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.

Zero Balance

Zero balance refers to the outstanding balance equaling zero after full repayment or full redemption, usually at the maturity of the loans.

However, in practice, it is often used to refer to any types of balances that is zero.

It can also refer to debt settlements whereby a lesser sum of money is accepted by a bank as full settlement of the actual amount being owed.

Just take note that professionally, it is a term to describe the balance of a loan after principal and interest is fully repaid.

 

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