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.

Scheduled Mortgage Payment

The scheduled mortgage payment of a loan refers to the amount a borrower is obligated to repay each month which consist of principal and interest.

Depending on the terms of contract, paying less than the required amount can lead to deferred interest or delinquency.

It can also trigger penalty fees.

When a home loan is in a period of fixed rates, the amortization table should be able to show exactly what is the amount that needs to be repaid each month.

However, when the loan enters a period of floating interest rates with monthly refresh, monthly repayment amounts will depend on the calculation based on the new interest rate.

The installment amount however, will not have huge adjustments unless there is a highly volatile interest rate environment.

The scheduled mortgage payment amount can change drastically when there is a partial redemption of loan which significantly reduces the outstanding principal balance.

In this case, the new principal balance after deducting the redeemed amount will be amortized again to calculate a new monthly payment amount.

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