 Hi, good evening everybody, all right? If you can hear my voice clearly, can you type I in the chat, okay? Because tonight is gonna be super, super exciting. The topic that we are delving in tonight has to do with the first alphabet that you just typed just now. So can anybody make a guess? What is the topic that we are delving deep into, all right? So what is that topic? Anybody know if you have been following my telegram channel, you will know that tonight we are going to cover a very, very special topic which is about interest rate, okay? Can everybody type I in the chat, okay? If you are excited to understand how would the interest rate be performing from now on, all right, in 2024 and beyond, then tonight is gonna be something that you will take away a lot of things, all right? So in the meantime, just I'm going to blast it to my telegram just to remind everybody that it's already like live now, let's predict 2024 interest rate, okay? All right, okay, so I can see that Kelvin is here, all right? Thanks for being here on time and safe investor is also here, fantastic. So in the meantime, I'm also going to put this into the other group chat that they are also very, very curious to find out, all right? Which is actually my, the momentum group chat, okay? Because some of my neighbors are also very, very curious for the interest rate, you know? If you are a homeowner, I'm very curious how many of you are homeowner? If you are a homeowner, type me in the chat and tonight's topic is also something that's highly relevant to you because if the interest rate continues to remain high, then you might want to consider some of the ways to refinance or reprise or whatsoever so that to lower down your mortgage rate as well. So let me just, in the meantime, live now, okay? Put it into the chat, let's go. Okay, all right, so good evening everybody. I can see Qingming is here as well. Hi, Peter, good to see you, all right? So now tonight's expert, it's not me, all right? Because I have no idea how is the interest rate gonna be like, all right? I'm just an investor and of course as an investor, you also need to understand that interest rate will impact the stock market. So later on, as we are diving deeper into the interest rate, we will also be going deeper into the stock market as well and what kind of impact potentially it can bring. So if you are investors, be it you are stock investors or be it you are a property investor, this topic will be something highly relevant to all of you, all right? So the expert that I'm going to invite in right now, all right, he has seven over years of experience in the finance industry, all right? And then for the past four years, he has actually been working, all right? He runs a business as a mortgage broker. So interest rate is something that he deals with every single day, all right? And that's why I want to invite the best to come and share with you his insights. And for the past few years, he has been consistently predicting the interest rate trend very, very accurately, all right? So that's why today when we invite him, we are also going to dive into his golden insights, right? Exactly what does he see for the interest rate in 2004 and beyond, all right? So if you are excited to learn, can you type E in the chat, all right? Hi, Vincent, good to see you here as well, whole Monopoly homeowner. Well, eventually you will turn that Monopoly into reality, Kelvin, I'm pretty sure, all right? So without further ado, let's welcome Ethan to be here. Thank you so much. Hello everybody, thank you, thank you, hello. Hi, Zoe, thank you for having me here. Yes, Ethan, maybe before we officially get started, right? Maybe my introduction just now didn't do you any justice. You can give us a quick introduction about yourself so that our audience can understand more about your background first. All right, thank you. I think you did a fantastic job, but a quick introduction is that I run unbeatable mortgage. What we do is we do quite one of the deepest market insights to be able to help you determine where your mortgage rates are going to go and then help you choose between fixed and floating rates because this is one of the biggest expense everybody pays and what I want to do is take my job very, very seriously to be able to help you choose. And because of that, I have done a lot of research where I will be sharing with you guys today. Awesome, awesome. I think people are getting super excited. They are all typing CCC, clapping for you already. Okay, thank you very much. Actually prepared a very, very comprehensive slide there to predict the interest rate ahead. So we're able to start sharing some insights and then in the meanwhile, some of our audience, they may have additional questions along the way. Then feel free to also put it in the chat and Ethan will be more than happy to share with all of you as well, all right? So if you guys are excited to learn, can type L in the chat. And in the meantime, I think Ethan accidentally drop out. He accidentally drop out from the... Okay, he's back, he's back. Okay, let me add him in first. I think he's as excited. Because the presentation is F5, then it refreshed the browser. No worry, no worry, okay? They are all getting so ready to learn from you and that's why maybe you can start sharing screen again and then we can really get started. Okay, so maybe let's start by talking a little bit about what kind of things actually affect interest rates first. So there are a few different kinds of economy, three basic kinds if you were to just boil them down. There are the seller side economy where they are actually looking to produce as much goods as humanly possible so they want to keep their interest rates low. This will be their China, the Japan, the Korea side of things where interest rates are typically low. These are export-driven economies. Then there are