Are mortgage rates the only thing to compare and review?
Simply comparing only the numerical value of an interest rate package is like comparing 2 bags of fruits based on price without consideration of its content and weight.
Lets take a look at the comparison matrix for some of the other factors & features for consideration:
| Types of Interest Rate References | |||
| (1) Board Rate | (2) Board Rate | (3) Board Rate | |
| (Fixed Deposit Pegged - 12/18/24/36 months) | (Uniform) | (Multiple Variant) | |
| (4) SIBOR / SOR | (5) Fixed Rate | (6) Cost of fund | |
| (1/3/6/12 months) | (1 -5 years) | (1/3 months) | |
| Lock In /Tie In Period | |||
| Yes | No | ||
| Cancellation / Prepayment Penalty | |||
| 0.75% - 2.00% | |||
| Average Teaser Rate | |||
| 1 - 5 years average | |||
| Perpetual Throughout Rate | |||
| Yes | No | ||
| Bank Subsidies | |||
| Yes | No | ||
| Max Financing Quantum | |||
| 50% - 80% | |||
| Property Type | |||
| Residential (HDB / EC / Private Property) | Commercial | Industrial | International |
| Construction Phase | |||
| Completed | Under-Construction | Land and House | |
| Minimum Build In Requirement | |||
| >40 sqm | >50sqm | ||
| Type of Borrower | |||
| Individual | Investment Holding | Operating Company | |
| Usage | |||
| Owner-occupation | Investment | ||
| Valuation | |||
| 0 - 15% variation | |||
| Tenure | |||
| 5 - 35 years | |||
| Minimum Remaing Lease / Age Of Property | |||
| 20 - 40 years | |||
| Minimum Loan | |||
| >$200k etc | >$300k etc | >$500k etc | > $1M etc |
| Eligibility | |||
| Citizens | Permanent Residents | Foreigners | US Tax Residents |
| Location | |||
| Selected locations / zoning / states | Country wide | ||
| Mortgage Repayment | |||
| Principal + Interest | Half Principal + Interest | Interest Only | |
| Interest Amortization | |||
| Daily Rest | Monthly Rest | Reducing Balance | Straight Line / Linear |
| Interest Availability Period | |||
| 3 - 6 months | |||
| Additional Equity Term Loan | |||
| Yes | No | ||
| Max LTV/LVR for Equity Term Loan | |||
| 70% | 75% | 80% | |
| Debt Servicing Ratio Exemptions | |||
| Yes | No | ||
| Loan Redraw Feature | |||
| Yes | No | ||
| Interest Offset | |||
| Yes | No | ||
| Dual Currency Switch | |||
| Yes | No | ||
| Loan Margin Call/Top Up | |||
| Yes, 5% buffer | Yes, 10% buffer | Unlikely | |
| Processing Fee | |||
| Yes | No | ||
| Annual Recurring Fees | |||
| Yes | No |
As Singapore’s independent mortgage specialist broker since 2010, we provide impartial unbiased advice to help you secure the best financing deals in town. Speak with us today!