Which bank loan

[Brave]

Hi , we have entered into agreement with a potential seller to buy a house. ref mortgage, we have the option to either go in for a 3 month floater rate (SIBOR linked) , reset every 3 months or decide to lock in a 12 month SIBOR rate for 1 year, reset every year

Which is more advantageous to go in for ?

Has anyone got views on whether SIBOR will go up or down in the coming years ?

[interest rates up]

driven by inflation. Interest rates will rise greatly. If you can only just afford your loan I suggest you fix the rate for as long as possible. At least then you will sleep at nite. Ride out the storm for 2 years and hold your property for the long term, you may just come out the other end. Good luck.

[Interest rates]

That's a big assumption, interest rates will rise. Imagine more house owners in the US get squeezed very soon due to the rise. Not what the FED ordered. Wait until the sub-prime problem in the US settles and the US economy gets better.

[inflation 6.8%]

Inflation jumped 1.3% just from December to Jan. Its now running at 6.8% pa and rising. Interest rates have to follow as they are the time value of money. The only way big Bro can fight inflation is to raise rates. It will increase Sing $ and lower cost of inmports. Watch this space. I am tipping 4%+ rate by Q1 2009
Lots of pain comming for people who borrowed big time

[penny worth]

Interest rates currently being pulled both ways. High inflation indicates a rise to counter but slowing global economy means they are being held down. Right now they are very very low historically. Two scenarios for 2009

1.  US turns around soon and Singapore escapes the worst. Rates rise Get a fixed morgage, or at least a 12 month reset. Or..

2. Deeper global recession, inflation contains itself interest rates stay low, get 3m variable.

Me, I haven't a clue but don't like the risk part. I went 3 year fixed, at least I sleep well at night knowing there's no risk

[nostar]

Could someone pls tell me what is the diff between SIBOR and SIBID ?
Intended to re-finance my loan. The bank stated that their mark up rate will change when SIBID go above certain rate.
Where can i get the historical value for these rates ?

[krazy]

The only advise I will offer is don't take 95% of the advise you see in this thread and others:

1) most countries in the world fight inflation by raising rates

2) singapore doesn't - the MAS uses currency as it major monetary policy measure

3) they currently are letting it appreciate - and have stated so - this often has the impact of seeing lower rates as global investors are happy to accept a lower interest rate in the knowledge they will pick up their return on the currency.

the advice given in this thread makes sense if you were in the UK, US, Aus or pretty much anywhere else - but doesn't not necessarily hold in Singapore.

That said, I've just locked in at about 2.5% for the next couple of years - its almost free money

[Courtesy]

The only advise I will offer is don't take 95% of the advise you see in this thread and others:

1) most countries in the world fight inflation by raising rates

2) singapore doesn't - the MAS uses currency as it major monetary policy measure

3) they currently are letting it appreciate - and have stated so - this often has the impact of seeing lower rates as global investors are happy to accept a lower interest rate in the knowledge they will pick up their return on the currency.

the advice given in this thread makes sense if you were in the UK, US, Aus or pretty much anywhere else - but doesn't not necessarily hold in Singapore.

That said, I've just locked in at about 2.5% for the next couple of years - its almost free money

"That said, I've just locked in at about 2.5% for the next couple of years - its almost free money"

of those "Cash is King" believers..