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PR Newswire
17-06-2022, 07:00 PM
So mortgage rates have been and are still going up.
While I do not know the full T&Cs(assuming the standard ones), I feel low rates loan packages which offer a cap in interest rates for a couple of years(the bank must be confident in interest rates trends or super flush with cash) cld be a real bargain. For the more financial savvy/cash rich, it cld even be an arbitrage opportunity, get the 1% variable rate loan which locks in max 1.6% interest 1st 3 years and invest in say stable stocks(i.e. good stable track record and stock prices do not tend to fluctuate widely) offering much higher dividends, and pocket the difference - "almost free" money for 3 yrs.
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https://www.channelnewsasia.com/singapor...ns-2750501
"....Already, the Singapore Overnight Rate Average (SORA) – one of the benchmark rates used by banks here to determine rates for their floating-rate home loans – has increased by more than 100 per cent since early this year, said SingCapital’s chief executive Alfred Chia...."
https://stocksnsavings.blogspot.com/2022...ncome.html
"....The bank wrote that in view of the increase in their FHR6 (6 months Singapore Dollar fixed deposit interest rate), they will be raising my mortgage rate from 1.00% to 1.55% p.a. accordingly.....The bank promised to cap the maximum interest rate at 1.60% p.a. throughout the first three years...."
While I do not know the full T&Cs(assuming the standard ones), I feel low rates loan packages which offer a cap in interest rates for a couple of years(the bank must be confident in interest rates trends or super flush with cash) cld be a real bargain. For the more financial savvy/cash rich, it cld even be an arbitrage opportunity, get the 1% variable rate loan which locks in max 1.6% interest 1st 3 years and invest in say stable stocks(i.e. good stable track record and stock prices do not tend to fluctuate widely) offering much higher dividends, and pocket the difference - "almost free" money for 3 yrs.
------------------
https://www.channelnewsasia.com/singapor...ns-2750501
"....Already, the Singapore Overnight Rate Average (SORA) – one of the benchmark rates used by banks here to determine rates for their floating-rate home loans – has increased by more than 100 per cent since early this year, said SingCapital’s chief executive Alfred Chia...."
https://stocksnsavings.blogspot.com/2022...ncome.html
"....The bank wrote that in view of the increase in their FHR6 (6 months Singapore Dollar fixed deposit interest rate), they will be raising my mortgage rate from 1.00% to 1.55% p.a. accordingly.....The bank promised to cap the maximum interest rate at 1.60% p.a. throughout the first three years...."