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.

Grace Period

Grace period is the period of leeway a bank unofficially gives a borrower for being late on a scheduled payment without charging a late payment penalty fee.

This can vary anywhere from 5 to 15 days.

Should a lender charge a borrower and the borrower only discovers this via the loan account statement, whether the late payment was within the grace period will play a part in any request to waive the fees.

Be wary that annual facility fees, account servicing fees, etc, can also be charged to a borrower and the absence of payment for them can also be constituted as late payment.

Partial repayments can also be determined as late should it not meet a minimum amount.

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