Free Advice/Discussion on Bank Mortgage loan

and_who

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Was just chatting to a friend of mine today about this same issue. He's also under the impression that these rates are somehow regulated and banks cannot anyhow increase.

There are similar caveats in the DBS FHR terms.

If you go read closely, they basically say how they calculate FHRXX is up to them and they can change the type of reference rate and/or spread any time(even during the lock in period). They just need to give you one month notice.

Banks also operate under free market. You don't like their terms, don't like their rates, feel free to refinance to another bank. They won't commit market suicide by drastically changing their prices above other banks, but don't be under the disillusion that they are legally bound to follow any formula for these type of loans.

Precisely. Banks can change the manner in which their rates are determined at anytime. And this is a fact that lots of parties with possible vested interests do not reveal to borrowers. Instead, they mislead consumers into thinking rates are almost like fixed rates
 

MortgageSingapore

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Precisely. Banks can change the manner in which their rates are determined at anytime. And this is a fact that lots of parties with possible vested interests do not reveal to borrowers. Instead, they mislead consumers into thinking rates are almost like fixed rates
I did not said it is a fixed rate. It is almost a fixed rate that's what I said.
Anyone with common sense will know what I'm bringing across and they will definitely not be misled into thinking it is a fixed rate.
I have done a comprehensive explanation on how OHR works and I have also indicated that that's what I expect the bank to operate towards.
If I'm saying UOB 14 month FD is a good rate, you'd say the same thing that it is still subjected to changes from the bank.
No matter what package in the market, If you were to pick issue with it, all the products in the market will still be the same as all are subjected to the standard fine print whereby bank has the right to review, amend etc...
You need to step out from your corner and look into how reality works.
That's how bank works and if it doesn't suit your liking, You simply don't borrow from them.
Every bank has this standard rule.
 

and_who

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I did not said it is a fixed rate. It is almost a fixed rate that's what I said.
Anyone with common sense will know what I'm bringing across and they will definitely not be misled into thinking it is a fixed rate.

Nope, your "advice" is much more absolute than that. on top of that, you do not disclose the fact that the manner in which OHR is calculated can be changed anytime (and is thus subject to instability). You allude to the stability and the almost "fixed" nature of OHR and also make the point that OHR is going to stay at or below current OHR rate.

Definitely below 1.8% For first two years because the last calculated two years are at two times the current rate. It's gonna take a huge jump on current sibor to hit 1.8% for OHR. At least a jump of 1.5% to have any effect and it's not gonna be immediate.

OHR is pegged to sibor.
If you understand how it works, you too will agree OHR is the best in market. Almost a fixed rate and yet no lock in binding you like a normal fixed rate. The spread now is actually not consider high as it can definitely go much higher than current thereafter 0.9% rate.

If FD rate increase by one time, do you think it will go down?
You have to factor in FHR is not exactly the same as what they give out based on FD, in terms on how it works.

OHR is very transparent, I've explained countless time that it is pegged to last 12 years average of 1 & 3 month sibor.
If you really do your homework, You will know OHR is the only stable rate in market,almost an unofficial fixed rate.
FD pegged loans has change the market totally, and they're taking majority of the market share already, once they get higher control in the market, FD will likely be out of favour and new package will be introduce pegged to different instruments.

Once again, I repeat that you will not pay above what OHR package forecast for the next 3 years at least.
It will take 300% of current SIBOR increment to have effect on you, on top of it, it will take at least 3 years to feel the impact if sibor indeed goes up to 3%.

Scb has no OHR. I believe it's pegged to fixed deposit for your case.

OHR is only from OCBC.
I'd say is the best in market now in terms of stability, almost equivalent to a fixed rate.

Thereafter is higher and you can't do anything about it besides sticking to that 1 year else the penalty will likely contra it off.

OCBC OHR is almost equivalent to a fixed rate.
It may even go lower this November/December period on OHR.

