Housing Loan Singapore

www.Housingloansingapore.com

Providing online home loan services since 2009

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.

Definition

Appraiser

An appraiser is a person in the profession of estimating the value of a property using knowledge, experience and skills of real estate valuation.

In the Singapore real estate market, they are mostly hired via appointment by lenders or authorities to help value a property so that a credible loan to value can be determined.

Banks usually work with an appointed panel of valuers to help with valuation works.

In the early stages of home loan application, lenders would request for an indicative valuation of a property so that they can underwrite the necessary loan documents with a correct property value and LTV. These valuation will then be verified and endorsed with a physical inspection when closing approaches.

It must be said that indicative value often mirrors the final estimated value, especially when a borrower is borrowing maximum loan to value.

This is because a deviation from the indicative value in which the loan was assessed and approved for would result in all the previous underwriting work to go to waste.

In addition, a home buyer could face financial issues with financing as he might no longer be able to obtain sufficient financing to purchase the property.

This is because a lower final value compared to the indicative value would mean that the shortage of funds would have to be sourced by the home buyer from other channels.

For example, a property with an indicative value of $500,000 with a loan to value of 80% would result in a $400,000 loan. Should the final value be determined to be $450,000, then the loan amount would be reduced to $360,000. Meaning the buyer would have to top up the $40,000 shortage required to close with cash.

The work of an appraiser is also essential in the refinancing of home loans, and the assessment of home equity loans.

This is because the approval of refinancing and equity loans depend very much one value of the property in question at the point of application of such credit facilities.

The higher a property is valued, the easier it would be to obtain refinancing and the higher the loan quantum with equity loans.

A property that has depreciated in value would seldom be able to obtain equity loans unless it only has a low principal balance remaining on the existing loan.

A appraisal fee is charged by appraisers which is usually paid for by the bank… which would eventually be paid by the borrower one way or another, directly or indirectly.

Some appraisers work for appraisal management companies which serve as intermediaries between appraisers and lenders.

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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.

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

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It makes absolutely no sense to pay more
than you have to on a home loan.

Find the best mortgage rates here
SEE RATES
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It makes absolutely no sense to pay more than you have to on a home loan.

Find the best mortgage rates here
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