Free Advice/Discussion on Bank Mortgage loan

[Property_Broker]

hello can PM me about the floating rate pls?

pmed~ I will need more information before i can quote you accordingly~

 

[Property_Broker]

I have a fixed mortgage for 300k @1.2% signed at Nov 2021. After yr 2 it will become floating fhr6.

Once 2 years hit Liao they should be able to allow me to clear the loan by wiping out my oa + some cash right?

Why I don't wanna ask my broker is because he like Abit shady whenever I mentioned or say anything about clearing the loan he keep beat around the bush and try to intro some passive income investment products that I have no interest in.

Hi @PippingCafe ,


So your lock in period is 2 years?

If you are out of lock in period, you can do partial prepayment without any penalty.

Which mean if you want to do partial prepayment via CPF or CASH or Mixture, there will be no issue.

lol. You broker is part time mortgage broker/IFA?

Anyway you can call in DBS mortgage direct line for clarification as well~ 6333 0033

But personally if the loan interest rate is less than 2.5%, it does not make sense for you to use CPF for partial prepayment due to 2 main reasons~

1) Your CPF is working harder than your house loan. CPF earning 2.5%~3.5% and your loan is less than 2.5%.
2) Your CPF accrued interest will accumulate slower.


I got client understand the above reasons but they dont feel good to have debt. lol. So they clear their loan via CPF.

 

[Lasogette]

Hi @PippingCafe ,


So your lock in period is 2 years?

If you are out of lock in period, you can do partial prepayment without any penalty.

Which mean if you want to do partial prepayment via CPF or CASH or Mixture, there will be no issue.

lol. You broker is part time mortgage broker/IFA?

Anyway you can call in DBS mortgage direct line for clarification as well~ 6333 0033

But personally if the loan interest rate is less than 2.5%, it does not make sense for you to use CPF for partial prepayment due to 2 main reasons~

1) Your CPF is working harder than your house loan. CPF earning 2.5%~3.5% and your loan is less than 2.5%.
2) Your CPF accrued interest will accumulate slower.


I got client understand the above reasons but they dont feel good to have debt. lol. So they clear their loan via CPF.

Thanks for the reply. Think he is just a referral guy meaning he just help to refer u to the banker and he gets a cut of commission.

 

[Property_Broker]

Thanks for the reply. Think he is just a referral guy meaning he just help to refer u to the banker and he gets a cut of commission.

ooo~ yup~ Some mortgage just refer you to the banker and they will hand off from the case already. By right a mortgage broker should walk you throughout the whole purchasing/refinancing journey.

Anyway feel free to pm me if you need any clarification.

 

[abcde83]

Just will like to add on abit~

If you are very close with your RM and has been giving him/her business. Most likely she will be giving you the deviated package which mean that she will have to cut her revenue point for it.

If you dont support her often and calling her once a year just to change new note. I am pretty sure that he/she will give you the standard rate and not the deviated rate.

I will say that most of the bankers that are working with the mortgage broker. The bankers are willing to offer deviated package which mean they are cutting their revenue point to the lowest so that the broker can win the deal. So in return, the broker will give the banker the volume of cases.

Good point on the middle man. That why some banks run promotion for "direct client" case. They will be giving vouchers etc etc.

my banker gave me deviated rate because of loan amount.. before that I have no relationship with dbs.

 

[Phelan77]

Hi All,

Looking for a mortgage broker for new home purchase. Any recommendations? Please PM me.

 

[Property_Broker]

my banker gave me deviated rate because of loan amount.. before that I have no relationship with dbs.

nice~ it mean that you met a good banker! haha..

Because once it is deviate rate, their revenue points get cut down alot.

 

[Property_Broker]

Hi All,

Looking for a mortgage broker for new home purchase. Any recommendations? Please PM me.

