Free Advice/Discussion on Bank Mortgage loan

Property_Broker

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Thank you very much for the reply. DBS website now show 5 years fixed @ 1.95%, let me try to talk to them see if they can still offer 1.8% :)
no problem~ I still see 1.8% at DBS website leh~ All the best! I think it is good to go with 1.8% fixed for 5 years based on the interest rate environment.


Applicable for Refinancing only
5-Year Fixed 1.80% p.a. (Exclusively for HDB Homeowners)
Year 1 to Year 5​
1.80% p.a.​
Year 6 and thereafter​
FHR6 + 1.60% p.a.​
Minimum loan amount​
S$200,000​
Special features​
Waiver of commitment fee due to sale of property​
 

Cclkss

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Hi @Cclkss,

I might not be the best person to address for commercial loan property. But based on my understanding, it is not possible. Most of the bank are offering around 80% to 90% loan of the property price only~ I did not heard before 100% and i doubt MAS will allow it.. Might be some by left method~
Thanks @Property_Broker

Do you have the list of rates provided by the various bank for Commerical property loan ,say loan amount below 400k , loan % quantum, tenure and interest rates? Could you pls pm me?

Hope to deal with you:)
 

dr3amerzz

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Hi @Property_Broker ,

May I have your views on why you prefer SORA over FHR6? With the foreseeable rate increases, wouldn't SORA be more volatile and increase at a higher rate as compared to FHR6? Will you still prefer SORA in this environment?

I am also torn between these 2 repricing packages from DBS.
 

Property_Broker

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Hi @Property_Broker ,

May I have your views on why you prefer SORA over FHR6? With the foreseeable rate increases, wouldn't SORA be more volatile and increase at a higher rate as compared to FHR6? Will you still prefer SORA in this environment?

I am also torn between these 2 repricing packages from DBS.
Hi @dr3amerzz ,


Let me pull out the previous post...


For SORA (which is the Singapore Overnight Rate Average) is the volume-weighted average rate of actual borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore. It is administered by the Monetary Authority of Singapore (MAS), and published at 9am on the next business day in Singapore.

Hence SORA has been administered and published daily by the MAS.

As for FHR6 refers to the prevailing 6 months Singapore Dollar fixed deposit interest rate for amounts S$1,000 to S$9,999 or such other sum as we may specify. FHR6 is currently 0.200% p.a.

This is known as a bank internal rate. The bank can change the rates anytime by giving you one month notice. Hence it is control by Bank.

So to your questions, it will be which one do you trust?

For me I will be going with SORA rather than FHR6. I find that banks are not charity. They are a business company. When they need profits, they will know where they can tap on it.

Based on my understanding DBS did revised their FHR package upward from 2015~2019(When interest rate is going upward)..

Let me pm you the track records for some FHR package..
 

gohlex

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no problem~ I still see 1.8% at DBS website leh~ All the best! I think it is good to go with 1.8% fixed for 5 years based on the interest rate environment.


Applicable for Refinancing only
5-Year Fixed 1.80% p.a. (Exclusively for HDB Homeowners)
Year 1 to Year 5​
1.80% p.a.​
Year 6 and thereafter​
FHR6 + 1.60% p.a.​
Minimum loan amount​
S$200,000​
Special features​
Waiver of commitment fee due to sale of property​
Mine is repricing so the package they offered is slightly different 😅
 

gohlex

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Hi @dr3amerzz ,


Let me pull out the previous post...


For SORA (which is the Singapore Overnight Rate Average) is the volume-weighted average rate of actual borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore. It is administered by the Monetary Authority of Singapore (MAS), and published at 9am on the next business day in Singapore.

Hence SORA has been administered and published daily by the MAS.

As for FHR6 refers to the prevailing 6 months Singapore Dollar fixed deposit interest rate for amounts S$1,000 to S$9,999 or such other sum as we may specify. FHR6 is currently 0.200% p.a.