I have said many times ocbc OHR has to be the best in market now.
It's almost equivalent to a fixed rate I don't understand why people will want to risk having FD pegged loans now that everywhere is FD pegged loans with high spread.

This takes the cake - so how can a rate be said to be "safer"? Are you guaranteeing that the OCBC board rate will remain lower than all other competing rates? You also make forward looking predictions as to where the rate is headed - which institution do you come from as I would like to get the benefit of such predictions.

Competitive in the market. But like I've said, OCBC rate is safer in the next 5 years at least.
 
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MortgageSingapore

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Nope, your "advice" is much more absolute than that. on top of that, you do not disclose the fact that the manner in which OHR is calculated can be changed anytime (and is thus subject to instability). You allude to the stability and the almost "fixed" nature of OHR and also make the point that OHR is going to stay at or below current OHR rate.













This takes the cake - so how can a rate be said to be "safer"? Are you guaranteeing that the OCBC board rate will remain lower than all other competing rates? You also make forward looking predictions as to where the rate is headed - which institution do you come from as I would like to get the benefit of such predictions.

Nobody can be sure of one package against another. This is just based on my experience and my analysis.
If you think I have a vested interest towards ocbc, yes you're right I am indeed because they're offering what I deem a better deal.
Why didn't you come out against me when I was pro towards other bank previously like DBS and against ocbc?
Loans are always changing, there's no one bank package better than others forever.

What I'm sharing here is my analysis on why I think Ocbc has a better deal than fd pegged loans. What's wrong with me saying that I think ohr is almost a fixed rate?
Is there a restriction on freedom of speech here?
Everyone should know the basic rule that bank has the final discretion on their products, if you want to say I'm misleading, you can only blame yourself for not having the basic necessary own judgment.
I can bring the horse to the river but whether it drinks the water there it will decide himself.
 

and_who

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Nobody can be sure of one package against another. This is just based on my experience and my analysis.
If you think I have a vested interest towards ocbc, yes you're right I am indeed because they're offering what I deem a better deal.
Why didn't you come out against me when I was pro towards other bank previously like DBS and against ocbc?
Loans are always changing, there's no one bank package better than others forever.

What I'm sharing here is my analysis on why I think Ocbc has a better deal than fd pegged loans. What's wrong with me saying that I think ohr is almost a fixed rate?
Is there a restriction on freedom of speech here?
Everyone should know the basic rule that bank has the final discretion on their products, if you want to say I'm misleading, you can only blame yourself for not having the basic necessary own judgment.
I can bring the horse to the river but whether it drinks the water there it will decide himself.

Since you are so confident in yourself and your statements, you should have no issues identifying the institution you represent, and having the MAS sense check your statements.

Just a simple question - why do you not disclose that the manner in which the rates are calculated can change anytime but instead emphasize the "stability" and "almost fixed" nature of the rates? What are your motivations?

Is this because you believe that it should be basic knowledge that the manner in which rates are calculated can change anytime? that consumers should know the basic rule that bank has the final discretion on their products? Is that the same approach you take towards the people you advise? That they should know that the manner in which board rates are calculated can change anytime?

In that case, why do you then deem that it is more worthwhile to educate consumers of the supposed "stability" and "almost" fixed nature of the rates (which is totally at odds with what you call basic knowledge that the manner in which rates are calculated can change anytime)?
 
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and_who

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Everyone should know the basic rule that bank has the final discretion on their products, if you want to say I'm misleading, you can only blame yourself for not having the basic necessary own judgment.
I can bring the horse to the river but whether it drinks the water there it will decide himself.

So you would bring the horse (i.e. the consumer) to the river but not educate the consumer as to the possible consequences of drinking the water and let the consumer drink the water? now this REALLY takes the cake :s22: :s22:
 

MortgageSingapore

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Since you are so confident in yourself and your statements, you should have no issues identifying the institution you represent, and having the MAS sense check your statements.

