Interest is a fee charged by banks for lending you money. Essentially, interest is like “rent on money”

Interest is a fee charged by banks for lending you money. Essentially, interest is like “rent on money”.

In Singapore, housing loan interest rates are usually pegged to Singapore Interbank Offer rate (SIBOR) plus a spread. For example, if the current SIBOR is 1%, the interest rate on a “SIBOR +1.25%%” loan would be 2.25%.

What is SIBOR?

SIBOR stands for Singapore Interbank Offered Rate and is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the Singapore wholesale money market (or interbank market). SIBOR is set by the Association of Banks in Singapore (ABS).

Different Types of Interest Rate: Fixed vs Variable Interest Rate

Fixed rate loans, where you get a guaranteed interest rate for the first ...