Housing Loan Singapore

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.

Definition

Co-Borrower

When 2 or more people have signed up as borrowers of a housing loan, they are jointly responsible to repay it and become co-borrowers.

This happens commonly in Singapore when both the husband and wife are income earners in the household and need to combine their incomes to be able to borrower the loan quantum they are requesting from the bank.

It is also a requirement of HDB for families that purchases BTO flats including ECs.

However, co-borrower is not limit to married couples.

Sibling, relatives, friends, investors, etc, can also become co-borrowers to a loan.

They do this usually for:

  • Ownership; and
  • To boost qualifying income

When co-borrowers are involved in a home loan application, both borrowers’ credit scores are averaged out to generate a combined credit score.

This can help a bank determine whether a loan should be improved or not.

However, problems can arise when co-borrowers split.

So do address these problems beforehand when getting into co-borrowing.

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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.