This is known as a bank internal rate. The bank can change the rates anytime by giving you one month notice. Hence it is control by Bank.

So to your questions, it will be which one do you trust?

For me I will be going with SORA rather than FHR6. I find that banks are not charity. They are a business company. When they need profits, they will know where they can tap on it.

Based on my understanding DBS did revised their FHR package upward from 2015~2019(When interest rate is going upward)..

Let me pm you the track records for some FHR package..
Can you PM me the track records for the FHR package also? thanks 🙏
 

Quagmire85

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Hi Property_Broker,

Pls pm for a loan of 1.28m for buying a resale
condo. Thanks
 

Property_Broker

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TGIF Forum folks~

Do take note DBS is going to revise their fixed rate soon..

Might be removing 1.8% fixed for 5 years (Refinancing) and 1.95% fixed for 5 years (HDB purchase).

So might want to act on it before the boat sail....
 

Midnight16

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Hi Property_Broker,

My flat will MOP in about a month's time, i am looking to sell (wait for the funds to come in) and transit to a resale condo, whole process i believe will take 6 months or more. When should i start looking at loans / approval in principle as interest rates is heading up north (sora or fixed) ? Looking at $700k-$800k in loan. Also is it worth to take a bridging loan (interest is very high on this one). Thanks for your advice.
 

andyhtc

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TGIF Forum folks~

Do take note DBS is going to revise their fixed rate soon..

Might be removing 1.8% fixed for 5 years (Refinancing) and 1.95% fixed for 5 years (HDB purchase).

So might want to act on it before the boat sail....

Time to buy more DBS shares :D
 

Property_Broker

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Hi Property_Broker,

My flat will MOP in about a month's time, i am looking to sell (wait for the funds to come in) and transit to a resale condo, whole process i believe will take 6 months or more. When should i start looking at loans / approval in principle as interest rates is heading up north (sora or fixed) ? Looking at $700k-$800k in loan. Also is it worth to take a bridging loan (interest is very high on this one). Thanks for your advice.
Hi @Midnight16,

I believe that you are in the initial planning stage at the moment.

Hence it is very important for you to understand the financial/down payment involve. Example the fee involves, loan eligible and timeline of the purchase and selling.

A bridging loan is a short-term loan that you can take from the bank to “bridge” the gap between the time you need to pay the downpayment for your new property and when you receive the sales proceeds from your previous property.

So it is not a want but a need. If you require the sale proceed for the 20% downpayment, you will need to apply the bridging loan..

Do take note there is some criteria for the bank to approve the Bridging loan as well.

You can PMed me. We can arrange a call so that I can run through the whole process for you.
 

andyhtc

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SORA has essentially doubled from 0.3x to 0.7x in May 2022. My gut feeling is that SORA-pegged loans are going to be very expensive from August 2022.
 

Property_Broker

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SORA has essentially doubled from 0.3x to 0.7x in May 2022. My gut feeling is that SORA-pegged loans are going to be very expensive from August 2022.
13 May 2022
1m Sibor: 0.83269%
3m Sibor: 1.11250%

20/5/2022
1m SORA: 0.7462%
3m SORA: 0.4588%

It is much better to go with 3m Sora than 1m Sora. But i will say that 3m Sora should be closing the gap from 1m Sora soon. Their gap is always around 0.1% max~
 

andyhtc

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Assuming 1% Fed fund rate results in 0.75% 1-month SORA, the projected rates are 1% now + 0.5% hike in June + 0.5% hike in July + 0.25% x 2 or 3 further hikes in 2022, we could see a total of 2.5% to 2.75%.

Taking 0.75 x 2.5% = 1.875%. The net SORA based interest rate including spread might hit 2.5% to 3% in 2022.

TThere might be further hikes in 2023 if inflation still sticks well above 2%. This means even fixed rates have to go up from 2%+ in 2-3 months after the June and July hikes are done.
 
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