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.

Term

The term of a mortgage is the period of the loan where it’s monthly payment is calculated.

Sometimes also called a tenor or tenure, it is generally accepted that the longer the term stretches on a home loan, the lower the monthly payment would be.

However it must be noted that the relationship between the payment amount and the term is a reducing decrease relationship.

This means that the amounts reduced as terms increase becomes smaller the longer the term.

For example, extending a term from 10 to 20 years will see a more significant decrease in monthly payment amounts compared to extending from 20 to 30 years.

The other side of the coin is that the shorter the term a borrower takes up, the faster the equity builds up in the house.

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