Mortgage interest rates

[Phuakangtao]

Hi I got these rates after refinancing my bungalow is it good?

 

Floating 2 years lock in

1st year 1.18%

2nd year 1.38%

3rd year 1.78%

[Acemundo]

Hi I got these rates after refinancing my bungalow is it good?

 

Floating 2 years lock in

1st year 1.18%

2nd year 1.38%

3rd year 1.78%

these rates look very familiar. let me guess. ocbc package?

 

i compared many banks, thrown out all the rest and left 2 packages to consider. and ocbc plus uob were the first to be thrown out.

Edited May 15, 2012 by Acemundo

[Phuakangtao]

Thanks

[Phuakangtao]

Acherli refinancing also got admin charges etc troublesome sia

[Acemundo]

Acherli refinancing also got admin charges etc troublesome sia

 

best is to do with your existing bank. that is called conversion and doesn't need to go through lawyer. some banks charge $500 conversion fee some don't. if you saved the legal fee is worth it.

 

and the trick is to go to your existing bank, citing you are no longer contractualy bounded, for them to quote you a much improved rate. they do entertain such thigns

 

[Phuakangtao]

They don't waive lawyer fee right usually subsidize how much generally need to pay for refinance?

[Neost]

Hi I got these rates after refinancing my bungalow is it good?

 

Floating 2 years lock in

1st year 1.18%

2nd year 1.38%

3rd year 1.78%

 

alamak, stay in bungalow should not worry about interest rate lah.... Just like driving luxury cars... I don't they bother petrol is S$2 per litre or $20 per litre

[Acemundo]

They don't waive lawyer fee right usually subsidize how much generally need to pay for refinance?

 

aiyoh, you seem to know very little

 

if you use existing bank, no lawyer required so no legal fee paid also.

 

if you swop to another bank, lawyer required and most banks do give a legal subsidy of between S$2500 - S$3500. so if legal fee above, you pay the difference. even though the banks pay the legal subsidy stated, most times they do have a clause to say they can claw it back if you redeem your loan with them within 3 years.

 

so the best choice is

 

1) convert your loan to better rate with existing bank; failing which

2) jump to another bank with high legal subsidy so you no need pay legal now; and

3) to stay with this bank for at least 3 years so your legal subsidy is not clawed back

[Phuakangtao]

aiyoh, you seem to know very little

 

if you use existing bank, no lawyer required so no legal fee paid also.

 

if you swop to another bank, lawyer required and most banks do give a legal subsidy of between S$2500 - S$3500. so if legal fee above, you pay the difference. even though the banks pay the legal subsidy stated, most times they do have a clause to say they can claw it back if you redeem your loan with them within 3 years.

 

so the best choice is

 

1) convert your loan to better rate with existing bank; failing which

2) jump to another bank with high legal subsidy so you no need pay legal now; and

3) to stay with this bank for at least 3 years so your legal subsidy is not clawed back

 

Thanks. I m not those finance geeky sort of guy lah.. Just pay installment as usual ... fret too much will die of stress mah.. So chin chin Chye Chye ... All banks should be about same otherwise bank go pock-kai if not competitive.

[Dice]

floating rate has its pro and con, pro is that this is better than fixed but bad is that if sibor goes up rate goes up too with 30 days notice? unless u are pretty certain rates will remain stable and not go up too much then floating is good. but the lock-in is 3 years....

 

i wasn't sure so i refinance with a 1 year deal at 1.48% fixed, my current rate is 1.68% some savings

 

in any case you already signed up and no looking back liao unless you wanna pay penalty

[Acemundo]

Thanks. I m not those finance geeky sort of guy lah.. Just pay installment as usual ... fret too much will die of stress mah.. So chin chin Chye Chye ... All banks should be about same otherwise bank go pock-kai if not competitive.

 

 

haha cannot say people like me is finance geek la.....if not why will you consider to refinance now? because you realise you paying too much and the bank giving you short end of the stick.

 

i have seen many cases of apathetic borrower like you being short changed by the banks big time. if you are chin chye the bank will be more the happier. and for your information banks are only competitive to the borrowers that does their homework. for those that doesn't, they will quietly become uncompetitive and take advantage.

[Steptronic]

Generally, for bungalows and high end properties, you can negotiate and get better rates with C**I, ST* Ch**. Try to get quotations from them and decide accordingly!

[Steptronic]

alamak, stay in bungalow should not worry about interest rate lah.... Just like driving luxury cars... I don't they bother petrol is S$2 per litre or $20 per litre

A small percentage would make a huge difference in case of bungalows.

[TheRationalVoice]

Whether it is good or not I would think is something which involves your personal situation. The numbers alone would be a sophist comparison.

.

Anyhow, numbers wise, most banks' rates are not very different from each other. There is not much savings to be had for a package that lasts a couple of years.

 

The bigger saving is from your old rate to your existing one

Edited May 15, 2012 by TheRationalVoice

[TheRationalVoice]

A small percentage would make a huge difference in case of bungalows.

 

Even if the quantum involved is relatively small?

Edited May 15, 2012 by TheRationalVoice

[RealSabbie]

Your bungalow on which level?

[Phuakangtao]

Your bungalow on which level?

 

Which part of bungalow do you not understand? :) you want to come back as which one?

Therealsabbie

Real-sabbie

Sabbiereturns

 

(pick one)

[Steptronic]

Even if the quantum involved is relatively small?

Oops, I assumed that a bungalow owner with HDB quantum of loan would not be starting this topic?