Free Advice/Discussion on Bank Mortgage loan

[Property_Broker]

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

Hi @only_lonely

Nice. OCBC repricing is very competitive now.

Yes. 2.55% fixed for 2 years is extremely good.

With 300k HDB loan, Other banks can offer only 2.6~2.65% fixed for 2 years

I will strongly recommend you to stick with OCBC.



Just one more pointer for you. If you are looking to sell your property within the next 2 years, you need to ensure that there is "Waiver of cancellation fee due to sale".

If OCBC cant offer it, you might have to explore other banks that offered it.

 

[Property_Broker]

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.

Hi @Chewbaca

I will say that your priority should be to go with the bank that gives you the best mortgage rates.

As for legal subsidy, see the below sharing.

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.

But I know that banks "C" is not offering very good package for now. Please share if got a good deals. thanks!

Sometime banks run DIRECT client promotion examples like DBS for now.

You can highlight this to the agent and see if he can give you some incentive win-win solution anot since you have done the application with DBS already.

Because if you straight away go with DBS direct, you might face 2 issues.

1) Your case might be lock by the agent DBS banker already. So you cant proceed with another DBS banker as well.
2) Your agent might felt that you are not very upfront and your relationship might sour.


Honest policy = Best policy.

That is my point of view~ Cheers.

 

[Property_Broker]

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?

sure~ PMed~

 

[worldpeace9]

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?

Thanks for your advice @Property_Broker ! I share similar thoughts as you and am leaning towards option 1, although it is indeed a tough choice. I think another factor to think about is the re-pricing package eventually offered by both the banks because I most likely will be doing a repricing (option 1 due to free conversion and option 2 due to 3 years lock-in to avoid claw back).

For the legal subsidy, you are right with the bank that starts with C. They are the ones who offer that. But the funny thing is I get different package from their 2 different mortgage specialists in a difference of 1 week.

 

[Property_Broker]

Thanks for your advice @Property_Broker ! I share similar thoughts as you and am leaning towards option 1, although it is indeed a tough choice. I think another factor to think about is the re-pricing package eventually offered by both the banks because I most likely will be doing a repricing (option 1 due to free conversion and option 2 due to 3 years lock-in to avoid claw back).

For the legal subsidy, you are right with the bank that starts with C. They are the ones who offer that. But the funny thing is I get different package from their 2 different mortgage specialists in a difference of 1 week.

No problem! Happy to advise always.

Just sharing my view as well~

I think they just revised their package. Or perhaps maybe one of the mortgage banker do not want to deviate the package so much as his revenue point will get affected.

I don't know your specific package so cant comment much haha

 

[minamikaze]

Signed 2.6% repricing (2 yr fixed) on a 1.2M loan with about 10 months remaining on the lock in. Hope it was the right choice..

 

[LWZ]

Signed 2.6% repricing (2 yr fixed) on a 1.2M loan with about 10 months remaining on the loan tenure. Hope it was the right choice...

you mean 10 years ?

 

[minamikaze]

s

you mean 10 years ?

sorry I meant lock in hahaha.

 

[Property_Broker]

Signed 2.6% repricing (2 yr fixed) on a 1.2M loan with about 10 months remaining on the lock in. Hope it was the right choice..

Hi @minamikaze

UOB?

 

[mortgage_88]

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

Mortgage broker here, I can help you with this. Would need to know some more information such as your disbursement timeline etc, to share the costs involved etc. are you able to drop me a PM? Thanks

 

[mortgage_88]

My current loan is 3.65. There is 1 time free repricing within lockin and the rate offered is 2.75, about 700k loan. If wait until current contract finishes, it should be about July 2025. Should I opt for 2.75 or wait till July for a better rate? Thanks

Will suggest to secure a package now / by May and just refinance in July.


700k loan is able to get around 2.50 to 2.55% at the moment.
2.45% for 3 years fixed. also need to see if you have any intention to sell the property in the next 2-3 years

 

[DestinyFate]

Recently tried to reprice and was offered 2 years fixed rate (2 years lock-in), Year 1 : 2.60%, Year 2 : 2.38% (average 2.49%). Is it a good rate or should I wait for further fed rate cut? Thank you

 

[Property_Broker]

Recently tried to reprice and was offered 2 years fixed rate (2 years lock-in), Year 1 : 2.60%, Year 2 : 2.38% (average 2.49%). Is it a good rate or should I wait for further fed rate cut? Thank you

Hi @DestinyFate


I believe this is from OCBC repricing right?

You might want to share more on your current loan amount and property type so I can share more on the market package for comparison.

It does not mean that the bank will lower immediately if there is a rate cut. Sometime the bank might have priced it in previously.

 

[endlssorrow]

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.

This is easy
U should check 2nd year loan interests will give u as much as 2k anot

 

[buahlonglong]

Any banks that wont take haircut on income for Business owners with 50% shareholdings? Thanks

 

[elvintay07]

Recently tried to reprice and was offered 2 years fixed rate (2 years lock-in), Year 1 : 2.60%, Year 2 : 2.38% (average 2.49%). Is it a good rate or should I wait for further fed rate cut? Thank you

Low interest is not good. Property prices will cheong.

 

[Property_Broker]

Any banks that wont take haircut on income for Business owners with 50% shareholdings? Thanks

Do you mean the business owner own 50% of the shareholding + get fixed monthly income?

Den yes. Some banks can take them as EMPLOYED income. But they will need 6-12 consistence months of CPF contribution

 

[minamikaze]

Recently tried to reprice and was offered 2 years fixed rate (2 years lock-in), Year 1 : 2.60%, Year 2 : 2.38% (average 2.49%). Is it a good rate or should I wait for further fed rate cut? Thank you

Wow this is a very good deal. Mine was 2.6% from DBS 2 years fixed. How many months till your lock-in ends?

 

[DestinyFate]

Above 1m loan, end in Dec so decided to reprice but the package is 2 years fix.

 

[buahlonglong]

Do you mean the business owner own 50% of the shareholding + get fixed monthly income?

Den yes. Some banks can take them as EMPLOYED income. But they will need 6-12 consistence months of CPF contribution

Yes, Fixed Salary with CPF, no fluctuations for 12 mths at least.
Salary payout as "SAL".

But 1st year NOA is self employed (low and fluctuates), 2nd year NOA then is 12 mths fixed monthly salary.

Any banks that take them? So far i approached a few brokers they told me Maybank can take, but i prefer local banks if possible.