Free Advice/Discussion on Bank Mortgage loan

[spuispui]

Hi looking for pte property loan - 800k. Can advise latest fixed and float rate? Thanks

 

[Lmao0101]

Hi @Property_Broker

Should we also factor in the spread % after the lock-in period?

The FHR6 Floating rate from DBS for 3yrs offers FHR6 + 1.0% at the 4th year onwards.

The FHR6 Fixed rate from DBS for 2yrs offers FHR6 + 1.6% at the 3rd year onwards.

Is it a good idea to secure a low spread %, as we may not be able to get a better rate in our next repricing/refinancing?

I was inclining towards the fixed rate package, but wondering if we should also consider this factor.

Thanks.

If you're worried about refinancing, might be better not to have the base rate as FHR6. DBS in this case can change the underlying rate higher than other deposit rates (which sometimes is already the case).

A SORA + spread rate gives better certainty.

 

[Property_Broker]

Hi, I’m looking to refinance my private property loan around $1.4M. Can advise me on the latest fixed and floating rates? Thanks

Hi @warrensh,


Pmed you. Cheers.

Please advise which is the bank that is financing you? Thanks!

 

[Property_Broker]

Can anyone confirm that if I were to downpay 10% in cash, I can extend my housing loan tenure to 35years and keep my LTV at 75%?

Hi @PinG_PonG_PianG ,

You can go with LTV: 55% assuming if you have no existing housing loan.


10%: Downpayment via CASH
35%: Downpayment via Cash or CPF
55%: Bank can loan you up to 55%

Loan tenure will maximum 35 years for private property. Do take note max age is 75 years old.
There are 2 condition to it.

Can pm me if you need more details.

 

[Property_Broker]

Hi @Property_Broker

Should we also factor in the spread % after the lock-in period?

The FHR6 Floating rate from DBS for 3yrs offers FHR6 + 1.0% at the 4th year onwards.

The FHR6 Fixed rate from DBS for 2yrs offers FHR6 + 1.6% at the 3rd year onwards.

Is it a good idea to secure a low spread %, as we may not be able to get a better rate in our next repricing/refinancing?

I was inclining towards the fixed rate package, but wondering if we should also consider this factor.

Thanks.

Hi @EDDY777 ,


Well I will say that you can factor it in. However most of the time you will be better off once you reprice/repricing after your lock in period.

Hence I will say that it is not a very important factor.

Meanwhile DBS will be removing some package and OCBC will be revising fixed rate upward soon. So better do it fast.

 

[Property_Broker]

Hi looking for pte property loan - 800k. Can advise latest fixed and float rate? Thanks

Hi @spuispui,

Pmed you. Cheers!

 

[faeron]

hi, my commitment period of 1 year has just lapsed and am looking to reprice or refinance

currently with Maybank package 3M SIBOR + 0.75%, loan is for 800k++

any indicative fixed and floating packages?

 

[Property_Broker]

Hi, am considering refinance of private home loan, 700+k.

Currently into second year of floating rate loan with OCBC.

pmed you! cheers.

Do take note you must be out of lock period so that you can refinance your loan without any penalty.
Also there is no clawback on the cash rebate/legal subsidy (if there is any).

 

[Property_Broker]

hi, my commitment period of 1 year has just lapsed and am looking to reprice or refinance

currently with Maybank package 3M SIBOR + 0.75%, loan is for 800k++

any indicative fixed and floating packages?

Hi @faeron ,


Which mean that you are paying around 1.18% currently. But there are 3 proposed rates hike for this year so far. The earliest hike might commence around March or April. Hence it is pushing the rates upward.

You should feel the 3m Sibor impact soon.

Do take note you must be out of lock period so that you can refinance your loan without any penalty.
Also there is no clawback on the cash rebate/legal subsidy (if there is any).

Pmed you on the rates!

 

[PholkLorr]

With feds looking to raise interest rates, is it better to get 5 yrs fixed rate of 1.6%, or take those 2 yrs 1.3% (or 3 yrs 1.45%) then refinance/reprice after 2/3 yrs?
Looking to get resale hdb and loan of 500-550k

 

[Property_Broker]

With feds looking to raise interest rates, is it better to get 5 yrs fixed rate of 1.6%, or take those 2 yrs 1.3% (or 3 yrs 1.45%) then refinance/reprice after 2/3 yrs?
Looking to get resale hdb and loan of 500-550k

Hi @PholkLorr,

Yup! If the projected 3 rates hike does happen, it is best to lock in fixed rate as long as possible.

But I think there is no 1.6% fixed for 5 years in the market.

It is either 1.65% Fixed for 5 years or 1.5% Fixed for 5 years(Need to buy mortgage insurance). Do take note these rates are applicable to HDB case only.

Of course you can go for 1.3% Fixed for 2 years then reprice/refinance after 2 years. But by then the fixed rate will be much higher as well.

