OCBC OHR? Anyone else misled?

[fluxos]

pending resolution with OCBC

 

[Shiny Things]

OCBC OHR rate was advertised based on the 12 years daily average of one-month Sibor and three-month Sibor.

So I have no comment on your particular situation of the rate rising from 1.35 to 2.35%... though it does seem wrong. The fixes leaving the 12-year window were in the 3s, the fixes entering the window were in the 2s, so all other things being equal the OHR index would have dropped. Did you maybe have a spread term in your loan that changed, or a teaser rate that reset higher?

That said:

1) That's an insane thing to base an interest-rate index on, because your mortgage rate today is going to move around based on what happened twelve years ago;

2) Twelve years ago was the GFC. Sibor spent 2007 and 2008 tanking from 3.5% to basically zero - so what's going to happen is that even if everything else stays constant, the OHR will start rising from early 2020 through 2026, just because all the near-zero fixes from 2008 through 2014 will drop out of the window.

 

[doody_]

LOL! OCBC again...

I don't think the actual TnC said it would be a long term average.

 

[fluxos]

OCBC has quietly pulled the mortgage product after just launching it for a few months. On hindsight, it is just board fare and misled customers with their charts and definition.

So I have no comment on your particular situation of the rate rising from 1.35 to 2.35%... though it does seem wrong. The fixes leaving the 12-year window were in the 3s, the fixes entering the window were in the 2s, so all other things being equal the OHR index would have dropped. Did you maybe have a spread term in your loan that changed, or a teaser rate that reset higher?

That said:

1) That's an insane thing to base an interest-rate index on, because your mortgage rate today is going to move around based on what happened twelve years ago;

2) Twelve years ago was the GFC. Sibor spent 2007 and 2008 tanking from 3.5% to basically zero - so what's going to happen is that even if everything else stays constant, the OHR will start rising from early 2020 through 2026, just because all the near-zero fixes from 2008 through 2014 will drop out of the window.

 

[OCBC Bank]

OCBC OHR rate was advertised based on the 12 years daily average of one-month Sibor and three-month Sibor.

But rates seem to increase every other quarter? I started the loan in 2018 at 1.35% and now in 2019, it is already 2.35%. How is that even a "long-term average".

Any other homeowners misled based on these false advertising? I've lodged an official complain, and looking for other homeowners who were misled to band together. Please PM me.

https://www.icompareloan.com/resources/ocbc-ohr-mortgage-rates-ohr/
https://www.mortgagewise.sg/ocbc-introduces-new-exciting-mortgage-peg/

OCBC has quietly pulled the mortgage product after just launching it for a few months. On hindsight, it is just board fare and misled customers with their charts and definition.

Hi fluxos,

We have dropped you a private message on this.
Could you let us have your bank registered mobile number (via PM), so that we are able to check on your loan package?

^DG

 

[cloudfire]

Bro,

Was in the same shoes as you. Signed up for OCBC loan based on 12 years Sibor average promise.

But after OHR shot up, I was very angry and complained to my broker. Then I checked my offer letter. To my horror, in the letter, it stated that it was a board rate and decided by the bank with no mention of OHR and 12 years average.

I knew I had no case. Can only blame myself for signing blindly and not reading in detail.

Have since changed to Sibor based loan package.

Think you better check your loan offer letter first and see if you have a case.

Hope that helps.

OCBC OHR rate was advertised based on the 12 years daily average of one-month Sibor and three-month Sibor.

But rates seem to increase every other quarter? I started the loan in 2018 at 1.35% and now in 2019, it is already 2.35%. How is that even a "long-term average".

Any other homeowners misled based on these false advertising? I've lodged an official complain, and looking for other homeowners who were misled to band together. Please PM me.

https://www.icompareloan.com/resources/ocbc-ohr-mortgage-rates-ohr/
https://www.mortgagewise.sg/ocbc-introduces-new-exciting-mortgage-peg/

 

[BBCWatcher]

It's really not a good idea to sign up for an adjustable rate loan with the rate solely or predominantly determined by the lender. There's one exception I can think of: if there's a fixed interest rate period, if that interest rate is attractive, and if you're highly confident that you'll repay the loan in full at the end of that period (or at least could if there's no better choice).

It's perfectly predictable that lenders play games with their interest rates.

I suggest that Fluxos explore refinancing options, probably with another lender and definitely with a SIBOR-linked rate.

 

[havetheveryfun]

Bro,

Was in the same shoes as you. Signed up for OCBC loan based on 12 years Sibor average promise.

But after OHR shot up, I was very angry and complained to my broker. Then I checked my offer letter. To my horror, in the letter, it stated that it was a board rate and decided by the bank with no mention of OHR and 12 years average.

