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Wind30

sibor is getting phased out!

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Turbocharged

This is bad. Although it is only in 3-4 years time, there must be some safeguards for consumers that banks cannot wiggle out a bad loan contract they signed.

I am happy with 3M sibor+0.5% forever, why should I move out? 

If Sibor is going to switch to SORA, they must make sure the effective interest rates during the switch is not changed. 

https://www.channelnewsasia.com/news/business/sibor-interest-rate-benchmark-change-report-sora-12973624

https://abs.org.sg/docs/library/sibor-reform-and-the-future-landscape-for-sgd-interest-rate-benchmarks.pdf

 

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Hypersonic

Does this mean banks will charge more interest?

:grin:

Like this better buy banks shares then.

Having said that who cares?

Everyone in MCF is all debt free and full cash right?

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Turbocharged
43 minutes ago, Jamesc said:

Does this mean banks will charge more interest?

:grin:

Like this better buy banks shares then.

Having said that who cares?

Everyone in MCF is all debt free and full cash right?

Not for my case. 🤣

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Supersonic
2 hours ago, Wind30 said:

 

What is the effect to the average Joe or man in the street ?? 

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Turbocharged
35 minutes ago, BanCoe said:

What is the effect to the average Joe or man in the street ?? 

You have to reprice your sibor housing loan in 3-4 years time. It is like an escape clause for Banks out of the cheap Sibor loans they have given out.

I wrote a letter to MAS director and see if they reply....

-----------------------------------

Hi Jacqueline,

 

I refer to the following CNA report on the proposal by Singapore banks to phase out of Sibor in 3-4 years time.

 

https://www.channelnewsasia.com/news/business/sibor-interest-rate-benchmark-change-report-sora-12973624

 

 In the article, MAS (you) was quoted to support such a measure. 

Can I inquire if you have considered how the interests of thousands of borrowers will be affected?

 

Many of Sibor pegged housing loans including mine are 3M Sibor+0.5%. I am happy with this rate and would like to continue with it. Why should the thousands of consumers be forced to reprice their housing loans?

 

What measures are MAS going to implement to protect the interest of the consumers? If the banks' intention is not to force consumers into loans with higher interest rates, MAS should regulate for existing SIbor priced loans, the switch to SORA priced loans should not result in an increase in the effective interest rates. 

 

Example if the average 3M sibor rate is 0.5% while the average SORA rate is 0.2%, I am paying 3M sibor+0.5% which is 1% interest rate, the switch to SORA priced rate should be SORA+0.8%.

 

This switch to SORA should not be an opportunity for Banks to reprice cheap loans they have disbursed out before Covid struck and now having regrets. Consumers are not given a way out if Sibor spikes, why should banks be allowed to reprice our loans when Sibor falls?

 

 

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Supersonic (edited)
17 minutes ago, Wind30 said:

You have to reprice your sibor housing loan in 3-4 years time. It is like an escape clause for Banks out of the cheap Sibor loans they have given out.

I wrote a letter to MAS director and see if they reply....

-----------------------------------

Hi Jacqueline,

 

I refer to the following CNA report on the proposal by Singapore banks to phase out of Sibor in 3-4 years time.

 

https://www.channelnewsasia.com/news/business/sibor-interest-rate-benchmark-change-report-sora-12973624

 

 In the article, MAS (you) was quoted to support such a measure. 

Can I inquire if you have considered how the interests of thousands of borrowers will be affected?

 

Many of Sibor pegged housing loans including mine are 3M Sibor+0.5%. I am happy with this rate and would like to continue with it. Why should the thousands of consumers be forced to reprice their housing loans?

 

What measures are MAS going to implement to protect the interest of the consumers? If the banks' intention is not to force consumers into loans with higher interest rates, MAS should regulate for existing SIbor priced loans, the switch to SORA priced loans should not result in an increase in the effective interest rates. 

 

Example if the average 3M sibor rate is 0.5% while the average SORA rate is 0.2%, I am paying 3M sibor+0.5% which is 1% interest rate, the switch to SORA priced rate should be SORA+0.8%.

 

This switch to SORA should not be an opportunity for Banks to reprice cheap loans they have disbursed out before Covid struck and now having regrets. Consumers are not given a way out if Sibor spikes, why should banks be allowed to reprice our loans when Sibor falls?

