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.

Tax Deduction

Tax deduction refers to using tax deductible expense items to make tax relief claims from IRAS.

When it comes to mortgages and real estate investments, interest on the loans and a portion of rental income qualifies for tax deduction.

A lot of people don’t realize that when they take up a home loan, the interest they incur are tax deductible.

This implies that every dollar paid towards interest actually less than a dollar when you factor in the income tax savings.

If it is unclear how much interest have been paid on the housing loan for the year, it is best to check with the bank to find out the amount.

And when doubt, don’t hesitate to contact IRAS for clarification.

More tax deductible expense items can be found on IRAS.

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