== risk@default.. 15th of each month (or the following Monday). If low balance in the MSA[mtg service acct], then OC will retry for 7 calendar days (not 7 weekdays). If still unsuccessful, then $80 late charge. Each late charge is reported to credit bureau as a default.

Sugg [implemented]: salary deposit into the MSA
Sugg [implemented]: keep this account for one purpose only, and thereby reduce the probability of unexpected fall-below.

Pre-emptive paying? Not possible.
— alerts .. First few times, OC will call me during the 7D grace period. If too many late charges, then OC will call me after grace period. No SMS alert.
— fallback .. The only fallback mechanism is “After cpfOA deduction, any shortfall will be deducted from MSA”
Sugg: So we could do housing refund to cpfOA continuously.
Sugg: set the cpf deduction to roughly match the mtg-P. A by-product — a lower quantum on the bank acct deduction.

Problem: mixing cpf and MSA would mess up my calibrated/fine-tuned recon

== Hui Ying
– 18 bps over board rate (currently 80 bps). 1Y lock-in
* can pay down 50% within lock-in
* after 1Y can reprice, stretch to 25Y or wipe out

Max Loan tenor is probably 28Y i.e. 75Y minus income-weighted-avg-age, iFF below 55% of valuation.

Interest is accrued (and displayed) daily using 365D convention, worked out to be $13+/Day. To see transaction details, need to request statement on a ad-hoc basis. Can log in to send secured email. OC would call back to confirm before sending the statement.

== Why I preferred MBR instead of SORA .. based on email sent to Delphia.

• fact: My last mortgage was based on OC board rate, but I think that rate is a different benchmark. The current benchmark was started a few years ago.
• fact: I can see that the benchmark was adjusted in Aug 2018 (to 1.55%), and adjusted again in Aug 2020 (to 0.8%)
• Question: Was it also adjusted once in 2019?
• Rumor: most brokers and fellow borrowers have nothing positive to say about board rate from OC, UOB or any bank in Singapore. Unanimously they prefer Sora as floating benchmark. They complain about non-transparency and huge hikes in these opaque benchmarks. They say those hikes would be bigger than the hikes in Sora. However, when I looked at the actual data, I don’t see any evidence. So it appears a superstition.
• Perception: I perceive OC board rate as a less volatile cousin of 3mSora. The all-in rate is likely comparable.
• judgment: I will put my faith in the OC MBR decision-maker, and trust that he/she won’t increase this benchmark more than 3mSora climbs.

If my judgment turns out as a misjudgment, then many MBR borrowers would all suffer along with me. I’m not the only MBR borrower in Singapore!

1. I would receive 30D advanced notice (by email and paper mail?) and decide whether to switch to 1mSora package. This (albeit minor) flexibility is missing from the Sora packages from OC or Maybank. It underlines the fact that MBR is designed to be stable.
2. More importantly, I will immediately pay down my outstanding to reduce exposure to hikes, probably to 50%.
3. After 1Y I will pay off if rate stays high
4. ^^ With these 3 strategies, the potential damage of a misjudgment of OC MBR is hopefully limited.