 

 

Muayhahahah, laugh until i roll on the floor. Naivety at its ultimate leh...

Cant believe some very smart people, like this one, still think that its their prerogative.

listen up, everything is to the lenders discretion ok? 

If lender wants to call on borrower to pay up today, also can. 

It’s technically very very easy to make someone with debt, a bankrupt.

 

Woken up to a new world?   Or been asleep in your own world this whole time?

 

good luck, and dont forget, huat ah!

Edited by Throttle2
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5th Gear
7 minutes ago, Wind30 said:

You have to reprice your sibor housing loan in 3-4 years time. It is like an escape clause for Banks out of the cheap Sibor loans they have given out.

I wrote a letter to MAS director and see if they reply....

-----------------------------------

Hi Jacqueline,

 

I refer to the following CNA report on the proposal by Singapore banks to phase out of Sibor in 3-4 years time.

 

https://www.channelnewsasia.com/news/business/sibor-interest-rate-benchmark-change-report-sora-12973624

 

 

Wah! You are on first name basis with the deputy managing director of MAS, Jacqueline Loh!
😁

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2nd Gear
51 minutes ago, BanCoe said:

What is the effect to the average Joe or man in the street ?? 

pay more money?

 

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Supersonic
13 minutes ago, Flying_genie said:

Wah! You are on first name basis with the deputy managing director of MAS, Jacqueline Loh!
😁

He is also on first name basis with PM Lee hor, mai siao siao

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Turbocharged
14 minutes ago, Flying_genie said:

Wah! You are on first name basis with the deputy managing director of MAS, Jacqueline Loh!
😁

🙂 is deputy managing director very big??? I thought everyone is director in financial industry...

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Supersonic
1 minute ago, Wind30 said:

🙂 is deputy managing director very big??? I thought everyone is director in financial industry...

Definitely not as big as @wind30 

in case you didnt know, its not about big or small, its about professional context and respect.

oh well.

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5th Gear
8 minutes ago, Wind30 said:

🙂 is deputy managing director very big??? I thought everyone is director in financial industry...

Deputy directors in insurance and real estate agencies many, many. (No offence meant to those in these industries).

In MAS, deputy managing director sit just below Ravi Menon, director of MAS. Probably quite big fark.

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5th Gear

When the lock-in ends, is there any obligation from the bank to continue offering SIBOR?

If the banks are trying to get out of SIBOR, it means they are projecting a very low-interest rate environment for the next 5 years at least and set a floor interest rate of about 1%.

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Supersonic

ang mo company culture lah

everyone by first name

even ceo or chairman of the board also like your buddy buddy 

🤣😅

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Supersonic

I don’t quite understand the concern.

SORA is quite comparable to Sibor and currently is even lower.

Any transparent thing works bro.

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Turbocharged (edited)
8 minutes ago, Showster said:

I don’t quite understand the concern.

SORA is quite comparable to Sibor and currently is even lower.

Any transparent thing works bro.

They want the new rate to price at market... meaning I doubt we can get similar rates post covid. 
can u get 3m Sibor + 0.5% now? You can’t... meaning when they repriced it, they are going to give u a higher interest rate.

they Will Not give u sora+0.5%

Edited by Wind30

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Turbocharged
20 minutes ago, awhtc said:

When the lock-in ends, is there any obligation from the bank to continue offering SIBOR?

If the banks are trying to get out of SIBOR, it means they are projecting a very low-interest rate environment for the next 5 years at least and set a floor interest rate of about 1%.

No bank is willing to take the lead and renegade on the cheap sibor loans they gave out as it looks horrible on them. 
this gives them collectively a way out.

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Supersonic (edited)
14 minutes ago, Wind30 said:

They want the new rate to price at market... meaning I doubt we can get similar rates post covid. 
can u get 3m Sibor + 0.5% now? You can’t... meaning when they repriced it, they are going to give u a higher interest rate.

they Will Not give u sora+0.5%

Relax eh. Last time CIMB customers complain about floor rate, got rescinded. 

This is a transparent contract involving up to one third of mortgages. If yours has a clause stating the rate after the first three years, then it is benchmarked there. Unilateral changes by the banks means lawsuits and unnecessary publicity. Only we can sign ourselves out of the good deal. 

That being said, those taking new mortgages need to look out for it. 

So many years later, maybe loan cleared by then. 

Edited by Showster
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