Free Advice/Discussion on Bank Mortgage loan

[ThinkCarefully]

Am at 3.1% DBS, now got 2.73% (free 1 year repricing). Didn't realise gotta sign again and lock in two years.

Is the general advice that I should wait for at least 2.6% before repricing?

TBH as I get closer to end of year, anyway it will be the full repricing with better rates I think

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you will definitely find better rates outside compared to this bank.
Just make sure you are out of lock in to be flexible to consider.

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[limck]

Are you still within lock in period(1 year) or will be out of lock in period soon?

Thanks for sharing.

Still in lock in. Just past 1 year of 2 year lock in so enquire about free repricing rate.

 

[saikangwarrior]

Hi @Property_Broker for private BUC. do you know the process for changing my loan provider from DBS to another bank.

I would want to upsize my current loan quantum package, and hoping that UOB would be able to offer a better package, and pay the cancellation fee 0.8% imposed by DBS

 

[Property_Broker]

Still in lock in. Just past 1 year of 2 year lock in so enquire about free repricing rate.

Hi @limck

Got it~ thanks for sharing~

I will say that 2.6% fixed for 2 years package is quite competitive since you still have 1 years lock in period to go~

 

[Property_Broker]

Hi @Property_Broker for private BUC. do you know the process for changing my loan provider from DBS to another bank.

I would want to upsize my current loan quantum package, and hoping that UOB would be able to offer a better package, and pay the cancellation fee 0.8% imposed by DBS

Hi @saikangwarrior


The process is pretty similiar to a normal refinancing case.

But do take note that DBS will impose 0.75% on the undisbursed loan amount.

Other banks will be able to offer u cash rebate to subsidy your legal fee/valuation fee. But the cash rebate will not be sufficient to cover the cancellation fee for sure.

Why not you speak to DBS team and check if they can restructure the loan for you(I presume you want to do some equity loan on the property)?

 

[sssabbbm]

Hi. Need advice. I m purchasing a subsale almost TOP this month or next. Looking for a loan quantum of 2.1 to 2.2 m and fixed rate with 1 year repricing option.

 

[sssabbbm]

Hi @saikangwarrior


The process is pretty similiar to a normal refinancing case.

But do take note that DBS will impose 0.75% on the undisbursed loan amount.

Other banks will be able to offer u cash rebate to subsidy your legal fee/valuation fee. But the cash rebate will not be sufficient to cover the cancellation fee for sure.

Why not you speak to DBS team and check if they can restructure the loan for you(I presume you want to do some equity loan on the property)?

HI @Property_Broker How to reach out to you

 

[Property_Broker]

Hi. Need advice. I m purchasing a subsale almost TOP this month or next. Looking for a loan quantum of 2.1 to 2.2 m and fixed rate with 1 year repricing option.

Hi @sssabbbm

As long as there is some document to state that the property will TOP within 1-2 months time, the bank will be able to grant you the fixed rate package instead of BUC package.

PMed you. Cheers.

 

[coyc22]

Your law firm should ask you to apply for the loan 2-3 months before the property's TOP so they have sufficient time to process it.

Should I start applying for loan now?

Answer: If 3m SORA keep dropping for the next 6-12 months, the bank BUC package should get higher. It is around 3m sora + 0.3% currently.

It might increase to 3m Sora + 0.4%~0.5% by year end. Bank might increase their profit margin.

So I will recommend that you can apply it now.

The major reason is that in the event if you wish to apply the loan last min but the bank are unable to grant the loan amount. You will get caught. So might as well apply now to have a piece of mind.

And is it better to engage bank directly or through a mortgage broker?

I am a mortgage broker. So don't want to give biased answer to it. But there are few people ask this qn in this thread. You can look through~

Cheers.

Hi @Property_Broker, jumping on this topic. I have a question regarding loan for EC.

Is it true that I will have to get a bank loan before I can use my CPF for the S&P downpayment if I'm on DPS?

Someone told me that I have to get a bank loan but another person told me I do not have to.

Can also PM me.

Thanks!

 

[only_lonely]

What's best 2yrs fixed home loan for hdb now?
Just realize mine is about to reprice or refinance.

 

[Property_Broker]

Hi @Property_Broker, jumping on this topic. I have a question regarding loan for EC.

Is it true that I will have to get a bank loan before I can use my CPF for the S&P downpayment if I'm on DPS?

Someone told me that I have to get a bank loan but another person told me I do not have to.

Can also PM me.

Thanks!

Hi @coyc22


Are you referring to the 15% downpayment? Yes correct.

Because you will need to follow the "ORDER OF DISBURSEMENT RULE". Which means CASH follow by CPF follow by Loan.

https://singaporelegaladvice.com/la...rty-in-singapore-how-to-pay-for-your-property

Are you referring to the buyer's stamp duty? Nope. You don't need to apply the loan to use CPF for the buyer's stamp duty.

