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

Negative Equity

A status of negative equity on a home loan arises when the mortgage balance is more than the value of the property.

This can be a frightening realization to experience which basically implies that all that money made towards mortgage payments over the years have disappeared without a trace!

This situation seldom occurs in the Singapore real estate market as property prices tend to hold strong and rise over time.

On top of that because of the widespread negative equity faced by American households caused by 2008, various cooling measures have been implemented to prevent them from happening in Singapore.

The LTV controls specifically, are meant to eliminate the potential of negative equity.

The more down payment a home buyer or property investor puts pays upfront, the less likely for negative equity to occur as there is already considerable equity in the house.

A huge drawback of owning a house in negative equity is that selling the house would be a tough decision to make.

This is because since the house has a lower value than the home loan balance, selling it means that the total sales proceeds would not be enough to cover the housing debt.

And as lenders have a due on sale clause in loan agreements, the bank would demand for full repayment immediately. This only puts the homeowner under more stress.

Borrowers in negative equity have their choices limited, if there are any at all.

Unless you are cash rich with cash to burn, the best course of action is probably to stay obedient and continue paying the mortgage obligations and hope that the lender would call you to deliver bad news.

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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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