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

Personal Guarantee

When a borrower agrees to provide a personal guarantee for a loan, he or she basically promises to repay the debt in full, and the lender would be able to legally repossess his assets in order to do that.

Personal guarantees are most common with unsecured loans whereby there are no collateral in which the loan is secured against.

This leaves a lender with very limited option (if any) should a borrower default on the loan or even flat out refuses to pay.

This is why small personal loans always have a requirement for personal guarantees.

It puts the borrowers’ personal assets on the line which could include:

  • Real property
  • Cash in the bank
  • Stocks and shares
  • etc

They are also a common requirement for small business loans. Especially short term loans for working capital.

Because these types of loans are usually unsecured, and private limited companies can be structured with limited liabilities, a personal guarantee endorsed by directors and shareholders would give a lender enough peace of mind to approve and disburse a loan.

For example, a company limited by 10,000 shares at $1 each would have a liability limit of $10,000. This fact would give lenders little reason to approve a loan for $100,000. Personal guarantees would ensure that the signers’ personal assets can be repossessed for payment of any debt.

While secured loans like housing loans are essentially secured against the property, lenders would already have a target for recourse should defaults occur.

But often times, lenders would rather be safe than sorry and request for personal guarantees as well just so that they can sleep better at night.

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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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