The interest offset feature from these accounts will help clients bring down their effective loan interest rate, subjected to the following 2 factors; The amount of deposits in the interest offset account and the Offset Factor. The reason is simple, fixed rates were at a 1.55%, 2-years fixed whereas floating rates were at 1.6%, and looking at this minimal difference between the 2, it’s obvious why people would rather opt for a fixed rate mortgage. Mortgage loans help to make that acquisition more attainable with financing options. Had been searching for banks and mortgage advisor for better deal to refinance my existing property loan. Hence, clients were fearful that SIBOR-linked packages would only follow suit. A real estate purchase is easily, for most of us, the biggest financial commitment we undertake in our lifetime. (For latest rates, check our review of best home loans in Singapore) Signups for SIBOR packages had at the same time steadily increased and are still increasing. Lin Miaoxin Edward True to their forecast, the Fed rate hiked up 25-50 basis points at every end of Quarter last year. A celebrated win for many around the world, but will the world ever return from an era of Trumpism? Shamir’s professionalism and knowledge of the industry was impressive and truly appreciated. An independent mortgage advisory provides unbiased advice from your loans selection, home protection to handling the whole application process. This feature is also totally flexible. Redbrick Mortgage Advisory An independent mortgage advisory provides unbiased advice from your loans selection, home protection to handling the whole application process. Click here to find out more. Keep it up! What if the Feds resume interest rate hikes again in the 2nd half of 2019, or early 2020? “With the support of our customers and industry players, Redbrick has managed to build up an impressive customer base and financing volume. Interest cost is one of the largest expenses associated with a property purchase. Brief Review of Mortgage Rates in 2018 and 2019 and a Revisit for SIBOR? Alvin has enjoyed extensive success with more than 11 years of experience and track record in Retail and Private Banking. To hedge against unexpected fluctuations for the SIBOR rates, one-time free conversions are being offered by some banks after lock-in, while other like SCB and HSBC are offering one-time conversions anytime. Singapore: China’s new favourite real estate gold mine? Thank you Redbrick and thank you, Joel. Looking at the historical track record, most banks have not changed their FD rates from 2012 – 2017, and even up till the first of January 2018, the rates have remained the same. Brief Review of Mortgage Rates in 2018 and 2019 and a Revisit for SIBO... https://www.redbrick.sg/wp-content/uploads/2019/03/2018-vs-20192.jpg, https://www.redbrick.sg/wp-content/uploads/2018/02/RBMortgageAd-01Colour-300x85.png. With the difference between the fixed and the floating rates at more than 0.5% now, more and more people are willing to take some calculated risks to review a floating rate mortgage. But are you sure of what... At the back of a rather interesting year in 2017, the Singapore property market is again attracting headlines now. The US Fed had forecasted 4 increases for the US Fed rate and people w… Responsive WordPress Image Scroller Plugin. A celebrated win for many around the world, but will the world ever return from an era of Trumpism? More customers are now favouring a market determined SIBOR over frequent changes in FD-linked rates as ultimately, Board rates are still the banks’ discretion. It’s the single most important purchase so far for me and I needed the best advisors possible. Business owners or savvy investors looking to deploy monies into opportunities in the short to medium term can in the interim place their funds in an interest offset account. Very professional, efficient, quick and helpful advice for last 1 month. Plus his fee is paid by the Bank, not us! would recommend him to anyone who is keen to take up any mortgage loans. Therefore seeking the best in-market financing terms and being able to constantly calibrate your loan portfolio to keep interest costs in check is key in achieving savings. For example, 50% of deposits in the offset account will earn the same interest rate as the home loan rate. Clients can deposit or withdraw the monies in these accounts anytime without lock in period, penalties or fees. Shamir went out of his way to ensure that we got the best available loan at the lowest possible rate. All rights reserved. The entire process of choosing the right refinance package to meet the needs was clearly laid out and in a matter of just 2 weeks from the first meet up, the banking documents were signed & sealed. Was scouting around the market for competitive rates for my home loan refinancing and was referred to Eugene Huang from Red Brick. Though SIBOR packages provide cheaper and more transparent options, stability may still be a real concern for many loan clients. Real Estate 101: What are property yields? would recommend him to anyone who is keen to take up any mortgage loans. Within a day of my enquiry, Mr Joel Tang contacted me and within a week or so, he managed to secure several competitive quotes which were honestly unmatched in the market. Copyright © 2018 Redbrick. The reason is simple, fixed rates were at a 1.55%, 2-years fixed whereas floating rates were at 1.6%, and looking at this minimal difference between the 2, it’s obvious why people would rather opt for a fixed rate mortgage. Want to find the best mortgage rate in town? Receive FREE updates on changes in property prices & mortgage. Specialties: Red Brick Mortgage offers a variety of home loan and mortgage programs to meet your needs. Therefore, if SIBOR does increase or even if SIBOR does not increase but there is a better package within the same bank, clients can exercise the feature and flexibility to switch. An independent mortgage advisory provides unbiased advice from your loans selection, home protection to handling the whole application process. He noted a concern among prospective home buyers about the continued interest rate hikes by the United States Federal Reserve. I have to say things went on smoothly & expeditiously from start to finish. However, Shamir was able to boil down all the rates and acronyms into logical information we needed to make the right decision. Consider These 4 Factors Before Deciding On An HDB Loan Or Bank Loan, An update on fixed deposit-pegged home loans: Rising rates. Instead, helping them promptly review their loan portfolios and be updated on changing interest rate trends and to adjust their financing arrangements accordingly and on a consistent basis will ensure much better success from a cost management perspective. With Red Brick Mortgage, the hardest part of buying a new home is going to be lifting all those heavy boxes. As the director of Redbrick Mortgage Advisory, Eugene believes that there should be an eco-system in which all parties of the mortgage industry can co-exists to facilitate a meaningful and profitable value chain. Highly graded property investment guidance, stories and tips sent to your inbox every week. Highly graded property investment guidance, stories and tips sent to your inbox every week. Are New Condominium Launches a better investment option?