B 0]

Anyone sucessfully managed to get the refinance bank to pay for the penalty charges for early redemption? Currently, my loan is taken up with OCBC, 3.25% pa and loan outstanding of 450k. Is it worthwhile for me to refinance the loan?

Cheers!

When I refinanced my loan, my new bankers payed the penalty and legal fees for me... Your loan is still quite sizeable, you should try getting quotes form a few banks.

[slasher 0]

Anyone sucessfully managed to get the refinance bank to pay for the penalty charges for early redemption? Currently, my loan is taken up with OCBC, 3.25% pa and loan outstanding of 450k. Is it worthwhile for me to refinance the loan?

Cheers!

You may like to try applying through their website: www.loanworks.com.sg

From what I was told by the consultants, some banks do pay penalty to refinance home loan with lock-in period but with slightly higher interest rate in which it is termed as "Load Up". After all, where got banks so stupid de. Hahahaha! Anyway, you guys can check out their website. They response quite fast.

HAPPY FINANCING GUYS!

[darrenl 0]

^^^ is there a minimum amount of outstanding loan for refinancing?

Yes, typically 100k across the banks. However banks like dbs offer refinancing of min 80k.

Hope that helps.

[random_username 0]

Yes, typically 100k across the banks. However banks like dbs offer refinancing of min 80k.

Hope that helps.

ic, thanks. are the refinancing rates good/same for outstanding <100k or are different refinanciing rates charged for different amts outstanding?

[darrenl 0]

ic, thanks. are the refinancing rates good/same for outstanding <100k or are different refinanciing rates charged for different amts outstanding?

Oh generally banks offer afew different rates for different "tier" of loan. There are banks that offer a more favourable rate for loan size that are greater. Simply put, you can get a lower rate if you are taking up a bigger loan. ( high loan = higher negotiating powers for consumer)

[random_username 0]

Oh generally banks offer afew different rates for different "tier" of loan. There are banks that offer a more favourable rate for loan size that are greater. Simply put, you can get a lower rate if you are taking up a bigger loan. ( high loan = higher negotiating powers for consumer)

ic. thanks darrenl. generally, can separate loans be combined to meet the larger quantum required for better rates?

Edited July 27, 2010 by random_username

[bepgof 20]

ic. thanks darrenl. generally, can separate loans be combined to meet the larger quantum required for better rates?

"separate loans" = having different targetting mortgages? How to combine 2 mortgage into 1 mortgage loan. Default payment means, 2 houses bye bye.

Rates depend on (customised)factors like

-tenure

-quantum

-longstanding relationship, negotiable

-1,2,3 yr or 1,2

-fix 1, fix2 & fix3

-fix1, variable 2 & 3

-Prime peg

-Sibor peg

-lockin

Edited July 27, 2010 by bepgof

[random_username 0]

"separate loans" = having different targetting mortgages? How to combine 2 mortgage into 1 mortgage loan. Default payment means, 2 houses bye bye.

Rates depend on (customised)factors like

-tenure

-quantum

-longstanding relationship, negotiable

-1,2,3 yr or 1,2

-fix 1, fix2 & fix3

-fix1, variable 2 & 3

-Prime peg

-Sibor peg

-lockin

not mean 2 mortgages combine into 1 mortgage lar. what if separate loans by same borrower/s from the same lender and the total quantum reaches a large enough amount? got such thing or not ah? i guess from your reply means no such thing.

Edited July 27, 2010 by random_username

[bepgof 20]

not mean 2 mortgages combine into 1 mortgage lar. what if separate loans by same borrower/s from the same lender and the total quantum reaches a large enough amount? got such thing or not ah? i guess from your reply means no such thing.

Each loan is for a specify target/purpose. Say one has 2 loans (reno loan + mortgage loan, under same bank), now "combine" together ? Unless the bank is yr father's. I like & hate UOB so much that I alway remember them but they keep forgetting me, then later say sorry (anyway sorry is foc, can say a thousand times also never mind).

Edited July 27, 2010 by bepgof

[chia90 0]

Each loan is for a specify target/purpose. Say one has 2 loans (reno loan + mortgage loan, under same bank), now "combine" together ? Unless the bank is yr father's. I like & hate UOB so much that I alway remember them but they keep forgetting me, then later say sorry (anyway sorry is foc, can say a thousand times also never mind).

errmm, I think Random_User is referring to 2 Mortgage loans into one...

