Free Advice/Discussion on Bank Mortgage loan

[Property_Broker]

can share ur cea license number? hehe

Hello influencer,

I am not a property agent. Hence i do not have any CEA number.

I am a mortgage broker which specialise on housing loan.

If you need property advise, you can look for @sgpropertyblog

 

[inf|uencer]

Hello influencer,

I am not a property agent. Hence i do not have any CEA number.

I am a mortgage broker which specialise on housing loan.

If you need property advise, you can look for @sgpropertyblog

haa ok thnks!

 

[3xp3rti3]

Want to ask for some suggestions here as my fixed home loan with uob is up after 2 years @ 2.65% in early november.

just realised refinancing needs 3months of time frame and repricing seems like the only way now? I am not too sure how it works as my previous hdb property was with hdb loan. What are the fees/charges that are expected if i reprice or refinance? And also if i do a comparison for refinancing is it too late now as i have only 1mth +

any kind input would be much appreciated.

 

[Property_Broker]

Want to ask for some suggestions here as my fixed home loan with uob is up after 2 years @ 2.65% in early november.

just realised refinancing needs 3months of time frame and repricing seems like the only way now? I am not too sure how it works as my previous hdb property was with hdb loan. What are the fees/charges that are expected if i reprice or refinance? And also if i do a comparison for refinancing is it too late now as i have only 1mth +

any kind input would be much appreciated.

Hi @3xp3rti3

Refinancing process will take around 9-10 weeks time.

1-2 weeks - Apply the loan
8 weeks(2 months)- Serve notice with your existing bank
Hence it is around 9-10 weeks.

Refinancing costs
1) Legal fee
2) Valuation fee.

Usually if your loan amount is more than 300k(HDB) and 500k(Private property), the bank will give you cash rebate to subsidy the refinancing costs.

Repricing process is around 4 weeks+-.

I will recommend that you can check in with UOB on the repricing and the refinancing option concurrently.

 

[red_december]

my home loan has lapsed 1 year so I can do a free conversion with DBS. I am currently on 3.38% fixed and was quoted 2.88% fixed for 2 years with no conversion (about 3 weeks back). Left about $550k loan left.

After this morning's news, do you think DBS may give me a better rate? or they won't lower their rates so fast.

Or do you think I should just wait till next year since fed is gonna keep lowering rates though 2026?

 

[aces89]

https://www.channelnewsasia.com/business/us-fed-interest-rate-cut-fomc-50-basis-points-4616746

anyone knows if bank has adjusted downwards ?

 

[Property_Broker]

my home loan has lapsed 1 year so I can do a free conversion with DBS. I am currently on 3.38% fixed and was quoted 2.88% fixed for 2 years with no conversion (about 3 weeks back). Left about $550k loan left.

After this morning's news, do you think DBS may give me a better rate? or they won't lower their rates so fast.

Or do you think I should just wait till next year since fed is gonna keep lowering rates though 2026?

Hi @red_december

When you say that your home loan has lapsed for one year, do you mean that you have been out of the lock-in period for one year already?

On the other hand, do you mean that you are under 3.38% fixed for 2 years with free conversion after 1 years?

If you are still within the lock in period, refinancing option is not advisable for you.

Hence you can get the refresh repricing from DBS.

If they don't give you competitive package, you can choose to remain on your current package.

 

[Property_Broker]

https://www.channelnewsasia.com/business/us-fed-interest-rate-cut-fomc-50-basis-points-4616746

anyone knows if bank has adjusted downwards ?

Most of the banks have revised their rate downward for the last 2 weeks.

Hence i feel that they have priced in these cut.

So far my OCBC banker have updated me on their latest rate today.

 

[Property_Broker]

Hi Forum folks.

Quick update..


The Federal Open Market Committee chose to lower its key overnight borrowing rate by a half percentage point, or 50 basis points, amid signs that inflation was moderating and the labor market was weakening.

It was the first interest rate cut since the early days of the Covid pandemic.

“The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance,” the Federal Reserve statement said.

https://www.cnbc.com/2024/09/18/fed-cuts-rates-september-2024-.html



I feel that most banks have priced in rate cut of 25bps to 50bps.

So I am expecting to see some banks revising their rate within 1-2 weeks.

