Re: SG Loan of Msian Loan Better ? Hidden Costs ?
Hmmm... I thought this is straightforward enough.
#A
Sg bank's Forex rates to the developer would typically carry +/- 300 pips spread. That's roughly an addition of 1.0% to 1.3% loading depending on the SGDMYR exchange rate. However, that's not to say that borrowers with My banks won't be subjected to this, as they also need to transfer SGD across to their My banks.
More importantly, you will be subjected to TDSR for this scenario. Unless you are really well-off financially and young (below 35 years old), TDSR is potentially a deal breaker for many Singaporeans. TDSR is scary for the majority of small-time investors like us, believe me.
#B
As mentioned, you will be subjected to the spread. But if you transfer a large enough amount, the spread will be smaller. E.g., CIMB's TT is subjected to around 100 pips, but it's only worth the trouble if you TT more than SGD20k over, as the bank charges some admin fees.
Next, I'm not sure why you state that My banks aren't transparent on the early redemption bit. I know most state upfront if there's a penalty or not.
Most disadvantageous for this scenario is the higher interest. With a RM640k loan with a tenure of 30 years, the instalment would be around RM3.1k at 4.2%, or RM2.4k at 2.2%. What's more crucial for the difference is that you are paying from around 72% of your instalment as interest at 4.2%, vs only around 48% for interest at 2.2%. In 5 years, you would have paid around RM128k of interest at 4.2%, vs RM66k at 2.2%. DIBS or not, the savings for a lower interest rate is substantial.
However, many My banks allow you to deposit a lump sum in your loan account to reduce the interest. Better still, that lump sum is not illiquidated, as they welcome you to draw that out anytime. Do note the same bit on Forex spread applies for conversion of this lump sum of cash as well.
Conclusion
To answer your question, if you are confident that TDSR will not dent your means to borrow, then go for the Sg bank.
Otherwise, borrow direct from My banks like many My property investors. If you have extra cash at home that you feel will not earn you much interest, then deposit that in your My loan account to reduce your interest.
Hope this helps.
But do note that this is my personal sentiment, as I am not a professional advisor on such matters. Do take this only as reference material.