Refinancing a HDB loan

[Unbiasedsg_]

One month SIBOR plus 0.7% is pretty good, actually, but you might be able to do slightly better....

First of all, you still need to check whether you're within any prepayment penalty period.

Assuming that's not a problem, I see a couple choices in a quick search, in no particular order:

1. UOB offers a straight up 1 Month SIBOR plus 0.4% floating mortgage, and with a refinancing legal fee incentive. This would drop your interest rate down to about 2.04% (your estimate -- but actually the one month SIBOR looks higher today, so 2.16% is what I'm seeing if calculated today). You could also lengthen the term at the same time, but CAUTION: there is no fixed interest rate period with this particular loan. As the one month SIBOR moves up and/or down, your mortgage will adjust right along with it, starting right away.

2. OCBC itself looks like it offers a 3 Month SIBOR mortgage with a fixed interest rate for 2 years and floating thereafter. Year 1: 3M SIBOR+0.35%, Year 2: 3M SIBOR+0.45%, Year 3: 3M SIBOR+0.5%, Year 4 and after: 3M SIBOR+0.6%. This rate is a little lower for a couple years and about the same as what you've got thereafter, and you should also be able to lengthen the loan term back up to 25 years if you wish. Please note that the 3M SIBOR is consistently a little higher than the 1M SIBOR.

Anybody see any other deals out there?

There are non SIBOR mortgages, but I'm not a fan since the bank itself determines and adjusts the rate, not something more closely linked to market-wide interest rates.

In all of these cases you're going to be in a world of hurt if you haven't prepared for the very real possibility that market interest rates will be higher again after a couple more years of rate lock. If a $167/month higher mortgage payment is a crisis, THAT'S the problem. Get past the problem this time through some combination of refinancing at a slightly lower rate (the best you can do) and/or mortgage term lengthening, but within the couple years of reprieve you need to get to a better, stronger place financially so that this mortgage is genuinely sustainable. A 3% or 4% mortgage interest rate is not crazy; it could happen. Be well prepared for it at least next time.

Yes, Citibank is doing a promo on their SIBOR package.

1st Year
1M SIBOR + 0.30% (< $500,000)
1M SIBOR + 0.20% (>= $500,000)

2nd Year
1M SIBOR + 0.35% (< $500,000)
1M SIBOR + 0.25% (>= $500,000)

3rd Year
1M SIBOR + 0.45% (< $500,000)
1M SIBOR + 0.40% (>= $500,000)

Post Promotional

1M SIBOR + 0.65% (< $500,000)
1M SIBOR + 0.60% (>= $500,000)

 

[bubbasour]

Look for Fixed deposit pegged loans, they are usually FD+0.8% p.a. As of now, I am still seeing 1.9% being offered.

hi ervino, thx.. can you pls share what bank have loan offer 1.9%? I can consider them for my refinancing maybe.

 

[bubbasour]

You could try DBS and UOB FD pegged loans.
Think DBS still has 18FHR + 0.8% = 1.9% available.
DBS also has another 9FHR but not sure what is the spread.

hi ervino, when I check here https://www.dbs.com.sg/personal/loans/homeloans/refinance-hdb-loan

it shows: FHR8 + 1.45% p.a.
using the reference from here: https://www.dbs.com.sg/personal/rates-online/singapore-dollar-fixed-deposits.page

I get, 0.675+1.45% = 2.125%. Did you see anywhere with total of 1.9% on your end? thx!

 

[bubbasour]

Yes, Citibank is doing a promo on their SIBOR package.

1st Year
1M SIBOR + 0.30% (< $500,000)
1M SIBOR + 0.20% (>= $500,000)

hi unbiasedsg, do you know whether this promo is valid for refinancing a hdb loan? thank you for your help.