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
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1 comment:
All the banks have been playing the same game.
Sibor 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.
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