Slapped by a 9.5% interest rate after fixed pricing of condo loan ended

[ikonimation]

Hi all!

Ok so long story short my 3 years fixing loan from bpi has ended and now received a notice that they will increase from 5.5% to 9.5%, yeah a freaking 4% increase. Anyone experienced this? What did you do? What are my options you took. I’m exploring to refinance from another bank or pay some lump sum to make the principal lower atleast. I tried to nego but only got a very little rate reduction from the bank and they will ask to pay 3,500 for the request.

I think im getting the banks strategy now, they will entice you to get a loan initially for a lower rate then later they will charge you with hefty rate increase. To all the experts, do we have some kind of protection from BSP for scenario’s like this? Is 9.5% really acceptable in the current market?

Thanks!

 

[snowballowen]

@ikonimation not an economist, but 2021 interest rates by BSP were low compared to the 6.5% we have now. Probably the loan is just trying to replicate the interest rate hikes that were enforced by the central bank

 

[ikonimation]

@snowballowen Based on BSP website https://www.bsp.gov.ph/SitePages/Default.aspx its 7% lending rate now and they want to charge me 9.5

 

[matveyk]

@ikonimation i believe the 7% rate is for the overnight deposit, i.e the interest rate the government gives the banks for them to deposit their cash to the treasury. this is how the government sets the interest rate of the market. if the bank can get 7% from the govt, they will increase the rate they give out to the customers for them to make profit.

 

[jay984253]

@matveyk Correct. OP, if banks can get 7% risk free, why would they charge less than 7% from you who’s riskier? They’ll demand a risk premium, and somehow, they arrived at 9.5%. That’s part of the risk you take when you get a loan. You’re subject to repricing, and in a high-rate macro environment (to control inflation), that’s what you get. Best you can do is explore other banks/PAGIBIG. BSP won’t help you get a lower rate.

 

[ikonimation]

@matveyk Got it thanks sa info wakerwaker

 

[kmar123]

@ikonimation Refinance w/ pagibig if you can.

 

[episkopay]

@ikonimation Not a condo but a home loan kay We Find Ways. Same from 6.5% to 9.8%, Ask for recomputation sabihin mo hindi mo kayang bayaran (Kunyari lang even if you can)

Ganyan ginawa ko tapos ang final na binigay is 8%, mataas pa din pero wala nako magagawa. I'm locked for 1 year again.

I think dahil sa mga nangyayari kaya mataas ang interest, Hopefully this year bababa na uli or else I will be forced to change banks.

 

[deade]

@episkopay Shuta sila sa BDO din kami, 9.8% binigay samin tinawag ko now nagrequest ako ng 7% kasi yun yung nakalagay sa website nila mga hayp sila haha kakairita sa mahal.

 

[chava22611]

@deade May template yan sila. I did the same. I-email mo yung request mo. Una irereject nila. Tapos replyan mo sabihin mo nagbenchmark ka sa iba na mas mababa and then pwede ka lumipat sa iba. Tapos saka nila i-approve. From 5.88% pre-pandemic to 9.8% kaloka.

 

[ikonimation]

@episkopay Yeah trying to renegotiate

 

[ruminator2]

@ikonimation The effect of BSP rate increase. Unfortunately, hangga't di okay ang inflation, mananatilng mataas ang rate.

 

[sissikop]

@ikonimation Get pre-approved with other banks, check their interest then counter-offer with BDO with the pre-approval from the other bank. Lowest rate right now is 7% with BPI 5-year fixed if you're preferred partner.

 

[orthodoxguy]

@sissikop Hi. Sorry to butt in ask ko lang po pag nag pa pre approve ba need to pay yun appraisal fee ng bank? Thank u

 

[sissikop]

@orthodoxguy For full approval ba yung appraisal stage.

 

[revopt]

@ikonimation Try mo Chinabank mababa ata sila now, or refinance to Pagibig.

 

[2learn]

@ikonimation Home loans or long term loans may fixing term tlga, kaya lging estimate lang yung interest rate na nasa sample computation. Hindi pwedeng yung 5.5% mo for 10-30 years due to inflation.

Hindi yata yan masyado sinasabi ng agents kasi parang ang daming hindi alam yan.

DYOD sa lahat ng purchases, kasi it's always "buyer beware"

 

[raelene]

@2learn They know it, they won't disclose it para mabilis kang makakuha ng unit. Hahaha.. though ung agent ko sinabi naman sakin na the interest rates ay pede tumaas or bumaba after 3-5 years...

 

[2learn]

@raelene Every cycle ng fixing term sya pwede mabago, naka base sa prevailing market rate. Kaya kung kaya naman wag masyado habaang ung loan term, talo kasi sa interest

 

[jfp75]

@ikonimation Do not accept it, get it refinanced by another bank, if you want to keep the loan on the same bank, show the promo rate to your current bank to match if possible. Try to talk to your bank branch manager or bank relationship manager.