import-driven economies like the US, the UK, the Eurozone, these places, right? They actually want to keep their interest rates high. The reason why they want to keep their interest rates high is so that they will be able to keep their currency higher. When their currency appreciates what happens is then they will be able to buy more goods and services from the export-based economies. So if I were to share my screen right now, this is where I'll be able to share my insights on where Singapore actually is. So if we're looking at the Singapore interest rates, we are looking at us being somewhere in between. So Singapore's exchange rate policy is very, very unique and we have actually been shadowing the US interest rate quite a lot. As you can see in the policy document here, don't worry, it's a lot of text, but I'm not gonna make you guys read through everything. One of the more important portion over here actually shows that Singapore, right, actually follows US interest rates and largely determined by foreign exchange interest rates. That's why I have to talk about all of those earlier. So when you're looking at Singapore versus US interest rates, you can see we are quite obedient to the rules. Not only we have a very high correlation, we are also typically below for most circumstances. And because of that, right, this actually affects our SORA rates, which eventually affects where our banks are going to offer you for your mortgage rates. Over here, I just want to ask a question, all right? For those who are very new to the interest rate, maybe they probably don't even know what is SORA, is EFFR, are you able to just elaborate a little bit? Okay, so SORA is the Singapore overnight rate average. So this is where they actually look at, the central bank actually talks about this is the lending rate that the central bank actually has in Singapore. So if the banks are not able to meet their liquidity or they are looking to borrow money from the Singapore pool, they will be able to borrow at the SORA rates. And for the effective federal funds rates, this is a rate that is set by the federal reserve in US. So in the United States, what they do is they actually set the effective federal funds rate to be able to curb inflation, number one for price stability, and number two for maximum employment. So every quarter, right, they will actually have a meeting. And fortunately for us, this is all published information where they will then be able to tell us where is the effective federal funds rate going to be. So based on this, like 2033 is going to be like 5.6, but then subsequently next year, it seems to be on the downtrend. Correct, and 5.6, then after that it will drop to 5.1, then 3.9, then 2.9. Don't worry, I actually plotted it out for you. Wow, how sweet. Oh wow, okay, so right now, okay, it's just like what Ethan said, usually Singapore, which is a SORA, tracks pretty closely to the US EFFR. Right, however, it's generally slightly lower than the US. So with the US predicting to be lowering their interest rate, do you foresee that to happen in Singapore as well? Yes, so I've actually done a little bit of math over here, but not to bore you guys with that, I've also plotted out the estimates of where SORA is looking to be. And as you can see the behaviour of SORA, right, they are actually very erratic. So this is where we actually have the breakdown of where SORA is estimated to be, where everything is going to roughly be. But the exciting thing is this is all data, and these are projections. So please consult your own mortgage broker, hopefully myself, or if you have to make your predictions out of my model, feel free. But everything with a pinch of salt, the reason why there are squiggly lines is because this is the plan and plans do change. As you can see, right, over here, right, they actually look at the June project. If you look at the June projections and today's projections, you can see they actually increase the numbers for 2024-2025, from 4.6 to 5.1 and 3.9 to 3.8, 3.4 to 3.9. Oh, so the June projection was set earlier. Correct. So the June projection expected us to go down earlier, but this kind of data do change based on incoming data, and our job later is to tell you why I think that this is going to, I think, stay up for a little bit longer. I will share that with you guys a little bit later. Okay, so before that, let me just also give some context in terms of how interest rate will affect the stock market in general, all right? So before I review my answer, does anybody know how interest rate usually affects the stock market? If you do, you can put it in the chat, all right? So later on, we can all review your answer together. Now, if you are still typing, let me give you my own analysis. Of course, this could be not 100% accurate because most of the time, there are so many factors that affect the stock market as well, just like there are so many factors that affect the interest rate. So in general, during a high interest rate environment, stock market generally don't perform very well because borrowing become more expensive for companies, right? And when companies have less funds to borrow, they have less funds to utilize for their expansion, right? And because borrowing become more expensive, the interest rate become more expensive, their debt also become more expensive to return, right? So as a result, their bottom line will be squeezed. So generally, during this period of time, investors will not have a very, very optimistic view towards the market in general. So when investors are not optimistic, they will end up selling the stocks, and that's how the stock price can get pushed down, right? And that's how you can see that for the past two years, actually the stock market, especially last year, right? This year started to recover. Last year was very, very bearish because the interest rate just