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.

Negative Amortization?

Negative amortization for a housing loan occurs when your outstanding housing loan balance increases instead of decreases. There are a few instances that this can happen. Speak to us to learn more.

Closing Costs On Property Transactions

Costs incurred at closing

  • Stamp duties. For new purchases, and based on the purchase price
  1. 1st $180k – 1%
  2. Next $180k – 2%
  3. Thereafter – 3%
  • Legal fees. Generally between $1500 to $5000. Factors that affect the fees include the type of property, choice of lawyer. Legal fees can be paid from your CPF account which your lawyer should handle for you.
  • Settlement of cash over valuation. When you have purchased a house above the valuation price, you have to pay the difference to the relevant people before the housing loan will be disburse for the proper purchase of the property.
  • Fire insurance. Property loan lenders would want you to unsure your property against fire. Usually the insurance is included in your housing loan package for a period ranging from 1 to 5 years.
  • Home protection scheme. Subject to eligibility, CPF requires all members to be insured under HPS if they are using CPF funds to pay for the HDB housing loan monthly installments.
  • Minimum cash portion for property. 5% for first property, 25% for second property, 25% for third property.

  • Additional Buyers Stamp duties (ABSD). For new purchases, and based on the purchase price
  1. Singapore citizens – 7% on second property, 10% on third property
  2. Permanent Residents – 5% on first property, 10% on second property, 10% on third property
  3. Foreigners – 15% on first property, 15% on second property, 15% on third property
  • Additional buyer stamp duties (ABSD) does not apply for citizens of the following countries
  1. America USA
  2. Norway
  3. Switzerland
  4. Iceland
  5. Liechtenstein
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