A MoneySmart Mortgage Specialist will be contacting you to help you secure the best home loan in town.
Book a call
Thank you!
A MoneySmart Mortgage Specialist will be contacting you to help you secure the best home loan in town.
Oops, something went wrong
Sorry, there seems to be something wrong in our system that has prevented your booking making it to us.
You can try again in a few minutes, or maybe come back in a couple hours if this has happened for a second time.
SIBOR Trend
SIBOR Rates are no longer offered by banks
In a Nutshell
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.
Here are the important things you need to consider when choosing your home loan:
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.
Here’s how the Best SORA Rate Package compares with the Best Fixed Rate Package in Singapore
Rates and fees as of September 26, 04:36 PM 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.
Still in the midst of choosing the best home loan package?
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.
Still in the midst of choosing the best home loan package?
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.
Frequently Asked Questions
- What is SIBOR?
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.
- What affects SIBOR rates?Some market factors that affect SIBOR include changes in: US Federal Fund’s rates, connected economies and exchange rates, supply and demand of funds in Singapore between banks, equity funds, and borrowers, and the overnight funds market. If you need help informing yourself on relevant information and connecting the dots, our specialists can help to answer any industry questions you may have and help you to make the best decision.
- SIBOR vs Fixed Rates - Which is better?It depends on your situation and what you are looking for. In general, fixed rates are good if you don’t want to think about it and are more risk-averse. SIBOR is seen as more volatile, but offer a chance at more savings. However, as mentioned, it can really depend on whatever is happening in the market and your own goals.
- What is the difference between SIBOR & SOR?
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).
- When will SIBOR rate go up or down in Singapore?SIBOR rate movements depend on a wide variety of factors that can change quite frequently. To learn about what is affecting SIBOR at the time you are reading this, you can call our specialists for free advice.