Edited July 28, 2010 by chia90

[random_username 0]

errmm, I think Random_User is referring to 2 Mortgage loans into one...

yep, i was referring to, for eg. 2 housing loans being considered together (but not combined into 1 loan).

purely hypothetical: say, if there are 2 housing loans with 50k and 450k outstanding respectively, on different properties to the same borrower and from the same lender. say also, hypothetically, that better rates kick in at 500k. generally and hypothetically, might a lender consider the 2 loans together? assume that no of years lapsed/oustanding are compatible/not an issue for both loans.

i'm just wondering about the above hypothetical situation, that's all.

on a separate question: is there a minimum no. of years outstanding on a loan to be considered for refinancing? eg. if 2 or 4 years left on loan, still can refinance? is it worth it at that stage?

thanks!

[bepgof 20]

yep, i was referring to, for eg. 2 housing loans being considered together (but not combined into 1 loan).

purely hypothetical: say, if there are 2 housing loans with 50k and 450k outstanding respectively, on different properties to the same borrower and from the same lender. say also, hypothetically, that better rates kick in at 500k. generally and hypothetically, might a lender consider the 2 loans together? assume that no of years lapsed/oustanding are compatible/not an issue for both loans.

i'm just wondering about the above hypothetical situation, that's all.

on a separate question: is there a minimum no. of years outstanding on a loan to be considered for refinancing? eg. if 2 or 4 years left on loan, still can refinance? is it worth it at that stage?

thanks!

Banks' mortgage loan is always customised "behind the scene" with taker's basic requirement(amount, tenure, fix or variables), financial ability, liabilities, age, creditibility, property resale liquidity, etc being taken into consideration and become "transparent" to taker. That is to say, very negotiable, especially true when amount is big, longstanding relationship with good payment record.....

The "core problem" of banks are due to business natures, they must be kiasu & kiasi, ie more willing to lent u umbrella in sunny days, & will take back the umbrella in rainny days. They have quite lots of "standard procedures" to follow yet do not want to loss big, creditable clients. You must show your "proven track records" to convince them to lent more and at cheaper rate.

I always convince wife to "stick back" with UOB, regardless how much I love/hate them, just to maintain the "proven track records" there for them to see in case of needs (That was why loyalty & creditibility are important in banking industry). Now you might not be able to comprehen what I say, when you need it, you'll know. So, my advise is as far as you could, keep your records with a bank or 2, take time to earn the loyalty & creditibility. Same principle applies, in life, for many other issue: friendship, Interiorl Designer, business partnership, husand-wife......

Do not just see and pick a candy in front, though very tempting, and dilute the efforts you have accumulated, loyalty & accreditibility take time and worth you to ignor the candy in front. Younger generation like to pick candy. This is likes the monkeys, 7bananas and a farmer story. I think I really old already & grumble all these, pardon me, pls.

Edited July 28, 2010 by bepgof

[darrenl 0]

yep, i was referring to, for eg. 2 housing loans being considered together (but not combined into 1 loan).

purely hypothetical: say, if there are 2 housing loans with 50k and 450k outstanding respectively, on different properties to the same borrower and from the same lender. say also, hypothetically, that better rates kick in at 500k. generally and hypothetically, might a lender consider the 2 loans together? assume that no of years lapsed/oustanding are compatible/not an issue for both loans.

i'm just wondering about the above hypothetical situation, that's all.

on a separate question: is there a minimum no. of years outstanding on a loan to be considered for refinancing? eg. if 2 or 4 years left on loan, still can refinance? is it worth it at that stage?

thanks!

Firstly, a 50k loan falls below the min amount of 100k. As for 2 loan amount being bundled together to enjoy lower rates, it is possible as there are often room for negotiations. As such, if you have a big loan quantum you can be sure that there will be a better deal for you.

5 years min ya. Based on 5 years and a 100k loan, there will be more than $2000 in savings when converting from a package of 2% to a package of 1%. So if you ask me, though it might be a small sum to many, I say yes, $2000 is money afterall.

[random_username 0]

Firstly, a 50k loan falls below the min amount of 100k. As for 2 loan amount being bundled together to enjoy lower rates, it is possible as there are often room for negotiations. As such, if you have a big loan quantum you can be sure that there will be a better deal for you.

5 years min ya. Based on 5 years and a 100k loan, there will be more than $2000 in savings when converting from a package of 2% to a package of 1%. So if you ask me, though it might be a small sum to many, I say yes, $2000 is money afterall.

thanks, darrenl - figures are purely hypothetical to illustrate a question

bepgof, concerns noted, thanks. just my opinion, but no matter how longstanding the relationship with our service provider, we still check from time to time what else is offered or done in the broader market as a form of due d so we can make informed decisions.

Edited July 28, 2010 by random_username