MOST S'PORE BORROWERS STILL CHOOSING SIBOR
According to a recent article on PropertyGuru (Fixed-rate home loans gain steam in
), more home buyers are looking to fixed-rate loans to finance their property purchases. Singapore
However, Sibor packages are still the most attractive loans on offer, said John Lee, Head of LoanGuru.com.sg, a free online home financing service.
Based on home loan applications received by LoanGuru, around 65 percent of borrowers are keen on Sibor-pegged packages. Meanwhile, approximately 20 percent, 10 percent and five percent are looking for SOR-pegged packages, fixed-rate loans and board rates respectively.
The three-month Sibor, or interbank rate, is at 0.38 percent as of today, approximately 12 percent more than its 0.34 percent closing on 9 September.
Despite the increase, Lee said Sibor rates are still lower compared to fixed-rate packages, "normally 0.3 percent to 0.5 percent lower". He also added that it is less volatile than SOR packages.
Meanwhile, banks' internal board rate packages rank the least popular. "The board rate is set by individual banks, and not very transparent compared with Sibor and SOR packages," Lee said.
Info courtesy - PropertyGuru.com.sg