SIBOR rates and home loan repricing

[Angcheek]

Oh really?

 

Thats wonderful.

I sincerely hope that it doubles as soon as possible

 

Good weekend

Hahha so evil ...have a good weekend

[Showster]

SIBOR went up quite abit this month

Economy boom everything can only trend up.

 

Stellar news of GDP and growth and retails reported in every corner. Construction boom right ahead due to various Govt and enbloc projects.

 

Huge boost ahead.

 

Taxes also up.

Edited January 13, 2018 by Showster

[Throttle2]

Hahha so evil ...have a good weekend

Bro, there is absolutely nothing evil about hoping for higher rates.

We can get more interest for our fixed depos leh.

[Wildfaye29]

Finally found a topic I can tag on.

 

Currently on OCBC for my home loan. Reprice is due. I intend to stay on OCBC convenience and not re-mortgage to another bank.

 

They have offered me the following packages:

 

1) Fixed (2 year lock)

1.85% (OHR Fixed + 0.85%)
1.85% (OHR Fixed + 0.85%)
1.90% (OHR + 0.90%)
2.00% (OHR + 1.00%)

2) Floating (2 year lock)

1.65% (OHR + 0.65%)
1.65% (OHR + 0.65%)
1.70% (OHR + 0.70%)
1.80% (OHR + 0.80%)

 

According to web sources, the OHR is a 12year moving average of 1mth n 3 mth Sibor. Recently sibor has moved up and many mortgage gurus and mortgage brokers say that even if sibor goes up steady n gradually in the next 2-3years, the 12year moving OHR will unlikely to move.

 

For package 1, OCBC fixed the OHR, meaning OHR will not move at all

 

For package 2, OCBC does not fix OHR, so there may be a possibility they play out the end user and move it.

 

In both package, OCBC in house mortgage banker say the spread (the other component of the package) will not be amended thoughout the contract.

 

Asking all sifus here, which package would you all take if?

 

Thanks in advance!

[Kusje]

Finally found a topic I can tag on.

 

Currently on OCBC for my home loan. Reprice is due. I intend to stay on OCBC convenience and not re-mortgage to another bank.

 

They have offered me the following packages:

 

1) Fixed (2 year lock)

 

1.85% (OHR Fixed + 0.85%)

1.85% (OHR Fixed + 0.85%)

1.90% (OHR + 0.90%)

2.00% (OHR + 1.00%)

 

2) Floating (2 year lock)

 

1.65% (OHR + 0.65%)

1.65% (OHR + 0.65%)

1.70% (OHR + 0.70%)

1.80% (OHR + 0.80%)

 

According to web sources, the OHR is a 12year moving average of 1mth n 3 mth Sibor. Recently sibor has moved up and many mortgage gurus and mortgage brokers say that even if sibor goes up steady n gradually in the next 2-3years, the 12year moving OHR will unlikely to move.

 

For package 1, OCBC fixed the OHR, meaning OHR will not move at all

 

For package 2, OCBC does not fix OHR, so there may be a possibility they play out the end user and move it.

 

In both package, OCBC in house mortgage banker say the spread (the other component of the package) will not be amended thoughout the contract.

 

Asking all sifus here, which package would you all take if?

 

Thanks in advance!

 

They can't unilaterally move it unless there is some collusion between the banks to fix the SIBOR. And even then, the impact on you will be limited (less than 10% since you said it is a 12 year moving average). You should check what the SIBOR was 12 and 11 years ago and compare with what you think the rate will be 2 years into the future since those are the 2 years that will change in a moving average calculation.

 

Disclosure: I have no idea what OHR actually is. Just using your definition of it.

[Showster]

I am intending to reprice one of my OCBC mortgage as well. Already run for two years and currently at 1.68% (or 1.78%) for another year. 

 

May reprice to the OHR floating in a couple of months' time if everything is in place.

 

 

Finally found a topic I can tag on.

 

Currently on OCBC for my home loan. Reprice is due. I intend to stay on OCBC convenience and not re-mortgage to another bank.

 

They have offered me the following packages:

 

1) Fixed (2 year lock)

1.85% (OHR Fixed + 0.85%)
1.85% (OHR Fixed + 0.85%)
1.90% (OHR + 0.90%)
2.00% (OHR + 1.00%)

2) Floating (2 year lock)

1.65% (OHR + 0.65%)
1.65% (OHR + 0.65%)
1.70% (OHR + 0.70%)
1.80% (OHR + 0.80%)

 

According to web sources, the OHR is a 12year moving average of 1mth n 3 mth Sibor. Recently sibor has moved up and many mortgage gurus and mortgage brokers say that even if sibor goes up steady n gradually in the next 2-3years, the 12year moving OHR will unlikely to move.

 

For package 1, OCBC fixed the OHR, meaning OHR will not move at all

 

For package 2, OCBC does not fix OHR, so there may be a possibility they play out the end user and move it.

 

In both package, OCBC in house mortgage banker say the spread (the other component of the package) will not be amended thoughout the contract.

 

Asking all sifus here, which package would you all take if?

 

Thanks in advance!

 

[Wildfaye29]

They can't unilaterally move it unless there is some collusion between the banks to fix the SIBOR. And even then, the impact on you will be limited (less than 10% since you said it is a 12 year moving average). You should check what the SIBOR was 12 and 11 years ago and compare with what you think the rate will be 2 years into the future since those are the 2 years that will change in a moving average calculation.

 

Disclosure: I have no idea what OHR actually is. Just using your definition of it.

