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

Conversion

A conversion is a provision stipulated in a home loan agreement in which the borrower would be allowed to convert the loan structure to another one within a given period of time.

The conversion options available to a borrower are often limited to list of housing loans available that the bank has made available during that moment in time.

For example, if a bank is only offering two types of mortgages to the public for a particular type of property at the moment the conversion clause is activated, then the borrower only have the option of choosing between two available loans to convert to.

In practice, a borrower can effectively change from a floating rate mortgage to a fixed rate mortgage should he find that volatile interest rates are too risky after a few months of taking up the loan.

However, if the period in which the clause is active has expired, then the borrower would be denied the option of conversion.

If the option is triggered during it’s active period, then the bank would be obligated to accept the borrower’s request as long as the terms are agreeable.

Active period of such options are usually within 1 year of accepting the home loan.

Should a borrower find that interest rates of the existing home loan is too high or erratic, and the conversion option has long expired, then the option available would be to request for re-pricing or refinance the loan to another bank which is offering more attractive rates.

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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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