Question for experts about housing loan package

[Chunchunmaru]

So I got a letter from UOB today citing their discontinuation of SIBOR-based property loans, and they've advised me to switch to one of their 3 recommended options by April 2024 or it will default to option 1 (which I assume makes them the most money).

But here's the kicker - I haven't even exercised the loan yet. My SIBOR-based loan was signed in mid-2021 but I haven't taken a single cent from them.

I am planning to storm the gates of UOB tomorrow and demand that they void the contract entirely because this wasn't what I agreed on.

So the question I have is, do I have a case, or am I wasting my time and setting myself up for egg in my face? TIA

 

[Tp101s]

What do you mean by “you haven’t even exercise the loan yet..”?

 

[yoongf]

Sibor is being discontinued by MAS. Then how to base yr interest rate?

https://www.mas.gov.sg/regulation/interest-rate-benchmarks-transition

 

[reddevil0728]

So I got a letter from UOB today citing their discontinuation of SIBOR-based property loans, and they've advised me to switch to one of their 3 recommended options by April 2024 or it will default to option 1 (which I assume makes them the most money).

But here's the kicker - I haven't even exercised the loan yet. My SIBOR-based loan was signed in mid-2021 but I haven't taken a single cent from them.

I am planning to storm the gates of UOB tomorrow and demand that they void the contract entirely because this wasn't what I agreed on.

So the question I have is, do I have a case, or am I wasting my time and setting myself up for egg in my face? TIA

before you storm anything. suggest you read T&Cs.

Sibor is being discontinued by MAS. Then how to base yr interest rate?

https://www.mas.gov.sg/regulation/interest-rate-benchmarks-transition

SORA?

 

[Chunchunmaru]

What do you mean by “you haven’t even exercise the loan yet..”?

Signed a contract to take up the loan - this is for a project that's still under construction, so it's progressive payments.

So far I have been using only cash and CPF to make the payments when they call for them - haven't had to touch the loan yet. So the loan has not been "exercised", or used.

 

[Chunchunmaru]

Sibor is being discontinued by MAS. Then how to base yr interest rate?

https://www.mas.gov.sg/regulation/interest-rate-benchmarks-transition

Exactly. Since there's no SIBOR, they've offered 3 alternative options for when SIBOR phases out in mid-2024.

I haven't looked into the details of these 3 options, but what I do know is this was not what was agreed upon.

 

[reddevil0728]

Exactly. Since there's no SIBOR, they've offered 3 alternative options for when SIBOR phases out in mid-2024.

I haven't looked into the details of these 3 options, but what I do know is this was not what was agreed upon.

They have seen this coming for very long, it's not like something unexpected. They not so stupid if not ppl line up to sue them already

 

[yiron]

Signed a contract to take up the loan - this is for a project that's still under construction, so it's progressive payments.

So far I have been using only cash and CPF to make the payments when they call for them - haven't had to touch the loan yet. So the loan has not been "exercised", or used.

The loan hasn't been drawdown, but the bank has already committed the facility to u, hence the loan contract is already in effect.
In this case, it's an industrywide benchmark change (discontinuation of SIBOR hence switch to SORA) so don't think u have a case.

 

[DevilPlate]

Exactly. Since there's no SIBOR, they've offered 3 alternative options for when SIBOR phases out in mid-2024.

I haven't looked into the details of these 3 options, but what I do know is this was not what was agreed upon.

Just pick the best option offered to u. Upon TOP bey song just refinance to another bank once out of lock in period whahaha

 

[sglandscape]

So I got a letter from UOB today citing their discontinuation of SIBOR-based property loans, and they've advised me to switch to one of their 3 recommended options by April 2024 or it will default to option 1 (which I assume makes them the most money).

But here's the kicker - I haven't even exercised the loan yet. My SIBOR-based loan was signed in mid-2021 but I haven't taken a single cent from them.

I am planning to storm the gates of UOB tomorrow and demand that they void the contract entirely because this wasn't what I agreed on.

So the question I have is, do I have a case, or am I wasting my time and setting myself up for egg in my face? TIA

The default option is not the option that makes the bank the most money, but it was set by Association of Banks in Singapore (ABS) what the transition amount should be.

If they allow you, consider their 2Y fixed package if it fits your appetite for amount of interest you're willing to pay (around 3%). The SORA packages are likely around 4% now (same with the SIBOR ones)

 

[0218crawford]

So I got a letter from UOB today citing their discontinuation of SIBOR-based property loans, and they've advised me to switch to one of their 3 recommended options by April 2024 or it will default to option 1 (which I assume makes them the most money).

But here's the kicker - I haven't even exercised the loan yet. My SIBOR-based loan was signed in mid-2021 but I haven't taken a single cent from them.

I am planning to storm the gates of UOB tomorrow and demand that they void the contract entirely because this wasn't what I agreed on.

So the question I have is, do I have a case, or am I wasting my time and setting myself up for egg in my face? TIA

don't take it personally. i think its their standard notice to all outstanding loans - disbursed or otherwise.

i still owe them about $100 ...i also receive.

 

[iceblendedchoc]

The default option is not the option that makes the bank the most money, but it was set by Association of Banks in Singapore (ABS) what the transition amount should be.

If they allow you, consider their 2Y fixed package if it fits your appetite for amount of interest you're willing to pay (around 3%). The SORA packages are likely around 4% now (same with the SIBOR ones)

his house is most like BUC and won't qualify for fixed package. He can only llst take the sora

 

[sglandscape]

his house is most like BUC and won't qualify for fixed package. He can only llst take the sora

would be no worse off or better off in this case

 

[V_for_Vanilla]

Exactly. Since there's no SIBOR, they've offered 3 alternative options for when SIBOR phases out in mid-2024.

I haven't looked into the details of these 3 options, but what I do know is this was not what was agreed upon.

Or you can decline their offer entirely. Go with another bank but it will still be on SORA.