As I write this article, SIBOR prices in Singapore are always low. This means that many Singaporeans, especially young people in middle class, are buying expensive land because of low borrowing rates that enable them to repay large sums of money. But architects warn you not to take this bad habit for granted. The Singapore market cannot remain secure from what is happening around the world. If the current trend is an indication of a future, the world is headed for another recession (or possibly depression), and Singapore will surely be an unwilling participant. The government has also warned that unemployment rates could rise in 2012. Buyers of real estate, especially beginners, must understand the risks before committing to a mortgage that can last up to 20 to 30 years. Here are a few things to consider when considering Affordable suit Singapore loans:
- Banks are not charities and are here to make money. Do not go hunting for the best loan package in the market; instead choose the one that suits you best. Factors such as your risk tolerance, market impact, and other personal circumstances should be considered before buying a property. There are hundreds of packages out there in the market, and each one is designed to fit the profile of the target segment.
- SIBOR refers to the Singapore Interbank Offered Rate and is equivalent to LIBOR (London Interbank Offered Rate). Determined by the Association of Banks in Singapore (ABS). In Singapore, fluctuations in SIBOR rates are causing a great deal of interest in the market, as many mortgage lenders use SIBOR rates as a benchmark for their loan portfolios. Contrary to popular opinion SIBOR ratings are also flexible, albeit very volatile. And if you choose to borrow money with a short closing time, you are at risk of getting caught up in SIBOR negative behavior, unless you are willing to pay a ransom.
- The SOR or Swap Offered Rate is also adjusted by the Association of Banks in Singapore and depends on the calculation of the complex forex rate. Although SOR rates are traditionally known to be variable, recent trends have shown that they are lower than SIBOR. A SOR bank-based loan is good if you can afford the risk.