Hi @Phelan77 ,

Pmed~ Cheers

 

[Shooshoe]

Hi @Property_Broker and everyone,

I'm current with SCB:
Year 1: 1.89% (completed)
Year 2: 1.89% (completed, so no more lock-in)
Year 3: 3M SIBOR + 0.5 (until Feb 2023, legal clawback until Jan 2023 thereabouts)
Previously when people were refinancing to SORA end of last year, my mortgage broker advised me to hang on to SIBOR since my Year 3 is a good rate. I thought it was good advice. Was so happy when my Year 3 rates dropped to 0.9375... then suddenly shot up to 1.83.. sian max...

Q1) He didn't contact me recently about repricing until I realised the situation now and approached him leh. Do you think I should stick to this agent? I have good impression of him one, he helped me with my repricing to SCB previously so I'm really grateful. Just that I wished he reached out to me this or last month..I know I small fry..

Q2) Anyway, need to take action now. So here's my details:
- Private (condo) ; refinancing
- Outstanding amount $65xxxx
- No other loans or liabilities, clean record
- Legal clawback from SCB: $1800 (Q2a. Will this amount be prorated since I only have a few more months left?) Is it worth moving away?

Options offered so far:
Option 1: DBS - 3M SORA + 0.7 (2 year lock-in), Year 3 onwards 3M SORA + 1.25
Option 2: Maybank - 3M SORA + 0.7 (1 year lock-in), Year3 onwards 3M SORA + 1.5
Option 3: UOB - Year1 fixed 2.15, Year2 3M SORA + 1 (2 year lock-in)
Option 4: SCB - Stay with SCB and ask them to offer me 3M SORA + 0.7 so I don't need to pay clawback (I'm still waiting for them to call me... will that be the best deal? How come my broker never suggest this one...

Q3) How "bad" can SORA get? Just wanna be mentally prepared.. one broker told me it is forecasted to 1.2 in July? I guess even if so 1.2+0.7 = 1.9.. still below 2? I'm really not clued in to this kind of thing. I know banks are all retracting their fixed rates... not sure if I shld panic jump onto the fixed rate (have always been on floating for the past 8 years..)

Q4) My family member is DBS treasures member does it mean they can tap on RM to give me a better rate than what the mortgage broker has offered me?

Appreciate advice please! Thank you.

 

[Property_Broker]

Hi @Property_Broker and everyone,

I'm current with SCB:
Year 1: 1.89% (completed)
Year 2: 1.89% (completed, so no more lock-in)
Year 3: 3M SIBOR + 0.5 (until Feb 2023, legal clawback until Jan 2023 thereabouts)
Previously when people were refinancing to SORA end of last year, my mortgage broker advised me to hang on to SIBOR since my Year 3 is a good rate. I thought it was good advice. Was so happy when my Year 3 rates dropped to 0.9375... then suddenly shot up to 1.83.. sian max...

Q1) He didn't contact me recently about repricing until I realised the situation now and approached him leh. Do you think I should stick to this agent? I have good impression of him one, he helped me with my repricing to SCB previously so I'm really grateful. Just that I wished he reached out to me this or last month..I know I small fry..

Q2) Anyway, need to take action now. So here's my details:
- Private (condo) ; refinancing
- Outstanding amount $65xxxx
- No other loans or liabilities, clean record
- Legal clawback from SCB: $1800 (Q2a. Will this amount be prorated since I only have a few more months left?) Is it worth moving away?

Options offered so far:
Option 1: DBS - 3M SORA + 0.7 (2 year lock-in), Year 3 onwards 3M SORA + 1.25
Option 2: Maybank - 3M SORA + 0.7 (1 year lock-in), Year3 onwards 3M SORA + 1.5
Option 3: UOB - Year1 fixed 2.15, Year2 3M SORA + 1 (2 year lock-in)
Option 4: SCB - Stay with SCB and ask them to offer me 3M SORA + 0.7 so I don't need to pay clawback (I'm still waiting for them to call me... will that be the best deal? How come my broker never suggest this one...

