Just Mortgage

Prepayment Penalty
Financial institutions may charge a fee should the customer decide to repay their loan within the penalty period (also known as the lock-in period).

Progressive Payment Scheme
This scheme is based on the developer’s predetermined schedule of payment (payments are normally called for in percentages). This schedule is set out based on the different stages of development; as such payments made for the purchase would be spread out throughout the course of the development process.

Redemption Costs
Costs incurred when a loan is paid off or redeemed whether in part or in full before the end of its term.

Refinancing
Happens when you are currently servicing your existing housing loan with a financial institution and you switch to a different financial institution in order to enjoy savings from lower interest rates and/or better to gear up.

Repricing
Also known as conversion, this happens when you change from your existing loan package to a more attractive loan package that is offered by the same financial institution.

Residential Investment Loan
A loan granted to purchase a property intended for investment purposes (for example, to be rented out) as opposed to owner-occupied purposes.

Sale & Purchase Agreement
The legal contract between the vendor and purchaser detailing the complete terms and conditions of the sale and purchase. Any breach at or after this point would suffer serious financial consequences.

Security
Generally, property which is pledged as collateral/security for a loan.

SIBOR
SIBOR stands for Singapore Inter-Bank Offer Rate and it is a daily reference rate based on the interest rates at which financial institutions offer to lend unsecured funds to other financial institutions in the Singapore wholesale money market (or interbank market).

SOR
SOR stands for SWAP Offer Rate and it is one of 2 exchange-traded interest rate futures products in Singapore. The SOR is an FX forward implied rate calculated from a three month USD/SGD forwards with official fixing that is provided for by the Association of Banks in Singapore.

Stamp Duty
A form of government tax on certain legal documents and financial contracts which validates the documents or contract legally. For property related transactions, 2 different types of stamp duty is payable, namely purchase stamp duty and mortgage stamp duty.

Strata Title
A document that give you ownership of a particular unit in a larger building complex or property that you can sell, lease or transfer to another party at your own discretion.

Strata Title Board
A body constituted under Part VA of the Land Titles (Strata) Act to hear applications (1) for orders for collective sales under Part VA of the Act; and (2) relating to certain types of disputes or matters arising in respect of the strata units or the strata development including the common property.

Stratum Title
A title that records your ownership of a ‘unit’ of a larger property. Unlike a strata title, the owner becomes a shareholder in the company that manages the common area, not just a member.

Tenancy in Common
The equal or unequal holding of property by two or more persons. If one party dies, the deceased share of the property goes to his/her estate and is to be divided according to his/her will or the law in the absence of a will.