I knew I had no case. Can only blame myself for signing blindly and not reading in detail.

Have since changed to Sibor based loan package.

Think you better check your loan offer letter first and see if you have a case.

Hope that helps.

well he is complaining on false advertising, so the loan offer letter wouldn't matter much ... especially if there is no one out there with OHR

 

[doody_]

Bro,

Was in the same shoes as you. Signed up for OCBC loan based on 12 years Sibor average promise.

But after OHR shot up, I was very angry and complained to my broker. Then I checked my offer letter. To my horror, in the letter, it stated that it was a board rate and decided by the bank with no mention of OHR and 12 years average.

I knew I had no case. Can only blame myself for signing blindly and not reading in detail.

Have since changed to Sibor based loan package.

Think you better check your loan offer letter first and see if you have a case.

Hope that helps.

You're right, it's a board rate. The question now is, was there some misleading advertising being done? I'm sure many people remember the claims of 12 years average....

 

[koster]

I am in the same boat too. Just received a new repricing offer from OCBC today. No more OHR rate. Now they invented this term Deviated Rate. What the hell is Deviated Rate?

 

[fluxos]

Guys, please pm me. I’m in discussion with ocbc and there are 2 other persons who are affected.

They are offering a repricing and I’m not having it, ocbc needs to fix this.

 

[Greenhouse]

Me too, i signed up under impression it is 12y av sibor. The bank rep I liaised also used 12y sibor rate when introducing the package to me. Subsequently the rates increased from 1.3% to 2.4% within 18mths. OCBC need to reflect on its misleading selling tactics. A board rate should be called a board rate. You can only keep a customer short term by covering a board rate loan with fanciful term, I’ll look to refinance when the lock-in period is over.

 

[Toni90]

Take a fixed one.

 

[beloanfree]

OCBC loyal customer shortchanged

Dear all, I am a OCBC loyal customer for more than 10 years now. Please avoid taking any loan from OCBC. I was deceived to sign up for OHR rate last year, within 2 months or shorter, the OHR was removed and replaced with board rate. Since then, the mortgage rate has been revised upwards continuously without informing the customers.

I have contacted the loan department earlier and tried to do a re-pricing but I was discouraged that the rate was not ideal to re-pricing.

I only figured out that OCBC has been taking advantage of me over the past years when one officer told me that the mortgage rate they offered to new customers is much lower.

OCBC will lure you in with low interest rates and rise the indiscriminately raise the mortgage rate rapidly after that.

Please beware!

 

[Joseph99]

I am in the same boat too. Just received a new repricing offer from OCBC today. No more OHR rate. Now they invented this term Deviated Rate. What the hell is Deviated Rate?

What is the deviated rate that they are offering you ?

 

[duo8668]

Possible to report to MAS? I was trapped some 1 and half years ago. Worse things is, the agent told me even if it is FIXED RATE, the bank can still change within the lock in period, so no point and better get FLOAT RATE.

Recently, my another friend told me, fixed is fixed. I was like ????????? Since day one, I was asking for FIXED until he ******** me. Next i must use voice recorder for all these things involve with banks.

 

[duo8668]

Your ERA still have OHR? Mine was 18 months back and received notice that OHR has been deprecated like 6 months after I been trapped....

 

[greyice]

Possible to report to MAS? I was trapped some 1 and half years ago. Worse things is, the agent told me even if it is FIXED RATE, the bank can still change within the lock in period, so no point and better get FLOAT RATE.

Recently, my another friend told me, fixed is fixed. I was like ????????? Since day one, I was asking for FIXED until he ******** me. Next i must use voice recorder for all these things involve with banks.

Yes, consumer can report to MAS so that bank will trigger their investigation

 

[dork32]

Dear all, I am a OCBC loyal customer for more than 10 years now. Please avoid taking any loan from OCBC. I was deceived to sign up for OHR rate last year, within 2 months or shorter, the OHR was removed and replaced with board rate. Since then, the mortgage rate has been revised upwards continuously without informing the customers.

I have contacted the loan department earlier and tried to do a re-pricing but I was discouraged that the rate was not ideal to re-pricing.

I only figured out that OCBC has been taking advantage of me over the past years when one officer told me that the mortgage rate they offered to new customers is much lower.

OCBC will lure you in with low interest rates and rise the indiscriminately raise the mortgage rate rapidly after that.

Please beware!

quite similar to the post that i made on the home loan pegged to fd

 

[koster]

Yes, consumer can report to MAS so that bank will trigger their investigation

Ownself check ownself? Shouldn't MAS check on the bank instead?