Q3) How "bad" can SORA get? Just wanna be mentally prepared.. one broker told me it is forecasted to 1.2 in July? I guess even if so 1.2+0.7 = 1.9.. still below 2? I'm really not clued in to this kind of thing. I know banks are all retracting their fixed rates... not sure if I shld panic jump onto the fixed rate (have always been on floating for the past 8 years..)

Q4) My family member is DBS treasures member does it mean they can tap on RM to give me a better rate than what the mortgage broker has offered me?

Appreciate advice please! Thank you.

Hi @Shooshoe ,


I think you mean that the mortgage broker assist you to refinance your loan to SCB bank right?

Repricing = Change package with the same bank
Refinancing = Port your loan to another bank.

Actually you should be out of lock in period feb 2022 right? If you did a repricing back on Dec~Feb 2022, you still can go with the low fixed rate(1.1~1.4% fixed for 2 years)


Q1/Q2) Based on your situation, you will not be able to refinancing your loan now without paying back the legal/valuation subsidy as you are still within 3 years claw back period.

So if you want to change package, you can only reprice with SCB. Based on my intel(Client sharing), SCB should be able to offer you this following package.

Yr1~2: 3m Sora + 0.75%
Thereafter: 3m Sora + 1.35%
1 years fixed.

Based on your current loan size, the best floating rate is around 3m Sora + 0.7 as well. So it is not too much different as compare to 3m Sora + 0.75%. So I dont think refinancing is a good choice for you and further more you have to pay back the legal/valuation subsidy.

FYI: Some mortgage broker might not share the repricing option. Because if you reprice with the same bank, they will not be able to earn anything. lol.

As for whether you should with the current mortgage broker, I cant advise you this.

Q3) No one has the crystal to peek into the future. Of course there are alot of projection~ You can look through the last few page of the forum. There are alot of information on it.

Personally i feel 3m Sora will cross 1% by Sep 2022. Time will tell if i am right~ haha

Q4) If you are not a DBS treasure client, i doubt the RM can give you preference rate.

I will say that the Rates that you share, it is the best deviated package currently.
Option 1: DBS - 3M SORA + 0.7 (2 year lock-in), Year 3 onwards 3M SORA + 1.25
Option 2: Maybank - 3M SORA + 0.7 (1 year lock-in), Year3 onwards 3M SORA + 1.5
Option 3: UOB - Year1 fixed 2.15, Year2 3M SORA + 1 (2 year lock-in)

 

[Shooshoe]

Hi @Shooshoe ,


I think you mean that the mortgage broker assist you to refinance your loan to SCB bank right?

Repricing = Change package with the same bank
Refinancing = Port your loan to another bank.

Actually you should be out of lock in period feb 2022 right? If you did a repricing back on Dec~Feb 2022, you still can go with the low fixed rate(1.1~1.4% fixed for 2 years)


Q1/Q2) Based on your situation, you will not be able to refinancing your loan now without paying back the legal/valuation subsidy as you are still within 3 years claw back period.

So if you want to change package, you can only reprice with SCB. Based on my intel(Client sharing), SCB should be able to offer you this following package.

Yr1~2: 3m Sora + 0.75%
Thereafter: 3m Sora + 1.35%
1 years fixed.

Based on your current loan size, the best floating rate is around 3m Sora + 0.7 as well. So it is not too much different as compare to 3m Sora + 0.75%. So I dont think refinancing is a good choice for you and further more you have to pay back the legal/valuation subsidy.

FYI: Some mortgage broker might not share the repricing option. Because if you reprice with the same bank, they will not be able to earn anything. lol.

As for whether you should with the current mortgage broker, I cant advise you this.

Q3) No one has the crystal to peek into the future. Of course there are alot of projection~ You can look through the last few page of the forum. There are alot of information on it.

Personally i feel 3m Sora will cross 1% by Sep 2022. Time will tell if i am right~ haha

Q4) If you are not a DBS treasure client, i doubt the RM can give you preference rate.

