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

Par Rate

A mortgage par rate is the interest rate tagged to a home loan in which any addition or subtraction is not applied, which is why it is also often referred to as the breakeven rate.

This essentially means that a lender who offers a home loan on a par rate to a borrower would not be making a profit or loss on the loan.

This makes the par rate a useful benchmark to compare competitive loan packages and also evaluate whether certain promotional rates make economic sense to offer to the general public.

While most property buyers would end up taking on housing loans that are above par rate, obtaining loans before the par rate is not unheard of.

This is especially so when the loan package is a board rate loan with interest rates below par rate during the first few years of the loan to attract borrowers.

Borrowers on these types of loans would eventually pay above the par rate after the initial interest rates.

Because SIBOR is the rate in which banks loan from one another, it is often seen as the par rate or very close to it.

If the cost of funds for a lender is above SIBOR, then they might as well borrow at SIBOR rates to lend to a willing borrower.

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It makes absolutely no sense to pay more
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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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