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

Compound Interest

Compound interest refers to the accumulation of interest charges that includes interest calculated from interest due.

For example, a $100,000 loan might have a 10% interest. At the end of the first year, the total amount owed would be $110,000 if no payments have been made. At the end of the second year, the new balance would be $121,000. The $10,000 of interest incurred in the first year has generated it’s own interest of $1,000!

Interest charges on home loans in Singapore behave more like simple interest rather than compound interest.

This is because housing loans have amortization schedules set from the commencement of the debt meant to gradually pay down the principal over time..

However, there is always a chance for compounding interest when negative amortization occurs.

This occurs when with each monthly payment made by a borrower, the loan principal increases rather than decreases.

The terms of your mortgage would determine how such situations are treated by the lender.

An example of compounding interest is a home equity line of credit. They function like credit lines and overdraft accounts. The balance can rise due to interest charges, and more interest can be charged on the increasing balance.

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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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