Housing Loan Singapore


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.


Effective Rate

Effective interest rate that a borrower actually incurs in a year after adjusting to compounding.

When it comes to dealing with a bank, interest rates are never simple to comprehend.

There are so many jargon to describe different ways interest is calculated. For example:

  • Reducing rate
  • Simple rate
  • Flat rate
  • etc

The effective interest rate (EIR) is another one of such.

It is important to investor, home buyers, and banks, because it get more detailed into how much interest costs is actually at stake with the home loan.

Because a mortgage has it’s interest rate calculated on a monthly basis (unless otherwise stated), a 1.20% interest will have a monthly rate of 0.10%.

When that is compounded 12 times a year, the result is that the borrower actually pays slightly more at 1.2066%.

This is the effective rate.


i = annual interest rate

n = number of compounding periods

As can be observed from the formula above, the higher the number of compounding periods, the higher the resulting EIR.

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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.