Are mortgage rates the only thing to compare and review?

comparing popcorn and drinks

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.

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