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.



An appraisal refers to the determination of a property’s value by a qualified appraiser. The result is what is known as an appraised value.

It must be noted that an appraised value has nothing to do with market value or a seller’s asking price.

It is just an opinion of an appraiser of what the estimated property value is.

Even though transaction prices can occur above or below the appraised value, banks often based a mortgage’s loan to value on appraised value when the transaction price is equal or above it. And at the transaction price when it is below the appraised value.

So it still plays an important role in in the home buying process.

Very often, appraisers appraise properties based on the selling price. This practice is especially predominant in the new condo sales market.

Because new homes that have yet to be built have no physical presence, appraisers are only left with data and intangible factors to estimate the value of a property.

Thus, they almost always value a new undeveloped condominium unit at it’s transaction price. This is why this market can be dangerous as developers can grossly overprice their units and appraisers value them the same way.

It’s as if developers are playing the role of surveyors and valuers by valuing their units at precisely the same price as its market value. Appraisers are there just to rubber stamp it.

The truth is that if appraisers are independently prudent and appraise condo apartment units below the listed selling prices set by developers, the whole new launch market for private properties would be turned upside down.

Because appraisers are professionals, they do charge a fee.

This fee is usually borne by the borrower. If a lender is waiving it, it only means that they have likely accounted for it in the interest rate on the loan or make up part of the closing costs.

One cannot expect banks to be charitable.

Want to see housing loan interest rate trends
for the last 36 months?

Enter your email below so we can send it to you.

Related Posts

What We Do For You

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.