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.

Underwriting

Underwriting by definition refers to the whole process of credit assessment, analysis, and approving.

But in practice, the word is usually only used when a loan is approved and an offer letter is in the process of being generated.

This is because if a home loan application is submitted by a borrower and it is under credit assessment, telling the borrower that it be being underwritten can be misinterpreted by him as the loan being approved and documents are being processed to generate the contract.

Informing a customer that his loan is being assessed by the credit department will lead to less miscommunications between lender and borrower.

This is why loan officers usually only use the term underwriting when the final facility letter is being generated and what is left on the part of the borrower is to accept the terms and sign the contract.

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