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.

Origination Fee

Origination fee, or sometimes called a processing fee, is an upfront fee charged by the bank as a percentage of the loan amount.

It is an upfront fee because it usually directly deducted from the loan amount at disbursement.

Loan origination describes the whole process of borrowing from the point where the borrower submits the application forms to the stage where the funds are finally disbursed.

Meaning this fee is for the payment of the services rendered to realize the loan.

Do note that this is different than expense items that are quoted in dollars.

While fixed dollar cost items might also be deducted from the loan amount before disbursement, they are not to be confused with origination fees which are expressed as percentage of loan quantum.

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