If the fixed rates is around 2%, you might regret not getting 1.5~1.65% previously. Ultimately nobody has the crystal to peek into the future. Hence it is depending on individual point of view~

Pmed you the rates as well.

 

[Property_Broker]

Hi forum folks~


7/1/2022
1m Sora: 0.2231%
3m Sora: 0.1977%

1m Sora and 3m Sora are having a uptrend at the moment.

US fed are planning 3 rates this years. It might commence rates hike as early as March/April.

Hence it has been pushing the 1/3m Sora rate upward.

Happy weekend folks!


14/1/2022
1m Sora: 0.2131%
3m Sora: 0.1960%

1m/3m Sora decrease as compare to last week.

Quick update on interest rates expectation:

US might commence rates hike by March 2022. So far projected to have 3 rates hike although there might be possibility for 4 rates hike. It seem that each hikes should be around 25 basis points(0.25%).

https://www.reuters.com/world/us/feds-brainard-nods-march-rate-hike-calls-action-grow-2022-01-13/

It is a fact that rates will be heading upward from now. It is a matter of the times only.

Hence it might be good to go for fixed rates and lock in now.

Sibor rate should be expecting to increase soon. Try to review your loan portfolio folks~

 

[spuispui]

Hi all,
I’m planning to take up fixed rates for 2 years and currently comparing banks with lowest interest rate. Should I go for the bank that offer lowest (regardless what’s the thereafter) and refinance after the locked period? Thanks if anyone can advise. First time taking loan for new purchase. Appreciate it!

 

[Property_Broker]

Hi all,
I’m planning to take up fixed rates for 2 years and currently comparing banks with lowest interest rate. Should I go for the bank that offer lowest (regardless what’s the thereafter) and refinance after the locked period? Thanks if anyone can advise. First time taking loan for new purchase. Appreciate it!

Hi @spuispui ,


If you have decided that you will be going for 2 years fixed rate, you can just go for the best bank that can offer you the best 2 years fixed rate.

Most of the times you will be paying higher rates once you are out of lock in period as compare reprice/refinancing your loan.

Just ensure that you go for 2 years fixed rate with 2 years lock in period. There is some banks offer 2 years fixed but with 3 years lock in period.

 

[andyhtc]

JPMorgan CEO Jamie Dimon says there’s a chance Fed could lift interest rates ‘six or seven times’​

Interest-rate traders have already amped up their expectations for Fed tightening this year as the central bank has reiterated its commitment to fighting accelerating consumer-price inflation, which data this week showed is now running at an almost four-decade high of 7%. Swaps markets currently indicate between three and four standard quarter-point hikes for this year and around six by the end of 2023.

https://fortune.com/2022/01/14/jpmo...d-reserve-benchmark-interest-rates-inflation/

 

[spuispui]

Hi @spuispui ,


If you have decided that you will be going for 2 years fixed rate, you can just go for the best bank that can offer you the best 2 years fixed rate.

Most of the times you will be paying higher rates once you are out of lock in period as compare reprice/refinancing your loan.

Just ensure that you go for 2 years fixed rate with 2 years lock in period. There is some banks offer 2 years fixed but with 3 years lock in period.

Is two years fixed loan considered short? Am thinking whether I should go for 2 years or 3 years? Appreciate all comment and feedback. Thanks all!

 

[Property_Broker]

Sorry, just checked my existing documents and saw that the penalty (1.5% of outstanding amount) still applies if I were to refinance.

Hi @lowzeewee ,

You might want to call in to the bank hotline to confirm on the penalty for refinancing.
Meanwhile you can check what is the repricing package as well.

So you can make a good decision on it.

 

[Property_Broker]

JPMorgan CEO Jamie Dimon says there’s a chance Fed could lift interest rates ‘six or seven times’​

Interest-rate traders have already amped up their expectations for Fed tightening this year as the central bank has reiterated its commitment to fighting accelerating consumer-price inflation, which data this week showed is now running at an almost four-decade high of 7%. Swaps markets currently indicate between three and four standard quarter-point hikes for this year and around six by the end of 2023.

https://fortune.com/2022/01/14/jpmo...d-reserve-benchmark-interest-rates-inflation/

I think 7 rates hike for this year, it should not happen.. I dont think the market can withstand it as well.

But 7 rate hikes till 2023. I think it is possible.

 

[Property_Broker]

Is two years fixed loan considered short? Am thinking whether I should go for 2 years or 3 years? Appreciate all comment and feedback. Thanks all!

Yea. It is one of the shortest fixed rate in the market now.
Do take note that if u are planning to sell this property after 3 years(Once Seller Stamp Duty end) then it is better to go for 3 years fixed.

 

[spuispui]

Yea. It is one of the shortest fixed rate in the market now.
Do take note that if u are planning to sell this property after 3 years(Once Seller Stamp Duty end) then it is better to go for 3 years fixed.

Thank you property broker for your advise. Really appreciate and the info is very useful for my consideration. I plan to stay min 5 years (resale unit) at least.