Thank for your inputs.

 

My understanding is that OHR is internally determined, like board rates. They have the right to change their definition and how they computr their moving average or over how many years.

I am intending to reprice one of my OCBC mortgage as well. Already run for two years and currently at 1.68% (or 1.78%) for another year.

 

May reprice to the OHR floating in a couple of months' time if everything is in place.

You got offered the same packages as me?

 

What's your take on OCBC playing the consumer out and revise the floating OHR and the spread during the lock in period?

 

I was played out on their floating board rates 1 year into the current loan and now paying 2.38%. quite pissed off.

[Enye]

wah so good...

 

peasants like me pay 2.6% leh

 

 

[Kusje]

Thank for your inputs.

 

My understanding is that OHR is internally determined, like board rates. They have the right to change their definition and how they computr their moving average or over how many years.

You got offered the same packages as me?

 

 

 

Didn't you also post earlier that OHR is the 12 year moving average of (1M+3M)/2 SIBOR? Can suka suka change also?

[Showster]

They are not likely to change the spread once confirmed.

 

Even if they change the computation, it may be like shortened to 6 year or 10 year Sibor rates. 

 

Hard to say what banks will do if Sibor goes up to say 3% in a couple of years. Have to take the bet accordingly.

 

But supposing Sibor goes down way lower, you will still stay at 1%+ spread, which means above 1.7%. Those who float with the 1month or 3month Sibor will benefit more in that scenario.

 

 

 

Thank for your inputs.

My understanding is that OHR is internally determined, like board rates. They have the right to change their definition and how they computr their moving average or over how many years.
You got offered the same packages as me?

What's your take on OCBC playing the consumer out and revise the floating OHR and the spread during the lock in period?

I was played out on their floating board rates 1 year into the current loan and now paying 2.38%. quite pissed off.

 

[Angcheek]

Better to avoid those internal board rate ...

They not happy +1% ... happy +5% suka suka

[Throttle2]

Muayhahahaha

 

May not, should not, think not.

 

Well done

[Wildfaye29]

Didn't you also post earlier that OHR is the 12 year moving average of (1M+3M)/2 SIBOR? Can suka suka change also?

Like showster mentioned in previous post, we are at mercy of the bank. If they chg pattern we LL.

They are not likely to change the spread once confirmed.

 

Even if they change the computation, it may be like shortened to 6 year or 10 year Sibor rates.

 

Hard to say what banks will do if Sibor goes up to say 3% in a couple of years. Have to take the bet accordingly.

 

But supposing Sibor goes down way lower, you will still stay at 1%+ spread, which means above 1.7%. Those who float with the 1month or 3month Sibor will benefit more in that scenario.

Spread if dun chg I happy.

 

OHR if they chg I will be upset. Like u said, they may chg how to compute OHR.

 

Us Fed will raise rates. Sibor expected to rise. Is how much OCBC wanna earn and tekan the borrower by changing how OHR is computed or adjust OHR and/or spread of the not fixed package in the 2 year lock in period only.

 

Will u go the non fixed OHR package?

Edited January 18, 2018 by Wildfaye29

[Showster]

Like showster mentioned in previous post, we are at mercy of the bank. If they chg pattern we LL.

Spread if dun chg I happy.

 

OHR if they chg I will be upset. Like u said, they may chg how to compute OHR.

 

Us Fed will raise rates. Sibor expected to rise. Is how much OCBC wanna earn and tekan the borrower by changing how OHR is computed or adjust OHR and/or spread of the not fixed package in the 2 year lock in period only.

 

Will u go the non fixed OHR package?

More important is whether you believe interest rates for private property at the broad level, can it exceed 2.6%?

 

If you think it can then go fixed. If you think it cannot, then float.

 

I personally have trouble believing that with the USD depreciation. So I can float and jump boat if they raise anyhow. Many banks want to earn this money.

[Sdf4786k]

MAS does check for fixing and hence this was returned.

 

SINGAPORE — The Monetary Authority of Singapore (MAS) has returned about S$10 billion in temporary fines levied on 19 banks, including the three local lenders it disciplined last year as part of a sweeping global probe into the alleged manipulation of financial benchmarks and foreign exchange rates.

The regulator said the lenders, which include DBS, United Overseas Bank (UOB), Oversea-Chinese Banking Corp (OCBC), UBS, Bank of America Merrill Lynch, Royal Bank of Scotland and Deutsche Bank, had done enough to help prevent a repeat of past failings.

In response to a Financial Times query on whether the banks had received their money back now that the 12-month period for the temporary fines had passed, the central bank said: “The MAS has returned the additional statutory reserves to the 19 banks.”

It added: “These banks have completed the remedial actions to strengthen the governance, internal controls and surveillance systems for their benchmark submissions and trading operations.”

[LPPL]

Oh really?

 

Thats wonderful.

I sincerely hope that it doubles as soon as possible

 

Good weekend

Double? Why not triple? Muahahaha!

 

Too bad banks don't earn a cent from me.

[Showster]

Double? Why not triple? Muahahaha!

 

Too bad banks don't earn a cent from me.

If one can only think of win win within one’s circle, the amount of win that you will encounter will be severely limited.

 

Think win-win-win-win. Only then will all doors open.

[LPPL]

If one can only think of win win within oneâs circle, the amount of win that you will encounter will be severely limited.

 

Think win-win-win-win. Only then will all doors open.

I am thinking win win win win for the developers...

 

Developers huat ah!