🔑 Key Highlights:
- DBS and OCBC loan packages were compared for a SGD 500-550k loan size, with OCBC’s 2.65% for the first year and 2.38% for the second and third years being deemed more competitive.
- A Bank of China loan package with a 2.45% lock-in for three years was discussed, but the recommended option was a 2.50% lock-in for two years with a 3m SORA + 0.8% floating rate for the third year and a 3m SORA + 1% floating rate for the fourth year.
- Singaporean forum members shared their experiences with repricing loans, with some enjoying competitive rates and others facing less favorable terms.
- The topic of adjusting CPF usage for loan payments was discussed, with advice to check with lawyers during the exercising of OTP and the option to adjust CPF usage directly through the CPF account.
💡 Main Discussion Points:
- The Singaporean property loan market continues to be a topic of interest, with forum members discussing loan packages, repricing options, and CPF usage.
- The influence of global economic trends, such as the FOMC meetings, on the local loan market was mentioned, with some members advising to wait until the last FOMC meeting in mid-Dec to reassess loan options.
- Local banks, such as DBS, OCBC, and SCB, were compared in terms of their repricing packages, with some members sharing their experiences and opinions on their competitiveness.
📋 Important Details:
- When repricing a loan, ensure that the new package comes with a “Waiver of penalty due to sale during lock-in period” to avoid incurring 1.5% on the outstanding loan.
- The option to adjust CPF usage directly through the CPF account was mentioned for existing loans.
- The last FOMC meeting in mid-Dec is expected to provide insights into future interest rate changes, which may impact the local loan market.
💭 Community Insights:
- Forum members shared their experiences with repricing loans, with some enjoying competitive rates and others facing less favorable terms.
- The importance of comparing loan packages and being patient when seeking repricing options was emphasized.
- The potential risks and consequences of rising interest rates were discussed, with some members advising to hold cash and be cautious with property investments.
⚠️ Things to Note:
- A member shared a cautionary tale about repricing a loan, where the new rate was applied two days after the lock-in period ended, resulting in a higher payment.
- The influence of the KPI of the repricing team was mentioned as a potential risk factor in securing competitive loan rates.
- Some members expressed concerns about the potential impact of rising interest rates on property investments and the economy.
Source: View original thread on HardwareZone Forum