SIBOR or SOR?

SIBOR is generally more stable while SWAP tend to fluctuate more. However 3-month SWAP has recently stayed consistently lower than 3-month SIBOR for an extended period of time. SOR is also very reactive to currency exchange rates.

Which bank offers the best home loan deals?

Interest rates and spreads are not all that matter. Don't ignore the closing costs involved. Different banks can have different customized home loans for you. Don't be surprised if you will save more on a home loan that charges more interest because of the lesser closing costs involved. This is especially so if you know that you will refinance your home loan as soon as the lock in period has expired.

HDB loan or bank housing loan?

Our opinion is to always take a HDB concessionary loan if you are eligible for one. One of HDB's objectives is to to provide affordable housing for the people. While a bank is profit driven.

Accrued Interest

Accrued interest occurs when interest charges are due and not paid in full, and the balance is then added to the amount owed.

The added amount is the accrued interest.

This situation can arise when a home loan is floating when there is an interest rate spike.

As mortgage payment become higher, the monthly required payment of the borrower remains the same.

Thus, creating a scenario where the payment does not fully cover the amount due.

Accrued interest occurs on every type of loans including personal loans and car loans, etc.

But when it occurs on a mortgage, it is usually referred to as negative amortization.

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