Free Advice/Discussion on Bank Mortgage loan

DerekTsang

Junior Member
Joined
Mar 15, 2016
Messages
51
Reaction score
0
Hi guys, seeking opinion here. Recently my OCBC mortgage loan have increased from 1.6+% to 2.3%. The rate hike really a pain.. I realized that I do have a one time free conversion to other loan package within the same bank. Should I exercise this option yet?
 

harveyss

Junior Member
Joined
Feb 11, 2018
Messages
29
Reaction score
0
I'm surprised that your mortgage broker did not assist you to put up a waiver for the 1.88% fixed 2 years package.

Just sharing the experience for several HWZ members which experienced huge interest rate hikes recently. We managed to get 1.88% fixed 2 years for ALL of them.

We are not the "generalists" type of brokers. We endeavour to get the best deal for our clients, period. Most of the time, if the quantum is sizeable, we will fight hard to put the necessary waivers to get the privilege banking rates that are available to the selected few.
Yes, it's quite true that when your quantum is small. The rates may not be as attractive compared to loans above $800k onwards. I believe the rates you mentioned is HSBC for the floating rate, and yes generally it's quite true that rates are awesome during the locked in period. Banks operate closely like telco companies. They want to lock you in another 2 years by offering cheap phones or even free phones so that there's recurring business. On the hand, other bank there are hungry for your business, may even offer full legal subsides.

I'm also surprised why leh...
 

Unbiasedsg_

Senior Member
Joined
Dec 31, 2018
Messages
1,086
Reaction score
4
Hi guys, seeking opinion here. Recently my OCBC mortgage loan have increased from 1.6+% to 2.3%. The rate hike really a pain.. I realized that I do have a one time free conversion to other loan package within the same bank. Should I exercise this option yet?
What is the package under? Fixed interest rate or Board rate?
How much is your loan quantum?
 

Unbiasedsg_

Senior Member
Joined
Dec 31, 2018
Messages
1,086
Reaction score
4
I'm also surprised why leh...
We are surprised that you need to take things in your own hands whereby the whole purpose of engaging a broker is to save yourself the hassle in lieu of calling up the banks to source on your own.

If you're talking about resale HDB, you could have gotten yourself 2 years fixed rates at 1.88% instead of the floating package 1m sibor + 0.3% which is 2.07%. We are just sharing that despite the rates has expired, we have managed to get the expired rates for some of HWZ members. On top of the free service, they get to enjoy Takashimaya shopping vouchers too as well.
 

Brown24

Member
Joined
Aug 8, 2018
Messages
158
Reaction score
0
currently im taking OCBC board rate at 2.25%, quantum $1.1M, still in lock in period but have 1 time free conversion.
Is it advisable to convert to Sibor rate?
 

Unbiasedsg_

Senior Member
Joined
Dec 31, 2018
Messages
1,086
Reaction score
4
currently im taking OCBC board rate at 2.25%, quantum $1.1M, still in lock in period but have 1 time free conversion.
Is it advisable to convert to Sibor rate?
With the hike being a recent event, any further interest hike within the next few months will be unlikely. Hence, I opined to adopt a wait and see approach.
Do remember that you need to serve a 3month notice, you can actually start looking around when you are 1.5 years into your locked in period bro. With such a high loan quantum, we will be able to do ZERO-COST refinancing for your legal fees bro.
 
Last edited:

DerekTsang

Junior Member
Joined
Mar 15, 2016
Messages
51
Reaction score
0
Its the OCBC OHR. Loan quantum around 800k.

I went to check with OCBC, they told me no locked-in period for my package, but if I choose to refinance i have to pay 1.5% penalty. I'm confused. No locked-in period why got penalty?
 

Unbiasedsg_

Senior Member
Joined
Dec 31, 2018
Messages
1,086
Reaction score
4
Its the OCBC OHR. Loan quantum around 800k.

I went to check with OCBC, they told me no locked-in period for my package, but if I choose to refinance i have to pay 1.5% penalty. I'm confused. No locked-in period why got penalty?
The penalty should be for the undisbursed amount only?
Unlikely to be the entire amount.
 

subprimelive

Senior Member
Joined
Jun 4, 2010
Messages
1,100
Reaction score
10
Its the OCBC OHR. Loan quantum around 800k.

I went to check with OCBC, they told me no locked-in period for my package, but if I choose to refinance i have to pay 1.5% penalty. I'm confused. No locked-in period why got penalty?

do you have to go to the branch to ask about your loan package? or just call into ocbc hotline to ask about yr housing loan package?
 

tanguohao

Junior Member
Joined
May 2, 2007
Messages
61
Reaction score
0
I reckon fixed deposit package at 1.95% would be a better option.
Online its being marketed at more than 2.125%, we can try to get it for you at 1.95%. I think best is to stay far away from board rate package,unless you have difficultly to get your loan approved.
Also, enjoy up to S$1000 Takashimaya vouchers as well. PM us for more info.

Hi, could you also PM me your contact. Would like to speak to you on your opinion.. Thanks
 

tanguohao

Junior Member
Joined
May 2, 2007
Messages
61
Reaction score
0
Why would you want to get yourself tied up now for something that's irrelevant 3 years down?
Bank give you X rate, 3 years down the road there's bound to be changes, why would you want to get tied up and limit your options?

When the interest rise, they give you a free conversion, but you're only limited to that bank's offer since the penalty to refinance to other bank doesn't make economical sense.
If you're the bank, will you show mercy or aim for highest profit?

Sorry to bump up old post....
Does it means settling the progressive payment from our own pocket rather than taking loans for the next 3 years?
 
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Community Guidelines and Standards, Terms of Service and Member T&Cs for more information.
Top