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

Per Diem Interest

Per diem interest is the interest charges that is due to the bank from the day of closing to the first day of the following month which is when the first payment of the mortgage is due.

This figure needs to be calculated as an extra payment because the original home loan repayment amortization schedule is calculated with a commencement that starts from the first payment.

This means that the time between closing and commencement of the loan would incur interest charges that are not accounted for.

For example, if a 30 year housing loan for $100,000 starts on 3rd June and closing way done on the 15th of may, the interest charges for the period between 15 May to 2nd June would be the per diem interest. And if the fully index rate rate on the loan is 2%, the amount would be [($100,000 x 2%)/365] x the number of days.

This interest expense would be paid by the borrower as part of the closing costs.

This also means that if the closing date is within the control of the borrower, then scheduling it a day or two before the loan commencement arrangement would be ideal.

It is also not unheard of for banks waive per diem interest charges if the amount is immaterial.

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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
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