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.

No-Change Scenario

A no-change scenario is an illustration of how floating or variable rate home loans will look like on an amortization schedule assuming index rates will not change.

This is an almost impossible scenario over w 20 or 30 year period. Which could be the tenure of a borrower’s loan.

Such elaboration done by bankers and brokers should only be used as an explanation of how monthly payments would be calculated, making up principal and interest.

Borrowers who are new to mortgages might find it helpful.

However, just like a historical scenario, it is never a good way to estimate or measure how interest rates will be like in future as nobody can predict how index rates will fluctuate.

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