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.

Biweekly Mortgage

A biweekly mortgage is a home loan whereby the borrower makes half the monthly payment amount every two weeks.

This is a proven method of paying off a housing loan quicker while saving on interest costs.

The dynamics that result in this phenomena is due to there being 52 weeks a year, working out to 26 payments annually.

This means that a borrower would be making 12 and a half payments a year compared against a regular monthly mortgage.

It also means that a monthly payment loan that would take 25 years to fully repay will take a biweekly mortgage 24 years.

1 year less.

The extra payments will reduce the outstanding balance of the loan faster, while bringing about a more significant rate of savings compared to a bimonthly mortgage.

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