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pa1407

Best Mortgage Loan By Bank Now ?

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It really depends at the time when you are signing with the banks.

SOR could be better than SIBOR at times and vice versa. Also dependable on the risk appetite on your end.

SOR is generally more volatile and is probably good for now since US is not doing well.

 

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It really depends at the time when you are signing with the banks.

SOR could be better than SIBOR at times and vice versa. Also dependable on the risk appetite on your end.

SOR is generally more volatile and is probably good for now since US is not doing well.

yeah.. taht's why combo is good. take adv of both sor and sibor.

the best thing is that it is 0.7 for the whole tenure.. most loan require you to change after 3-5 yrs.. else you will be on a high interest mortgage afterwards. changing will incurred cost.. and uncertainty also..

 

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I would like to provide some info.. Best loan is subjective as everyone's definition of best is different. Some may like fixed, some SOR, some SIBOR.. and there is 1M or 3M SIBOR. And lock-in period, no of years of fire insurance, etc.

Perhaps we can look at some facts. While we cannot predict the future, I believe you can make an informed judgement call.

  • Trend of SIBOR over SOR - SIBOR is more stable. SOR is more volatile.
  • Trend of 1M over 3M SIBOR - relatively similar while 1M SIBOR is almost always lower than 3M SIBOR.
  • Board rates - while many people had bad experiences in the past before SIBOR become the norm, most board rates have been unchanged for past few years. However once bitten, twice shy holds true for many people.
  • Spread - this is something that remain constant and perhaps within your control to decide which spread to go for.
  • Legal clawback - its 99% 3 years. Meaning if you refinance within 3 years, you must pay back the legal subsidy in full. Not pro-rated.

In fact, I am just like everyone of you, always pondering on what the best loan are for my properties. So I have launched a home loan portal that I am most confident to say that it is the most transparent and independent. Why? Because I am like you, I like to know everything to compare mortgages.

 

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Hi everyone, most of your loans are already out of lock-in and facing high interest, it's considered late if you yet to refinance your loan.

You may contact me if you need any help on getting the it done and have your early savings!

 

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In Channelnewsasia, it is reported that the 3-months Sibor will increase from 1.13% to 1.22% by the end of this year and 1.75% in a year's time. If you are taking a bank mortgage loan, you may want to consider a fixed-rate package to protect you against the increase of interest rates. That was exactly what I did. My loan was well over 2% because of Sibor, and I refinanced it to a 2 years fixed-rate package at 1.68% for the first year. I got the deal through my mortgage broker who helps to group me and neighbours home loans together and talk to the banks on our behalf. If you are interested, you may PM me or drop me a mail at almondpoh@gmail.com.

By the way, how do you PM someone in the forum? I tried but I can't seem to find a way. I would appreciate it if someone can teach me how. Thanks!

 
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In Channelnewsasia, it is reported that the 3-months Sibor will increase from 1.13% to 1.22% by the end of this year and 1.75% in a year's time. If you are taking a bank mortgage loan, you may want to consider a fixed-rate package to protect you against the increase of interest rates. That was exactly what I did. My loan was well over 2% because of Sibor, and I refinanced it to a 2 years fixed-rate package at 1.68% for the first year. I got the deal through my mortgage broker who helps to group me and neighbours home loans together and talk to the banks on our behalf. If you are interested, you may PM me or drop me a mail at almondpoh@gmail.com.

By the way, how do you PM someone in the forum? I tried but I can't seem to find a way. I would appreciate it if someone can teach me how. Thanks!

Accounts under commercial companies do not have PM function.

 

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Reasons? :dunno:

Can help ask on my behalf? Your words carry more weight :sport-smiley-003:

For agent so interested to clinch business, he/she can open her contact info.....you know, why need PM?

 

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How to PM?

Replying to the above, if it is not yet answered.

I also recently learned how to PM. You enter into the person's webpage (by putting cursor & clicking). When at the person's page, click "Send Messages" and a box will appear. The rest is "plug & play".

 

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Guest Wendy Poh

Source: Straits Times Online

Date: 15 Dec 2015

SINGAPORE - Local interest rates are inching up and investors are on edge as the countdown to Thursday's decision by the United States Federal Reserve begins in earnest.

It is widely expected that the Fed will raise interest rates from near-zero levels - the first such rise in nine years - and the effects are already rippling through Singapore's financial and currency markets.

The greenback has strengthened against the Singdollar. More importantly, for mortgage holders and business owners, the cost of lending is going up.
The three-month swap offer rate (SOR), a benchmark for commercial loans and some home loans, spiked to a new three-month high of 1.59168 per cent yesterday from 1.50597 per cent last Friday and 1.39520 per cent on Thursday. The previous high was at 1.56409 per cent on Sept 8.

It is now almost four times higher than at this time last year.

It is a similar story with the three-month Singapore interbank offered rate (Sibor). The Sibor, which is used extensively to price home loans, hit a two-month high of 1.12865 per cent yesterday and is now almost three times higher than its level 12 months ago.
This means the monthly repayments on a $500,000 loan with a 25-year period pegged to Sibor will be $168 more than a year ago, while one pegged to the three-month SOR will be $262 more.

The US rate hike has been flagged for several months, during which a rising number of home owners have switched to fixed-rate mortgages, and a new product pegged to fixed deposit rates was launched.

SOR loans became popular around 2010-2011, when SOR started to dip below Sibor.
Most home loans extended by DBS Bank, Singapore's largest provider of mortgages, are pegged to Sibor, with fewer than 500 based on SOR, said Mr Tok Geok Peng, its executive director of secured lending.

Personal finance portal MoneySmart.sg estimates that 45 per cent of mortgages are pegged to fixed deposit rates, 50 per cent to Sibor and the remainder to SOR, based on loan take-ups in the past two months.

ABN Amro chief economist Han de Jong noted that this will "undoubtedly be one of the best flagged rate increases ever, so it is hard to see how people can be caught off guard, but you never know".

DBS Bank economist Eugene Leow said: "We expect a 25-basis point hike but much of this has already been priced into the market.
"We suspect that Sibor and SOR rates will likely rise by a smaller magnitude than US rates."

DBS sees Sibor at 1.4 per cent by the first quarter next year.

The rate talk has also hit stocks and currencies as investors wait on the sidelines for a decision. The US dollar rose from 1.4095 to the Singdollar last Friday to 1.4129 yesterday while local share investors, who seem determined to keep their powder dry until later in the week, left the benchmark Straits Times Index down 0.69 per cent yesterday.

Edited by Wendy Poh
 

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