now that i have finished my masters, i told myself i will devote my time in the next couple of days/ weeks to focus back to getting my life in order.
so yesterday, i decided to start by taking a re-look at my housing loans. accordingly, i have taken up a package 2-3 years back with this particular bank. and as per stated in the package, the rate will vary year to year and that i will be kept posted on the changes by the end of each loan year or as and when the market interest rate fluctuates. and over the last year or so, i have, on almost a bi-monthly or quarterly basis, been receiving letters telling me the rate will go up by xxx%. given no choice but to acknowledge it as part of life, i went along... two weeks back, i received another mail from the bank telling me that by next month, the rate will again go up from my current 4.85%. that got me a bit curious... why did the rate go up despite the recent loom in the market? also, this latest upward revision also mean that i will have to fork out close to 3k per month for housing loan! short of selling my house when i change job, i decide to do a check on the current market rates and to see what will my loan look like if i do a refinancing.
visited one of the branch to inquire and perhaps sensing that they could possibility loose a customer very soon, the bank officer suggested that i should reprice (ie, stay with the bank and they'll re-offer a new package). i was immediately given a number to call which i did and left my contact details. before long, a lady called me and told me that she could easily give me a revised package pegged at 2.7% (fixed for 2 years) or 2.95% variable. this easily translates to a reduction of close to $800 per month for me!
of cos i was happy, but on the other hand, i thought - if i had not called and ask, the bank would just gone ahead and increase the interest rate to 3.75% from next month... all these despite the recent fall in interest rates.
so i asked - where is the ethics in this whole issue?
so yesterday, i decided to start by taking a re-look at my housing loans. accordingly, i have taken up a package 2-3 years back with this particular bank. and as per stated in the package, the rate will vary year to year and that i will be kept posted on the changes by the end of each loan year or as and when the market interest rate fluctuates. and over the last year or so, i have, on almost a bi-monthly or quarterly basis, been receiving letters telling me the rate will go up by xxx%. given no choice but to acknowledge it as part of life, i went along... two weeks back, i received another mail from the bank telling me that by next month, the rate will again go up from my current 4.85%. that got me a bit curious... why did the rate go up despite the recent loom in the market? also, this latest upward revision also mean that i will have to fork out close to 3k per month for housing loan! short of selling my house when i change job, i decide to do a check on the current market rates and to see what will my loan look like if i do a refinancing.
visited one of the branch to inquire and perhaps sensing that they could possibility loose a customer very soon, the bank officer suggested that i should reprice (ie, stay with the bank and they'll re-offer a new package). i was immediately given a number to call which i did and left my contact details. before long, a lady called me and told me that she could easily give me a revised package pegged at 2.7% (fixed for 2 years) or 2.95% variable. this easily translates to a reduction of close to $800 per month for me!
of cos i was happy, but on the other hand, i thought - if i had not called and ask, the bank would just gone ahead and increase the interest rate to 3.75% from next month... all these despite the recent fall in interest rates.
so i asked - where is the ethics in this whole issue?
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