Singapore Residential Financing Rate
The financing rate of Singapore residential properties can be either floating or fixed.
For floating rate it is usually pegged to certain market indices like money market rates Sibor or Sor, or the bank’s own deposit rates. It can also be pegged to the bank’s internal board rate for the financing of Singapore residential properties. The bank will then add a small profit margin which is called a spread, either on top of these indices like sibor plus or a minus from the bank’s board rate. Either way. the spread forms the profit for the bank which is why it is usually lower in the initial 3-4 years of the loan tenure as a promotional gimmick and raised to typically 125 basis points or 1.25% afterwards. For this reason most borrowers will be most concerned with the average rate in the 1st 3 years of the package
The variable rate home loan packages below are sorted in order of lowest average rate in the 1st 3 years.
The SIBOR & SOR rates are based on rates published on Association of Banks In Singapore (ABS)’s website on the 1st business Monday of the month. See the weekly money market rates at bottom of home page.
– Combo rate is average of 3M Sibor & 3M Sor rate
– FD is the bank’s Fixed Deposit rate