Sunday, June 30, 2013

Singapore Home Loan Calculator with what-if feature launched

Current interest rates are artificially low thanks to giant money printing machines in major world economies. And although these ultra low rates stayed for a very long time to make some think that they will stay like this for ever, they wont. Worse, it may be very likely that ultra low interest rate period can bite us with a long term ultra high interest rates.

Anyway, when the interest rates will start to rise is a question but they will start to rise. And when they rises, things will be difficult. So it is more prudent to make your home loan calculations with some "what-if" in your mind.

Unfortunately, wxisting home loan calculators compare the interest rates for new home loans and refinancing with the current interest rates. Now develops the first of its kind Singapore “what-if” calculator, which takes into account the possibility of rising interest rates within the loan period.

Many are currently flocking to invest in the booming real estate markets in Singapore, especially with low interest rates. However, with so many financial institutions and home loan packages to choose from, it is also a challenge for buyers to apply for suitable home loans. It is from this predicament that the founders of home loan comparison website developed a groundbreaking comparison portal for comparing the best home loan rates from Singapore-based banks for properties in Singapore, Malaysia, Australia, United Kingdom and other countries.

“We recognized the gap in the market where property buyers might not be well-served in your interests. Not only is the portal free-to-use, our mortgage consultants will understand your needs and help you in deciding the choice of home loans, without advisory fees,” said Sean Lim, Founder of

The portal boasts the most comprehensive home loan calculators available online, comparing rates for New Home Loans, Refinancing and a first ever “What-If” calculator.

The New Home Loan calculator allows users to choose properties by type and completion status, and then filters results by floating rates, fixed rates and interest offset rates. It then calculates monthly installments according to interest rates for each year, while most available calculators apply the first year rate to all subsequent years. This is designed to cater to the unique structure of home loans provided by banks in Singapore.

The calculator then groups the interest payable into 3 groups: year 1 to 3 and 1 to 5. This caters to short, medium and long-term investors. Extracting the most attractive features of each loan package, it then publishes a list of recommended loans based on lowest interest rates and popularity.

The Refinance calculator does all of the above in addition to calculating the potential savings accumulated on the monthly installments and interest payable.

The What-If home loan calculator is a first of its kind in Singapore, allowing users to do comparative calculations around fluctuating interest rates over the course of a housing loan. What happens when interest rates rise over the next two years? What if benchmark rates such as SIBOR or SOR inflate on the third year?

“These are the what-if scenarios buyers and investors often ponder upon. The What-If calculator helps you answer these questions independently and as a result, facilitate your decision on choosing the right home loan,” Sean added.

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