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I post here a recent statement from Mr. Piyush Gupta, CEO of DBS Bank.
"In Asia, pardon me, but most of us tend to be punters... We at DBS tried pushing, two years ago, a five-year fixed-rate mortgage... Almost no takers. Asians don't like hedging."
So 5-years fixed rate loan no takers, let alone 30 years...
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(26-07-2013, 10:57 AM)CityFarmer Wrote: I post here a recent statement from Mr. Piyush Gupta, CEO of DBS Bank.
"In Asia, pardon me, but most of us tend to be punters... We at DBS tried pushing, two years ago, a five-year fixed-rate mortgage... Almost no takers. Asians don't like hedging."
So 5-years fixed rate loan no takers, let alone 30 years... 5 year-fixed rate mortgage is definitely not the same as 30-years. The time factor of another 25 years for you to tikum to gain in future bank interest rate's hike is missing.
If i am not mistaken, UOB had tried to introduce 30 or more years housing mortgage loan but stop by our COW or PAPIES. i think it reflects on how much our housing prices have ballooned. So i don't think the GOV of the day likes it.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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(26-07-2013, 10:57 AM)CityFarmer Wrote: I post here a recent statement from Mr. Piyush Gupta, CEO of DBS Bank.
"In Asia, pardon me, but most of us tend to be punters... We at DBS tried pushing, two years ago, a five-year fixed-rate mortgage... Almost no takers. Asians don't like hedging."
So 5-years fixed rate loan no takers, let alone 30 years...
This one depends on the 5 yr fixed rate offered by DBS mah. If the rates are correct, I'm sure there will be demands. Personally, i think the CEO will try to "sound innocent". ha!
(26-07-2013, 11:15 AM)Temperament Wrote: 5 year-fixed rate mortgage is definitely not the same as 30-years. The time factor of another 25 years for you to tikum to gain in future bank interest rate's hike is missing.
If i am not mistaken, UOB had tried to introduce 30 or more years housing mortgage loan but stop by our COW or PAPIES. i think it reflects on how much our housing prices have ballooned. So i don't think the GOV of the day likes it.
The issue govt have with UOB's >30 yrs housing mortgage loan is more due to the length of the loan, dont think it has to do with fixed or floating rate. What i understand is that local banks cant really provide long term fixed rate loans as they are not able to hedge the risk out. Dont think its appealing to them to carry the risks on their book, unless they have found a sure way to make a spread.
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(26-07-2013, 12:07 PM)rokcradle Wrote: (26-07-2013, 10:57 AM)CityFarmer Wrote: I post here a recent statement from Mr. Piyush Gupta, CEO of DBS Bank.
"In Asia, pardon me, but most of us tend to be punters... We at DBS tried pushing, two years ago, a five-year fixed-rate mortgage... Almost no takers. Asians don't like hedging."
So 5-years fixed rate loan no takers, let alone 30 years...
This one depends on the 5 yr fixed rate offered by DBS mah. If the rates are correct, I'm sure there will be demands. Personally, i think the CEO will try to "sound innocent". ha!
(26-07-2013, 11:15 AM)Temperament Wrote: 5 year-fixed rate mortgage is definitely not the same as 30-years. The time factor of another 25 years for you to tikum to gain in future bank interest rate's hike is missing.
If i am not mistaken, UOB had tried to introduce 30 or more years housing mortgage loan but stop by our COW or PAPIES. i think it reflects on how much our housing prices have ballooned. So i don't think the GOV of the day likes it.
The issue govt have with UOB's >30 yrs housing mortgage loan is more due to the length of the loan, dont think it has to do with fixed or floating rate. What i understand is that local banks cant really provide long term fixed rate loans as they are not able to hedge the risk out. Dont think its appealing to them to carry the risks on their book, unless they have found a sure way to make a spread. Exactly, the length of the loan will reflect the prices of housing. In Tokyo, it's not uncommon for the next generation to continue to pay the housing mortgage loan. i will not be surprised even drag to the 3rd generation.
But i think the GOV can't stop the 30 or more years housing mortgage loan in future. As there is no turning back "QE" and assets inflation.
Have you come across that they say the 5 million assets person is the new 1 millionaire of today in America? So shall we divide every asset/liability we have by 5 in Singapore? Then we really know what we are actually worth? O. K. maybe by 3.
Don't be too happy or arrogant if you have a million Sing $. Please divide by 3 to 5 than you know you are not a millionaire in today $ terms.
Don't agree?
Try to buy a FH property and see what you can get? Nothing great ya?
Shalom.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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