Just received a letter from my bank DBS, new interest rate for next year for my housing loan is 1.91% (previous 1.25%). I was expecting it to be less than 1.25%. My loan package is 12-mth-Sibor (or sor??) package. Is 1.9% high or reasonable? Any house slaves or bankers can kindly advise. Thks.

It's considered low enough thoguht everywhere in the world increase their domestic int rates.

Yr package should be come with a fix component + 12mnthsibor = 1.9%. See http://smp-consulting.com.sg/smpc/?option=...ticle&id=62.

This fix component, usually increase in subsequent yrs, as in the package....

Just received a letter from my bank DBS, new interest rate for next year for my housing loan is 1.91% (previous 1.25%). I was expecting it to be less than 1.25%. My loan package is 12-mth-Sibor (or sor??) package. Is 1.9% high or reasonable? Any house slaves or bankers can kindly advise. Thks.

Edited April 9, 201115 yr by bepgof

considered reasonable... Bank loan will increase the interest as per your package.. I remember seeing all time lowest was 0.68% for first year... but forth year onwards is 3.75%...

Honestly, if you are owning a HDB, it is not possible for bank to charge lower interest rate than HDB loans.. HDB loan is 2.6% ...

HDB loan int rate now at 2.6% is the "blood sucker". Bank rates NOW are much much better than this.

Honestly, if you are owning a HDB, it is not possible for bank to charge lower interest rate than HDB loans.. HDB loan is 2.6% ...

Edited April 12, 201115 yr by bepgof

hdb loan charge high interest. it is the interests of consumer moving to bank lower interests ...

but ....

you all know lah .... there are other disadvanges as well ...

U should repeat this warning to all property counters esp the GLCs like Kland, Cland, CapMall, plus all listed GLCs like Kepcorp, Semmarine, Semcorp, SIA Sing and Tell, Starhub, M1, DBS...In the case if property prices drop, the Banks. will be affected.

if you are willing to take a wager, go try out ANZ's home loan. I got 3mths SOR + 0.75% for all 30yrs. No refinance penalty also

if you are willing to take a wager, go try out ANZ's home loan. I got 3mths SOR + 0.75% for all 30yrs. No refinance penalty also

very good package!

HDB loan int rate now at 2.6% is the "blood sucker". Bank rates <u>NOW</u> are much much better than this.

<!--quoteo(post=628849:date=Apr 13 2011, 12:09 AM:name=zanntan)--><div class='quotetop'>QUOTE (zanntan @ Apr 13 2011, 12:09 AM) <a href="index.php?act=findpost&pid=628849"><{POST_SNAPBACK}></a></div><div class='quotemain'><!--quotec-->Honestly, if you are owning a HDB, it is not possible for bank to charge lower interest rate than HDB loans.. HDB loan is 2.6% ...<!--QuoteEnd--></div><!--QuoteEEnd-->

HDB loan is not a privilege for nothing. yes, bank rates are better NOW, but do take note, Housing loans are for 20 - 30 years, which rate will be more stable in the long run? bank or HDB loan? If I'm on it, I will never refinance out to bank for whatever reason, coz it gives me a peace of mind.

Anyway, HDB loan is pegged to 0.1% + CPF OA rate, how likely OA i/r to increase tremendously. Do note, SIBOR was way above 3% not too long ago, before crisis and once you're out of the HDB loan, when i/r increase, HDB will still likely be at 2.6% but you cannot go back to them again.

Hence, my take is, if you wanna refinance your HDB loan out only because rates are lower outside now, think again!

HDB loan is not a privilege for nothing. yes, bank rates are better NOW, but do take note, Housing loans are for 20 - 30 years, which rate will be more stable in the long run? bank or HDB loan? If I'm on it, I will never refinance out to bank for whatever reason, coz it gives me a peace of mind.

Anyway, HDB loan is pegged to 0.1% + CPF OA rate, how likely OA i/r to increase tremendously. Do note, SIBOR was way above 3% not too long ago, before crisis and once you're out of the HDB loan, when i/r increase, HDB will still likely be at 2.6% but you cannot go back to them again.

Hence, my take is, if you wanna refinance your HDB loan out only because rates are lower outside now, think again!

I second that.

The only reason why client should refinance from HDB loan to bank loan is that you would be certain that you would be redeeming your housing loan in full at the end of 5 years (either selling the property or making a full redemption). This is because the longest and lowest fixed rate package available in the industry is 5 years, and the rate offered is 1.99% FIXED for 5 years. Thus, chances that the CPF OA rate would be reduced lower than 1.99% is very slim and you would be pretty certain of paying a lower interest for the next 5 years. However, need to be mindful that when you refinance to the bank, you would incur legal fees and stamping fee. Thus, it depends on the loan amount on whether this option is a better one anot.

Refinanced with same bank with the following package:

1yr = 3mth Sibor + 0.65%

2yr = 3mth Sibor + 0.7%

3yr = 3mht Sibor + 0.7%

Lock-in period 2yr.

Thanks guy for your feedback.

my interest payment for next 3mths is 1.03%...

Honestly, if you are owning a HDB, it is not possible for bank to charge lower interest rate than HDB loans.. HDB loan is 2.6% ...

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Err, excuse me....you got mixed up.

THE STATEMENT: The Federal Reserve pledged to keep its key interest rate at its record low of nearly zero through the middle of 2013. The central bank also said that it has discussed "the range of policy tools" it can use to spur the economy.

Bank loan, chiong ah.

SOR is now negative.. what can i say man.. many banks have withdrawn loans pegged to SOR. As of yesterday, it's close to -0.1%..

I expect this trend of low SOR rates to stay at least for another 5yrs. Low, i mean less than 1%. The US economy is in deep **** which needs to rectify itself properly and rely on real organic growth.

ANZ still having the 3mth SOR + 0.75%. You guys should get this now. ANZ is hungry for business..

SOR is now negative.. what can i say man.. many banks have withdrawn loans pegged to SOR. As of yesterday, it's close to -0.1%..

I expect this trend of low SOR rates to stay at least for another 5yrs. Low, i mean less than 1%. The US economy is in deep **** which needs to rectify itself properly and rely on real organic growth.

ANZ still having the 3mth SOR + 0.75%. You guys should get this now. ANZ is hungry for business..

Hi,

Just to check for though using bank loan, do you guy approached ANZ bank directly or go thru broker?

Yesterday met up with 1 broker's and he also introduce us ANZ housing loan.

Sor + 0.75% for 30 years. And upon successful, they will rewards us ( NTUC Vouchers or Equivalent in value of your choice )

Housing Loan .

Not so keen on their rewards. Want to find out beside rewards, what other things should we ask for that is more important then all these rewards.

Actually our HLE has already been approved at quite a good loan for us. But we still deciding whether to opt for bank or HDB confuse...