PMed~

 

[Property_Broker]

What's best 2yrs fixed home loan for hdb now?
Just realize mine is about to reprice or refinance.

Hi @only_lonely

You might want to share more information?

E.g. your existing bank/loan amount etc etc

 

[worldpeace9]

Hi - I need some advice which bank loan I should take up for a new purchase of a resale private.

These 2 banks offer the same fixed rates for the first 2 years at 2.x%.

Bank A
First 2 years fixed at 2.x% with free conversion after 12 months

Bank B
First 2 years fixed at 2.x% with legal subsidy of $2,000 but free conversion only after 2 years.

It is a tough choice as Bank A offers flexibility should interest drops next year but there is no guarantee interest rate will drop while Bank B offers immediate savings from the legal subsidy.

 

[only_lonely]

Hi @only_lonely

You might want to share more information?

E.g. your existing bank/loan amount etc etc

was with ocbc 2yrs fixed term. 300k left.
I tried online reprice they gave 2.55%
Ok to take?

 

[Chewbaca]

I am getting a resale condo and applying for loan. My prop agent linked me to loan specialists from a few banks. Submitted the forms and they gave info eg rates 2.x , free conv after 1 or 2 years. But no mention of legal subsidy leh... and i just saw dbs has some cash voucher promo for direct online app without 3rd party referral... wondering if i am silly to go thru my prop agent.

 

[Caprug96]

Hi @Property_Broker , i am looking to take up either sora or DBS FDHR loan for a BUC purchase. would you able to kindly advice what are the pros and cons? loan size >1m


Able to drop me a PM pls?

 

[mortgage_88]

Hey @Caprug96

DBS FHR package pros:
Based purely on rates, DBS FHR might seem the best as it is currently the lowest.
However, you should note that the order of disbursement is progressive and what's more important might be the rates you get when the bulk of your loan gets disbursed nearing to T.O.P

DBS FHR offers 1 good feature, which is a predetermined spread regardless of how interest rates move in the coming years.

In this instance, I would like to ask which year is the expected T.O.P for the BUC you're looking at?
Reason being, there are still packages out there with 1M SORA + 0.38% spread throughout year 1-4, which would still be more ideal than DBS' predetermined spread of 0.40%.

However, all these depends on how much loan you intend to take

 

[mortgage_88]

I am getting a resale condo and applying for loan. My prop agent linked me to loan specialists from a few banks. Submitted the forms and they gave info eg rates 2.x , free conv after 1 or 2 years. But no mention of legal subsidy leh... and i just saw dbs has some cash voucher promo for direct online app without 3rd party referral... wondering if i am silly to go thru my prop agent.

Hey bro,

Legal subsidies are not applicable to new purchases but only for refinancing an existing mortgage.
While DBS offers cash voucher for online promo, do note that these promos will be nett off from your purchase price. You do still get your rebates but you pay more upfront. more information can be found here:

www.mas.gov.sg/regulation/explainers/new-housing-loans/deducting-discounts-rebates-or-benefits

Mortgage broker here.
If you'd like I could help to do a comparison between the rates you've been offered.
If your property agent is recommending you toward a law firm, do check on the rates you've been offered as well to complete the purchase.

 

[mortgage_88]

What's best 2yrs fixed home loan for hdb now?
Just realize mine is about to reprice or refinance.

What's your current loan outstanding amount? This will greatly determine the rates offered to you.

 

[Property_Broker]

Hi - I need some advice which bank loan I should take up for a new purchase of a resale private.

These 2 banks offer the same fixed rates for the first 2 years at 2.x%.

Bank A
First 2 years fixed at 2.x% with free conversion after 12 months

Bank B
First 2 years fixed at 2.x% with legal subsidy of $2,000 but free conversion only after 2 years.

It is a tough choice as Bank A offers flexibility should interest drops next year but there is no guarantee interest rate will drop while Bank B offers immediate savings from the legal subsidy.

Hi @worldpeace9

There are 2 points that i will like to share with you~

Point 1)

Historical track records are not a reliable indicator of future performance because markets are constantly changing.

If you see the past few pages of the threads, you might find out that some banks offer very BAD repricing package for clients that still within lock in period.

I will rate the banks (worst to good), Maybank>SCB/DBS/UOB>OCBC based on the last 12 months sharing.

To be honest with you.. Even OCBC repricing is good now, it does not mean it will be the same in a year time.

So there is no way to confirm the future repricing package

~ But I will say that having a free conversion after 1 year is a bonus feature. You are giving yourself an option to secure much lower rates. Rather than you shut off that option~


Point 2)

Based on my experience, there are 2 banks that once in awhile give cash rebate for purchasing case. It start with "C"

1) Do take note on the clawback period. Which is 3 years
2) The cash rebate will have to nett off your purchase price. Hence lower loan amount.


You go for the option that you deem it is the best option. There is no right and wrong since the rates are the same! Congrats on your purchase.


Meanwhile can you share which bank offer u 2k cash rebate for purchasing?