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

Asset Based Lending

Asset based lending (ABL) is a type of lending program offered by most mainstream lenders where a loan, such as a mortgage, can be approved simply by documented proof of borrower assets.

This means that if a borrower is able to provide verified proof of a certain amount of assets, which relates to net-worth, then a lender can view it as justification to approve a loan or credit facility.

How much assets the borrower must show depends on the type of debt and the amount of credit requested.

For example, a lender might be willing to offer a 60% loan on a $1,000,000 property if the borrower can provide documentation as proof that he or she owns assets worth $500,000.

Some assets that might meet a lender’s criteria include:

  • Stocks and shares
  • Real property
  • Cash or cash equivalents
  • etc

This defeats the need to submit income documents as proof of income.

The advantage of such credit applications is that the borrower won’t have to collate all income documents of individuals or companies.

The paperwork is kept at a minimum.

Sometimes lenders of such types of loan might demand that a certain amount of funds be deposited into their fixed deposits for a period of time such as 6 months.

Because of the security provided by the borrower, lenders can often offer these types of borrower preferential rates on their credit facilities.

Asset-based lending is more common in the commercial space than residential space.

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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?

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

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
VIEW TODAY'S RATES
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