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

Qualification

Mortgage qualification is the process a loan officer takes to determine whether a borrower will be able to obtain a requested loan quantum based on information provided by borrower during discussion.

Assessment and results of mortgage qualification is based on information declared by borrowers. Upon the actual application when required documentation is submitted, the information provided by the borrower would be verified.

A banker would use qualification rates to serve as basis to generate the potential approved loan quantum. This rate might not be the same as the actual interest rate which would be stated in the actual mortgage loan contract.

Qualification ratios are also used during this phase which can be different from the actual underwriting process when a proper loan application with required documentation submitted.

Do not make the grave mistake of assuming a loan qualification is the same as a loan approval or approval in principle.

There are various reasons why housing loans can be qualified but not approved later:

  • Home buyer or co-borrower has bad credit
  • Buyer unable to provide proper documentation to verify income claims
  • Borrower carrying more debt than declared
  • Employment status has changed between the date of qualification to the date of application
  • etc

This is why a borrower should be as frank and candid as possible should they choose to seek qualification rather than approval before buying a house.

Sometimes, information that are critical to lenders might not be deemed as important to borrowers.

They then leave out or misrepresent material information during qualification.

When the application is submitted and a credit analyst finds that information don’t match up from due diligence checks, the loan can be declined or alternative documents can be requested.

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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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