keep on increasing, right? And right now, this year, even though the stock market start to rebound, right? It's also because people start to get a little bit desensitized to the high interest rate environment. But if they continue to increase, I think it will once again dampen investors' mood as well, right? So that will also bring down the stock market. So that is a very general view of how interest rate impact the stock market and hope that give you more clarity, right? Is this clearer right now for you guys? If it's clearer, can you type C in the chart? Okay, C stands for clarity. And in the meantime, let's get Ethan to continue to share more insights because I can see he has a lot more goal that he wants to share with you. All right, so actually, one of the more important things, right? About, let me put this slide aside, I think we don't need that for now. One of the more important things we might want to look at, right? It's also when you are looking at interest rates, right? It also becomes a point where you want to then go into a stop that gives you 7% dividends or do you want to put your money into a bond that gives you 5%. Because at the end of the day, there is the risk and reward trade off. And sometimes some people don't believe that there is, don't believe the risk is worth it anymore and then move towards safer bets, for example, the bond markets. And then this is where you can see a flight to safety. Yeah, that's right. Yeah, that's one of the few things that I can add into that. And this actually ties in towards my thesis of today. Because I believe that what I will be able to see over here, right? Because data is king. For all of you that believe that data is king, please type in D for data. All right, so what we're going to do is then also look at where the dynamic you curves are going to be. This is actually where we'll be able to see where people are expecting their interest rates to be. Okay, let me share over here. Okay, let me just also make sure that the audience can see your very interesting graph. Okay, so this is the dynamic you curve. So as you can see, right, what happens earlier, right, is that everyone's expecting their interest rates going to fall off maybe around two years or so. That's why the you curve is actually downward sloping. This is when we actually have an inverted you curve. And if you are looking at the inverted you curve, right, we are two years, 10 years spread. If you're looking at this, right, this is one of the longest time our curves have been inverted, which means the short-term maturity, which is the two years, are getting higher returns than the 10 years. So if you put your money inside the fixed deposit for two years, you are getting higher use than if you were to put the money inside the fixed deposit for 10 years. Which doesn't make sense. Almost doesn't make sense. And this has always been a prediction. This has always been a foreshadowing of recessions. All these grayed out sessions over here, all these pillars of gray, these are recessions. So what happens over here is that once you see the interest rate dip below the zero line, which means the two years give higher return than the 10 years, preceding that about six months, you'll be able to see six months to one and a half year, six to 18 months, you will be able to see a gray period where we actually look at ourselves going through a recession. So at this point in our time, and this point of time, I'm also very curious. Negative for the longest period of time, ever since July of 2022. And this is one of the longest period of time where we are actually looking at negative negative spreads for these. Okay, so in the meantime, I want to ask, this take this time to ask my audience over here. So how many of you have hunched that the recession is coming? If you think so, can type R in the chat. Okay, how many of you feel that recession is coming? So just like what Ethan said, usually when the yield curve start to invert, which is happening right now, generally about in six months or one year down the road, the gray bar will appear, and the gray bar is where the recession was. So it has been quite, if you go back to the previous chart just now, like the longer timeframe, it has been pretty accurate, guys. If you observe the chart, this is also what we share in our investment sharing as well. So you can see, for example, 1990, the first gray bar that was when it inverted, and the gray bar appeared. And then after that, the next few years, the yield curve invert again, then the gray, which has the recession comes. So multiple times that these yield curve inversions have been successfully predicting the recession. And right now with what Ethan said, this seems to be one of the longest inversion for quite a sustained period of time. That's why there is possibility that it's coming. In your opinion, do you foresee it's coming, Ethan? I think at this point of time, this is where I believe that things are a little bit more interesting because personally, as we look into the economy, we will be able to understand a lot of different factors because this is just one simple point of data. The other point of data is that we actually had to print money so that we will be able to save ourselves from the coronavirus. And if you look at what happened during our 2019-2020 period where we actually go through the coronavirus, the stoppages were huge, the financial loss were intense. And then that's when Jerome Pao actually started printing money. And at this point of time, what happened is inflation actually shot up the roof. And when inflation shot up the roof, they have no choice but to increase the interest rates at least for the short term. Because they got two jobs, one is price stability, number two is full employment. But without price stability, the market works for nobody. So this is where we want to tell you data