Entries by Darren Goh

Banks Start To Cut FDR Mortgage Rates

With falling SIBOR, DBS has just announced cuts to its popular FHR home loan peg.  It pioneered the use of fixed deposit rate to price DBS home loan since 2014 in Singapore.  Other banks soon followed suit with their own versions which collectively we refer to them as FDR (fixed deposit rate) home loan pegs.  Subsequently some have […]

V-shaped Recovery? Not For Interest Rate.

In fact, the hope of a V-shaped recovery with a quick rebound in one month or two is now dissipating.  From what I gather – the talk has now moved to that of whether it’s a U-shaped or L-shaped recovery.  Even President Trump has reluctantly admitted the virus crisis might only end in Summer by July/August.  He also […]

SIBOR Crashed – A 1% Home Loan?

[This is a time-sensitive article with offer that may end soon] 1% home loan? Not quite yet but soon.  At the rate that SIBOR is collapsing over the past week, suddenly the prospect of your home loan interest rate going all the way down to 1% becomes a real possibility.  However, you need to act fast.  Read on. […]

Fed’s Surprise Cut Failed To Convince Markets

By now, many would have heard of US Fed’s emergency rate cut of 50 basis points (0.50%) last evening (3 Mar 2020), which happened outside of FOMC meeting. The financial markets initially rallied within minutes of the sudden announcement by Fed but subsequently reversed that with both Dow Jones and S&P ended the day almost […]

How To Right-Size Your Mortgage For Hard Times?

Hard times looming?  We are not sure really.  It could well be a V-shaped recovery too once the dust settles on corona virus outbreak. A lot depends on how long people stay away from consumption, how long more before supply chains are restored, and if businesses have the cashflow to wait out. Still, this article will be a […]

How Much Interest Do You Actually Pay?

The answer is – about $12,000 per year in the first 10 years of the loan tenure. In other words, $1,000 per month.   $750,000 OVER 25 YEARS AT 2% This is based on a typical private property loan of $750,000 over 25 years at the long-term average interest of say 2% (some years you will […]

SIBOR Has Dipped To 1.68%

1-month SIBOR has just dipped below 1.70% for the first time in a long while – to 1.68550 (as of 16 Jan).  3-month SIBOR is trading at 1.74037 with the gap between the two widening just a little. In line with our forecast for 2020, SIBOR is pretty much going to trade in a narrow band.  With […]

Interest Rate Up or Down In 2020?

Happy New Year to all readers of this blog! As we start a new decade of the 2020s, let me wish everyone all the best in this decade and let’s make it the best 10 years yet (no matter what age you’re at!).  For inspiration, I like to borrow the words uttered most recently by UK […]

Time To Invest In London Property?

“No ifs, no buts and no maybes”, said Boris Johnson in his victory speech where he promised to “get Brexit done on time, by 31 January”. The Conservative Party in UK has scored a landslide victory and achieved a majority in Parliament of 365 seats to take Britain out of the EU come January 2020.  In […]