Will SG banks raise mortgage interest rate?

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Maybe, maybe not. Only real interest rates truly matter. If you're paying back a 4% interest loan with Singapore dollars that are losing value at 5% per year due to inflation, that's a negative real interest rate. A negative real interest rate would be terrific.

Yes, enjoy it!

....And you shouldn't accelerate repayment as long as you're enjoying 1.4% money. CPF is paying 2.5% on an Ordinary Account. Enjoy the spread as much and as long as you're allowed.
Agree.

I just received a quotation and I saw the interest and i went to check my investment via CPF-OA. I started the CPF-OA only like a year ago and the interest from investment now is around 40% of the mortgage interest. ( since I started the investment almost the same time as I bought the house ).

In the time to come, hopefully the investment interest will pay for loan repayment
 

chrisloh65

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Wow, the words “this time, it’s different” — are super famous in the investing world, often spoken at times in history when people thought things had fundamentally changed and the current state would go on forever… be careful with that one!
I am already betting that "this time it's different" as far as USD and US interest rate is concerned given the massive USD printing and massive debt US Gov is taking on, all those US actions are no-brainer that US interest rate will be difficult to go up from here, LOL!
 

Unbiasedsg_

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Maybank...

got any other better rates?

Current popular package as follow:-
Popular with HDB owners
1.4% fixed 5 years

Popular for private new purchase:-
1.1% fixed 2 years.


We offer up to $1250 NTUC voucher rebates on top of bank's rebates.
PM us for more info.
 

wongkc

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Current popular package as follow:-
Popular with HDB owners
1.4% fixed 5 years

Popular for private new purchase:-
1.1% fixed 2 years.


We offer up to $1250 NTUC voucher rebates on top of bank's rebates.
PM us for more info.

What about for refinancing for private?
 

eauyong

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I am already betting that "this time it's different" as far as USD and US interest rate is concerned given the massive USD printing and massive debt US Gov is taking on, all those US actions are no-brainer that US interest rate will be difficult to go up from here, LOL!
No doubt we are being held ransom by the USA whereby our money is held by the USA in US Bonds through our Life Insurance Companies and others. We want higher interest rates for our hard earned money but on the other hand we want our children to pay lower interest for their mortgages. In the family it is like Right hand give and Left hand take.

FYI, 1 USD/SGD rate:
Lowest exchange rate: 1.2003 Aug 2011
Highest exchange rate:1.8550 Dec 2001
Average rate last 30 years: 1.4967
Current rate: 1.3536 (9.56% below average)

American interest rate FED United States current rate: 0.250 %

"Traders are speculating that the Fed could raise interest rates as early as the end of next year as economic recovery gathers pace"
-
 

Unbiasedsg_

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What about for refinancing for private?
There isn’t much bank offering 5 years fixed, the interest (1.68%) are not that competitive as well.
(min. $100k)


There’s 3 years fixed though for your reference:-
3 Years Fixed (subject to availability)
700k to 999k - 1.15%
1m to 1.499m - 1.12%

PM us for more info.
 

Unbiasedsg_

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DBS 5 years fixed at 1.4% is also applicable to private properties. This part is not advertised at the website.
I just double checked, it is not applicable for private.
The 1.40% 5 Years FIXED rates (5 years lock in period) Minimum loan amount $200K is HDB Exclusive.

PM me for more info.
 

chrisloh65

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No doubt we are being held ransom by the USA whereby our money is held by the USA in US Bonds through our Life Insurance Companies and others. We want higher interest rates for our hard earned money but on the other hand we want our children to pay lower interest for their mortgages. In the family it is like Right hand give and Left hand take.

FYI, 1 USD/SGD rate:
Lowest exchange rate: 1.2003 Aug 2011
Highest exchange rate:1.8550 Dec 2001
Average rate last 30 years: 1.4967
Current rate: 1.3536 (9.56% below average)

American interest rate FED United States current rate: 0.250 %

"Traders are speculating that the Fed could raise interest rates as early as the end of next year as economic recovery gathers pace"
-
Regarding this speculation: "Traders are speculating that the Fed could raise interest rates as early as the end of next year as economic recovery gathers pace", it is not going to be material in any way compared to the Trillions of USD to be printed soon...............

https://www.businesstimes.com.sg/go...nearly-us5t-spending-plans-win-key-house-vote

And this US$5 Trillions is on top of Trillions already printed or committed to be printed earlier!
What are the consequences then? Well, we can only expect USD value to keep depreciating, US inflation to keep rising, and we just need a trigger to cause a collapse of US stock market and pulling down US economy into a deep recession ..............
 

eauyong

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Regarding this speculation: "Traders are speculating that the Fed could raise interest rates as early as the end of next year as economic recovery gathers pace", it is not going to be material in any way compared to the Trillions of USD to be printed soon...............

https://www.businesstimes.com.sg/go...nearly-us5t-spending-plans-win-key-house-vote

And this US$5 Trillions is on top of Trillions already printed or committed to be printed earlier!
What are the consequences then? Well, we can only expect USD value to keep depreciating, US inflation to keep rising, and we just need a trigger to cause a collapse of US stock market and pulling down US economy into a deep recession ..............
Many of us have gone through the U.S. subprime crisis, GFC in 2008. It was terrible. DBS GROUP HOLDINGS LTD have dropped to S$12.80. SINGAPORE EXCHANGE LIMITED dropped to S$5.54. They, the Americans today still continue to just give us their IOU paper and exchange for all our goodies. Meantime, they just service the interest with issuing their 'cowboy' notes. Damn, we are just their slaves.
 

andyhtc

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We should be looking at vigorous asset inflation until 2022.

Property loans, car loans, home renovation loans etc will remain cheap.

Our GDP growth should remain quite strong in 2021 and 2022.
 

SBC

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Looks like I had made a good choice to go with floating rates.
 

andyhtc

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Floating rates look good now.

Tapering is targeted to be brought forward at the end of 2021 instead of early 2022. The interest rate hike is TBC but is likely to be still in 2023. South Korea has already increased its interest rate.

The situation is still quite volatile. The best is to keep the lock-in period short or pay off the loan asap.
 

andyhtc

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I don't understand this last bit. Why would you want to accelerate repayment on a 0.X% or 1.X% mortgage?

I don't like heart attacks when banks increase their rates very fast.

I prefer to sleep better and focus my energy on making money faster :)
 
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