What if interest rate rise to 5% by end 2015........

[lifeafter41]

All hell break loose......?

Maybe a good time to cash out whatever stocks and property one have for the next opportunity?

 

[drambuie]

All hell break loose......?

Maybe a good time to cash out whatever stocks and property one have for the next opportunity?

Many borrowers sure die if this happen.

 

[AhMeng]

Many borrowers sure die if this happen.

CPF interest rate will rise too...hahaha

 

[drambuie]

CPF interest rate will rise too...hahaha

Bank rise 1% CPF rise 0.05% sure we die.

 

[AhMeng]

Bank rise 1% CPF rise 0.05% sure we die.

depends on exposure lah... overexposure sure die... and those who do so deserve to die anyway

 

[drambuie]

depends on exposure lah... overexposure sure die... and those who do so deserve to die anyway

Yes those who conservative can still sleep well but those greedy ones sibei loon from now.

 

[AhMeng]

Yes those who conservative can still sleep well but those greedy ones sibei loon from now.

An average sinkie will not feel a pinch as they only have a cheap pigeon hole loan to service via Cpf funds...so no major problem lah...

 

[drambuie]

An average sinkie will not feel a pinch as they only have a cheap pigeon hole loan to service via Cpf funds...so no major problem lah...

How about those who borrow for cars will they be affected badly?

 

[AhMeng]

How about those who borrow for cars will they be affected badly?

Who ask them to borrow to buy car. They can always take public transport.

 

[Leongsam]

All hell break loose......?

Maybe a good time to cash out whatever stocks and property one have for the next opportunity?

I don't see an issue. The interest rate in NZ is between 4.5% to 5% and life carries on as usual. Why should Singapore be any different?

 

[JohnTan]

I don't see an issue. The interest rate in NZ is between 4.5% to 5% and life carries on as usual. Why should Singapore be any different?

Most sinkies are not aware. They actually think near-zero interest rates will continue till Judgement Day.

 

[drambuie]

Who ask them to borrow to buy car. They can always take public transport.

Ya so some escape from property but get caught by car loan. Worse if have both type of loan.

 

[drambuie]

I don't see an issue. The interest rate in NZ is between 4.5% to 5% and life carries on as usual. Why should Singapore be any different?

New Zealand is New Zealand but Singapore is Singapore.

 

[frenchbriefs]

Most sinkies are not aware. They actually think near-zero interest rates will continue till Judgement Day.

who sets the interest rates?sinkies or govt?if interest rates rises,the property market is going to come crashing down.no sinkie is going to afford a 380k pigeon hole mortgage on top of a 5 percent interest rate.thats 1k per month mortgage plus 1.2k interest,2.2k monthly total.i believe the max contribution to cpf is only 1k per month.ur cpf balance would read negative 420k by the time ur 55.

 

[Sinkie]

Why you think interest rate will rise? It has been suppressed for so many years artificially by MAS, so that CPF interest becomes attractive, even though it is a pitiful paltry 2% and hence CPF has become a very very very CHEAP source of funds for GIC and TH, without our approval, because only one ruling party in lumparliament and all bills are easily bull-dozed through to suit their own money sucking agenda. Simple as that.

No worries, interest rate will never rise. Fat hope. You can keep borrowing and spend like no tomorrow.

 

[JohnTan]

Why you think interest rate will rise? It has been suppressed for so many years artificially by MAS, so that CPF interest becomes attractive, even though it is a pitiful paltry 2% and hence CPF has become a very very very source of funds for GIC and TH, without our approval, because only one ruling party in lumparliament and all bills are easily bull-dozed through to suit their own money sucking agenda. Simple as that.

No worries, interest rate will never rise. Fat hope. You can keep borrowing and spend like no tomorrow.

Yay! I am off to take a big loan!

 

[Leongsam]

New Zealand is New Zealand but Singapore is Singapore.

Yes but the economy functions in a similar manner. If interest rates rise in Singapore, sinkies will just do what the Kiwis do and adjust their mortgage repayment schedule accordingly.

5% interest isn't going to kill the property market. NZ interest rates have hovered between 5% and 9% over the last 10 years and the property market has been booming throughout this period.

Single digit interest rates aren't going to cause any problems with housing demand. People still need a roof over their heads.

Higher interest rates also benefit depositors and there are plenty of those around too.

 

[Sinkie]

Yay! I am off to take a big loan!

No need to call that a loan. It's a steal, because I'm bery sure you do not need to pay back because Singapore will not exist in 50 years time, so make sure you 'steal' it long term. Borrow from one source to pay for the other and rinse and repeat until you delay your obligations for 50 years. If fortunate, you die much earlier and you will just bring all your debts to die with you in your own grave, but the money oredi spent in this life. This is the way most Singaporeans live nowsaday.

 

[Leongsam]

No need to call that a loan. It's a steal, because I'm bery sure you do not need to pay back because Singapore will not exist in 50 years time,

How many of you think that Singapore will be around in 50 years time?.... KEE CHIU!

 

[Asterix]

..........

Higher interest rates also benefit depositors and there are plenty of those around too.

Thou shall not assume that Lightning has interest of People at heart
Whole idea of having no more than three big local banks
Is to decrease competition hence no need to compensate depositors
Adequately for use of their money earned with blood and toil
Robbing them indirectly through returns which are way below inflation