Housing Loan Singapore

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Providing online home loan services since 2009

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.

Definition

Nominal Interest Rate

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The nominal interest rate is the most basic method of calculating interest charges that most people implicitly understand.

For example a $100,000 loan at a nominal interest rate of 5% would mean a $5,000 interest charge.

The irony is that loan products offered by lenders at nominal interest rates are as rare as a hail storm in Singapore.

However, to help the average home buyer understand their mortgages better, sometimes interest charges on a home loan is expressed as nominal interest rates to improve comprehension.

Bankers who do this would of course inform the borrower that these numbers are just an expression.

For example, if a $100,000 end up with a total payment of $106,000 made by the borrower at maturity, then the nominal interest rate can be expressed as 6%.

It must be noted that nominal interest rate takes on a different meaning in general financial planning where it accounts for inflation and other variables.

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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.

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.

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

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


Get Rates Trend

It makes absolutely no sense to pay more
than you have to on a home loan.

Find the best mortgage rates here
SEE RATES
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It makes absolutely no sense to pay more than you have to on a home loan.

Find the best mortgage rates here
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