Asked on 23 Jan 2019
Have read that it's been rising continuously for the past few months and expected to increase up to 3% or more.
Super worried now as I'm planning to purchase a 3rm resale flat within the year with a budget of 250k-300k.
I'm not eligible for BTO nor HDB loan so will be at the mercy of bank loans.
Should I go for a SIBOR linked loan or FD linked one? Or would the usual 2-yr fixed rate loan be more beneficial to me?
And should I pay cash or use OA to service the loan?
No 1. on the list is do check with the banks and see if the loan quatum is the amount that they are willing to take.
No 2. If i am not wrong there isnt many FD linked rates now. OCBC, UOB and Maybank have taken that down.
No. 3. Dont take Sibor if you are someone who is worried about interest movement. 3months SIBOR has you to jump out of bed every 3 month because the rate changes and in current climax definetly not SIBOR. Leaving you with Fixed and Variable rates.
Fixed Rates across all banks are about 2.3- 2.48 some higher. For that minimal saving of 0.2% off from HDB loan rates why bother.
Variable are different across all banks. Some have Mortage Rate with a markup (ie. MR+0.75= 2.25 therefore you MR is 1.5 ),
Some uses preferred rate (currently about 5.5%) then gives you a discount (Ie Preferred Rate -3% = 2.5%).
Ranging about 2.18- 2.3 there about so there is still risk in the interest rate movement ya...
Above are some of the examples and rates that I have gotten for my clients. Not for actual reference or quotation
I hope what i mentioned will help you.