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.

SIBOR is the acronym for Singapore Interbank Offered Rate. It is the reference rate in which financial institutions lend to other financial institutions. It is determined by the Association of Banks in Singapore (ABS) and also commonly referred to as SIBOR rate or SIBOR rates when home buyers are on the lookout for a good and suitable housing loan for their real estate purchase. SIBOR rate is the Singapore equivalent to the globally known London Interbank Offered Rate (LIBOR).

In the Singapore context, when SIBOR fluctuates, it inevitably makes people think about their housing loans since a number of mortgage lenders benchmark their housing loan products to the current SIBOR rate. An alternative to housing loans pegged to the SIBOR are those that are pegged to the Swap Offered Rate (SOR).

SIBOR can be affected by global financial performance. Here is a chart detailing 3 month SIBOR movements during the period of the USA subprime crisis.

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See important notes on refinance

Although SIBOR stands for itself, there are a few different variations of available SIBOR rates. It can be 1-month SIBOR rate, 3-month SIBOR rate, 12-month SIBOR rate, etc, and they can be found on the sidebar of this website. The most commonly used is the 3-month SIBOR rates. Although the current SIBOR rate in Singapore looks pretty attractive, note that SIBOR rate history shows that it can also go through the roof. SIBOR historical rates don’t lie and is a reflection of how economies can affect it. Falling interest rates tend to have a downward impact on SIBOR as well.

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From historical data, it is generally understood that current SIBOR rates are more stable. However, a lot of home buyers who are not tolerant to risk can go for housing loans that offer a fixed rate. This can be more desirable for those that prefer certainty on the housing loan interest rates that they are paying rather than let a reference rate affect their monthly home loan payments. But do note that most housing loan Singapore packages offer fixed rates for only the first initial few years of the housing loan. After which, the interest rates will be pegged to the SIBOR or SOR as well.

In layman terms, SIBOR is a rate set be the ABS. Many banks and financial institutions design their housing loan in Singapore to benchmark to the current SIBOR rates. When it fluctuates, it affect your housing loan in terms of the interest rates that you will be charged and the monthly installments that you will pay. To get away from SIBOR when it comes to your home loan, you can either obtain a mortgage with a fixed rate or one that is pegged to the SOR instead.

Contact us for a FREE housing loan analysis and to learn about the latest and most attractive SIBOR pegged housing loans in Singapore.

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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.