Housing Loan Singapore


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.


6 Steps To Choosing The Best Housing Loan Singapore That Is Right For You

The home loan you choose to take up is almost as crucial as the home you choose to buy.

After all, buying a house is the biggest financial commitment in the lifetime of most people. Small differences in housing loan interest rates can appear to be insignificant but can mean thousands of dollars in savings in the long term. There is a number of mortgage lenders in the market. And unless you know of mortgage bankers personally, they might not necessarily always have you best interest in mind. Even worst is if they have little experience and have a hard time convincing the lender’s underwriters to approve a very attractive deal for you. Here are 8 simple steps to take note when you are looking for a home loan in Singapore.

1) Go shopping
What do you do when you want to buy a television set? You shop around! You look for the best deal even when you have decided on a particular brand and model in mind. If you are going to spend time to shop around for the best deal when it comes to your thousand dollar television set, you should definitely shop around for a housing loan that comes up to hundreds of thousands of dollars.

Each home loan package serves a specific customer profile that the mortgage lender has identified. You need to find the package that suits your profile and won’t put undue stress on your personal finances. The more mortgage lenders you talk to, the more bank housing loan packages that you will learn about. And the better chance that you will find a mortgage that is a perfect fit for you and your family.

2) Decide on the terms you want.
Most people look out for interest rates before looking at the terms of the home mortgage. One of the most common reasons for people to decline mortgage offers is when they learn about unfavorable home loan terms only after everything else has been agreed upon. These situations waste your precious time.

Decide on things like loan tenure, redemption penalty fees, fixed or floating rates, monthly payments that you are comfortable with, lock-in period, etc.

3) Continue shopping for favorable interest rates and closing costs.
An important thing to note at this stage is to remember to compare apples to apples. You may have come to a stage when you have a choice of lower home loan interest rates with higher closing costs or higher interest rates with lower closing costs. Choose wisely and use a housing loan calculator to help make you housing loan comparison. Only then will you have a good idea of what is the best deal around.

Floating interest rates for Singapore home loans are commonly pegged to the SIBOR or SWAP rates depending on the mortgage lender that you have approached.

4) Break down the fees that you have to pay
Make a list of the costs that you can control and those that you cannot. There are some portions of the closing costs that a lender may subsidize for you. Make sure you ask about subsidies. There are also other associated costs that you may be able to safe a hefty sum by looking for a provider yourself. Check out what are the costs that you have flexibility to take control and decide for yourself what you have to do.

5) Take a good look at the home loan lender
If you have any suspicion that your banker is incompetent, you should consider switching. You are making a big financial commitment and you want someone who can give you good advice with work competence. If by some reason, you know that you are not getting a good and fair deal, you can always walk away.

6) Lock in your home loan interest rate
Interest rates fluctuate. You cannot expect a lender to give you the same home loan interest rates stated 6 months ago especially when market conditions have changed dramatically. So you have to lock in you home loan interest rates when you have decided that you have found the best deal for you.

These are 6 easy steps to find the best housing loan in Singapore for you. If you find that it can be a huge hassle or feel lost because this is something totally new to you, you can engage our FREE service to do it for you. Our assistance is FREE to you because we are compensated by the banks separately. Contact us via the home page at www.housingloansingapore.com

Want to see housing loan interest rate trends
for the last 36 months?

Enter your email below so we can send it to you.

Related Posts

What We Do For You

We Gather And Provide You Information On The Best Housing Loans In Singapore So That You Can Make A Better Decision Based On What Is Available In The Market

Which bank do you recommend for home loans in Singapore?

We don't recommend banks. We recommend you the best home loan that suits your profile and financial position.

SIBOR 14 Jun 2018

1 Month 1.40009
3 Month 1.52038
6 Month 1.66171
12 Month 1.85096

SOR 14 Jun 2018

1 Month 1.39053
3 Month 1.56581
6 Month 1.67225

How Does SOR Rates Hit Negative Value?

SOR rates are calculated with a complex financial formula, solved with simple algebra. The results of solving the equation therefore depends on the inputs used. Varying inputs that result from economic impacts and indicators can lead to negative value when the formula is solved. Key input indicators include USD/SGD spot rates and USD/SGD forward rates.

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.

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.