UOB Bank Got Screwed By Ah Boon - i like

[Mdm Tang]

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http://sg.news.yahoo.com/khaw-urges-caution-slams-50-loan-034529293--sector.html


Khaw urges caution, slams 50-year loan


By Romesh Navaratnarajah:


Given the tough economic conditions, National Development Minister Khaw Boon Wan has advised Singaporean home buyers to be realistic about their finances.

Speaking at a National Day Observance Ceremony in Sembawang GRC yesterday, the Minister highlighted that Singaporeans should buy within their means, especially when it comes to housing.

He is satisfied with the progress of the property market over the last year, especially now that first-time buyers can easily apply for a Build-to-Order (BTO) flat in newer estates. He also reiterated that the government is committed to helping second-timers as well.

"This year, I'll be focusing on second-timers and improve their chances. So the recent BTO, I'm looking at the subscription rates day by day and it's quite healthy, but we will press on to build more to satisfy Singaporeans' demand to catch up on the deficit in the last few years," said Mr Khaw.

At the same time, he also encouraged buyers to be more careful when choosing financing.

"There're now some gimmicks coming along, some banks offering 50-years' (loan term) so please don't fall for that. It doesn't make sense."

Mr Khaw added: "If you want to immediately come out from school and get a five-room flat and think that a 50-year loan will help you achieve that, I don't think that is very wise. I've been checking how many people take up this 50-year loan, and as far as I gather, the number is very few, which I think is a good sign."

 

[Mdm Tang]

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Khaw advises Singaporeans against taking up 50-year housing loans


By Chia Yan Min
In the midst of global economic uncertainties, Singaporeans should exercise prudence and spend within their means, said Minister for National Development Khaw Boon Wan.

He also advised Singaporeans against taking up 50-year housing loans, which at least one bank has recently started offering.

"There is now some gimmick, a bank offering 50 year loans. Please don't fall for that, it doesn't make sense," said the Minister, adding that Singaporeans should spend within their means.

Last month, The Straits Times reported that United Overseas Bank (UOB) has started offering home loans that span 50 years, likely the longest-term loan available here. Said Mr Khaw: "If you immediately come out from school and want to get a five room flat, and you think a 50-year loan will help you achieve that, I don't think that is very wise."

 

[Mdm Tang]

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50-year loan a gimmick: Khaw
National Development Minister takes issue with bank's offer; urgers buyers not to fall for it
by Tan Weizhen 04:45 AM Aug 06, 2012

SINGAPORE - Stressing the need for prudence, National Development Minister Khaw Boon Wan yesterday criticised the recent offer of 50-year housing loans by a bank here as a "gimmick", and urged prospective home buyers not to fall for it.

Speaking to reporters on the sidelines of a community event, Mr Khaw called on home hunters to spend within their means. "My message has always been prudence ... There is now some gimmick, a bank offering 50-year loans. Please don't fall for that, it doesn't make sense," he said.

He added: "If your salary allows you to buy a three-room flat, buy a three-room flat. In 10 years, I'm quite sure, if you continue to work hard, your salary will grow, and then you can upgrade. By that time, if Singapore's economy is doing well, your three-room flat will fetch a better price ... you can then upgrade (to) four-room, five-room.

"But if you want to immediately come out from school and get a five-room flat, and think that a 50-year loan will help you achieve that, I don't think that is very wise."

Last month, United Overseas Bank reportedly started offering 50-year home loans. Previously, other banks had offered home loans that span up to 40 years.

For UOB's 50-year home loans, the maximum loan tenor eligibility is dependent on the borrower's age - applicants cannot be more than 80 years old at the end of the loan tenor. If the property is leasehold, the remaining lease years need to be more than 35 years at the end of the loan tenor.

Contacted yesterday, UOB head of secured loans (personal financial services) Chia Siew Cheng told TODAY that its latest home loan product was developed "to help younger executives afford their first home".

Ms Chia said: "We have observed many young couples in their late 20s to early 30s seriously looking to buy a HDB or a private residential property for owner-occupation. We are very clear with applicants that the longer repayment period and loan tenor also mean that more interest will be payable over the period of the loan."

Still, she noted that a majority of UOB's home loan customers "still tend to apply" for loans spanning between 20 and 35 years.

She said: "For all types of home loans that UOB offers, the bank carefully assesses each application using a range of criteria including the loan-to-value ratio, the value of the property and the applicant's income."

Mr Khaw said he has been keeping tabs on the number of applicants for the 50-year home loans. "As far as I gather ... the numbers are very few, which I think is a good sign," he said.

Property analysts TODAY spoke to shared Mr Khaw's concerns that young Singaporeans may overstretch themselves - with the current low interest rate environment providing a false picture.

SLP International head of research Nicholas Mak said: "They may comfortably be able to afford HDB flats, but they stretch themselves and get a condominium. Then when interest rates go up, or if they lose their jobs, they'll be in trouble."

Chesterton Suntec International head of research and consultancy Colin Tan added: "It's the worry that home buyers can get caught up ... without realising the math involved." Both Mr Mak and Mr Tan felt that such long-term loans were more suitable for property investors, instead of owner-occupiers.

On the housing situation, Mr Khaw said he was "quite happy" with the progress over the past year. "I can safely say that all first-timers, if they want to apply for a Build-To-Order in the non-mature estates, definitely, they'll get a chance to do so." He reiterated that, in the year ahead, he will focus on improving the chances for second timers.

