HSBC has offered a new home loan that pegs interest rate to the three-month Singapore Interbank Offered Rate (Sibor), plus a spread of one percentage point.
The rate will be applied throughout the loan tenor and is valid for both completed and uncompleted properties with a loan size of at least $300,000.
There is no lock-in period, which is how long you would otherwise be tied to the bank and which allows it to penalise you if you decide to redeem your loan early.
HSBC’s new loan offering comes as interbank rates are expected to remain tepid in the short term, especially as a speedy economic recovery is not on the horizon.
In comparison with the bank’s current Sibor- pegged ‘loyalty’ home loan package – which charges spreads of 1.3 points for the first year, 1.2 points Continue reading
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