I will say that the Rates that you share, it is the best deviated package currently.
Option 1: DBS - 3M SORA + 0.7 (2 year lock-in), Year 3 onwards 3M SORA + 1.25
Option 2: Maybank - 3M SORA + 0.7 (1 year lock-in), Year3 onwards 3M SORA + 1.5
Option 3: UOB - Year1 fixed 2.15, Year2 3M SORA + 1 (2 year lock-in)

Ah yes I meant he helped me to refinance to SCB.

Yes out of lock-in already. In Dec actually another mortgage broker called me then when I asked him, he suggested I stick to SIBOR rate since SIBOR is going to phase out soon, tap on it while I can, and also since my Year 3 rate is going to drop. I was still very thankful to him for pointing out.. now I'm not so sure liao.

Ok looks like my best bet is to just reprice with SCB. Wait for them to reply me. When you say "1 year fixed" do you mean 1 year lock-in?

So you would suggest I reprice with SCB now and see again next year, vs. taking on the fixed 2.15% for Year1?
Very tiring... must revisit this and headache..

Thank you for much for replying. Do you mind PM me? Thanks,

 

[Property_Broker]

Ah yes I meant he helped me to refinance to SCB.

Yes out of lock-in already. In Dec actually another mortgage broker called me then when I asked him, he suggested I stick to SIBOR rate since SIBOR is going to phase out soon, tap on it while I can, and also since my Year 3 rate is going to drop. I was still very thankful to him for pointing out.. now I'm not so sure liao.

Ok looks like my best bet is to just reprice with SCB. Wait for them to reply me. When you say "1 year fixed" do you mean 1 year lock-in?

So you would suggest I reprice with SCB now and see again next year, vs. taking on the fixed 2.15% for Year1?
Very tiring... must revisit this and headache..

Thank you for much for replying. Do you mind PM me? Thanks,

Hi @Shooshoe ,

oooo 3m SIBOR was stagnant around 0.4375% till end of Feb 2022. So I guess the broker did not expect that the US fed rates hikes to increased so tremendously. Anyway I will recommend that you can try to monitor the interest rates/mortgage package on your own next time~ So you do not need to rely on people..

Yea~ I feel that stick with SCB is the better choice (If they can offer you 3m sora + 0.75%. Even best if you can get a lower spread).


Yr1~2: 3m Sora + 0.75%
Thereafter: 3m Sora + 1.35%
1 years lock in(Sorry on the typo)

If you feel that SORA will be very very expensive and it will pass 2.15% soon. Then you can go for UOB fixed for 1 years. BUT you will incur the legal fee and valuation fee claw back. Which i dont think make sense...

No worries! Just sharing my experience/advise to th forum folks! pmed you~

 

[skpuppy]

Hi @Shooshoe ,


I think you mean that the mortgage broker assist you to refinance your loan to SCB bank right?

Repricing = Change package with the same bank
Refinancing = Port your loan to another bank.

Actually you should be out of lock in period feb 2022 right? If you did a repricing back on Dec~Feb 2022, you still can go with the low fixed rate(1.1~1.4% fixed for 2 years)


Q1/Q2) Based on your situation, you will not be able to refinancing your loan now without paying back the legal/valuation subsidy as you are still within 3 years claw back period.

So if you want to change package, you can only reprice with SCB. Based on my intel(Client sharing), SCB should be able to offer you this following package.

Yr1~2: 3m Sora + 0.75%
Thereafter: 3m Sora + 1.35%
1 years fixed.

Based on your current loan size, the best floating rate is around 3m Sora + 0.7 as well. So it is not too much different as compare to 3m Sora + 0.75%. So I dont think refinancing is a good choice for you and further more you have to pay back the legal/valuation subsidy.

FYI: Some mortgage broker might not share the repricing option. Because if you reprice with the same bank, they will not be able to earn anything. lol.

As for whether you should with the current mortgage broker, I cant advise you this.