ahead of the FOMC meeting and to be able to predict what the predictions are going to be. So this is a double level prediction. So this is when we can actually look at this and study the yield curve and see. Look at this. Actually, it's increasing from the five-year, seven-year, 10-year and 20-year portion. If you're looking at the thrill line, you'll be able to see it even more obviously where interest rates are looking to go higher and higher. So in your opinion, it's likely that the interest rate will continue to go higher next year. Correct. I believe that in the December meeting where Jerome Powell releases a new set of projections, I think it should be higher. I believe this is a market sentiment at this point of time. We're just going to be able to see how things play out at the end of the day. We are just here to try to make the best choice possible for everybody's mortgages. Yeah. And I think this will definitely lead to the question where we're going to address later on as well. Some of my neighbors as well in momentum part is also asking, oh, should they go for one-year fix? Should they go for two-year fix? Or should they be hoping the interest rate to go down so that they stay with SORA? So I think this question, we can address that later. Yes, then you have other things around to share. So I believe this is towards the end of my insights already because at the end of the day, there are just so many things that we can look at before we make a call. So one thing that we can share would be where our interest rates are right now and then maybe we can then talk a little bit about where interest rates will be for everybody. So at this point of time, once again, we are making a choice between fixed rates or floating rates. I'm not able to share who is giving what because a lot of them they don't allow especially when they are offering deviated rates. Sometimes when they are giving out deviated rates and those people that are repricing, they don't really know what the rates are. That one, I think better not to comment that. You mean like banks, they may not be be 100% transparent to all customers, right? They may have varying rates for different customers. Is that what you mean or what? I think that I think the bank values the customer more than just their mortgage. Wow, that is a very beautiful answer. When you're looking at it's practical because when you go and get a mortgage from a bank, what happens next? You open an account with them, you put their money with them, maybe you get a credit card, maybe you look at their insurance, they'll be able to reach out to you for sales and everything. There is a discount and there will usually be slightly better rates to incentivize people to switch banks. So, you'll be able to see and also if you are always looking at one bank, right? First 10 banks, right? It's not always the same. It's not always that your bank is going to give you the best interest rates in the entire market. True, true. That's why it's always good to compare. It is good to compare. It is very good to compare which is where I come in I help everybody it's available for them, what is good for them and then I try to help them save as much money as possible choosing between fixed rates or the floating rates. The floating rates today, right? We look at the three-month SORA rates, right? At $700,000, right? Yeah. We are looking at 3.1 at 3.71 plus 0.5 that is going to be that is going to be 4.21. This is updated today just before this show I go and update. Yeah, yeah, yeah. And when you're looking at the one-month SORA, you're looking at the same one but then the SORA is different. The one-month SORA is at 3.74. So this is going to be about 0.3 higher than this 4.2 almost 4.34 around that 2.4 4.24 Yes, 4.24 Yeah. So you're looking at 4.24 versus 3 percent which will you pick, Akrowee? Obviously I will pick a 3 percent. All right. Guys, just to share with you personal experience like I had so because when I bought this current condo, right? Which is a brand new project so you cannot have fixed rate from the start, right? So everybody who buys this project you have to go for SORA first. So back then when I first bought it that was in 2.021, right? End of 2.021 the interest rate was still so low I still remember that was like what? Less than 1 percent less than 1 percent definitely. So in total with SORA I was just paying about 1 percent or around that for my interest rate but then within the next few years which you guys are experiencing right now the interest rate like skyrocketed like crazy, right? From 1 percent right now I'm paying 4.0 percent every single month and I really feel the pinch, right? Because as a consumer your mortgage size only become bigger and bigger because when the amount of loan released you know we pay by gradually, right? So when the mortgage size start to increase even more then the interest rate suddenly like three times to even four times that's when you really feel the pinch and that's when I started to really don't know what to do, right? And that's how Ethan came in and he shared with me what are the best available options for me, right? Am I, should I be reprising it? Should I stick to SORA and hope that the interest rate come down? And I hope by this conversation tonight's conversation you guys, if you're a homeowner you should have more clarity so should you be fixing it right now or do you still want to hope for the interest rate to come down? I think it's pretty clear Okay, so for me I'm definitely going to fix it, right? But the question to you guys will be are you going to fix it for one year? Are you going to fix for two years? So I think maybe I also share a screenshot because this is also one of the questions that my neighbour has, right? So Chen Ming is also experiencing the pain, right? Same pain, ah? If you are an existing homeowner you feel the pain I