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.

Property

Annual Value (AV)

The annual value of a property is an estimation of how much rental income it can fetch on the open real estate market should it be rented out, excluding furniture, furnishings and maintenance fees, with the final figure used as a basis to calculate property tax by IRAS.

As most property owners are residents of the house themselves, it would not be surprising to find that you don’t know your annual value as you have never rented out the house.

In such cases, which is the majority, market data of comparable property will be used to determine the annual value.

For example, a very similar apartment in the opposite flat in terms of size and physical attributes can be used to estimate the AV of a property that is owner-occupied.

In some cases when the house is actually rented out to tenants legitimately, there can still be instances where a considerable variance is observed between rental determined by AV and actual rental collected by the landlord.

This situation is almost certainly due to a low rental charged by the landlord compared to market rates.

It can be because of a long term tenant who is enjoying low rental from a long term stay, or that the market has picked up significantly since the commencement of the current tenancy agreement.

One major reason why actual rental charged is not a major factor towards estimating annual value is the potential for fraud.

Because if actual rental is used instead of one that is based on market demand and supply, an unethical property owner can easily rent out the place to a relative at $100 a month and use that figure as a basis for AV.

You can actually check the annual value of your home here.

When the difference in AV and what you consider as the actual value is too big for you to ignore, do contact IRAS to understand more about how your AV was determined.

Different annual valuation methods are used for specialised properties, land and development sites.

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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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