Rates Methodology: How Percent Reviews and Presents Home Loan Packages

The goal is clarity and consistency. This is not a rate table page. It explains how rate information is assessed and updated.

1. Source of Rate Information

Mortgage package information is typically obtained from official bank materials, including:

• Letters of offer (LOF) issued to borrowers
• Bank factsheets or indicative package summaries
• Direct clarifications from bank representatives where necessary

Benchmark references such as SORA are based on publicly available statistics published by the Monetary Authority of Singapore (MAS).

2. Benchmark Treatment (SORA and Other References)

For floating-rate packages, banks commonly reference compounded SORA (e.g., 1-month or 3-month). When reviewing floating packages, we consider:

• Benchmark type (1M vs 3M compounded SORA)
• Whether a floor rate applies (e.g., zero floor or positive floor)
• Bank right of review clauses
• How instalments are expected to move if the benchmark changes

Monthly commentary on benchmark movement is based on MAS-published domestic interest rate statistics.

3. Fixed vs Floating Comparison Approach

When comparing fixed and floating packages, the methodology is:

• Use the same comparison horizon (e.g., 24–36 months, not 25–30 years)
• Evaluate instalment stability vs rate movement risk
• Review lock-in and repricing terms after the fixed period

For a structured decision checklist, refer to SORA vs Fixed Home Loan Guide.

4. Total Cost Lens (Beyond Headline Rate)

Headline rates alone are not sufficient for comparison. The methodology includes:

• Interest cost over a realistic holding period
• Upfront administrative, legal, and valuation costs
• Cash rebates or legal subsidies
• Clawback provisions tied to subsidies
• Prepayment penalties and commitment fees
• Notice periods required for redemption

This framework is applied consistently across bank pages in the bank comparison hub.

5. Lock-In, Clawback and Repricing Mechanics

Loan mechanics can materially affect outcomes. Our review process highlights:

• Lock-in duration and applicable penalty percentages
• Conditions for sale waivers (where stated in LOF)
• Clawback periods for legal or valuation subsidies
• Whether repricing or conversion triggers fees

Where package mechanics vary across borrowers, the description reflects common structures but individual letters of offer prevail.

6. Update Frequency and Last Updated Signals

Key pages, including bank comparison pages and major guides, display a visible Last Updated date. Updates may occur when:

• Benchmark movements materially change context
• Bank package structures are revised
• Clause mechanics are clarified

Monthly benchmark commentary is aligned with MAS domestic interest rate publications.

7. Calculator Assumptions

Tools such as the TDSR and MSR calculators are labelled as MAS rule-based assessment models. They:

• Use stated assessment rates for stress testing
• Apply published regulatory caps (where relevant)
• Display assumptions transparently in the results panel

These tools provide indicative screening views. Final approval depends on bank credit policy and documentation.

8. Limitations

Mortgage terms vary by borrower profile, property type, and negotiated terms. The information presented on Percent.sg:

• Is general in nature
• Does not replace a signed letter of offer
• Should be read alongside official bank documentation