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

Short Sale

A short sale is a compromised agreement between a lender and borrower whereby the former agree to accept the sales proceeds of a property which is lower than the outstanding balance of the debt as settlement of a home loan.

This effectively means that the bank would have to make a loss on the mortgage.

Despite having to book a loss on these types of deals, banks can sometimes be open to such suggestions as the borrower might already be in default, and delaying bold action would only mean greater losses.

For example, a housing loan on a private condominium might have an outstanding debt of $750,000. And because of depreciation, the property is now only worth $700,000 and might be able to fetch $680,000 if the seller does a quick sale. If the lender agrees, the homeowner would then sell the house for $680k to a willing buyer and send proceeds to the lender. The borrower would then be released from the mortgage debt.

Such situations are rare in Singapore because of a strong real estate market where property value seem to be always appreciating. Yet short sales are not unheard off.

To have the best chance of a lender agreeing to a short sale arrangement, it is best that the home owner already has a ready-buyer in place when making such proposals to the bank.

There is also a potential for fraud to occur when buyers are related parties.

For example, a home owner in default might get a brother to “agree” to purchase his house at a discount in a short sale, effectively getting a reduced settlement of the outstanding mortgage.

This is why lenders are very careful when considering short sale proposals from homeowners.

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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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