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

Disbursement

When the funds of an approved home loan is released for the borrower to access, it is said to be disbursed.

The disbursement date is a critical piece of information to a lender as it is the day in which they start charging interest on a mortgage.

Even if the first monthly payment date is due only when the first full calendar month is over, the borrower can still be subject to per diem interest.

For example, if the loan funds be disbursed on 17 July, the first payment date will be 1 September for the period of August. The interest charges for 17 July to the end of the month will be pro-rated charge on the borrower.

At times when administrative or processing fees are involved, lenders tend to deduct these fees at the point of disbursement.

For example if a personal loan is approved for $10,000 and the fees are $500, $9,500 will be disbursed to the borrower but the amount owed will remain at $10,000.

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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.