See the latest Sibor and Sor rate for your housing loan.
If your home loan is pegged to Sibor/Sor, it is a good time to refinance to a fixed rate as the rates are increasing fast.
Sibor stands for the Singapore Interbank Offered Rate.
Sibor Singapore is the rate at which banks lend to one another in SGD. When it falls, so does the mortgage rate of Sibor-linked Mortgages.
Sibor also gives a rough indication on where deposit and savings account rate at banks might be heading as it is influenced partly by the supply and demand for funds in the Singapore interbank market.
SOR stands for Swap Offer Rate.
SOR rate represents the cost of borrowing SGD synthetically through borrowing USD and swap out in return for SGD for the same tenor.
Sibor/ SOR rate are available at 1month, 3months, 6 months, 9 months and 12 months and is published in The Business Times.
Sibor/ SOR rate are usually stated as 3m Sibor + x%, or 12m SOR + x%.
Transparency as Sibor/ SOR rates are made known to the public (rates can be readily obtained through The Business Times).
Generally does not come with any lock in period.
Uncertainty as rate is adjusted based on market conditions.
More information of Sibor and SOR can be found at Sibor vs SOR Home Loan
Banks/ financial institutions will state upfront the fixed interest rate for a number of years.
The fixed rate is usually 1-3 years, followed by a floating rate.
Simple and straight forward.
Worry-free as it is not affected by the market conditions.
Interest rate is usually higher compared to a floating rate mortgage.
Generally, it comes with a lock-in period (Eg. 2 years fixed rate = 2 years lock in period).
Interest rate varies and is adjusted based on the banks/ financial institutions discretion.
It is usually stated as Mortgage Board Rate – x% = floating rate.
Interest rate is usually lower than fixed rate.
There is uncertainty as the rate is adjusted based on banks/financial institutions discretion.
Upon signing up on the mortgage loan, the banks/financial institutions will provide you with a cash rebate.
The rebate is usually 1.5% of the mortgage loan amount and it comes with a 3 years claw back condition.
Cash rebate upfront to pay for your existing home loan penalty.
Generally, there will be an additional interest loading to your mortgage loan.
Comes with a 3 years claw back condition on the cash rebate amount..
This mortgage loan comes with a repayment account which earns you interest.
The interest earned will help to reduce the outstanding principal balance on your mortgage.
The more cash you have in your repayment account, the faster you reduce your mortgage principal balance and the lesser the interest you pay to the bank.
This mortgage loan targets cash rich client who wants liquidity.
Interest rate is lower if you are able to ‘park’ your cash in the repayment account.
Interest rate is usually a floating rate which creates uncertainty.
The base interest rate is usually higher due to the unique features of this loan.
This mortgage loan allows you to service only the interest portion.
The interest servicing period is usually for the first 1 or 2 years and will revert back to the original package.
Low monthly instalment as the client only services the interest portion.
During the interest servicing period, you principal is not reduced by a single cent.
Client can pledge their property with the banks/financial institutions to get cash.
It is possible to take a equity loan together with a Mortgage loan.
Able to borrow a much larger amount compared to a personal loan.
Interest rate is charged as per mortgage loan interest rate which is much lower as compared to a personal loan.
Only applicable to Private Property.
Maybank, or Malayan Banking Berhad is the largest bank in Malaysia, with major banking operations in the key Asean regions of Singapore, Indonesia and the Philippines. The bank has also devoted significant resources in Islamic banking through Maybank Islamic Berhad. Maybank is the largest bank in Malaysia with 384 domestic branches and 190 international branches and offices. They started their operations in Singapore in 1960 as a Qualifying Full Bank (QFB) in Singapore, boosting 22 branches islandwide and 35 atms around Singapore. As of end of 2011, Maybank’s total assets in Singapore were S$32.6 billion. Some of the awards the bank has received include being the first and only Bank to receive triple certification for Singapore Quality Class, Singapore Service Class and People Developer from SPRING Singapore in 2009. In 2011, Maybank took over financial service provider Kim Eng and expanded its portfolio of banking services to include services in corporate finance, debt markets, equity capital markets, derivatives, retail and institutional securities broking and research consisting of Top 5 SGX Securities Broker (ASEAN Category), Top 50 Singapore Brands – Brand Finance- 2008-2012, Best Mobile Phone Platform – Investment Trends, Singapore Broking Report- 2011, 2012 and Best Retail Broker Award (Merit Award)- SIAS Investors’ Choice Awards- 2011, 2012.
As with other banks, Maybank provides residential home loans of both the fixed and floating rate variants, with a consistent board rate provided. This board rate is known as Singapore Residential Financing Rate (SRFR), which is currently 3.75% yearly. The bank will also provide a 30 days’ notice if revision is done to the SRPR.
For floating rate home loan packages, home owners can choose either the 3-month SIBOR-pegged packages or the Variable Rate packages which tracks Maybank’s home loan board rate. The bank also provides a bridging loan for property financing. There are also exclusive privileges for Maybank Home Loan customers where one can enjoy an interest free Renovation Loan for the first year subjected to terms and conditions.
As a bank listed in Malaysia, we can also expect Maybank to provide Malaysian residential property loan, from the comfort of Singapore! One major advantage of the loans on Malaysian residential property is that home owners may benefit from favourable exchange rate movements with a loan denominated in Singapore Dollars. Moreover, the interest rates are pegged to the 3-month Sibor rates which increase transparency. One can also look to get financing of up to 70% of purchase price or market valuation, whichever is lower.
As leading Singapore mortgage brokers, let us get you the lowest mortgage packages for:
Home Loan also known as housing loan (or mortgage) is the process of getting a loan from a bank by pledging the property as collateral to the bank. The title deed of the property will be safe held by the bank. Upon fully paid on the home loan, the title deed will then be return to the owner.
Loan Structure – 1st home loan
1st 5% = Cash only
2nd 15% = Cash or CPF
Remaining 80% = Cash or CPF or Home loan
Loan Structure – 2nd home loan and onwards
1st 10% = Cash only
2nd 30% = Cash or CPF
Remaining 60% = Cash or CPF or Home loan
When a customer took up a home loan from the bank, he will be entitled to 1st year free fire insurance. For this free fire insurance, what does it cover?
Generally, it only covers the structure of the property. This means that if your property structure is severely damage (non livable condition) then you are able to claim up to the current valuation of the property. The claim rate for this kind of insurance in extremely low as Singapore is a very safe country with no nature disaster or terror attack that will eventually destroy the structure. Take note that some fire insurance exclude natural disaster claim.
Some banks are being more generous. Beside the fire insurance, they also provide home content insurance for their customers. Home content insurance will pay for the damage or loss of customers’ possessions located within the house. Usually the coverage for home content insurance is from 5k to 10k.
Mortgage insurance covers the life of the insured. Should the insured suffer from death or totally disabled, the outstanding home loan will be fully paid off of the insurance company. If the home loan is taken up by 2 people, Mortgage insurance allows coverage of both applicants.
Advantage of Mortgage Insurance
Disadvantage of Mortgage Insurance
This article is for reference only. You should always check with your banker or insurance agent regarding the type of insurance that is more suitable for you.