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.

Historical Scenario

A historical scenario refers to using historical interest rates or movements of interest rates to depict how a current housing loan might adjust in the future.

This would undoubtedly only be demonstrated on mortgages that are on floating interest rates or variable interest rates.

For example, bankers love to illustrate to borrowers how their internal board rates have not changed for years. And then use that lack of movement to paint a pretty picture of how predictable the loan payments will be moving forward.

However, do note that historical scenarios are meant to help borrower understand how mortgages work.

They are not good indicators of how it will perform in future.

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