Want home loan rate adjusted? Pay $6,000 fee
WhenN I signed up a home loan with Maybank one year ago when Sibor was still at 2.4 per cent, with a view that general interest rates will go down, I decided to take the risk with a floating rate loan pegged at 0.97 per cent below Maybank board rate (3.75 per cent) for the first year.
This was despite the reminder by the loan officer that should interest rates go up, Maybank will correspondingly increase its board rate. While not pegged directly to Sibor, I was told that Sibor will be a good benchmark.
Now, one year down the road when Sibor has dropped almost one per cent to 1.44 per cent, I am still waiting for my floating loan to be adjusted accordingly.
I was told that my loan will be adjusted only if I pay a repricing fee of $6,000. This makes the readjustment completely unviable. What’s more, Maybank has been offering new packages at 2.28 per cent for the first year all this while.
Can the bank explain?
Chong Chiat Wah
Source : Straits Times - 16 May 2008
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