I am expecting Fixed rate to drop further for the next 1-2 years.

It will be interesting to see how the SORA will react to the US rate cut. It is around 3.5% currently.


The difference between fixed rate and floating rate are still more than 1%. That why everyone is going for 1/2 years fixed rate.

There will be a point that the gap will go below 1%. Then floating rate will be attractive again.

 

[desboo]

Most of the banks have revised their rate downward for the last 2 weeks.

Hence i feel that they have priced in these cut.

So far my OCBC banker have updated me on their latest rate today.

What's the latest rate from OCBC?

 

[Property_Broker]

What's the latest rate from OCBC?

Hi @desboo

You can PM me. Cant share the deviated package here. Will sabo banker.

 

[red_december]

Hi @red_december

When you say that your home loan has lapsed for one year, do you mean that you have been out of the lock-in period for one year already?

On the other hand, do you mean that you are under 3.38% fixed for 2 years with free conversion after 1 years?

If you are still within the lock in period, refinancing option is not advisable for you.

Hence you can get the refresh repricing from DBS.

If they don't give you competitive package, you can choose to remain on your current package.

Sorry, yes, i am still within lock in period but i have 1 free conversion after.1 year and I can now do a conversion. they have offered me 2.88% fixed for 2 years with no conversion (this was 3 weeks back) but I am not sure if I should take that up or keep waiting while paying at 3.38%

 

[thezookeeper]

Hi experts, noting that interests rate might be going downwards, can I have your opinion whether bank stress test rate will also be lowered to allow borrowers to take more loan? Understand current stress test rate is around 4.7%?

 

[googoogaga]

Hi experts, noting that interests rate might be going downwards, can I have your opinion whether bank stress test rate will also be lowered to allow borrowers to take more loan? Understand current stress test rate is around 4.7%?

The stress rate is also a cooling measure. So unless government feels property market is facing a downtrend they won't lift it.
Government so far seems to be happy with the direction of the property market. Maybe they will reserve this action for next year end when rates fall even further.

 

[Property_Broker]

Sorry, yes, i am still within lock in period but i have 1 free conversion after.1 year and I can now do a conversion. they have offered me 2.88% fixed for 2 years with no conversion (this was 3 weeks back) but I am not sure if I should take that up or keep waiting while paying at 3.38%

For your qn.. It is really depending if you feel that the proposed repricing package is attractive for you anot. There is no hard and fast rule on this.


I will say that if the saving is more than 0.5%, it is quite significant (Simple calculation 500k x 0.5% = 2.5k interest saving)

If the saving is less than 0.5% then it might be not so attractive.

 

[Property_Broker]

Hi experts, noting that interests rate might be going downwards, can I have your opinion whether bank stress test rate will also be lowered to allow borrowers to take more loan? Understand current stress test rate is around 4.7%?

I feel the bank will revise its stress test for resale completed property soon.

Once SORA goes below 3%, I think the bank should start revising on it. (This is my personal view)

So far the stress test for the BUC private property is around 4.2%+

 

[Nofear40]

Does anyone knows what is the usual difference between SORA and US interest rate? I read that US interest rate is 5.25% to 5.5%. 3 month SORA is about 3.6%. So the difference is 1.65% approx?

 

[SBC]

Had signed a 2-year mortgage with Maybank last year at 3.55%. Lock-in period is 2-year, comes with free conversion after 12-month.

Offered rate is at lousy rate of 3.05% with another fresh 2-year lock in.
anyone in this situation ?

 

[dyzhwx]

My property will TOP soon and I am thinking to change the BUC package. @Property_Broker could you please pm me?

 

[Property_Broker]

Does anyone knows what is the usual difference between SORA and US interest rate? I read that US interest rate is 5.25% to 5.5%. 3 month SORA is about 3.6%. So the difference is 1.65% approx?

Hi @Nofear40

Nope. It does not work this way. Let me pull out my data for your reference.

31/12/2019

US fed fund rate 1.50% to 1.75%

3m SORA: 1.26%+-


31/12/2020

US fed fund rate 0% to 0.25%

3m SORA: 0.1283%+-



31/8/2023

US fed fund rate 5.25% to 5.5%

3m SORA: 3.69%+-