Q3) No one has the crystal to peek into the future. Of course there are alot of projection~ You can look through the last few page of the forum. There are alot of information on it.

Personally i feel 3m Sora will cross 1% by Sep 2022. Time will tell if i am right~ haha

Q4) If you are not a DBS treasure client, i doubt the RM can give you preference rate.

I will say that the Rates that you share, it is the best deviated package currently.
Option 1: DBS - 3M SORA + 0.7 (2 year lock-in), Year 3 onwards 3M SORA + 1.25
Option 2: Maybank - 3M SORA + 0.7 (1 year lock-in), Year3 onwards 3M SORA + 1.5
Option 3: UOB - Year1 fixed 2.15, Year2 3M SORA + 1 (2 year lock-in)

Actually if you observed today, a lot of banks give you this kind of package.

Yr1~2: 3m Sora + 0.75%
Thereafter: 3m Sora + 1.35%
1 years fixed.

Even year 1 and 2, the spread also so so. Imagine last year you sign up, it is around 3M Sora + 0.75-0.8% if you are those treasures or private client.
Why thereafter (ie 3 years onwards) always 1.35% or 1.5% spread? Because the bank anticipate interest to drop back in 2024 and beyond. Generally we loan at most $1-2M. If interest stays at this rate, all the corporate die.

All the Ang Mo very smart. Now everyone complain inflation, I up the interest rates aggressively so that I am perceived to be fighting inflation. When interest hits 4-5%, all the corporates starts retrenching, closing down. By then ppl wants job and stimulus so Fed says ok, let me give you 1% interest.

When chicken goes up from $6 to 9, many ppl kpkb wants government to fight inflation. I remembered in a survey, US citizens more concern about inflation than stock market. As such, Fed increase aggressively lo. But assuming you lost your job and you have no income, will you feel happy eating chicken if it cost $4.50?

Hope this gives everyone some indication how interest will go

 

[Property_Broker]

Actually if you observed today, a lot of banks give you this kind of package.

Yr1~2: 3m Sora + 0.75%
Thereafter: 3m Sora + 1.35%
1 years fixed.

Even year 1 and 2, the spread also so so. Imagine last year you sign up, it is around 3M Sora + 0.75-0.8% if you are those treasures or private client.
Why thereafter (ie 3 years onwards) always 1.35% or 1.5% spread? Because the bank anticipate interest to drop back in 2024 and beyond. Generally we loan at most $1-2M. If interest stays at this rate, all the corporate die.

All the Ang Mo very smart. Now everyone complain inflation, I up the interest rates aggressively so that I am perceived to be fighting inflation. When interest hits 4-5%, all the corporates starts retrenching, closing down. By then ppl wants job and stimulus so Fed says ok, let me give you 1% interest.

When chicken goes up from $6 to 9, many ppl kpkb wants government to fight inflation. I remembered in a survey, US citizens more concern about inflation than stock market. As such, Fed increase aggressively lo. But assuming you lost your job and you have no income, will you feel happy eating chicken if it cost $4.50?

Hope this gives everyone some indication how interest will go

Why thereafter (ie 3 years onwards) always 1.35% or 1.5% spread?

Actually if you see the fixed rate package.

Yr1~2: 2.45% Fixed for 2 years
Thereafter: 3m Sora + 1.5%
2 years lock.

You can see the thereafter rates are high once you are out of lock in period.

Based on my view, it is not believe that the bank are anticipating interest rate will drop back in 2024. It is more like they want to penalize client that did not do reprice/refinancing once they are out of lock in period.

When I was a working in the local banks, I have seen a lot of client did not even bother to reprice/refinancing their package. Because they are not aware that they are paying 3% or 4%. When they realize it, they will either slam the table/rang call to their RM or take it to the media.

So if you ask me, I feel that it is more getting revenue from client.

Yea~ I think the high interest rate should kill off the demand. So eventually what goes up, it will come down. The question will be "when is the interest rate will be peak and coming down".