Just a simple question - why do you not disclose that the manner in which the rates are calculated can change anytime but instead emphasize the "stability" and "almost fixed" nature of the rates? What are your motivations?

Is this because you believe that it should be basic knowledge that the manner in which rates are calculated can change anytime? that consumers should know the basic rule that bank has the final discretion on their products? Is that the same approach you take towards the people you advise? That they should know that the manner in which board rates are calculated can change anytime?

In that case, why do you then deem that it is more worthwhile to educate consumers of the supposed "stability" and "almost" fixed nature of the rates (which is totally at odds with what you call basic knowledge that the manner in which rates are calculated can change anytime)?

Based on what you said, even fixed rate can change anytime. What else is there for me to say any more?
I have posted how OHR works previously and I don't think I'm obligated to answer you in any way.
This is a platform for sharing purpose, if you think by being aggressive and persistent on some fine print standard clause issue, you can actually feedback to ocbc or any other banks you deem fit.
If consumer don't even understand what are the standard risk involved after being explained to them carefully clause by clause before they sign, then maybe the whole Singapore should consult you first before undertaking.
I can understand your argument of me being biased towards ocbc but your argument of fine print & standard clause is totally invalid as consumer will be told of it.
Are you a disgruntled customer of ocbc? I believe there's representatives of them in this forum, seek redress there if you need or write in to MP if you have any constructive feedback or solution.
 

and_who

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I have posted how OHR works previously and I don't think I'm obligated to answer you in any way.

Nope, you have not posted that the manner of calculating OHR can change anytime

I don't think I'm obligated to answer you in any way.
If consumer don't even understand what are the standard risk involved after being explained to them carefully clause by clause before they sign, then maybe the whole Singapore should consult you first before undertaking.

In that case, are you obligated to keep emphasizing the selling points of the OHR (which may be negated by the T&Cs)?
You have emphasised selling points of the OHR, without disclosing the potential downsides. Never once acknowledged this, and instead, say you are not obligated to answer in anyway. Are you helping consumers to understand the risks by this approach?

I can understand your argument of me being biased towards ocbc but your argument of fine print & standard clause is totally invalid as consumer will be told of it.

I never said you had a bias towards OCBC. I said that you may have a vested interest. Are you now saying that you do not have any interest, financial or otherwise from your posts here and its only altruistic sharing? From your posts, I leave it to others here to draw their inferences

Are you a disgruntled customer of ocbc? I believe there's representatives of them in this forum, seek redress there if you need or write in to MP if you have any constructive feedback or solution.

I'm a satisfied customer of OCBC. I would be happy to write into the MAS and refer your posts and organisation to them though for their review.

Competitive in the market. But like I've said, OCBC rate is safer in the next 5 years at least.

I ask again, do you stand by this and guarantee that OCBC's rate is "safer" in the next 5 years "at least"?

Loans are always changing, there's no one bank package better than others forever.

but, according to you, OCBC is "safer" in the next 5 years?

Competitive in the market. But like I've said, OCBC rate is safer in the next 5 years at least.
 

MortgageSingapore

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Nope, you have not posted that the manner of calculating OHR can change anytime



In that case, are you obligated to keep emphasizing the selling points of the OHR (which may be negated by the T&Cs)?
You have emphasised selling points of the OHR, without disclosing the potential downsides. Never once acknowledged this, and instead, say you are not obligated to answer in anyway. Are you helping consumers to understand the risks by this approach?



I never said you had a bias towards OCBC. I said that you may have a vested interest. Are you now saying that you do not have any interest, financial or otherwise from your posts here and its only altruistic sharing? From your posts, I leave it to others here to draw their inferences



I'm a satisfied customer of OCBC. I would be happy to write into the MAS and refer your posts and organisation to them though for their review.



I ask again, do you stand by this and guarantee that OCBC's rate is "safer" in the next 5 years "at least"?



but, according to you, OCBC is "safer" in the next 5 years?

Since when did I said OHR will change anytime?
OHR takes into the long term average for the past 12 years and it will not fluctuate in accordance with daily sibor movement.

