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

New To Bank

New to bank (NTB) is a term used by lenders internally to describe new customers that they are dealing with for the very first time.

This means that the lender has do data collected of any dealings with a new client.

However, this usually don’t take failed applications into account.

For example, if a person has had a credit card application submitted to the bank and rejected, there might be no record of that in the bank’s internal computer systems that contain information of all their customers. So if the same borrower applies for a home loan years later, he can still be treated as a new-to-bank customer.

When a NTB customer has been identified by a lender, a more thorough procedure of due diligence check might be conducted compared to existing customer of the lender.

This would undoubtedly include typical know-your-customer protocols.

Mortgages for new to bank borrowers

It must be said that common sense tells us that an existing customer of a bank would be better treated by them compared to new customers who they have never dealt with before.

This is because the years of loyalty from existing customers and years of profits made from them would encourage a lender to reward long time customer with better products, better terms, and better interest rates.

However, this is seldom the case in the Singapore housing loan market.

Lenders are commonly observed to reject existing borrowers’ request for re-pricing, better terms, or equity loans. Indirectly inviting them to bring the mortgage away to a competing bank with refinancing.

Yet offer very good terms to new to bank borrowers, sometimes much better than what existing customers are enjoying.

It is a common sight to see existing customer with mortgage rates such as 3% and NTB borrower offered 2%.

The general advise is that if you feel that your present lender is not treating you fairly, then moving your housing loan to another bank is something that you should definitely explore.

They might give your the best rates as you now become then NTB customer. What irony.

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It makes absolutely no sense to pay more
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Related Posts

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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