Source : The Straits Times, Oct 5, 2007
MY WIFE and I refinanced our housing loan in July 2005 with UOB whose Board Rate then was 5.75% (actual loan rate = BR - 2.25%).
We were shocked to learn that the current UOB Board Rate as of September 2007 is 7.5%, an increase of 1.75%.
The Sibor rate in July 2005 was about 2%. Thereafter, it rose to a high of about 3.5% in July 2006, a 1.5% increase over the period. It fell to about 2.6% since May 2007.
Why is UOB's Board Rate still at 7.5%? If UOB had adjusted accordingly during the Sibor increase around end-2005 to early-2006, shouldn't the UOB Board Rate be adjusted accordingly now that Sibor has fallen since May 2007?
Ng Kok Kheng
All the banks have been playing the same game.
ReplyDeleteSibor goes up, they rush to increase board rate.
Sibor goes down, they said need to wait for 6 months to see if the trend is short term.
After one year, Sibor still remain low or lower, they forgot about what they had said.