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.

Appraisal

An appraisal refers to the determination of a property’s value by a qualified appraiser.

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 mortgages’s loan to value on it.

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 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.

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