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

Principal

The principal of a housing loan refers to the original loan amount that was borrowed by a borrower.

This is important to understand as monthly home loan repayments consist of interest charges and principal.

For example, a $1,000 payment might be made up of $400 interest and $600 hundred principal. This is why is you add up all the scheduled payments of a mortgage to it’s entirety, you would find that the total money you eventually pay would easily be about 130% of the original loan amount that was financed.

This also means that should you decide to fully repay a loan, the amount that you owe would be the principal balance plus a little outstanding interest for the following month.

This means that if the total payments which would be made if you held onto the mortgage to it’s entirety is $100,000 the amount you need to fork out today to redeem the loan could very well be $70,000, enabling you to save $30,000 in total interest charges over the years ahead.

The above is of course, an over-simplified example.

The loan principal is a very basic component of housing loans. And any borrower should understand what it is when signing up for a loan.

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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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