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.


Interest Payment

The interest payment on a housing loan refers to the monthly amount of interest (in dollars) that a borrower is obligated to repay the lender.

If a borrower is on a fixed rate mortgage, the interest payment will remain the same each month throughout the entire fixed rate period of the loan.

If a borrower is on a floating rate home loan, the amount of interest payment required will depend on the fluctuations of the index rates which in turn affects the fully indexed rate.

When a full amortization schedule is reviewed, a borrower can also observe how each payment in each period adds up to the total interest payments throughout the life of the mortgage.

Something borrowers should not is that the interest payment will always be equal to the interest due so long as the latter is equal or lesser than the scheduled monthly payment.

In the odd event that interest due is greater than the scheduled payment, then the scheduled payment will be totally made up of interest payment, with the excess possibly being accrued.

When one finds himself being unable to meet his debt obligations on the home loan, reviewing it and exploring what is available in the market might help him discover great opportunities to refinance and make repayments more manageable.

Want to see housing loan interest rate trends
for the last 36 months?

Enter your email below so we can send it to you.

Related Posts

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.