I am 26, single, non-PR holder, no dependants.
Looking to buy a new condo to be built Aug 2025.
Cost is 4900万, and I will put a 20% down payment.
Been in same company for 3 years now, annual salary is around 8M.
I want to leave to my agent, he is showing me rates around 1.5% , 35 years, does this seem right? I read that rates would be increasing from this month, what would be a good rate to settle on before applying for PR and refinancing?
I had one pre-screen application that was rejected by SMBC today.
by JPJin
5 comments
Is it a flat 1.5% rate, or is it variable? Or locked for specific time period?
Variable rate?
1.5% is pretty bad for variable. But for fixed rate it’s actually pretty good considering you’re not the optimal borrower in their eyes.
As others have said, that seems high for a variable. I got a 0.6% variable rate on my new house last year with a less than stellar credit history.
Edit: ill add for context that I have PR and am permanently employed
I recommend you try outside the big three mega banks, as they give shittier rates. Resona, Shinsei…etc are a lot more competitive in their rates. I got mine at 0.47% from Resona while SMBC and MUFJ gave me crap.
It might be more financially efficient to wait for PR and get a no downpayment lower interest loan later while you invest those 20%. Do some calculations.
Personally for me putting 20% of 50M into a property when you could have it as a 100% loan in a couple years seems like a colossal waste of money. You could be earning 7-10% on it instead.