 

[rider83]

Why thereafter (ie 3 years onwards) always 1.35% or 1.5% spread?

Actually if you see the fixed rate package.

Yr1~2: 2.45% Fixed for 2 years
Thereafter: 3m Sora + 1.5%
2 years lock.

You can see the thereafter rates are high once you are out of lock in period.

Based on my view, it is not believe that the bank are anticipating interest rate will drop back in 2024. It is more like they want to penalize client that did not do reprice/refinancing once they are out of lock in period.

When I was a working in the local banks, I have seen a lot of client did not even bother to reprice/refinancing their package. Because they are not aware that they are paying 3% or 4%. When they realize it, they will either slam the table/rang call to their RM or take it to the media.

So if you ask me, I feel that it is more getting revenue from client.

Yea~ I think the high interest rate should kill off the demand. So eventually what goes up, it will come down. The question will be "when is the interest rate will be peak and coming down".

Interest rate should peak somewhere in 3-4Q of 2023

 

[skpuppy]

Why thereafter (ie 3 years onwards) always 1.35% or 1.5% spread?

Actually if you see the fixed rate package.

Yr1~2: 2.45% Fixed for 2 years
Thereafter: 3m Sora + 1.5%
2 years lock.

You can see the thereafter rates are high once you are out of lock in period.

Based on my view, it is not believe that the bank are anticipating interest rate will drop back in 2024. It is more like they want to penalize client that did not do reprice/refinancing once they are out of lock in period.

When I was a working in the local banks, I have seen a lot of client did not even bother to reprice/refinancing their package. Because they are not aware that they are paying 3% or 4%. When they realize it, they will either slam the table/rang call to their RM or take it to the media.

So if you ask me, I feel that it is more getting revenue from client.

Yea~ I think the high interest rate should kill off the demand. So eventually what goes up, it will come down. The question will be "when is the interest rate will be peak and coming down".

Lol! My bro probably burst out laughing. He took a loan last year and did 3M Sora + 0.8% all the way. Simi 3rd year 1.5%?

 

[skpuppy]

This was what my friend got when he enquired in Jul/ Aug 2021. These are Sora rates given by 3 banks. Any Tom, Dick and Harry can sign up during then. Now not applicable already huh. All chopping with their Dragon Sabre

Year 1: 1m compounded sora + 0.85%
Thereafter: 1m compounded sora + 0.85%

Year 1: 3m compounded sora + 0.85%
Thereafter: 3m compounded sora + 0.85%

Year 1: 3m compounded sora + 0.85%
Thereafter: 3m compounded sora + 0.85%

 

[Property_Broker]

Interest rate should peak somewhere in 3-4Q of 2023

If it will be peaking around 3-4Q of 2023, it will be a fantastic decision to go with floating that come with 1 years lock in.

 

[Property_Broker]

Lol! My bro probably burst out laughing. He took a loan last year and did 3M Sora + 0.8% all the way. Simi 3rd year 1.5%?

Err i think your bro bought a BUC private property right? For BUC property, the package is usually same spread throughout for the loan tenure.

if you are talking about resale COMPLETED property, most of the bank offer good SORA spread for the first 2 years. The SORA spread for the thereafter rate will be high.

 

[Property_Broker]

This was what my friend got when he enquired in Jul/ Aug 2021. These are Sora rates given by 3 banks. Any Tom, Dick and Harry can sign up during then. Now not applicable already huh. All chopping with their Dragon Sabre

Year 1: 1m compounded sora + 0.85%
Thereafter: 1m compounded sora + 0.85%

Year 1: 3m compounded sora + 0.85%
Thereafter: 3m compounded sora + 0.85%

Year 1: 3m compounded sora + 0.85%
Thereafter: 3m compounded sora + 0.85%

You can see my above posting..

I am very sure that they purchased a BUC private property.

FYI: For 1m loan BUC, Tim/Dick/Harry can get 3m Sora + 0.75% now.