Housing Loan Singapore

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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

Banker’s Guarantee

A banker’s guarantee (BG) is a promise from a bank that specified funds are available and ready to be disbursed to the beneficiary within a specified period should certain conditions be met.

It can take the form of a hardcopy document or a digital SWIFT message.

There are basically two types of BGs:

  1. Financial guarantee
  2. Performance guarantee

When BGs are used in real estate, it is usually a performance guarantee.

Bankers guarantees usually have no involvement in regular residential real estate purchases or refinancing.

But they can sometimes play a role in commercial and industrial property financing.

A proper banker’s guarantee would include key information like:

  • Active period and expiry date
  • Claim period
  • Express maximum liability limit
  • Requirements for payment on demand
  • Terms of assignment (if any)
  • Jurisdiction

In terms of the property market, BGs are most often used in the financing of major construction projects.

For example, when a land owner wants a developer to provide a BG to protect himself against completion failure or the developer going bust.

Either that, or the bankers guarantee can be substituted with an insurance performance bond or cashier’s order.

Other common types of BGs used in real estate include the bid bond and warranty bond.

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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
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