By What is SIBOR and SOR in Home Loan?
SIBOR and SOR are two important benchmark interest rates in Singapore that are used to determine the cost of borrowing for home loans. Therefore, it is important to understand these rates as it is crucial for securing a mortgage loan for the dream house in Singapore.
Singapore Interbank Offered Rate (SIBOR)
The Singapore Interbank Offered Rate (SIBOR) is a benchmark interest rate that represents the average interest rate at which banks can borrow unsecured funds from other banks in the Singapore interbank market. SIBOR is used as a reference rate for many financial products in Singapore, including mortgages, personal loans, and fixed deposits. Thus, in the context of a mortgage, lenders may use the SIBOR rate as references for determining the interest rate on a floating rate mortgage. Hence, this means that the interest rate on the mortgage may change periodically in line with changes in the SIBOR rate.
Swap Offer Rate (SOR)
Swap Offer Rate (SOR) is another benchmark interest rate used in Singapore to determine the cost of borrowing. Unlike SIBOR, SOR is based on the interest rate on swaps, which are financial instruments used to exchange fixed interest payments for floating interest payments. Similarly, SOR is also used as a reference rate for many financial products in Singapore, including mortgages.
SIBOR and SOR for HDB Resale Houses and Private Properties
Ultimately, SIBOR and SOR are both relevant for owners who are looking to secure a mortgage loan in Singapore. However, the actual interest rate offered by a lender may be different from either of these benchmark rates. Additionally, it may also depend on the individual’s financial profile and credit history.
Singapore Home Services Mortgage Loan Services (SHS)
If you are looking to secure a mortgage loan for your dream house in Singapore, Singapore Home Services (SHS) can help. SHS is a company that provides comprehensive home loan services to clients in Singapore. Whether you are looking to buy a new home or refinance an existing mortgage, SHS has the expertise and experience to help you find the best loan solution for your specific needs. With a range of loan options and expert support, SHS is the ideal partner to help you finance your property purchase or refinance your mortgage.
Conclusion
SIBOR and SOR are two important benchmark interest rates in Singapore that are used to determine the cost of borrowing for home loans. Whether you are looking to buy a HDB resale house or a private property, understanding these rates and how they affect your mortgage loan is crucial. Singapore Home Services (SHS) is here to help, offering comprehensive home loan services and expert support to help you find the best loan solution for your specific needs. Contact SHS today to learn more about their new home loan services and how they can help you secure your dream home in Singapore.
