sibor is getting phased out!

[Throttle2]

39 minutes ago, Wind30 said:

.... I really hope @Throttle2 knows he is in my ignored list... 

He should really use it. I find MCF a much better place after I learnt how to use it. just a couple of buttons, I can't see what @Unfazed post too.

 

I usually don't like to add anyone into ignored list as it makes reading MCF fragmented but I searched Unfazed posts and I don't think I am missing much....

Tease tease a bit, dont like that lah. 

MCF one big family.

when you post good, i also agree .  

Dont like that lah.

oh yes my ignore list very long, at least got 8 to 10

[BanCoe]

13 minutes ago, awhtc said:

The savings and fixed deposit rates should continue to fall as Fed aim to keep interest rate close to 0% for the next few years plus provide more support to the economy.  My gut feel is Fed might keep the interest rate low for the next 10 years (reference global recession nearly 0% from 2009 to 2016: 8 years).

 

With coronavirus surging, Fed keeps key interest rate near zero, vows more support

Although noting the economy has “picked up somewhat,” the Fed on Wednesday kept its key short-term interest rate near zero and repeated its vow to use “its full range of tools to support the economy in this challenging time.”

https://www.usatoday.com/story/money/2020/07/29/fed-interest-rate-officials-keep-key-rate-near-zero-amid-covid-19-spikes/5532101002/

tks for the Insight ...... like that Gold and precious metals will surge crazily to mitigate the fall in interest rates.....looks like lot of volatility due to COVID....... and wonder what the opposite will happen if a vaccine is suddenly found 

[Throttle2]

2 hours ago, Wind30 said:

... did you read about the proposal?

If it goes through, it is not one bank trying to get out of a bad deal, it is every bank doing the same. They won't care about publicity because all the banks are SUPPOSED to do it. Although it does not take effect like soon, the banks are going to finalise the plan so people cannot complain 3 years later if they don't complain now. 

I don't think you can sue them lah... legally I think they can change the interest rate anytime they want.... it is really about publicity and looking bad.

In case you still think it is singapore banks and mas trying to be funny, it is not.

the whole world is moving away from IBOR model. 

FYI

and if you think that this is something you can even have a say about, you are being naive. 

Truth is i am not the only one here who thinks that many of your posts are naive and idealistic.

[Throttle2]

2 hours ago, Wind30 said:

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

There is a detailed explanation.

I don't really care which rate they use but if they can assure that we will be paying similar interest rate after switching, I am ok. 

I don't think it is ok for the bank to use this as a way to reprice the added risk post Covid into loan agreements they have signed pre-covid. 

Who the f**k is going to assure whoever the f**k any f**k? Come on.

where were you when mortgage rates were 3-4%?

why dont they just keep it there?  Can fall means can rise.  Simple law of the jungle. 

[Khng8]

If SORA tracks sibor well & both rates are comparable/ similar, then it’s only fair that when banks transition borrowers on Sibor loan to SORA loan that the rate is the same.

The anxiety experienced is that the ABS press release says nothing about how banks will treat those on very favourable Sibor loans now.

Will the banks be allowed to unilaterally offer a higher margin spread when sibor discontinued?

If all banks allowed to do that, then consumers LLST?

[Throttle2]

The truth is that, i see someone (read Wind30) who is kancheong just with a possible slight rise in rates.

Elitist high income earner with so much cash, no need to scared lah. Aiyoh.

jobless bum like me then need to scared mah...

[Throttle2]

2 minutes ago, Khng8 said:

If SORA tracks sibor well & both rates are comparable/ similar, then it’s only fair that when banks transition borrowers on Sibor loan to SORA loan that the rate is the same.

The anxiety experienced is that the ABS press release says nothing about how banks will treat those on very favourable Sibor loans now.

Will the banks be allowed to unilaterally offer a higher margin spread when sibor discontinued?

If all banks allowed to do that, then consumers LLST?

When ERP go up, we also LLST , muayhahaha. 

[inlinesix]

12 minutes ago, Throttle2 said:

When ERP go up, we also LLST , muayhahaha. 

When ERP go up, B.M.W. lo.

When interest goes up, downside and full loan redemption.

[Matoonia]

1 hour ago, Wind30 said:

yes, if interest rates stays low, it is really hard for property prices to fall when CPF pays my 2.5%. 

If I have 100k in CPF, the CPF interest is enough to offset 250k loan@1%. That is why I did not use my CPF for any housing loan payment for many many years... 

 

hopefully CPF dont go bankrupt, was going to prepay with CPF when interest rate crosses 2.5%.... which never happened. 

