UOB Repricing Price

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Last week I wrote about the increase of UOB 36M FDPR while I’m waiting for the bank to get back to me on repricing price.

However, the results are disappointing for being loyalty. There is a repricing fee of $800 but it might be reduced to $500 subject to bank management decision.

My current interest rate is 1.80% (36M FDPR + 0.80%). Revised rate is 2.45% (36MFPDR + 0.80%).

Now the interesting part is what UOB is offering me.



2 Years Fixed Rate

Yr 1: 2.58% (FIXED)        

Yr 2: 2.58% (FIXED)

Thereafter: 2.58% (MR + 1.73%)

MR is the Bank’s prevailing UOB Loan Rate, currently at 0.85% per annum

2 Years Floating

Yr 1: 2.30% (MR + 1.45%)

Yr 2: 2.30% (MR + 1.45%)

Thereafter: 2.30% (MR + 1.45%)

MR is the Bank’s prevailing UOB Loan Rate, currently at 0.85% per annum

1 Month Sibor Pegged

1 Month SIBOR as at Feb 2019 = 1.82%

Yr 1: 1 Month SIBOR + 0.40%

Yr 2: 1 Month SIBOR + 0.40%

Thereafter: 1 Month SIBOR + 0.40%



Conclusion

It doesnt make sense for me to take up 2 Years Fixed package as it’s higher than my revised rate and i can reprice it shall one day the 36M rate is higher than fixed.

2 Years Floating is not attractive to me as i will be saving 0.15% in interest thus I won’t choose this package too.

1 Month Sibor package might seems to be the best package compared to the other two packages. If you read my previous post, HSBC also have 1 month sibor package and their spread is 0.25% compare to UOB 0.4% spread.

The wonderful thing is, I do not need to pay for lawyer fee and valuation fees and yet i can enjoy lower interest.

Author: The Financial Guy

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