 

[congo9]

Put it this way, Singkie has been screwed left, right and centre by their own govt. Why UOB don't hammer the last nail on the coffin ?

KNN, this KHAW i think is more hypocrite then self righteous, bank has to make money mah. You price the flat so high and with the stagnating of wage, how can bank earn money ? There you go 50 yrs home loan.

I tell you PAP govt will follow suit, your flat will be 1 million soon, with 100 years of housing loan !

 

[Narong Wongwan]

Khaw cover own asshole so sabo bank.......nothing wrong.

 

[yourlaubu]

whos fault in the first place? wee or cow?? if hdb price is not ridiculous until cannot afford, will there be such a ridiculous loan??? fucking cow got no cow sense !

 

[po2wq]

.... "There're now some gimmicks coming along, some banks offering 50-years' (loan term) so please don't fall for that. It doesn't make sense." ...

there was oso sum sh*t ... operation in sinkielan can cost oni $8 ... it makes dam logical cow sens ... :oIo:

 

[po2wq]

...

looks like got sum ulterior motif 2 sabo ah yaw ... in favor of ze kfc prez bank n dat blahdy sinkie bank ...

 

[Capano2121]

Still can't get over the fact that Wee Cho Yaw still consider them as tax payers' dogs!

 

[Loofydralb]

KBW will be in history known as the minister who inflated the bubble even when warned, and then burst it.

We will end up like Japan with a declining economy unable to recover due to their policies.

You can blame the Kow.

 

[kingrant]

How come never print the part about him renting a place when he first came from M'sia to Singapore, and then bought a 30 yr old house which he upgraded from, as his example of prudence?

Does he expect Sinkies to do the same? How much will today's 30 year old house cost and can the young married couple afford it?

Is this his idea of reality or just another $8 bypass?

 

[halsey02]

whos fault in the first place? wee or cow?? if hdb price is not ridiculous until cannot afford, will there be such a ridiculous loan??? fucking cow got no cow sense !

Go way back, way back, to ? Shortie Marlboro Tan, wooden go!, right to the time, when H.D.B. was "homes for the people", to "assets enhancement"..that is where the blame should be begin.

Cow, is a pretender!

 

[laksaboy]

Most of the shit that you are witnessing right now was caused by Marlboro Tan.

Property prices should have been cooled, and interest rates should have been raised, many years ago.

Khaw can't really do anything right now.

 

[Fook Seng]

Go way back, way back, to ? Shortie Marlboro Tan, wooden go!, right to the time, when H.D.B. was "homes for the people", to "assets enhancement"..that is where the blame should be begin.

Cow, is a pretender!

Totally agree with you that the problem started when "Homes for the People" changed to "Assets Enhancement".

 

[jw5]

looks like got sum ulterior motif 2 sabo ah yaw ... in favor of ze kfc prez bank n dat blahdy sinkie bank ...

Don't think there's an ulterior motive bro, he probably just wants to appear to be very thoughtful and caring and giving good adviCe.
The bank does not really lose anything, there will still be people who takes up this plan, and they can always adjust the duration downwards if the demand is not high.

 

[Mdm Tang]

Good chance of this 50 yrs HL being

withdraw soon since Boon said its a Gimmick

 

[thinkorsink]

whose words to thrust??? politician vs bankers...tsk..tsk...

Totally agree with you that the problem started when "Homes for the People" changed to "Assets Enhancement".

Most of the shit that you are witnessing right now was caused by Marlboro Tan.

Property prices should have been cooled, and interest rates should have been raised, many years ago.

Khaw can't really do anything right now.

Khaw cover own asshole so sabo bank.......nothing wrong.

Put it this way, Singkie has been screwed left, right and centre by their own govt. Why UOB don't hammer the last nail on the coffin ?

KNN, this KHAW i think is more hypocrite then self righteous, bank has to make money mah. You price the flat so high and with the stagnating of wage, how can bank earn money ? There you go 50 yrs home loan.

I tell you PAP govt will follow suit, your flat will be 1 million soon, with 100 years of housing loan !

 

[Boliao]

This cow is an idiot. The new 50-year loan is a necessity because of a problem that he caused and he wants to shoot it down?? By offering a longer loan term, UOB is actually increasing the asset's attractiveness and freeing customer's cash flow as a result. More cash flow = better spending power = better economy.

Fucked up politician he is.

 

[bushtucker]

No lah. UOB won't be screwed. The people who will be screwed are the lower to middle income sinkie families and young couples who feel that they can afford a larger house by stretching the home loan to 50 years.

 

[thinkorsink]

i sense some problems going on between UOB and our pap. of course, they have to look good and diplomatic together when taking photographs, maybe got show to see...

btw, i totally agree with you, i'd take the 50 year loan to ease up my cash flow and treat the property as a speculation in property, if prices go up, i sell. if it goes down, i rent to others. frankly, i think it's still worth it. even if the banks, want to adjust upwards, how many % more niah... this is singapore okay, if you double the mortage interest, i go make noise then your bank suffer drop in reputation.

tio bor?

This cow is an idiot. The new 50-year loan is a necessity because of a problem that he caused and he wants to shoot it down?? By offering a longer loan term, UOB is actually increasing the asset's attractiveness and freeing customer's cash flow as a result. More cash flow = better spending power = better economy.

Fucked up politician he is.