Wah that is the last to fall and the last of the worries. The day CPF gone we all go bedok reservoir liao

[Matoonia]

1 hour ago, Spring said:

Fixed rate for a longer period will always be higher than shorter period so yes 5 yr Fixed of 1.5% will be higher than other banks 3 yr Fixed of 1.4% or maybe even slightly lower. Like what u mentioned you are willing to have peace of mind and the price to pay is around 0.1%, so to each his own, no right no wrong.

Although not comparable, I opted for Fixed rate Electricity with Keppel but oil prices have dropped so I'm now paying more, hard luck! Choosing Fixed can go either way. I do see why u opt to do this as there is a 1% arbitrage between the loan rate and CPF rate which was unheard of years ago but now quite common.

 

Yes I simple man as long as there is a 1% arbitrage maintained between loan rate and CPF I am more than happy.

[Jamesc]

6 hours ago, kobayashiGT said:

Not for my case. 🤣

How many houses you bought? 

[Showster]

Essentially, even if we sign a current Sibor offer now, it will be like 1M or 3M Sibor plus 0.8%. The final rate will be just over 1% anyway.

So for another loan of mine, it's also 1.5% fixed for 5 years.

I am contemplating for last purchase, what is the best way to go? Full cash settle (exhaust all cash except CPF), or try to loan using other vehicles.

Even 3.5% we can survive, why worry about whether it's 0.5% or 1.5%? Higher interest claim higher tax deduction lor...

Edited July 30, 2020 by Showster

[Voodooman]

5 hours ago, awhtc said:

The banks will take the opportunity to build in new clauses to protect their profit.

 

Explainer: Why Sora is likely to replace Sibor as Singapore’s benchmark interest rate

...

Responding to a query on whether the switch would mean that consumers would have to pay higher interests, Mrs Ong Ai-Boon, director of ABS, said that benchmark interest rate is an independent reference rate that reflects market conditions.

But the full price of a loan is dependent on the all-in rate, which includes factors such as the banks' cost of funding and the customer’s credit profile.

“The full cost of the loan package doesn’t necessarily change when a customer chooses a different benchmark rate,” she said.
 

https://www.todayonline.com/singapore/explainer-why-sora-likely-replace-sibor-singapores-benchmark-interest-rate

Please go look at the T&C of your existing loan agreement, especially the fine prints in the appendix. 

Wahaha...

With 2 properties and quabbling over a benchmark rate when the bank already has the right of review, hidden somewhere in their T&C. This is so funny. 

I have taken housing loans from all the 3 local banks and 1 foreign bank before and I have not come across one that don't have a review clause tucked away somewhere.

Banks are just not triggering it coz times are bad and they don't want to be seen as bullies during such difficult times.

 

[Showster]

19 minutes ago, Voodooman said:

Please go look at the T&C of your existing loan agreement, especially the fine prints in the appendix. 

Wahaha...

With 2 properties and quabbling over a benchmark rate when the bank already has the right of review, hidden somewhere in their T&C. This is so funny. 

I have taken housing loans from all the 3 local banks and 1 foreign bank before and I have not come across one that don't have a review clause tucked away somewhere.

Banks are just not triggering it coz times are bad and they don't want to be seen as bullies during such difficult times.

 

Exactly. Holding something more precious than gold, why need to worry about the nitty-gritty? 

[Jamesc]

5 hours ago, Spring said:

Fixed rate for a longer period will always be higher than shorter period so yes 5 yr Fixed of 1.5% will be higher than other banks 3 yr Fixed of 1.4% or maybe even slightly lower. Like what u mentioned you are willing to have peace of mind and the price to pay is around 0.1%, so to each his own, no right no wrong.

Although not comparable, I opted for Fixed rate Electricity with Keppel but oil prices have dropped so I'm now paying more, hard luck! Choosing Fixed can go either way. I do see why u opt to do this as there is a 1% arbitrage between the loan rate and CPF rate which was unheard of years ago but now quite common.

 

I am on floating rate and oil prices have come down a lot but I don't see much savings.

Next round I will be going fixed because oil comes down a lot price come down a bit only.

Oil price goes up a bit prices goes up a lot.

[Showster]

US GDP contracted 32% this quarter and they are prepping another bazooka.

Likelihood for US, the next step is negative interest rates.

[Chongster]

i recalled many years ago Citi unilaterally changed the interest rates on home loans with existing customers, using the review clause.  MAS couldnt do a thing.  

 

[Voodooman]

35 minutes ago, awhtc said:

I was just sharing information here and discussing the impact on home loans.  How do you know I have only 2 private properties 😉

Okok... You have 5.  Please add if you think you have more. Wahaha....

I am referring to TS lah.