Different bank have different ways to attract customer to take up their loan. In terms of the rates below, most of the client will think that Bank B offers a better package, but in actual fact Bank A is offering a better package for an uncompleted project.
Bank A Bank B
1st year: 3mth Sibor + 0.90% 1st year: 3mth Sibor + 0.85%
2nd year: 3mth Sibor + 0.90% 2nd year: 3mth Sibor + 0.85%
3rd year: 3mth Sibor + 0.90% 3rd year: 3mth Sibor + 0.85%
4th year: 3mth Sibor + 1.00% Thereafter: 3mth Sibor + 1.25%
Thereafter: 3mth Sibor + 1.25%
Bank A Bank B
Total Interest
Paid : $21,446.61 $22,740.18
Principle at End
of 4th year : $750,797.49 $751,787.79
Total Interest Saving: $21,446.61 - $22,740.18 = $1,293.57
Total Principle Saving: $750,797.49 - $751,787.79 = $990.30
Total Saving : $1,293.57 + $990.30 = $2,283.87
This illustration is not to show you how much you can save, but to show you that the attractive figure might not be cost saving in the end.
"Play with the numbers and don't let the number play you out :)"
*Do take note that for uncompleted project, full fund will only be disbursed 1 year after TOP, any refinancing or full payment done on TOP will be subjected to a cancellation fee.
If you have any question unsolved, you can either get me via my Mobile at 9 1 7 6 7 9 7 0 or email me at den@housingmatters.com.sg or even drop a comment below :
Den Ng
Housing Matters
http://www.housingmatters.com.sg
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