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irng
9th January 2009, 08:53 AM
what is the difference between flat rate and and monthly rest?

slow learner
22nd January 2009, 11:57 AM
yeah, someone please explain it will be good to know.

HalcyonVI
18th February 2009, 04:31 PM
what is the difference between flat rate and and monthly rest?

Hi irng, flat rate and monthly rest are actually not comparable. Are you referring to monthly rest vs daily rest?

HalcyonVI
4th March 2009, 07:04 PM
Well, to qualify what I wrote, housing loan instalments are normally based on monthly rest or daily rest whereas car loans use flat rate. You will definitely pay more with flat interest rate as calculation of interest does not take into account the reducing loan. For car loans, you don't get to choose daily or monthly rest whereas for property loans, you will not be charged flat rates, thankfully. Is that what you are asking about irng?

irng
14th March 2009, 08:49 AM
if flat rate is better, on what basis does the bank calculate the flat rate? do the follow the market condition? what are the guidelines?

HalcyonVI
17th March 2009, 04:12 PM
Hmm I don't really know what you mean irng. Flat rate is worse off than monthly or daily rest. Flat rate calculation is straightforward. Say a bank charge you 10% per annum on a 50K loan, you'll be paying 5K per annum towards the interest.

irng
18th March 2009, 09:50 AM
i thought for housing loan, the first few years are flat rate and follow by monthly rest. am i right?

HalcyonVI
19th March 2009, 04:12 PM
Nope, housing loans do not charge flat rate. Housing loan instalments in Singapore are computed based on either monthly rest or daily rest.