My previous loan with DBS was a floating FHR8 + 1.45% with $288 cash rebate. That works out to be 2.05% pa as FHR8 is now 0.6%. No very attractive at this low interest rate environment.
The recent sg bank stocks price surge is partly due to a spike in US 10 years Treasury which is now at 1.101%. Very hard to predict where the rates are heading to, so its best to reprice my loan to a longer term fix rate to hedge against a potential continued rise.
We did our repricing online with DBS recently and this is the loan package we have repriced to:
The good thing about repricing is that you do not need to find/pay a lawyer and there are no charges involved. The new loan will also be effective the very next month. This new loan looks decent because its 1.5% pa for 5 years fixed(that is 0.55% lower than our previous rate). There is also a mechanism where we can par down our loan partially anytime after the loan is active with no charges. It also includes a 1 time free repricing after 30 months.
1.5% pa is lower than our condo's rental yield, Singlife's 2% interest and Dash EasyEarn's 2% interest. Its higher than BOC Smartsaver 1.45% interest though. See how it goes.
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