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cookies
25th February 2009, 09:44 AM
i was recently being introduced to this POSB Ideal Home loan as i'm thinking of re-financing my dad's home.

Was told that the plan helps to hold the interest rate at 0.1% above CPF rate so we don't have to worry about the interest rate will flactuate according to market.

HalcyonVI
4th March 2009, 06:56 PM
The Home Ideal packages are indeed pegged to the CPF rate so it's more stable but the spread is not 0.1% but higher. The spread varies depending on factors such as Loan to Value and lock-in periods. You have to be mindful that if SIBID goes above a threshold, DBS can also increase the spread so there are certain risks involved.

cookies
19th March 2009, 10:17 AM
what is:

1. spead
2. loan to value
3. lock-in periods

all the terms you used all i don't understand

HalcyonVI
19th March 2009, 04:26 PM
Spread is what the bank adds on to the base rate. In the case of Home Ideal, the base rate is the CPF rate.

e.g. CHR (base rate) + 1% (spread)

my housing loan has a very useful glossary for housing loan terms:

http://www.myhousingloan.com.sg/housing-loan-glossary.php#ltv

cookies
20th March 2009, 04:43 PM
that's very helpful.

if the event if we paid up fully before the term, will there be any penalty?

HalcyonVI
31st March 2009, 06:21 PM
POSB has a few schemes including those that have no penalties when you pay in full. Rates are generally lower when there is a lock-in period though. Best to check with a housing loan advisor on the loan to go for before they start charging for their advise :)

cookies
18th June 2010, 01:32 PM
what do you mean by charge for their advise? you mean when we ask details from a loan advisor we will be charge? wah like lawyer like that talk to them also must pay?

HalcyonVI
22nd June 2010, 05:22 PM
Not exactly. It's fairly common in the US and UK for housing loan advisors to charge a fee if the client confirms engagement. Preliminary consultations are normally free. There are actually a couple of housing loan advisory firms that also charge in Singapore...

cookies
9th July 2010, 02:16 PM
so you mean at the end of the day whether we engage their service or not we still have to pay. how do we know if they have such charges, do we ask them upfront?

HalcyonVI
9th July 2010, 03:12 PM
so you mean at the end of the day whether we engage their service or not we still have to pay. how do we know if they have such charges, do we ask them upfront?

Hmm, I'm not sure why you have the impression that you have to pay regardless of whether you engage their service or not. Payment has always been for products or services rendered.

Anyway, companies that do charge should state their fees upfront and yes, asking about charges is fine too.

cookies
1st November 2010, 09:04 AM
just want to be certain. :rolleyes:

fellascarpet
30th December 2011, 02:23 PM
i was recently being introduced to this POSB Ideal Home loan as i'm thinking of re-financing my dad's home.

Was told that the plan helps to hold the interest rate at 0.1% above CPF rate so we don't have to worry about the interest rate will flactuate according to market.
Wow that's great dear, because interest rate is very low. it's good for us....

ChassidyD
7th February 2012, 02:19 PM
I agree that low interest rate for loans is really good for us. With that interest getting low, mortgage rate is also dropping here in the US. The rates on mortgages in the United States dropped to previously-unseen levels again this week. Federal lender Freddie Mac blames slower-than-expected economic growth for the drop. With interest rates remaining low, owning a home is the preferred option for most residents. And due to the economic downturn we have right now, these are the effects.