Definition
Asset Depreciation Risk
The asset depreciation risk is one of 4 key components that insurers use to assess the risk level of life insurance policies. Among the variables that make up …
Lien
A lien is a right of legal claim against a property should the borrower be unable to repay his debt. For almost all mortgages, lenders place a lien on the …
Maturity
The maturity of a loan refers to the date or period where the last payment is made according to the repayment schedule. When maturity is mentioned it is …
Index Rate
An index rate refers the the rate of an index that a housing loan is pegged against. All mortgages in Singapore consist of interest rates that are pegged to …
Historical Scenario
A historical scenario refers to using historical interest rates or movements of interest rates to depict how a current housing loan might adjust in the future. …
Grace Period
Grace period is the period of leeway a bank unofficially gives a borrower for being late on a scheduled payment without charging a late payment penalty fee. …
Forbearance
Forbearance occurs when a bank agrees not to take further steps towards foreclosure, and in return a borrower agrees to commits to a special payment plan that …
Home Equity
Home equity refers to the value of a property after deducting any outstanding housing loans against it. Many homeowners don’t realise that when in order …
Caveat
A caveat is a legal notice filed by a person or entity for a claim of interest in a property. This legal document is lodged with the Singapore Land Authority …
Debt Consolidation
Debt consolidation is the act of combining several debt obligations into one to either save on interest charges, or make it easier to keep track of them, or …
