Housing Loan Singapore


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.



Amortization refers to the repayment towards the principal balance from monthly installment payments.

From a typical home loan with scheduled mortgage payments, the monthly payment minus the amount paid towards interest due would be the amortization.

For example, if a monthly payment is $1,000 and $400 go towards repayment of interest, then $600 ($1,000 – $400) is the amortization that goes towards principal reduction.

In the unique event that interest due is more than the monthly payment, the the excess will be added to the principal. Creating a situation of negative amortization.

When explaining the terms of a home loan to borrowers, lenders usually provide an amortization schedule to elaborate how payments are structured over the life of the loan.

This is usually in a table format, sometimes in graph format.

This amortization schedule would show how much of interest and principal would have been repaid at any point in future.

However, borrower must be mindful that these tables are forecasts.

As Singapore housing loans are usually converted to a floating rate loan in the long term, adjusted interest rates would inevitably affect the accuracy of the amortization table.

Mortgages in Singapore are usually fully amortizing.

This means that if a loan has a tenure of 25 years, at the end of 25 years, the principal would be fully repaid if the borrower has been keeping up with monthly payments.

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We Gather And Provide You Information On The Best Housing Loans In Singapore So That You Can Make A Better Decision Based On What Is Available In The Market

Which bank do you recommend for home loans in Singapore?

We don't recommend banks. We recommend you the best home loan that suits your profile and financial position.

SIBOR 14 Jun 2018

1 Month 1.40009
3 Month 1.52038
6 Month 1.66171
12 Month 1.85096

SOR 14 Jun 2018

1 Month 1.39053
3 Month 1.56581
6 Month 1.67225

How Does SOR Rates Hit Negative Value?

SOR rates are calculated with a complex financial formula, solved with simple algebra. The results of solving the equation therefore depends on the inputs used. Varying inputs that result from economic impacts and indicators can lead to negative value when the formula is solved. Key input indicators include USD/SGD spot rates and USD/SGD forward rates.

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.

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.