think it's best to really consult Ethan He can really help you save a lot of cost So for myself he really helped me to lower down my mortgage by if I'm not wrong right now I'm paying like 3.5 $3,500 Once he helped me to lower down I'm paying like about 2.5 So I literally have additional $1,000 cash flow every single month, right? And if he if I don't choose to do that my mortgage will continue to increase because the interest rate as it comes you'll hide more my the remaining fund of my condo all kicks in I'm actually paying close to $4,000 per month If I don't do anything I'm paying $4,000 cash out late that's crazy, right? And that's why I really choose to re-look at my mortgage What is the best way for me to have more cost saving? And that will help me have a lot of cash flow every single month, right? So charming maybe you can consider talking to Ethan to see what's the best plan But in the meantime let me just share a screen because this is one of the the question from my one of my neighbor also right? Oh well okay cannot share the whole screen So basically, okay hold on now let me see whether I need to find a page okay I cannot see it okay basically the person is asking should he go for one year fix or two year fix right? So if it's one year fix it's 3.15% two year fix is 3.05% so in your opinion what should be the better choice for him? Okay it depends on how the loan is structured okay let me let me put a little bit more context into this okay because if you are looking at the two year fix at 3.05% then you are looking at it after two years you can then choose to look at other banks you'll be able to go anywhere else and shop for better rates The one year fix that are offered by most banks right they are actually going to lock you in for two years So that being said right sometimes you won't be able to choose whether you want to be able to move to other banks or to be able to reprice and when you're repricing you'll start with the current bank So to answer this right the spread isn't that huge and looking at my projections just now right let me bring it up again one second your screen I need to bring up your slides also all right so by looking at my projections just now what we can see right is that this year it's going to increase a little bit by another 4.74% next year it's going to drop by 8.35% following year it's going to drop by 22% so even if it is pushed up a little bit right I think that one year later you'll be able to start seeing that interest rates might start falling especially when banks forward price their projections so when it's looking at today right versus one year later and today versus two years later you can obviously see where the banks are looking at because this kind of data is available to everybody I'm not that special so they'll be able to see that interest rates are looking to fall and that's why they price it like that in my opinion I think the one year actually gives you a little bit more flexibility and the difference of 0.1 is not that costly what do you feel Chloe? okay so just to summarize because the spread between the one year fix and the two year fix are actually very little it's quite insignificant so that's why you personally feel that one year will give you more flexibility or give home owners like are more flexibility let's say one year down the road depends on the interest rate market condition again we can choose to work with another banks together you know through your advice and all this to see what is the best rate at that time is it? correct because even though the interest rate is going to hike a little bit more but one year down the road it's more likely that that time the interest rate will be lower than what is currently right now is that what you mean? correct so one year based on these projections you'll be able to see that interest rates are going to drop a little bit by 8 plus percent oh god so 8 plus percent but then next year we will then be at this range all right and then this is when we might be able to see the decline but once again all of this data might be able to change so once again the decline is going to be maybe not as big as 22 percent but maybe even 10-20 percent is quite significant and from there the banks' offerings may be a lot cheaper than the discount that you're getting of 0.1 and the next year you'll probably be locked in for two years so the difference of 0.1 you take it and divide by two years because you're looking at one year versus two years difference that's right so usually after let's say because I personally am going for one year because I want to have the flexibility of I can choose to sell away my house one year down the road because it's three years already right then I can sell without the tax right so that's why I'm locked in for one year but let's say for people who really buy houses for longer investment time frame at least two years or more would you still advise one year or would you advise two years? okay so what you say is very very important because however much savings you get in terms of counting the zero point some things right is not going to amount to the 1.5 percent penalty if you were to sell during lock ins so this is one of the few things that I look at whenever I do a consultation I look at when they are looking to sell because at the end of the day we need to plan towards that so if you're not looking to sell within the next two three years maybe what you might want to do is still get the one year locked in then after that next year you see what the market is actually offering them from there we will be able to make the better decision because one year later things can change very drastically yes yes I agree but then would that be also possible that maybe one year later the interest rate continue to remain high or increase further then if we lock in two years right now it will be a slightly