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

Loan Repayment Account

A loan repayment account refers to an account that has be specially opened by a lender which a borrower has to make monthly payments to, and in turn the funds would be deducted by the bank.

In terms of deposits, a borrower would be able to deposit money into a loan repayment account by almost all manner of ways including:

  • Cheque deposit
  • Cash deposit
  • Balance wire transfer
  • Credit card
  • TT transfer
  • etc

Borrowers however would not be able to withdraw from loan repayment account unless special arrangements have been made and agreed by both parties.

This can sometimes occur with HELOC overdraft accounts.

In this case, the borrower uses the repayment account for both payment deposit and withdrawal.

However to encourage borrowers to keep their funds in the accounts, lenders can sometimes offer them as interest bearing accounts.

When more money than required is deposited into a regular loan repayment account, the extra funds can sometimes be deducted from the account and used towards the reduction of the principal loan balance.

However this is usually not a default setting of such accounts.

In order to avoid confusion, borrowers who want extra payments into the loan repayment account to go towards principal reduction should explicitly inform the bank about it.

Otherwise the extra funds would be left untouched and be kept as part of the payment for the following month.

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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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