Car debt more risky than property debt?

[Jman888]

what is this guy talking about?

 

Isn

Edited July 25, 2013 by Jman888

[Stratovarius]

Car loan is flat rate with a maximum of 5 years. Housing loan can be up to 30 years and interest rate is not fixed. So.....?

[Mustank]

what is this guy talking about?

 

Isn

[Evillusion]

Cannot see meh? The writer must have bought a property at todays price. So must die die defend his purchase....the best way is to highlight other people vehicular purchase. Seen to many of it. Got one religious guy who was preaching about debt n its consequences suddenly says its ok to take a car loan as cars are a necessity for some. Found out later he had just bought a car!

[Ender]

Brother of the new GIC chairman Lim Boon Heng, he should know what he is talking about. :D

[Roh96]

He has been waiting till neck long for COE to come down lah.

[Hydrocarbon]

Cannot see meh? The writer must have bought a property at todays price. So must die die defend his purchase....the best way is to highlight other people vehicular purchase. Seen to many of it. Got one religious guy who was preaching about debt n its consequences suddenly says its ok to take a car loan as cars are a necessity for some. Found out later he had just bought a car!

 

Haha, some people will defend what they did at all costs, even though it might be a stupid decision.

 

Housing loan 10 - 30 years (Did one bank offer 50 years?), and floating interest rate. Usually above 250K at the start, coz most houses now 300K+

Car loan 5 years, flat rate, roughly from 60-80K+ at the start, coz most BnB cars about 150K?

 

Depends on which you see as more risky.

[Extremesour]

I believe the writer is confused.

It was recently reported by the AOB that car loans only make up less than 3 percent of their total non bank loans.

Hardly a number that could post a systemic risk to our financial system in a crisis.

Housing loans on the other hand is going to be a huge problem.

If Singapore start losing jobs then everyone can start panicking.

 

Bank association on car loan rates

 

Published on May 24, 2013

 

IT IS not clear why cooling measures that reduce the demand for car loans should increase their interest rates ("Cooling measures drive up car loan interest rates"; yesterday).

 

There are many factors that banks take into account to determine their lending rates, including their cost of funds, the demand for loans and the credit-worthiness of their borrowers.

 

A more relevant factor driving lending rates in the current context is that banks have been experiencing a slowdown in Singapore dollar fixed deposits in recent months.

 

The resulting increased competition for funding has pushed up the overall cost of funds for the banks, and this is being reflected in several lending rates, including car loans.

 

Any increase in auto loan interest rates would tend to gravitate to a common level through market forces.

 

In any case, car loans make up less than 3 per cent of total non-bank loans. It is a stretch to suggest that the cooling measures on car loans would drive up the interest rates on mortgage loans.

 

Ong-Ang Ai Boon (Mrs)

 

Director

 

The Association of Banks in Singapore

 

 

[Blackwizard]

The way the country is being run, buying anything major in SG is a risk

[Jman888]

so he is panicking and wanted the govt to stop the rate from increasing? and he can't service the loan if the rate increase

 

for car, just let finance coy possess the car and take bus lor, for house the whole family will sleep in the street

 

 

Cannot see meh? The writer must have bought a property at todays price. So must die die defend his purchase....the best way is to highlight other people vehicular purchase. Seen to many of it. Got one religious guy who was preaching about debt n its consequences suddenly says its ok to take a car loan as cars are a necessity for some. Found out later he had just bought a car!

 

[Jman888]

not to mentioned probably half the car sold are fully paid in cash

 

Haha, some people will defend what they did at all costs, even though it might be a stupid decision.

 

Housing loan 10 - 30 years (Did one bank offer 50 years?), and floating interest rate. Usually above 250K at the start, coz most houses now 300K+

Car loan 5 years, flat rate, roughly from 60-80K+ at the start, coz most BnB cars about 150K?

 

Depends on which you see as more risky.

 

[Roh96]

not to mentioned probably half the car sold are fully paid in cash

 

He haven't come to MCF before lah.

[Mustank]

I believe the writer is confused.

It was recently reported by the AOB that car loans only make up less than 3 percent of their total non bank loans.

Hardly a number that could post a systemic risk to our financial system in a crisis.

Housing loans on the other hand is going to be a huge problem.

If Singapore start losing jobs then everyone can start panicking.

 

Bank association on car loan rates

 

Published on May 24, 2013

 

IT IS not clear why cooling measures that reduce the demand for car loans should increase their interest rates ("Cooling measures drive up car loan interest rates"; yesterday).

 

There are many factors that banks take into account to determine their lending rates, including their cost of funds, the demand for loans and the credit-worthiness of their borrowers.

 

A more relevant factor driving lending rates in the current context is that banks have been experiencing a slowdown in Singapore dollar fixed deposits in recent months.

 

The resulting increased competition for funding has pushed up the overall cost of funds for the banks, and this is being reflected in several lending rates, including car loans.

 

Any increase in auto loan interest rates would tend to gravitate to a common level through market forces.

 

In any case, car loans make up less than 3 per cent of total non-bank loans. It is a stretch to suggest that the cooling measures on car loans would drive up the interest rates on mortgage loans.

 

Ong-Ang Ai Boon (Mrs)

 

Director

 

The Association of Banks in Singapore

 

wah!!! great post!!!

[Soya]

The way the country is being run, buying anything major in SG is a risk

 

 

that's true. all the recent reactive, ad-hoc, prata policies makes bolehland's policies look stable and transparent instead.

 

[Hydrocarbon]

so he is panicking and wanted the govt to stop the rate from increasing? and he can't service the loan if the rate increase

 

for car, just let finance coy possess the car and take bus lor, for house the whole family will sleep in the street

 

True.. Lose car = lose some face, lose home = family suffer..

 

not to mentioned probably half the car sold are fully paid in cash

 

Haha, only happens in MCF la.. All the rich bros around.. It's like being in a Bruneian palace or something..

[Hamburger]

write rubbish also get published. What is the editor thinking?????

[Wt_know]

writer wish coe crash to $10k so that can change car la

 

anyway, before rules changed ... 100% loan 10 years is really RISKY and OVER-LEVERAGING

but the good thing is interest rate is FIXED for 10 years

unless the owner got problem with other financial commitment especially properties and business

Edited July 25, 2013 by Wt_know

[Hydrocarbon]

writer wish coe crash to $10k so that can change car la

 

anyway, before rules changed ... 100% loan 10 years is really RISKY and OVER-LEVERAGING

but the good thing is interest rate is FIXED for 10 years

unless the owner got problem with other financial commitment especially properties and business

 

Even though rates were fixed for 10 years, doesn't mean job = fixed for 10 years and wouldn't have recession or retrenchment.