Housing Loan Sibor Rate
SIBOR Rate Singapore 2011 is the Singapore Interbank Offered Rate. Sibor interest rates provided on our blogspot site are correct as of respective date.
Housing loan Sibor rate is the Sibor rate that your bank that provided you with your housing loan that you borrowed to purchase a residential property in Singapore.
The Sibor rate chosen for calcuation of your housing loan interest repayment is usually fixed on a certain particular date as specified in your housing loan contract. For example, your housing loan sibor rate calculation could be the Sibor rate as determined on the first day of each month.
The Sibor rate is an interest rate that changes over time. Thus your housing loan monthly repayments may also change with the change in Sibor rate.
You should ascertain which Sibor rate your housing loan bank has chosen to fix your housing loan payment because there are many Sibor rates available: 1 month, 3 months, 6 months, 9 months, etc.
So check with your bank before you sign on the dotted line for housing loan arrangement.
Sibor rates are published regularly by banks and the authority. Your housing loan linked to sibor rate would be affected by changes in Sibor rate.
Remember that housing loan sibor rate is not a fixed number. Your housing loan bank interest repayment will increase if sibor rates move upwards. If sibor rate frops to zero, your housing loan interest payment will still be there because the bank charges you a percentage, plus the sibor rate on top of your principal loan amount.
Bank Loan Principal Amount = E dollars
Housing Loan Interest Charge Per Annum = y % + Sibor Rate %
(y % is the permanent fixed interest charged by your bank)
Total Interest payment = (y % + Sibor rate % ) x ( E dollars )
This is a simplified schematic example.
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