Your mortgage broker sends you three loan packages. Bank A offers 2.80% fixed for 2 years, Bank B offers 2.60% fixed, and Bank C offers MAS SORASORA + 0.80% with no lock-in. Which one is actually cheapest over your holding period? The answer is not always the one with the lowest headline rate.
This calculator compares up to 3 mortgage packages side by side, factoring in lock-in periods, clawback penalties, subsidies, and post lock-in rates. It could save you tens of thousands of dollars over the life of your loan.
What This Calculator Does
Not all mortgage packages are created equal. Compare up to 3 loan offers side by side — fixed vs floating rates, lock-in periods, clawback penalties, and subsidies. Find the cheapest total cost of borrowing over your expected holding period. Could save you tens of thousands in interest.
You can find this calculator in the Calculators tab on ShiokNest. It updates results instantly as you adjust inputs — no waiting, no page reloads.
Why This Matters
The difference between the cheapest and most expensive mortgage on a $1.125M loan can exceed $50,000 over 10 years. Yet most buyers spend more time choosing their kitchen tiles than their mortgage package. This calculator matters because:
- Headline rates are misleading — lock-in terms, clawback, and post lock-in rates determine true cost
- 30 minutes of comparison shopping could save you $30K-$50K over your holding period
- It factors in subsidies and cashback that reduce your effective cost
What You Will Discover
After running this calculator with your personal numbers, you will know:
- Total cost of each loan package over your expected holding period
- Which package is cheapest factoring in lock-in and clawback terms
- How much you save by choosing the optimal package
Step-by-Step Guide
- 🏠 Navigate to Calculators — Click the "Calculators" tab in the ShiokNest navigation bar. All 26 calculators are grouped by purpose for easy access.
- 🔍 Select the calculator — Choose "How to Compare Mortgage Loan Packages" from the calculator list. You will see default values already loaded so you can explore immediately.
- 📊 Review the results — The calculator updates instantly as you change any input. A comparison table shows total interest, monthly payments, and overall cost for each loan package, highlighting the cheapest option.
- 🔄 Run what-if scenarios — This is where the real power lies. Change one variable at a time to see its impact. For example, try increasing the interest rate by 1% or extending your holding period by 5 years. Note how the results shift.
- 💾 Compare and decide — Run 2-3 different scenarios and note the results. This gives you a range of outcomes to base your decision on, rather than relying on a single projection.
Worked Example
Meet Karen, who has received mortgage offers from three banks for her $1.5M condo purchase. The rates look similar, but the devil is in the details:
| Feature | Bank A | Bank B | Bank C |
|---|---|---|---|
| Year 1-2 Rate | 2.80% (fixed) | 2.60% (fixed) | SORA + 0.80% |
| Year 3+ Rate | SORA + 1.00% | SORA + 1.20% | SORA + 0.80% |
| Lock-in | 2 years | 2 years | None |
| Clawback | 1.5% of loan | 1.5% of loan | None |
| Subsidy | $2,000 legal | None | $3,000 cash |
Bank B looks cheapest in Year 1, but its higher post lock-in spread (SORA + 1.20%) means it becomes the most expensive option from Year 3 onwards. Bank C has no lock-in and no clawback, giving Karen maximum flexibility to refinance. The Loan Comparison calculator adds up the total cost over her expected holding period to reveal which package truly costs the least.
Key insight: A 0.2% difference in interest rate on a $1.125M loan translates to about $2,250/year or $187/month. Over a 5-year holding period, that is $11,250 — well worth 30 minutes of comparison shopping.
Real-World Scenarios to Try
Here are some realistic scenarios you can plug into the calculator right now. Each one reflects a common situation Singapore property buyers face.
| Scenario | Settings to Try | What You Will Learn |
|---|---|---|
| Fixed vs floating | 2.80% fixed (2yr) vs SORA+0.80% | Whether the certainty of fixed rates is worth the slightly higher cost |
| Short vs long lock-in | 2-year lock-in vs no lock-in package | The value of flexibility to refinance or sell without clawback penalties |
| Low rate vs high subsidy | 2.60% rate vs 2.90% with $5K cashback | Whether upfront subsidies compensate for a slightly higher rate |
Expert Tips and Common Pitfalls
💡 Pro Tips
- Use realistic assumptions — Singapore condo appreciation has historically averaged 2-4% per year. Avoid overly optimistic projections. When in doubt, use 3% as a baseline.
- Look past Year 1 rates — Banks offer attractive teaser rates for the first 1-2 years. The post lock-in rate matters more if you plan to hold long-term.
- Factor in clawback penalties — If you might sell or refinance within 2-3 years, a lower-rate package with heavy clawback could cost more than a slightly higher rate with no lock-in.
- Negotiate — Banks have flexibility, especially for larger loans. Ask for better rates or additional subsidies.
⚠️ Common Pitfalls
- Ignoring refinancing costs — If you plan to refinance after lock-in, factor in legal fees ($2K-$3K) and the hassle of switching banks.
🤔 What-If Scenarios to Explore
Get the most value from this calculator by testing these scenarios:
- If you sell after 3 years, does the package with the lowest Year 1 rate still win?
- What if SORA rises by 1%? Which package is most resilient to rate increases?
- Run at least 3 scenarios — best case, base case, and worst case — to understand the full range of outcomes.
Related Calculators
Your property journey involves many interconnected decisions. These calculators work hand-in-hand with this one:
- How to Use the mortgage calculator
- How to Read the Borrowing Sensitivity Heatmap
- How to Check TDSR and MSR Affordability
Ready to Crunch Your Numbers?
Enter the details of 2-3 loan offers and see which one truly costs the least over your expected holding period. A few minutes here could save you tens of thousands.
This how-to guide is auto-generated using ShiokNest's calculator defaults. All worked examples use default values — adjust inputs to match your personal scenario for accurate results.