better deal would that be possible? possible possible but not probable so the the markets can do whatever it wants la honestly and there are a lot of events like black swans or unexpected events that may occur when those kind of events happen then I think what's better is then to be able to see what are the incoming data by then and then make the smartest decision possible I see okay so of course we cannot eliminate just like what Ethan said we cannot eliminate the possibility that interest rate can continue to high despite of the government also predicting that it's going to fall but there's also like likely who would be it that's one event maybe another world broke out another disease happened who knows right so if that happened then it's best to use during that period of time what is the best decision for you and and decide again right however based on the higher probability once again we talk about probability higher probability is one year down the road more likely that the interest rate will be lower than it is right now right or we'll start to draw right but it might still going to hide a little bit more before that downtrend reversal happen correct all right so I hope that clarify one of my neighbour's question as well who will be clarified so in the meantime there's some more questions as well let me see hold on and if you guys have any questions feel free to type it in the comments below I'll be able to see what I can what kind of data I'll be able to pull up to be able to help you guys yes all right so okay so I think I also have answer Joyce question in terms of based on your professional foresight should homeowners fight the bullet and stick to floating rate or should quickly reprise and refinance to a fixed rate for short for the short term so I hope that has already addressed your question so the best way will be at least fix it for one year right yeah and another question from Chu is asking any insights to UOB mortgage loan rate are you allowed to compare like this okay so usually for the rates that are sent over to me right they always come with one caveat which is do not submit so we are in public domain right now so I think it is best for me to follow the bank and then yeah just reach out to me later there will be a link that is going to be shared then we'll be able to connect then I will be able to talk to you about where your mortgage rates about your mortgage rates because everybody got different choices and everybody have different decisions but I think if me plus you will be able to make the decision better together yes yeah so I think right now I think some of our audience are also getting very curious exactly how can you seek how can they seek professional advice from you so for Ethan he's actually super kind like he for me when he went through my whole analysis right based on the current interest rate environment he really gave me something that I felt it was very beneficial in terms of helping me to save the monthly mortgage and on top of that give me additional cash flow so I'm very very grateful for Ethan and I didn't have to pay him any money right like literally it's a free consultation but he did it so thoroughly that really helped me to have long-term cost saving so if you are somebody who also looking at how can you reprise or refinance your home be it you are new home owners like me or be it you already have existing properties for a few years and right now with the interest rate increasing you didn't fix it previously then I think it's also time to reconsider what is the best way because you really don't want to continue to let the floating interest to eat you right so if you want to apply for a free consultation from Ethan which is very generously extending to all of you as well right you can actually just apply it right rebrand.ly slash unbeatable m m stands for mortgage right unbeatable mortgage and which is actually Ethan's company right unbeatable mortgage fill in the form and Ethan and his team will be able to get in touch with you as well to help you yeah so in the meantime there are some additional questions that might need your help to answer as well so no problem first C is asking what's the requirement to extend loan tenure to 30 or 35 years and if it is worth to do so if the option is available excellent I love this question and to to help with that the safe investor also say cash flow is very important I agree to a very large degree so Chloe let me ask you if you have a million dollars today and a million dollars 10 years later which is worth more of course right now la correct correct because money is issued over time correct money's like water evaporates so that this is what we call inflation if you own the money then your the value of your money gets eroded away by inflation yes yep but if you're borrowing this money the erosion happens to the bank you are paying interest rates you're not paying for inflation so this is where we can actually talk about inflation a little bit and today right as of today we were to bring up this slide right you'll be able to see that inflation right has been quite erratic and but recently it has been quite elevated at this point of time you can see inflation is roughly at five plus percent five point one four point five four point one and now four so if you're looking at a four percent inflation rate versus your three point three percent mortgage rates I think the better play is to look at the three percent mortgage rate because if you're paying interest rates you're not paying inflation rate so I think it is worth it for us to extend especially when we are looking forward right when we are looking forward in time the MES actually employ very very intelligent people to be able to to be able to predict where interest rates are looking to go especially when we are looking forward in time so we are looking next year right we