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This post has been edited by AiRseaL: Oct 10 2011, 11:42 PM

Good Luck unless u can predict future

lol,, if i can predict then might as well i buy toto.

Just wondering which one will a ''Property Sifu'' will choose.

after all its a 30years long affair.

It's hard to say. It's just like the stock exchange. But one thing i can tell you is that BLR will rise very soon. It's been widely reported by the media in January.

This post has been edited by MilesAndMore: Feb 17 2010, 12:49 AM

Let's start with...

a. Is this property a home or an investment?
b. What sort of person are you: risk adverse v risk neutral v risk taker?
c. In terms of your current financial situation, what percentage of your net income will be for mortgage repayment?
d. Do you expect to pay in extra mortgage payments a month?

Different situation requires different financial planning...

blr averages around 12%.

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This post has been edited by AiRseaL: Oct 10 2011, 11:46 PM

tht really sounds like someone who just pass by this forum...

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This post has been edited by AiRseaL: Oct 10 2011, 11:47 PM

if u want to take standard BLR, then better look for loan type with ceiling BLR rate.
normally the ceiling rate between 10.5-10.75% ...

considering the ability to refinance our loans (even if we want to wait until the lock-in period finishes), is it still good nowadays to go for fixed rate?

you mention fixed rate is 5%, so for BLR - 2.1 to get equal to 5%, the BLR needs to be 7.1%...even though BLR going up in the next years, current BLR 5.55% to jump to 7.1%, isn't that a little big range and risky for BNM to call, no?

just throwing out opinion...i guess the sifus should have better answers...

This post has been edited by abu_adi: Feb 17 2010, 11:27 AM

it is a give and take situation, as nothing is perfect in this world

whether to take a fixed rate or flexible rate, very much dependent on your risk profile as well

how far blr will go, depends on how the recovery on the economy goes....

Fixed rate has one advatange aka you can plan for your cashflow and don't need to worry about the rate afterwards, but you may not able to save if BLR goes lower or doesn't go up.

Variable rate - you are opened your risk at the expense of taking risk BLR will not go up or go lower but save more if rate doesn't go up.

So it is about individual choice and risk tolerances and preference.

Personallly opinion BLR won't go lower at near term, but it won't shoot to the sky either. The max BLR can move is around 0.5% for near term for this 1-2 year time. But since housing loan time frame is much more longer, so it becomes very hard to say which one is better, it is more about personal planning, risk tolerance and prefence.

Basically, you secure your risk with fixed rate but need to pay more expensive at variable rate at time being.
But longer time frame, it is much more difficult to predict due to lot of uncertainty in economy.

At the moment, we are at historical lower point of interest rate based on history standard but past history doesn't mean point to future nor give a clue how interest rate will be.

The bull climb the stair, the bear jump out the window.
So what do you think the BLR in these few years?

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This post has been edited by AiRseaL: Oct 10 2011, 11:48 PM

In the near 2 - 3 years, it'll be tough to see interest rates rise above 7%. It'll take awhile for the global economy to rebound to its peak.
Why not?
Make full use of the current deal of BLR - 2.1%, BUT repay the mortgage at the fix rate of 5%?! Since it is a home... and you clearly can afford to make the extra payments, use the cheap financing, and pay back as quick as you can?

fyi

I believe the BLR won't breach 8% level

But the problem is that, your mortgages is 30 years time frame, while BLR very likely won't rise more than 7% in the near future but this is about the next 2-3 years time frame up to 5 years.

Beyond that, we don't know what would happened.

As if economy does recover in the next 2-3 years, interest rate is almost surely will be on the up one.

Near term surely is BLR-2.15% win, no doubt, but longer term like more than 5 years, very hard to tell. That's why it is more about individual preference and cashflow issue.

Nobody knows 5 years from now, how economy will be.

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This post has been edited by AiRseaL: Oct 10 2011, 11:47 PM

Refinancing only work when interest rate is going down time.

When interest rate is going up time, then refinancing option is not a good idea.