MY Bank Home Loan interest very high ? Dont hearsay..
Who says MY bank home loan is very high, more than 5%? Why rely on hearsay or rumour? Why not ask someone who owns MY property for more than a decade ago? Since TOP till now, my bank loan interest rate is fixed at 6.6% - 2.4% = 4.2%; 6.6% being Basic Loan Rate (BLR) & 2.4% being fixed cost of finance. In other words, my MY home loan has been 4.2% fixed for many years. (I jusy checked. In fact my loan rate is now 4.05) Imagine 10-years ago, RM:S$ = 2.5; now RM:S$3.23 Translate to S$ loan interest, it's equivalent rate would be 4.2%/3.23 = 1.3%. So, 1.3% fixed rate, so long as the BLR is 6.6%. 1. Someone asks: "But that also means the actual value of your house has dropped via depreciating exchange rate." My reply: "Contrary, your purchased price is now discounted at 30% saving due to forex advantage for SG. 2. Someone asks: "But if you sell now? Current asset value…" I would reply, "It is always a blessing to enlarge our boundary and a good Pl...