The loans thread!

[Chucky2007]

Good info...but will they change so often?

bank adjusted their margin for SIBOR pegged package from 0.65-0.75%+SIBOR in Q1 2012 & before to now 0.9-1.1%+SIBOR since Q3 2012.

 

DBS fixed rate was 1.98-2.28% for 3 years, in 2010-2011 Q4.

In 2012 it was 1.5% fixed 5 years, then package change to 1.68% 5 years in Dec 2012.

[RadX]

Ok man thks

[Roh96]

yes...there is cancellaton fee and some admin fee.

 

Thanks for the info.

[Brendon1980]

I do understand that loans are generally base on interest reducing principle and housing loans basically for the first few years, are generally deducting a large proportion for interest while minimum is used to pay for the principle amount (of course loan tenure matters), if so after three years, when you decide to refinance for a lower interest or so, you will find that perhaps a tip of the iceberg of the principle sum is only paid off. Correct me if I am wrong, upon refinancing, the count for the repayment is reset to zero meaning the cycle starts again.

So basically if one keeps refinancing after a couple of years will it not have impact on the principle amount?

I refer to housing loans actually.

Edited March 7, 2013 by Brendon1980

[Dfx16]

For car loan

 

Spoken to a friend who's in 2nd hand car trade

He's saying now maximum can take 80% loan from finance company but that would need a guarantor

 

Btw who are the non MAS regulated finance company?

Edited March 7, 2013 by Dfx16

[RadX]

For car loan

 

Spoken to a friend who's in 2nd hand car trade

He's saying now maximum can take 80% loan from finance company but that would need a guarantor

 

Btw who are the non MAS regulated finance company?

 

 

Tokyo leasing, speed credit fr wat i read

 

bmw n merc also

[Kreampuff]

I do understand that loans are generally base on interest reducing principle and housing loans basically for the first few years, are generally deducting a large proportion for interest while minimum is used to pay for the principle amount (of course loan tenure matters), if so after three years, when you decide to refinance for a lower interest or so, you will find that perhaps a tip of the iceberg of the principle sum is only paid off. Correct me if I am wrong, upon refinancing, the count for the repayment is reset to zero meaning the cycle starts again.

So basically if one keeps refinancing after a couple of years will it not have impact on the principle amount?

I refer to housing loans actually.

 

There may be some impact on your profile, but if you are assuming largely similar parameters, the principal should keep reducing at a similar rate, even if you do frequent refinancings. In fact, if you refinance for a lower interest rate, the proportion of your monthly instalments which represents principal repayments should increase faster as well. The penalties and switching costs (not to mention hassle) will lessen the incentive of refinancing for a marginally lower interest rate but this will depend on a case by case basis.

[Ticklish8]

Better do it quickly. Going to tighten soon

 

THE Government is reviewing the Hire Purchase Act in a move to plug loopholes in the car loan curbs announced last week.

The Ministry of Trade and Industry (MTI), which administers the 44-year-old Act, confirmed that a review was under way when approached by The Straits Times yesterday.

The Monetary Authority of Singapore

[Altivo]

My lock in period with DBS will end in June 2014. Say if I wanna refiance it, the legal fees have to be paid via cash or CPF?

[CH_CO]

Thougt i start this on loans now and to monitor as well rates for vehicles and perhaps houses.

 

One thing that got me thinking is that loans form a core business with the legal ah longs...er banks.

 

One post i rem jamesc posted is that one ahs and shd be considerdd prett high on the list to be given a loan. Criteria? Choco can u elaborate? how does the bank deem if one is worthy or not?

 

Lets keep tis academic and focussed so ppl can discern n think of their own ability or liability before taking a loan.

 

 

Wah look me so up. For cars, it is pretty messy now so i decline to comment. Anyway different banks different policy so hard to elaborate basis. But since this is not only limited to cars i can elaborate abit on the guidelines. Typical things to consider wealth(collateral) , Age , income , debt , credibility , face value.

 

 

How indicative is the exact loan amount you can qualify for will also be dependent on the loan tenure, income and existing loans. The monthly installments of your mortgage or property loan should generally not be more than 33% of your monthly income. Singaporeans and PRs can normally borrow up to 80% of the purchase price or value of the property, whichever is lower, provided that the borrower has only 1 housing loan or property loan. For the 2nd housing loan and 3rd housing loan onwards, the maximum loan-to-value drops to 50% and 40% respectively.

 

Many of a time , some lenders may lend up to 50% of your monthly income on a case-by-case basis. If that bugger is a multi millionaire developer probably more.

 

I am pretty sure what i can provide is limited but i hope it will be useful. Anyway this is an MAS circular which i think can be made known to public.

 

 

http://www.mas.gov.sg/~/media/resource/new.../Annex%20II.pdf

 

http://www.mas.gov.sg/News-and-Publication...icle-Loans.aspx

Edited March 7, 2013 by CH_CO

[RadX]

Thanks bro.....stay here...sur got qn to reply

[CH_CO]

To those who do not believe in loans and only pay cash, kindly refrain from from posting lest you get tempted to only talk abt te disbenefits of loans. I will not hesitate to issue cards regardless!

 

Boss i also don't believe in loans and believe in cash leh. Then i reframe from posting as well . Or not tio yellow card.

[RadX]

Boss i also don't believe in loans and believe in cash leh. Then i reframe from posting as well . Or not tio yellow card.

 

 

Lol....well, but you do accept that some loans are good.....

 

I refrain from loans too....dun get me wrong. Save for the house, there is nothing for me to loan now

[Chucky2007]

If i take 5 yrs tenure, will there be penalty if full settle on 3rd year?

Shouldn't be if you take a 3 years or lesser lock in package

[Chucky2007]

My lock in period with DBS will end in June 2014. Say if I wanna refiance it, the legal fees have to be paid via cash or CPF?

Can be either cash or cpf. For cpf usage, check with cpf or lawyer on cpf rules on minimum sum.

[Yeshe]

My lock in period with DBS will end in June 2014. Say if I wanna refiance it, the legal fees have to be paid via cash or CPF?

 

refinance normally now need pay legal fees, the bank will absorb but u will have another lockin period

[Hamburger]

For car loan

 

Spoken to a friend who's in 2nd hand car trade

He's saying now maximum can take 80% loan from finance company but that would need a guarantor

 

Btw who are the non MAS regulated finance company?

question is....

 

price will drop, why still plunge in and die die must buy??

[CH_CO]

Just a comment , i believe a HBD loan if one qualifies for it, is one of the best loan deals there is out there , reason being your effective loan is only 0.1% , though i would recommend people to early repay any loan but if one has enough CPF and don't know what to do with it , the best is to take a hdb loan. Banks no such thing as a deferred 3 year payment but hdb allows case by case.

 

Reason HBD loan 2.6% , special account 4% (variable) , even if you put in normal account it is 2.5% .Of course one would say whether if one can get their cpf money or not , to me if money is stuck inside it is stuck there, don't bother. Just bother about your property. It would appreciate in time and the balance can be taken out. On top of that , over time , you can probably "benefit" from it via rental and stuff.

 

Of course terms and conditions apply.

Edited March 7, 2013 by CH_CO