Avoid thereafter rates!
Do your best to avoid thereafter rates, they are usually unfavorable for you. These rates are also what the banks benchmark their stress test on, to qualify you for the mortgage.
The only time when you may want to willingly pay thereafter rates, will be when you're exiting your property.
here's a sample interest rate package
Fixed Package (2yrs)
Year 1 - 3%
Year 2 - 3%Â
Thereafter - 3M SORA + 1%.
Floating Package (2yrs)
Year 1 - 3M SORA + 0.5%
Year 2 - 3M SORA + 0.5%Â
Thereafter - 3M SORA + 1%.
What type of interest rates should I be taking?
- Banks largely base your interest rates on the their forecasted SORA rates in Singapore
- By knowing where SORA Rates are headed, we can estimate, which rates will be cheaper in the next 2 years
- SORA rates are highly correlated to the US Fed Funds rate
Q1, 2024Â [Summary of Economic Projections]
Every quarter Ethan; the economist of unbeatable would have a webinar with a multi million fund manager to talk about the interest rate environment.
Based on the FOMC Projections and incoming market data, we will be able to help our clients make a more informed decision on which types of interest rates to consider.
We go to great lengths to help you decide what is the best rate type to consider when it comes to picking fixed or floating rates.
(not to be taken as financial advice; get in touch for your highly personalized free consultation.)
Get In touch, let us get you the best rates!