Invest[property special] 2:

2nd article that caught my eye!
DONT LET YOUR HOME LOAN HAUNT YOU!

It teaches one to consider the interest rates and lock in period etc when consider a mortage package.

Francis Chan shares his story of when buying his first house... he is shocked when he received a letter from bank to say that '' due to the flutuaction of interest rate environment, his monthly installment would have to be increased.'' This is when he haven even unpack his stuff in the new house.

So... some important information in the article

WHAT BANKS ARE OFFERING

1. DBS

Sibor fixed rate (Sibor stands for Singapore Interbank Offered Rate)

Year 1- 1.99% Year 2-1.99% Year 3-1.99%

Thereafter 3- or 12-mths Sibor +1.75%

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2. UOB'

Floating rate

Year 1- 3.5% Year 2 - 3.75%

Thereafter 4%

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3.OCBC

Floating rate

Year 1- 1.6% Year 2 - 1.6% Year 3-1.6%

There after 3.75%

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4.Maybank

3year fixed rate

Year 1-1.6% Year 2 -2.2% Year 3-2.9%

Thereafter 3.75%

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5.StanChart

2 year fixed rate

Year 1-1.5% Year 2- 2.5%

Thereafter 3-mth sibor +1.25%

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Fixed rate means protected against the fluctuation of the market interest rate... Its good, thus you can see, no bank provide fixed rate throughout lo...

then the author also mentioned about locked in period. It refer to how long you are tied to the bank and allow it to penalise you if you decide to redeem your loan early.

Haha.. first time home owner, good luck!(haha, including me too!)