Banker pls advise - housing loan

[Lala81]

Hi guys,

 

Managed to get a BTO. 1st time home owner.

I'm not eligible for HDB loan so i'm getting a bank loan. Need to submit a letter of Offer by Xmas.

 

For the folks using bank loan here, what are the pros & cons of variable rates vs Fixed if u do refinance/repricing regularly every 2-3 yrs once the locked in period is over?

 

There is of course refinancing penalties.

 

My loan will be ~200k.

Any constructive advice/prior experiences is appreciated before i go ask arnd the different banks after the wkend.

[Throttle2]

Hi guys,

 

Managed to get a BTO. 1st time home owner.

I'm not eligible for HDB loan so i'm getting a bank loan. Need to submit a letter of Offer by Xmas.

 

For the folks using bank loan here, what are the pros & cons of variable rates vs Fixed if u do refinance/repricing regularly every 2-3 yrs once the locked in period is over?

 

There is of course refinancing penalties.

 

My loan will be ~200k.

Any constructive advice/prior experiences is appreciated before i go ask arnd the different banks after the wkend.

 

fixed is more expensive now but cuts out uncertainty when rates rise

variable is cheap now but when rates rise, it gets more expensive

 

fixed allows you to do longer term planning

variable makes you think that you can afford more than you really can.

 

your choice. anyway, at worse lose a few grand, it's not an end of the world decision even if it's wrong.

as long as you have some cash buffer.

 

good luck to your new advantures and congrats on embarking on a new stage in life

 

 

 

[Brucelee]

gong xi.

[Lala81]

fixed is more expensive now but cuts out uncertainty when rates rise

variable is cheap now but when rates rise, it gets more expensive

 

fixed allows you to do longer term planning

variable makes you think that you can afford more than you really can.

 

your choice. anyway, at worse lose a few grand, it's not an end of the world decision even if it's wrong.

as long as you have some cash buffer.

 

good luck to your new advantures and congrats on embarking on a new stage in life

 

Thanks for ur opinion.

New stage is currently still an empty plot of land with the HDB sign on it

 

Erm good thing abt BTO is that its "relatively" affordable. Nt worried abt repayment of the loan even if interest rates do take a hike.

 

[Booboon]

since haven built yet go for fix. Interest rate very likely to increase next yr

[Tianmo]

Hi guys,

 

Managed to get a BTO. 1st time home owner.

I'm not eligible for HDB loan so i'm getting a bank loan. Need to submit a letter of Offer by Xmas.

 

For the folks using bank loan here, what are the pros & cons of variable rates vs Fixed if u do refinance/repricing regularly every 2-3 yrs once the locked in period is over?

 

There is of course refinancing penalties.

 

My loan will be ~200k.

Any constructive advice/prior experiences is appreciated before i go ask arnd the different banks after the wkend.

 

 

If I am not wrong, most banks are offering non-fixed rate now, all the offers and goodies are for non-fixed rates, and the lock in period is between 1-3 years, depending on terms. reason being the rates now are all time low, and the banks expect the rates to go up. unlikely to get a good offer on fixed rate.

 

 

[Kungming]

dun worry wad, in 5yrs time, may not even need a loan anymore right? Can possibly pay off in full liao then or just a small loan.

[Booboon]

anyone know wat is the minimum sum for of loan required?

[Ilix]

Congrats.

 

To be eligible for a bank loan, downpayment is as such 5% Cash; 15% CPF. Max QOF is 80%. Min loan amount is $100k.

 

Max tenor of loan = 70 yrs - Age of the younger applicant with income.

 

The banks would subsidize your legal fees.

 

For fixed rate packages, it is only fixed for the lock-in period. After the lock-in period, it goes back to variable rate. Of course, by then, you can do your repricing within the same financial institution, or refinancing with other banks.

 

However, do note that for uncompleted property, banks would offer variable rate pacakges only. Certain institutions do offer SIBOR/ SOR pacakges.