I was mainly doing a comparison between FD loans against OHR which I strongly believe based on past statistic, OHR nails it for the next 5 years at least as I expect FD rate to goes up earlier than OHR significantly.

Everyone has their own vested interest be it financially or not, we come here to gain knowledge and exchange pointer, as well as keeping up with current affairs.

I, as a member of the forum, how does it matter what my view or which organisation do I belong to has any reference to your personal queries/doubts?

I stand by my view that OHR will be a better package overall, be it yearly or not, than FD pegged loans.

Last but not least, you're questioning me ethics that I misled others by saying OHR won't fluctuate.
It is the same as fixed rate, even fixed rate is subjected to bank's discretion that if they deem fit, they are allowed to adjust it as well just like what you said on OHR. So, am I supposed to clearly state this as well? If you're long enough, you should know that the last bank that played a similar stunt was Citibank couple years back by adjusting their perpetual based spread up by a certain percentage. What you mentioned applies to every product, not just OHR.

You're simply trying to say that I didn't say this basic fine print that bank has the right to adjust up to them.
Likewise, When consumer take up loan, banker will explain this to them. If they feel they're disadvantaged by this, they can simply walk off and no losses to them.
So what are you trying to prove over here over a fine print issue?
You mean to say that most homeowners here are stupid?
 

MortgageSingapore

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Search your conscience, I'm providing my analysis and knowledge here which I believe one way or another help members of the forum here.
Is it because that I'm more responsive or vocal here so I'm subjected to you and have to spoon feed you every information?
What you're seeing here is selective contribution from members here, anything you seen, is your additional gain of knowledge or information for free.
One should not expect anything from another as no one owes you a living, whether the person sharing has a vested interest or not does not determine that he or she is to be subjected to you. If you expect something, work for it and take it. If it's given out for free, don't demand further as if you deserve it.
 

tokidoki_sg

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Search your conscience, I'm providing my analysis and knowledge here which I believe one way or another help members of the forum here.
Is it because that I'm more responsive or vocal here so I'm subjected to you and have to spoon feed you every information?
What you're seeing here is selective contribution from members here, anything you seen, is your additional gain of knowledge or information for free.
One should not expect anything from another as no one owes you a living, whether the person sharing has a vested interest or not does not determine that he or she is to be subjected to you. If you expect something, work for it and take it. If it's given out for free, don't demand further as if you deserve it.

Just want to say thank you for all the free advice you have provided in this thread. ;)
 

and_who

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Since when did I said OHR will change anytime?
OHR takes into the long term average for the past 12 years and it will not fluctuate in accordance with daily sibor movement.

I was mainly doing a comparison between FD loans against OHR which I strongly believe based on past statistic, OHR nails it for the next 5 years at least as I expect FD rate to goes up earlier than OHR significantly.

Everyone has their own vested interest be it financially or not

And you continue to miss the point, and perpetuate false fallacies - will OHR ALWAYS take the long term average? you seem intent to emphasize the advantageous calculation of OHR, without even taking into account the fact that the manner in which OHR is calculated


Last but not least, you're questioning me ethics that I misled others by saying OHR won't fluctuate.
It is the same as fixed rate, even fixed rate is subjected to bank's discretion that if they deem fit, they are allowed to adjust it as well just like what you said on OHR. So, am I supposed to clearly state this as well? Likewise, When consumer take up loan, banker will explain this to them. If they feel they're disadvantaged by this, they can simply walk off and no losses to them.
So what are you trying to prove over here over a fine print issue?
You mean to say that most homeowners here are stupid?

Yes, I am questioning your ethics, and I am questioning your motivations whereby you continue to sing the virtues of OHR, without disclosing the downsides.

If its up to the banker to explain the downsides, then why not leave the banker to explain the upsides as well? What exactly do you stand to gain by continuing to preach the virtues of OHR without disclosing the downsides?