can see that CPIO item forecast is about three point one in twenty twenty four however if you look at the data over here you'll be able to see most of them are predicting for three to three point four percent so definitely extending your loan tenure should be one thing that you may want to consider because when you're taking your time to pay back to the bank you'll be able to have more cash flow you'll be able to stay in the place with lower cost and cost of living is going to be reduced quite significantly especially if you increase the cash flow so when you buy the property the maximum loan is based on 65 minus H but when you refinance it's 75 minus H wow so we can extend longer yes up to 10 years to the maximum limit of 35 minus number of years used but yeah reach out to me I'll be able to calculate then we can break down the math together some people have financial calculator you have asked yeah you don't have to do the calculation by yourself a lot of times is even though you do your calculation you may not be able to analyze it well for your own situation it's always good to have third person's perspective so that the person can give you very objective opinion of what is the best solution for you and which is what Ethan did because at first I didn't understand why I need to extend my loan my loan tenure when he presented it to me I was like huh then I end up having longer duration and maybe I need because of that of course I end up having to pay the bank more but then he said but your whole objective is not holding onto your property for more ever you're just going to sell it off within the next two three years so the amount that you pay is very little at the same time you increase your cash flow a lot more every single month and I think it totally makes sense to me and that's why I actually extended my loan tenure as well so very very grateful for all this advice which I would never be able to think for myself but if I don't have Ethan here would be and also right as an investor can I ask you is it difficult to make more than 3.1 percent come on but you know for you maybe a bit difficult maybe a bit difficult depending on how we are trading yes depending on the market situation also yeah but per year it's so easy per year it's so easy yeah even when you're looking at the Singapore savings bond right but even when you're looking at Singapore savings bond yeah yeah all right so shout out to MES they're not giving us any commissions whatsoever but yeah even that is going to be able to help us save quite a bit so we can we can look into certain circumstances we can look at roughly what the rates are and how we can actually help you save all right so John and Sally they are totally fictitious people la okay so when you're looking at mortgage rates right especially when you're looking at especially when you're looking at their after rates because when you're looking at mortgage rates right the year one is going to be good year two is probably going to be good as well but the their after rates this one quite tall honestly so if we are looking at three months or up last one percent you're probably looking at about four point seven one percent that about yeah so one thing one one quick one quick way to help you save money is to avoid the their after rates yeah so so assuming you're I totally know previously right I didn't know that banks generally give you very lousy deal after two years after I talked to Ethan I realized oh my god no wonder it's so important for us to constantly review your mortgage every two years because if you don't you will really be paying an exorbitant fees to the banks and all these money are something that you can save and reinvest so make sure really go and refinance or reprise and if you don't know how talk to Ethan I think that's the best yeah maybe you want to walk through one scenario before we call it the day excellent so if we're looking at this scenario we just look at 4.75 to 3.2 percent and we keep the loan tenures right we are already looking at $581 lower every single month yeah so this is quite significant yeah and if we extend the loan tenures yeah if we extend the loan tenures every single month you are paying $947 lower and let's just do an apple to apple comparison and looking at 3.2 versus 3.2 and extended loan tenure the amount you're paying every month is maybe $10 higher but you get to keep so much more money wow in two years you save $8 over $1,000 in cash yeah so in terms of as we as we say it really whether you're holding cash or you're paying interest rates it depends very very much on what the inflation rates are because at the end of the day we are learning about money over time so once we are able to understand inflation rates and how it actually affects you financially then you'll be able to understand what real interest rates are then real interest rates just to break down a little bit more real interest rates one moment you can see he loves to do all those calculations love it especially I do the calculator one time I'll be able to do it many many times for you guys so as you can see right this is the real interest rates and in investopedia right what you'll be able to see is that the true cost of borrowing and the return of savings so it is important for you to be able to have an idea of how having a loan especially mortgages be able to affect you because mortgages is the cheapest cost of financing in the entire market because number one it is a long-term loan with long-term loans there's a lot of stability and on top of that your property is being collateralized so because of that it is seemingly low risk for the bank and it's a source of income for the bank so I believe this is one of the cheapest rates you'll be able to get in the entire market especially if you look at all the banks and then compare and then choose the ones that offer the best then