Hi one of our readers commented that with such low interest rates, isn't better to be taking up car loans, home loans, education loans,establish credit lines etc. ?
Yup..in fact i really do agree with him. There's is really no better time to start taking up loans to buy your car, house ..etc. However, it is precisely because of the economic crisis, whereby people are worried to take up more loans than they can handle and the fact that banks are unwilling to lend that caused the low interest rates to start with. So be careful with your credit status. Living on too much credit/loans will affect your credit rating..and you might have problem getting future loans.
On a side note, just to remind those of you who are currently paying a fixed housing loan, whereby the contract was fixed quite some time ago...U SHOULD REFINANCE IT. Go for the floating rate one instead. It should save your quite a lot of $$, because the 3mth SIBOR rate is rather low now.
Fixed rate => You pay a fixed interest rate to the bank for the reaiming term of the loan
Floating rate => You pay a variable rate that changes over time. ( usually is 3mth Sibor + XX%), which could might be lower or higher than a fixed rate. However in the present situation, the floating rate is lower.
Here is a quick chart of present home loan rates..taken from 'The Edge' Magazine. (Dated 23-29 March 2009)