My Home Loan Report Card (Yr 2)

Time flies and before you know it, the second year of my SOR-pegged loan is drawing to an end. The chart above shows my home loan interest rates over the past 2 years.

I will no longer enjoy the promotional bank margin (what the bank charges on top of SOR) of 0.75% and it will bump up to 1.25%. As was reported in my post yesterday, the refinancing offer i got was SOR + 0.85%, with 1 year lock-in. To be honest, it doesn’t look like an attractive offer, and with just 1 year of promotional margin being offered, it looks half-hearted. Considering that i may be selling my house later this year, i decided to just let the 3-months-in-advance redemption notice deadline lapse. If i switched to another bank, i will have to pay legal fees, which in the end probably works out to be more. Lets hope the current property frenzy continues for a while.

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