 

Hope it helps.

 

 

 

 

[Lala81]

Congrats.

 

To be eligible for a bank loan, downpayment is as such 5% Cash; 15% CPF. Max QOF is 80%. Min loan amount is $100k.

 

Max tenor of loan = 70 yrs - Age of the younger applicant with income.

 

The banks would subsidize your legal fees.

 

For fixed rate packages, it is only fixed for the lock-in period. After the lock-in period, it goes back to variable rate. Of course, by then, you can do your repricing within the same financial institution, or refinancing with other banks.

 

However, do note that for uncompleted property, banks would offer variable rate pacakges only. Certain institutions do offer SIBOR/ SOR pacakges.

 

Hope it helps.

 

thanks for ur input.

 

mine definitely uncompleted. So guess i'll have no choice.

[Panerex77]

Recommendation for private housing loans anyone ?

 

And I guess I have no choice but to go for a floating rate basis since the property is uncompleted.

 

Which banks do u recommend?

[Sabbie]

Recommendation for private housing loans anyone ?

 

And I guess I have no choice but to go for a floating rate basis since the property is uncompleted.

 

Which banks do u recommend?

 

OCBC of course, I am using them, but then again, yours is progressive payment and top 2017, doesn't really matter

[Panerex77]

OCBC of course, I am using them, but then again, yours is progressive payment and top 2017, doesn't really matter

 

so far, i got quotes from OCBC and SCB.

both floating rates only

 

OCBC abt 1%

SCB SIBOR + 0.7%

 

 

 

 

[Sabbie]

so far, i got quotes from OCBC and SCB.

both floating rates only

 

OCBC abt 1%

SCB SIBOR + 0.7%

 

My father just took a 800K loan from ocbc, if 3 years lock in first year 0.98%, if not lock in 1.28%.....but for you doesn't really matter because the bulk of your loan will be disbursed in 2015, 2016, by then the whole world may have turned upside down...

[Panerex77]

My father just took a 800K loan from ocbc, if 3 years lock in first year 0.98%, if not lock in 1.28%.....but for you doesn't really matter because the bulk of your loan will be disbursed in 2015, 2016, by then the whole world may have turned upside down...

 

 

but i thought if i lock-in the interest rates now, when the loans get disbursed in 2015, 2016, the interest rates i will be paying will be based on the interest rates that i locked now?

NO?

 

sorry noob here

[Si4dr]

Congrats.

 

To be eligible for a bank loan, downpayment is as such 5% Cash; 15% CPF. Max QOF is 80%. Min loan amount is $100k.

 

Max tenor of loan = 70 yrs - Age of the younger applicant with income.

 

The banks would subsidize your legal fees.

 

For fixed rate packages, it is only fixed for the lock-in period. After the lock-in period, it goes back to variable rate. Of course, by then, you can do your repricing within the same financial institution, or refinancing with other banks.

 

However, do note that for uncompleted property, banks would offer variable rate pacakges only. Certain institutions do offer SIBOR/ SOR pacakges.

 

Hope it helps.

 

 

If i sell my Hdb for $300k and bought a HDB at $380k. So plus whatever fee 10k. I only need to loan 90k(380k+10k-300k).

So where to get the loan if min. sum is 100k??

 

 

[Sabbie]

but i thought if i lock-in the interest rates now, when the loans get disbursed in 2015, 2016, the interest rates i will be paying will be based on the interest rates that i locked now?

NO?

 

sorry noob here

 

ok this one I know although i noob too, it will start from first disbursement....depending if you are taking a 80 or 60% loan

[Sabbie]

If i sell my Hdb for $300k and bought a HDB at $380k. So plus whatever fee 10k. I only need to loan 90k(380k+10k-300k).

So where to get the loan if min. sum is 100k??

 

You are so cute, either borrow from rich people like radx or throttle, or keep 10K from the proceeds of your sale and borrow 100K