Search your conscience, I'm providing my analysis and knowledge here which I believe one way or another help members of the forum here.
Is it because that I'm more responsive or vocal here so I'm subjected to you and have to spoon feed you every information?
What you're seeing here is selective contribution from members here, anything you seen, is your additional gain of knowledge or information for free.
One should not expect anything from another as no one owes you a living, whether the person sharing has a vested interest or not does not determine that he or she is to be subjected to you. If you expect something, work for it and take it. If it's given out for free, don't demand further as if you deserve it.

conscience is perfectly clear. I do not choose a username like "MortgageSingapore" which with such a nick at least gives the impression you are in the industry, and have some knowledge and expertise in this area. Why?

Just because you do not have any financial gain or derive any benefit from your posts or have forumers approach you to broker their loans(which I strongly doubt) does not give you carte blanche to blithely point out only the benefits of a product and leave out the downsides (which may have the effect of totally erasing whatever benefits you are pointing out). Similarly being responsive and vocal does not give you the right to mislead and deceive people here.

Since you brought up free speech, I totally agree, and I am exercising my right to call you out as I see fit.

I did not said it is a fixed rate. It is almost a fixed rate that's what I said.
Anyone with common sense will know what I'm bringing across and they will definitely not be misled into thinking it is a fixed rate.

Nope, your "advice" is much more absolute than that. on top of that, you do not disclose the fact that the manner in which OHR is calculated can be changed anytime (and is thus subject to instability). You allude to the stability and the almost "fixed" nature of OHR and also make the point that OHR is going to stay at or below current OHR rate.

Definitely below 1.8% For first two years because the last calculated two years are at two times the current rate. It's gonna take a huge jump on current sibor to hit 1.8% for OHR. At least a jump of 1.5% to have any effect and it's not gonna be immediate.

OHR is pegged to sibor.
If you understand how it works, you too will agree OHR is the best in market. Almost a fixed rate and yet no lock in binding you like a normal fixed rate. The spread now is actually not consider high as it can definitely go much higher than current thereafter 0.9% rate.

If FD rate increase by one time, do you think it will go down?
You have to factor in FHR is not exactly the same as what they give out based on FD, in terms on how it works.

OHR is very transparent, I've explained countless time that it is pegged to last 12 years average of 1 & 3 month sibor.
If you really do your homework, You will know OHR is the only stable rate in market,almost an unofficial fixed rate.
FD pegged loans has change the market totally, and they're taking majority of the market share already, once they get higher control in the market, FD will likely be out of favour and new package will be introduce pegged to different instruments.

Once again, I repeat that you will not pay above what OHR package forecast for the next 3 years at least.
It will take 300% of current SIBOR increment to have effect on you, on top of it, it will take at least 3 years to feel the impact if sibor indeed goes up to 3%.

Scb has no OHR. I believe it's pegged to fixed deposit for your case.

OHR is only from OCBC.
I'd say is the best in market now in terms of stability, almost equivalent to a fixed rate.

Thereafter is higher and you can't do anything about it besides sticking to that 1 year else the penalty will likely contra it off.

OCBC OHR is almost equivalent to a fixed rate.
It may even go lower this November/December period on OHR.

I have said many times ocbc OHR has to be the best in market now.
It's almost equivalent to a fixed rate I don't understand why people will want to risk having FD pegged loans now that everywhere is FD pegged loans with high spread.

This takes the cake - so how can a rate be said to be "safer"? Are you guaranteeing that the OCBC board rate will remain lower than all other competing rates? You also make forward looking predictions as to where the rate is headed - which institution do you come from as I would like to get the benefit of such predictions.

Competitive in the market. But like I've said, OCBC rate is safer in the next 5 years at least.

This again, is how one sided and absolute your advice is. You hide the downsides of the OHR, and brush it off after being called out with the statement that the banker will explain everything.