yeah that's how we we help everybody save for money yeah because a lot of times like when you talk to new if you are a consumer like if you have no relationship to all those bankers or like banks out there they will never be able to give you the best deal right they will not review to you anyway right so that's why then because he has been in this industry for over seven years he has really built a very good relationship with different banks and that's why he is able to really get the best price up from all of them an amount of the best price all of them he chose the best one so that you can save more so he really does a lot of homework like everything he's sharing right now seems very easy right but he has been doing this for years and that's why he gets so so used to doing it it's become a second nature all right so so you really want to tap into his advice to see how you can best save money and and refinance properly and use additional cash flow to either reinvest right to grow your money in a stock and options market and if not at least you have additional savings every month right it's also better than you giving out to the bank yeah correct and I think there is a question from the safe investor right so when interest is lower is it better to return money faster I think if interest is lower you will have more exciting things that are available oh yeah that's true right the stock market generally also perform better when the interest is lower all right so like just now when you mentioned the interest rates and stock market has a negative correlation which means if interest rates fall down then the stock market performs so at the end of the day what we got to do right is to be able to understand the flow of money and then position ourselves in the position where we get really really wet you can see the excitement in your eyes thank you all right so uh I think that's almost coming to an end coming to an hour thank you so much Ethan for sharing how many of you find that tonight's sharing is very insightful if you felt so can type I in the chat all right we really hope that through this sharing you learn more about the interest rate ahead and also we talk about the prediction of the trend right so just to give you a quick summary according to the Ethan's analysis the whole macro economy and everything the interest rate is likely going to come to a height for a while before sloping down during very likely end of next year also right of course subsequently right when the economy is more stabilized then the interest rate will start to drop more right but in the next one year also right there's still gonna be a lot of uncertainty so it's very important that you continue to invest safely especially in this high interest rate environment you want to select the stocks that really have high quality business model right you don't want to invest in any random businesses that because the stock price looks cheap or because the stock price keep on going up for no reason right you want to analyze it good balance sheet and everything then you go and invest right and of course if you are a home owner best way is to reprise or refinance your mortgage right now from Sora which has floating rate to fixed rate ideally fix it for one year so that you have more flexibility by end of next year because very likely by end of next year the interest rate is going to slope down right then you can make better decisions and probably have more saving as well one year down the road right but if you still have want to have more certainty then two years fixed is better than stating stay staying as floating interest for now right so okay so Chen Ming find it very useful fantastic thank you very much nice sharing as well thank you so much and so once again if you want to have expert advice from Ethan apply for the free consultation here Ethan seldom do this I think he's very very nice because I purposely invite him to come then I say if people have additional questions after this what can they do then he say okay like I can extend a free consultation to them as well just like how he helped me as a friend so you'll definitely be well taken care of all right so apply for this and Ethan and his team will help you out right so any last advice or sharing you have before we call it off Ethan I think everybody's got a different case and everybody will have a different objective and everybody will have different goals for their property at the end of the day we are here just to help you save a lot of money and our services are free reach out me and my team will be able to help you save as much as you possibly can and advise you accordingly yeah especially you want to do it soon before the interest rate is coming to another round very likely all right we don't know how the banks are going to react but even if you're not out of your lock-in yet right when you fill out the form you just indicate over there then we'll be able to reach out to you whenever it is the time la because there after rates are usually very very expensive and you can think of us as somewhat of a dentist like come for a checkup every once once every two years or once every year or something like that yeah and this checkup is to help you save money even better right so thank you so much Ethan once again and thanks to our audience here for staying all the way until to the end and if you have additional questions feel free to continue to comment in this video below right there's comment section so that if additional mortgage related question or interest rate question related maybe we can do another life next month or when the new interest rate probably come out right yeah the FOMC meetings yeah exactly all right so thank you so much Ethan and hope you hope to see you very soon in person again and thanks for helping me all right see you see you thanks everybody bye thanks everybody bye bye