Wednesday April 30, 2008

Singapore SIBOR rate fell to 1.25% in Apr 2008, lowest since Aug 2004

This article belongs to the Singapore SIBOR rate watch story arc.

The Singapore SIBOR rate fell to 1.25% in mid April 2008, a near 4-year low, according to data from the MAS domestic interest rates website.

Homeowners who are looking to refinance to SIBOR-linked home loans should be able to obtain relatively low interest rates. These are good deals in a falling interest-rate environment, but conversely, if interest rates rise, so will the mortgage payments on these loans.

According to an earlier Straits Times article :

DBS charges a premium of an annual 1 per cent over the Sibor rate, while UOB and OCBC Bank add an annual 1 per cent over the three-month, six-month or nine-month Swap Offer Rates (SOR). The SOR comprise the Sibor plus a bank's lending costs.

Hence, from the above, SOR or Swap Offer Rate home loans which seem to be getting quite popular with Singaporean homeowners recently are actually SIBOR-linked loans as well. The premium over the SIBOR rate will incorporate the bank's margin and like most private home loans, the actual interest rate is subject to case-by-case negotiation between the buyer and seller.

See also :

1. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
2. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
3. Singapore : Inflation erodes away bank savings

(2008-04-30 13:29:14 SGT) [Biz] Permalink Comments [1]

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