Interest rates are increasing and is still rising. Back in 2013, I began to write about the probability of a growth in interest rates which will hurt folks who are over-leveraged on debts. That was a period when rates of interest were at an extremely low level credited to QE from the US. When they began to reduce and then stop the QE, interest rates started to rise. The rise in interest rate will affect the majority of us who have home loans with the banks currently.
The effect is experienced almost immediately with many banks needs to revise their home loan packages one by one. No longer will we see home-loan interest rates have significantly less than 2% soon. Using their CPF OA offering interest at 2.5% and them paying significantly less than 2% because of their mortgages, many could have benefited from switching. However, do you realize the average historical rates of interest is approximately 3.5%? The rates will be moving in that path and probably will reach 3.5% very soon. This is also a rate set by MAS when determining the total debt servicing percentage (TDSR).
Our central bank or investment company wants to ensure people remain in a position to service their loans even though interest rates rise to 3.5% which is the common historical rate we should be looking at too. The board and SIBOR rate are 2 of the most common variable loan packages in Singapore. If you’re uncertain which loan package you are on, you are on the SIBOR or panel-rate deals also. It is because if you do not refinance your housing loans, your loan package will automatically be changed back to the variable-rate package even if you are on a fixed rate previously.
Recently, UOB and Maybank individually announced with their customers that they can be increasing their board rate. The 3M SIBOR has increased from 0 also.25% in 2011 to at least one 1.25% just last week. This is already a 1% increase in interest rates. Fixed rate deals are not spared either. Banks in Singapore have been removing and revising their fixed-rate packages in Singapore since the past few months. The revision went up by as much as 0.5%. Most fixed rate deals in Singapore are already at more than 2% versus the 1.68% that I saw simply a few months back.
- 450000*(1.04)15 = 810424.58
- Credit commitments and contingent liabilities
- 2015 $20,872.00 -8.2% $2,533.00 -14.2% $17,708.00 -3.5% 14.1%
- John Hanstick Funds, LLC
- Make it easy to consider risks
- The price of a winter coat fell by 35% to $106. That which was the original price
- Buy With An Exit Strategy In Mind or Create One
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Refinancing to set rate deals is a very important thing to do in a rising interest rate environment. I’ll help you on the package deal and process the application form for you personally. A point to note is if your mortgage loan package continues to be under a secure period, you can refinance now to get the good rates so long as the secure will finish within 6 months.
You will not incur any penalty charges. In the event that you wait till the ultimate end of your lock in period, by then most of the true home loan rates would have been revised upwards. Home loans are one of the largest expenses, which most Singaporeans could have. Per month by refinancing If we can just save a few hundred, it’ll definitely make us more economically well off. 10, or only 400 in interest alone in one. Time to do this before it’s too late. The good mortgage loan packages will be gone soon. Facebook page and get notified about new posts. 3. Should Couples Buy A 5-Room HDB Flat For Their First BTO Application?
5000 is a “group travel voucher” for several “group events” yet to be kept. 5000 group vouchers is worthless unless a meeting is kept near your area. And even then there were no details on how you would redeem it. 5000 disappeared from the TVI Express website altogether. TVI Express has made many outrageous statements on its website that elevated suspicions.
Strategic alliances or mere affiliate? TVI Express promises to have backings from “strategic partners” in the travel industry. Indeed, in their PowerPoint presentation, they used logos from lots of the largest airlines, hotels, cruise lines, and more. A huge selection of members have posted on their sites, articles, and websites declaring that TVI Express has alliances or partnerships with all the biggest titles in travel.