A MoneySmart Mortgage Specialist will be contacting you to help you secure the best home loan in town.
A MoneySmart Mortgage Specialist will be contacting you to help you secure the best home loan in town.
A MoneySmart Mortgage Specialist will be contacting you to help you secure the best home loan in town.
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SIBOR Rates are no longer offered by banks
You might find yourself at a crossroad trying to figure out the best home loan package. Typically, you’ll encounter fixed and floating interest rate options pegged to SIBOR. Before you lock down your decision, you need to carefully assess your preference, budget, flexibility, as well as market fluctuations.
If you go with a fixed interest rate housing loan, your monthly repayments will be equal over the duration of your loan. One good thing about having a fixed rate is that your instalments won’t be affected by other market factors.
On the other hand, a floating interest housing loan is the complete opposite of a fixed rate housing loan. Even though they tend to be cheaper, you need to be prepared to face the changing nature of your monthly repayments.
Now, when it comes to choosing SIBOR-linked home loan packages, you need to determine how often you want your interest rate to be refreshed. You can choose between 1-month SIBOR and 3-month SIBOR. At times, the length of the SIBOR package can be 6 or even 12 months. However, with most banks in Singapore, you can only opt for a monthly or quarterly interest rate refresh.
While historical SIBOR rates provide a good comparative view of SIBOR trend, you should also look into other factors before getting tied down by mortgage.
Market Conditions
Multiple Home Loan Packages
Lock-in Periods & Waiver Penalties
Personal Factors
01
Market Conditions
Before taking any step further, you need to have a good grasp of the market forces to understand which home loan package is the most suitable for you.
01
Market Conditions
Before taking any step further, you need to have a good grasp of the market forces to understand which home loan package is the most suitable for you.
02
Multiple Home Loan Packages
As you may have noticed, home loan packages vary from bank to bank. Bank A may offer 1- and 3-month SIBOR packages, while some banks may have other options available.
03
Lock-in Periods & Waiver Penalties
Familiarising yourself with these factors can help you make a more calculated decision as you weigh the potential risk of high fees with the potential gain of an attractive interest rate.
04
Personal Factors
You need to take a holistic approach before moving ahead with a home loan package. It’s equally important to consider other financial commitments, CPF contributions, or timelines that may affect the ideal time for you to borrow or refinance.
Need some help deciding?
Let our experienced mortgage specialists narrow down your options.
Rates and fees as of February 07, 02:31 AM based on the assumption that you are purchasing/refinancing a private property.
These home loan recommendations are based on the information entered above. The results do not include other factors such as lock-in period. For a tailored calculation of your potential savings, get in touch with one of our mortgage specialists.
Our mortgage specialists can help you save time and money with their comprehensive knowledge on mortgage. Just book a call or send a WhatsApp message to make your home loan journey easier.
Our mortgage specialists can help you save time and money with their comprehensive knowledge on mortgage. Just book a call or send a WhatsApp message to make your home loan journey easier.
The SIBOR (Singapore Interbank Offered Rate) is a reference rate based on the interest rates used by banks in Singapore when lending unsecured funds to each other. Simply put, the SIBOR reflects how much it would cost banks to borrow from each other.
Most banks in Singapore offer SIBOR-based home loan packages. It is considered the most widely used reference rate for home loan packages in Singapore and the most popular amongst consumers.
SIBOR is based on the interest rates used by banks in Singapore when lending unsecured funds to each other. Simply put, SIBOR reflects how much it would cost banks to borrow from each other.
SOR is based on the foreign exchange rate with the US dollar. In a simple sense, it projects what the interest rate would cost if the same amount of money were borrowed in US dollars.
However, in August, it was decided that SOR would be discontinued and transitioned into the Singapore Overnight Rate Average (SORA).