35-year limit set on home loans

[toiletsiao]

I spoke to several friends about this topic yesterday.

The problems may not be apparent now, but will affect those who need to refinance.

So if you need to refinance next year (if not you may end up paying 3% when the whole Singapore is paying 1%, which makes you look dumb), then the new rules kick in and you either have to cough up a larger amount upfront or higher installment payments as the loan tenure gets reduced.

There is a possibility of avoiding that though. Article says LTV ratio - so if VALUE of property goes up enough to offset the lower LTV, then it may balance out for the purchaser.

Existing home loan(before oct 6th 2012) ppl will not be affected as long as they dont refinance with another bank or put in a request to adjust their loan tenor. Let say your fren took up a 40yr loan 1yr ago.. lock in period expires nxt yr...he can simply reprice his home loan with the bank..if the loan rates nxt yr is still at 1% (likely to stay this way) .. your fren's loan package will be repriced to 1% (with new lock in period) with the loan tenor at 38yrs left and counting down...he will not be affected in anyway by this measure..because the original loan agreement dates before oct 6th 2012.

Refinancing and Repricing are 2 different things when it comes to home loans... Refinancing simply means Switching out to a new bank, Repricing simply means getting a new package from your existing bank.

If bank aware that refinancing is not an option, repricing is out of question, isn't it?

It is not the bank interest to repricing, unless it may lose a customer to other banks

ppl will still switch lah if another bank can offer a much better term and savings than what he is currently on....its still a very competitive market..