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

Leasehold

Leasehold real estate refers to property that has a contractual agreement between lessor and lessee that grants the latter exclusive right of use and control, for a specified time period.

Most private property in Singapore are leasehold, while all HDB flats are lease hold.

At the end of a 99 year lease, ownership reverts back to the original owner.

The land might then be redeveloped or leased to another party.

Because of this, it goes without saying that freehold property would be more valuable that leasehold property.

When lenders assess mortgage applications for leasehold property, the number of years left on the lease is often a basic criteria that has to be met.

For example, a bank might not even consider financing a building with 30 years left on the lease. Even if the borrower only takes on a 10 year property loan tenure, there’s risks involved with foreclosure as the value of the property would be depreciating fast. It might not even sell at a good price at the auction house to settle the mortgage debt.

An apartment with 20 years left would also make no sense to finance should a borrower want a 30 year mortgage.

While residential leasehold property usually come with 99-year lease brand new, industrial property often come with 60-year lease.

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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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