“So what’s the best way to get the lowest loan?”
“What’s the SIBOR and SOR Rate?”
“What’s the fix and flexible interest ah?”
These are some of the questions that I’d received over time
Due to MAS Regulations, banks are actually moving towards SORA rates, as they are also more stable and predictable. With SIBOR are simply interest rates based on future estimates of lending rates, SORA on the other hand looks backwards at their overnight rate. SORA is also known as the Singapore Overnight Rate Average
This would meant that the numbers are more stable as compared to SIBOR which is based on the future, with the former based on the past.
On the side of the fixed home loan, there would be a lock in period, in which you would be paying this fixed rate regardless. As everything is uncertain, one pros of the fixed home rate is good when you’re looking at stability compared to SIBOR and also if you feel that the interest rate will go up over time.
SORA comes at a sweet spot in the middle as they are pegged backwards. And the rates are available via MAS, giving a lot of transparency.
At the end of the bank the bank package changes periodically as they are bound to adjust themselves accordingly to the world’s financial situation. Sometimes the more important question is to ask inward instead of out; if you’re ready to commit to a property.
Over at Roncasa, one of our success stories is helping one of our clients to get their IPA done within 1 working day, expediting the case compared to the usual up to 1 calendar week timeline.
Do reach out if you’re keen to learn about the timeline of purchasing a property from getting an IPA done