In that case, since the banker does the explaining, then why do you need to continue with your one-sided praise of OHR? Leave the job to the bankers as well then!
 

sharinganez

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Search your conscience, I'm providing my analysis and knowledge here which I believe one way or another help members of the forum here.
Is it because that I'm more responsive or vocal here so I'm subjected to you and have to spoon feed you every information?
What you're seeing here is selective contribution from members here, anything you seen, is your additional gain of knowledge or information for free.
One should not expect anything from another as no one owes you a living, whether the person sharing has a vested interest or not does not determine that he or she is to be subjected to you. If you expect something, work for it and take it. If it's given out for free, don't demand further as if you deserve it.

Bro.. i support u for the info & effort that u've contributed to this forum
sometimes we just hav to ignore negative ppl .. they r basically everywhere in tis world.

thanks.
 

MortgageSingapore

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And you continue to miss the point, and perpetuate false fallacies - will OHR ALWAYS take the long term average? you seem intent to emphasize the advantageous calculation of OHR, without even taking into account the fact that the manner in which OHR is calculated




Yes, I am questioning your ethics, and I am questioning your motivations whereby you continue to sing the virtues of OHR, without disclosing the downsides.

If its up to the banker to explain the downsides, then why not leave the banker to explain the upsides as well? What exactly do you stand to gain by continuing to preach the virtues of OHR without disclosing the downsides?



conscience is perfectly clear. I do not choose a username like "MortgageSingapore" which with such a nick at least gives the impression you are in the industry, and have some knowledge and expertise in this area. Why?

Just because you do not have any financial gain or derive any benefit from your posts or have forumers approach you to broker their loans(which I strongly doubt) does not give you carte blanche to blithely point out only the benefits of a product and leave out the downsides (which may have the effect of totally erasing whatever benefits you are pointing out). Similarly being responsive and vocal does not give you the right to mislead and deceive people here.

Since you brought up free speech, I totally agree, and I am exercising my right to call you out as I see fit.



Nope, your "advice" is much more absolute than that. on top of that, you do not disclose the fact that the manner in which OHR is calculated can be changed anytime (and is thus subject to instability). You allude to the stability and the almost "fixed" nature of OHR and also make the point that OHR is going to stay at or below current OHR rate.













This takes the cake - so how can a rate be said to be "safer"? Are you guaranteeing that the OCBC board rate will remain lower than all other competing rates? You also make forward looking predictions as to where the rate is headed - which institution do you come from as I would like to get the benefit of such predictions.



This again, is how one sided and absolute your advice is. You hide the downsides of the OHR, and brush it off after being called out with the statement that the banker will explain everything.

In that case, since the banker does the explaining, then why do you need to continue with your one-sided praise of OHR? Leave the job to the bankers as well then!

Below is what I posted back on January which I'm sure some definitely have seen it before be it here or elsewhere.


Why OCBC OHR rate is the best in market!
The current OHR rate is at 1%.

It works by using the long term average 1 & 3 month sibor for the past 12 years.

Past rate:

END OF
PERIOD INTERBANK
1-MONTH INTERBANK
3-MONTH
2006 3.44 3.44
2007 2.00 2.38
2008 0.75 1.00
2009 0.44 0.69
2010 0.31 0.44
2011 0.31 0.38
2012 0.31 0.38
2013 0.37 0.40


The past 12 years meaning OCBC derived their 1% OHR from 2006-2017.

2006 average is at 3.44%
2007 at 2.19%
2008 at 0.875%
2009 at 0.565%
2010 at 0.375%
2011 at 0.345%
2012 at 0.345%
2013 at 0.385%

Grand total of these 8 years = 8.52%
This means that 2014-2017 total is 3.48% in order for the 1% P.A theory to stand because 12% / 12 years = 1%

Current 1 & 3SIBOR average stands at approximate 1.41%, highest in recent time with 0.3% increment in two month span.
The highest spike for SIBOR was at 0.88% during a one month period from 2008 August to September. If you remember, this happened during the financial crisis period.

