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

[Sinkie]

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

Does not bother me, for I'll be long gone. My children all grown up and migrated and I've put in motion to liquidate all my assets. The only thing I hold dearly is my wheelchair and I hope to be buried or cremated with it.

 

[frenchbriefs]

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.

the reason why the new zealander set interest rates at 5 to 9 percent is to keep inflation down and make sure only those who can truly afford one owns a property.by setting interest rates way too low,u are pumping in too much cheap credit(and injecting fake money into the economy) and creating a artificial bubble.bubbles dont last forever,sooner or later they have to pop and when they do,the housing market is going to crash faster than PAP can say coloumbarium.PAP thinks it can manipulate natural forces to boost their gdp figures but this arse loon's about to find out

 

[lifeafter41]

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?

Not when this is your first home, bought at 1.5kk, loan at 1.2kk at 1.2%.

 

[laksaboy]

All hell break loose......?

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

Fantastic. My deposits can earn higher interest.

The property flippers can go get fucked.

 

[AhMeng]

Not when this is your first home, bought at 1.5kk, loan at 1.2kk at 1.2%.

these fuckers deserve to be burnt.

 

[frenchbriefs]

these fuckers deserve to be burnt.

They can simply declare bankrupt and Zhao lor,then the banks and central bank that issued these low interest loans will be fucked.then the bank will declare all asset freeze and sinkies can kiss their dBs and posb bye bye.

 

[Cestbon]

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

Car loan are fix. It called hire & purchase.

 

[Cestbon]

the reason why the new zealander set interest rates at 5 to 9 percent is to keep inflation down and make sure only those who can truly afford one owns a property.by setting interest rates way too low,u are pumping in too much cheap credit(and injecting fake money into the economy) and creating a artificial bubble.bubbles dont last forever,sooner or later they have to pop and when they do,the housing market is going to crash faster than PAP can say coloumbarium.PAP thinks it can manipulate natural forces to boost their gdp figures but this arse loon's about to find out

Agree. FD should give min 3% PA and loan should be min 4%.

 

[Satyr]

All hell break loose......?

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

If mortgage rate rises the deposit rate rises. Govt will have to pay more on CPF. Won't happen.

 

[Vivendi]

these fuckers deserve to be burnt.

Viva Vivendi !!

 

[Cerebral]

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.

Interest rate determined by US rates

 

[krafty]

what makes the bank think that they have the right to raise interest rates to 5%, what is the mechanics behind? do they tail the fed rate, bee kok hasn't raised yet...

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

 

[krafty]

this explains my query http://www.channelnewsasia.com/mobile/business/home-owners-face-higher/1572468.html

still affordable...

 

[neddy]

I thought you mean Savings interest rates.
The old folks will be very happy.

 

[JohnTan]

If mortgage rate rises the deposit rate rises. Govt will have to pay more on CPF. Won't happen.

CPF interest rates on your OA and SA will always be less than the mortgage interest rates by CPF. Govt won't allow CPF monies to be depleted by loser sinkies. CPF will always need to turn a small profit, so that it can continue to function properly and care for sinkies.

 

[kopirui]

where to start learning all the basic of how money works..interest..fiance..
i cant seem to undrstand what you all talking.
sorry i m ite..grad
study car mechanic

 

[Froggy]

I'm glad I'm loan free, sold everything and no one wanna loan me.

 

[Sinkie]

this explains my query http://www.channelnewsasia.com/mobile/business/home-owners-face-higher/1572468.html

still affordable...

This I think is applicable for HDB loans from private banks and not HDB mortgage loan, which is fixed, depending on CPF rate.
Not sure if I'm right or not, but the article specifically talk about private bank mortgage loans.

 

[krafty]

yes, bro, HDB loan is intact.

This I think is applicable for HDB loans from private banks and not HDB mortgage loan, which is fixed, depending on CPF rate.
Not sure if I'm right or not, but the article specifically talk about private bank mortgage loans.

 

[Reddog]

All hell break loose......?

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

Maybe not. Not yet. When I was a young man looking for housing loans, the interest rates were around 12% leh.