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.

Closing

In real estate, closing refers to the finalization of a transaction with all requirements met and documents endorsed.

Some of the key events that take place include:

  • Official transfer of property ownership
  • Disbursement of funds
  • Execution of all relevant and required documentation
  • etc

Because the closing date is the day when all the terms of a transaction is set in stone, a lot of expenses will pop up in the form of closing costs.

The closing date is also of particular interest to a bank as it triggers them to charge what is called a per diem interest on the borrower.

This is basically a pro-rated interest charge for the use of funds before the official first full period of mortgage repayment commences.

If closing date is getting near and the home loan is not ready, bankers can usually push a borrower’s approved loan application through the underwriting process to quickly generate the needed offer letter for closing to take place.

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