Hi Guys - I am new to buying a house. Need help to decide on which loan should I choose to purchase a house. Both banks are having same rate at 3.15% but with different spread rate and MRTT tenure years

Bank A
BR 2.5% / Spread rate 0.65%
Interest - 3.15%
MRTT 30275 for 27 years

Bank B
BR 2.88% / Spread rate 0.27%
Intereat - 3.15%
MRTT 30365 for 22 years

I'll go for Bank A

Thanks. Any reason for that? I did ask around and was told lower spread rate is better for customer

I go bank B.

Interested to know too, SR lower or BR lower better?

correct me if i'm wrong, but i think spread rate is not important, since it's fixed already. so if opr changes, the br just follow % changes from opr.
say this year Bank A 2.5 + 0.65 = 3.15, Bank B 2.88 + 0.27. then next time say opr changes +0.5% it became Bank A = 3.65 : ( 3.00+0.65) and Bank B = 3.65 : 3.38+ 0.27.

edit: ok, i just realized of different tenure between those 2. if you got enough money to pay, maybe can ask if Bank A can shorten the tenure & reduce the spread further.

This post has been edited by flazeroth4th: Jul 9 2020, 04:12 PM

Why take mrtt full 35???
Investment or what purpose?

BANK A you roughly pay the same amount on mrtt buy getting 27 years instead of 22 years from Bank B.

That's a saving already.

the tenure i put is on the mrtt. Loan tenure both the same at 31 years

I am not taking MRTT for 35 years. It is at 22 years and 27 years for respective banks

Any reason why Bank B? Is it because of the spread rate?

No difference as mentioned by others, BR change accordingly, adding back ur spread, u get a same rate. Just do a research on which bank does quick adjustment, which banks delay or does not.

For lowering wise, of coz the bank that act fast will benefits u as ur rates adjust quickly; vice versa; when OPR rise, bank that act slow benefits u as u enjoy 'lower' rate for longer period

From what I know, there are banks that did not fully follow the drop of 1.25% OPR/BR since early this year

Thanks all..It seems like no big impact on the spread rate

Yes spread rate. But in long run, there is almost no significant difference. Next to compare termination clause in case you want to refinance later with other people.

i think both are the same.
previously i accepted the offer from bank M that charge 0.5% higher compared to other bank, but waive the MRTA.

Curious to ask the mrtt.... if i sell the house and buy the others, the mrtt will burned?

Yes

Kenot bring with you

But if you still have some balance years left on your MRTA when you sell the house, the bank might rebate you some amount, but very2 marginal