forecast:
Assuming 1 & 3 month sibor steadily increase 0.3% for the 3 years we will see it like this

2018: 1.41%
2019: 1.71%
2020: 2.01%

Grand total of 5.13% increment for the next 3 year while 2006-2008 phased out at 6.505%. This still result in 1.375% drop from 12% to 10.625%, averaging it out to be 0.88% for OHR for your 3rd year.


real 3 years forecast

2018 1&3 month sibor conservative to be at 1.5%
2006 phased out 3.44%
Average rate to stand at 12% + 1.5% less off 3.44% = 10.06% divide 12 = 0.838%

Expected EIR to be 0.838% + 0.5%(deviated based 1st year) = 1.338%

2019 another 0.5% increment will result in 2%.
2007 phased out 2.19%.
Average rate 10.06% + 2% less off 2.19% = 9.87% divide 12 = 0.823%

Expected EIR to be at 0.823% + 0.5% = 1.323%

2020 another 0.5% to make it 2.5%
2008 phased out 0.875%.
Average rate 9.87% + 2.5% less off 0.875% = 11.495% divide 12 = 0.958%

Expected EIR to be at 0.958% + 0.7% = 1.658%



Basically, this is almost a fixed rate and you'll be going in for this rate at:

1st year: 1.6%
2nd year: 1.338%
3rd year: 1.323%
4th year: 1.658%

This is assuming sibor at a ascending order of 0.5% each year for the next 3 years, if it's lower than 0.5% increment each year, your savings will be even higher!

Now, do you agree OCBC OHR rate is the best in market now?







I believe I have explained it clearly on how OHR works. If you need me to state a clause that every bank has the rights to change their t&c.
I'm sorry for not stating that then as I assumed members in the forum here are long enough to know this. My bad, I apologise and hope it makes your day and weekend.
 

and_who

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Thank you for your elaboration on OHR.

The legal position is that the manner in which OHR is calculated can change anytime.

Now, my view is that given the uptrend in interest rates, it is well within the bank's rights (and they would have motivation to amend the calculation to their benefit) to derive higher interest rates.

secondly, Sibor is non-transparent i.e. calculated based on an average of interest rate submissions by contributing banks everyday. Sibor is subject to large fluctuations (and while averaging the past few years of sibor would reduce fluctuation, no one can guarantee that the bank will continue with this averaging formula).

Finally, there is no hedging involved - if you take variable rates based on fixed deposits for example, if the bank raises your variable rate, they would also have to increase payouts to fixed deposit holders.

I feel that your advise to forummers here does not balance out the pros with the cons, only the pros.

If the forummers here are happy with such one sided advise, then more power to them. We can check back in a year later to see if the manner of calculating OHR, or OHR itself, has increased.
 
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Hi guys,

I have a question regarding the bank loan for HDB. Say, due to pre-existing conditions, one can't get the HPS (or any MRTA from bank), will the bank cancel the loan?

Many thanks!
 

bladez87

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whats a good estimate of the fees involved in refinancing and repricing?

i am taking a home loan of around 250k for my resale flat, and am considering that it might be in my best interest to take a loan with a longer lock in period and a relatively lower rate after the lock in period.
This is because it is possible that the refinancing or repricing fees would cost more than the savings i get from renewing the loan.

is this the right move

thanks
 

Ronaldo88

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whats a good estimate of the fees involved in refinancing and repricing?

i am taking a home loan of around 250k for my resale flat, and am considering that it might be in my best interest to take a loan with a longer lock in period and a relatively lower rate after the lock in period.
This is because it is possible that the refinancing or repricing fees would cost more than the savings i get from renewing the loan.

is this the right move

thanks

Drop to 200k loan..i dun thk banks will take less than 200k
 

Ronaldo88

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yup thats another good point that i did not consider. what happens once my loan quantum drops below the threshold...hmm...

Canot refinance lo..stuck and under the mercy of bank..moi also ard ur loan amt..tats y bank abit risky
 
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