Home Mortgage Option

[Vincent_G]

Hi All,
I just purchase private hse (new condo, incomplete), and would like to seek any advice here for some option below. All got cancellation 0.75%.

Bank A:
Year 1-30: 0.95% SIBOR+SOR Combo
No Locked In
1 time free conversion, anytime

Bank B:
Year 1: 0.70% + 3M Sibor
Year 2: 0.80% + 3M Sibor
Thereafter: 1.25% + 3M Sibor
No Locked In
1 time free conversion after 2 years

Bank C:
Year 1-3: 0.85% + 3M SIBOR
Thereafter: 1.25% + 3M SIBOR
No Locked In
Free conversion within 6 months from TOP

Bank D:Variable Rate
Year 1: 1.18% (VR - 3.32%)
Year 2: 1.48% (VR - 3.02%)
Year 3: 1.78% (VR - 2.72%)
Year 4: 2.65% (VR - 1.85%)
TA: 3.75% (VR - 0.75%)
VR = 4.5% stable for past 5 years
Free change of package anytime

Which package do you think might be the best offer or is there other better than this?

 

[Kenny23]

Is Bank A on a 3 month Sibor/Sor? If it is then go for Bank A..1 thing to note is that SOR is more "responsive" than SIBOR

 

[Vincent_G]

They stated there it's a "combo SIBOR and SOR", which I believe something like 50%-50% combination.

 

[Kenny23]

I know what you mean..but izzit based on the 3 months rate?

 

[Vincent_G]

Yeah, 3 months rate..

 

[Vincent_G]

I have one more option

Bank E:
Year 1-3: 0.80% + 3M SIBOR
Thereafter: 1.25% + 3M SIBOR
No Locked In
Free conversion within 6 months from TOP
No need to buy fire insurance

How does this Bank E compare to Bank A?

 

[joanie_dan]

bank Anz seems to give e best thereafter rate,, can forget about maybank, DBS, Uob, and Ocbc imo

 

[Carnage]

Avoid using 3M sibor. It's usually higher than 1M.

Seems like spreads are increasing slowly despite all the cooling measures.

Sibor fell this year though.

 

[joanie_dan]

Most banks are offering 3m now instead of 1m except for citi SCB etc

 

[Fifa2006]

Bank E will be good for you. Spread is quite important. When 1/3month go up, those with lower spread will benefit more

 

[joanie_dan]

Bank E will be good for you. Spread is quite important. When 1/3month go up, those with lower spread will benefit more

I beg to differ, this is a buc, Initial disbursements are progressive and not much. From year4, when either TOP or CSC, bulk of e loan is disbursed. Bank E spread is 3msibor + 1.25% = 1.625% based on current 3mSibor at 0.375%. Bank A year 4 onwards is (3m sibor + 3m sor)/2 + 0.95% = 1.2675%. 3mSor is about 0.26%. There is already a discount of 0.3575%.

 

[Vincent_G]

One more option:

Bank F:
Y1: 0.85% + 1M Sibor
Y2: 0.85% + 1M Sibor
Y3: 0.90% + 1M Sibor
TA: 1.25% + 1M Sibor

This option will lose out to Bank E, but is it really that different to use 1M Sibor? The banker from Bank F keeps stressing on the cost saving of using 1M Sibor..

 

[joanie_dan]

I think you should go do some homework then, like find the past 10years 1m vs 3m Sibor chart and 3m sibor vs 3m sor chart and then make a decision from there. Instead of coming here every other day with a different set of bank rates which the comparison basis is already clearly laid to you. If u want to save some money, u should be doing research yourself instead of listening to what people say, that includes me as well.

 

[Carnage]

One more option:

Bank F:
Y1: 0.85% + 1M Sibor
Y2: 0.85% + 1M Sibor
Y3: 0.90% + 1M Sibor
TA: 1.25% + 1M Sibor

This option will lose out to Bank E, but is it really that different to use 1M Sibor? The banker from Bank F keeps stressing on the cost saving of using 1M Sibor..

3M is 0.06% higher than 1M.

1M flucuates more but is rarely higher than 3M.

 

[henrylbh]

My financier offered 0.85% + 3SOR throughout for BUC. If loan above 500k, it's 0.75%.

 

[Vincent_G]

henrylbh, can share more information on which bank?