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.

Bridging Loan

A bridging loan is a short term loan to help finance a shortage of funds to purchase a property due to the time lag that exist between an owner selling an existing property to the time sales proceeds are collected.

If a homeowner needs to sell the existing house in order to be able to afford buying a new one, he would be looking at a period of being homeless.

Whether he sell first before buying, or buys first before selling, he will either have to live in a hotel or in a rented apartment for a period of time, before he can move into the new house.

This is because it takes time for a house to be sold and for the proceeds to be banked in.

A bridging loan serves to bridge that gap of funding shortage.

These are short term loan with high interest rates that can play a crucial part in helping households relocate.

It allows a home buyer to have enough funds to complete a purchase transaction before the old house is sold.

Once the proceeds from the sale of the older house is ready, it will be used to pay off the bridging loan.

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