• Home Loan Interest Rates

    Home Loan BYTES FROM OUR KITCHEN

    A home loan can help you in fulfilling your dream and purchasing the house that you desire. You can become a homeowner and get a place where you can safely live with your loved ones. In today’s world, the prices of houses are quite high and so you may not be able to purchase a house of your choice without taking the help of a home loan. In Singapore, there are many banks that offer home loans or mortgages at very attractive rates of interest. By doing a little research, you can find an affordable home loan without a lot of difficulty.

    How is the interest rate calculated for home loans?

    The interest rate charged by the bank for home loans can either be fixed or variable and it is calculated based on a range of factors. Some of these factors are given below.

    1. The type of property that you purchase – The type of property that you purchase will have an impact on the rate of interest that will be offered. For example, interest rate charged for HDB flats is often lower than that charged for private properties.
    2. Prime Rate – The prime rate is the interest rate charged by the bank to their premier customers and also to those who have the best credit score. This rate will have an impact on the interest rate charged for home loans.
    3. SIBOR – The interest rate for most variable (floating) mortgages or home loans in Singapore is linked to the Singapore Interbank Offered Rate or SIBOR. For these mortgages, the interest rate and the monthly instalment payments increase when SIBOR increases and they decrease when SIBOR decreases. This rate comes in tenures of 1 month, 3 months, 6 months or 12 months.
    4. Tenure – The tenure of the loan will have a big impact on the interest rate. If you choose for a longer tenure, the interest rate charged will most likely be higher as your monthly instalment payments will be comparatively lower. Alternately, if you opt for a shorter tenure, the interest rate will most likely be lower but the instalment payments will most likely be higher.
    5. Loan amount – It is most likely that the loan amount that you opt for will depend on the price of the property and since the loan amount will be higher for properties that are more expensive the interest rate will most likely be higher as well.
    6. Creditworthiness – Your credit score and credit history with determine your creditworthiness and if you have an excellent credit history the banks are more likely to approve your home loan application and also offer you with the loan at very attractive interest rates.

    Apart from the above, the Singapore Swop Offer Rate or SOR can also affect the interest rate for some mortgages. This rate is dependent on the exchange rate between Singapore Dollar and US Dollar. In the past, mortgages offered by some of the banks in Singapore were linked to this rate. However, such a practice has been discontinued and only existing mortgages that were pegged to SOR earlier are affected by this rate.

    Home Loan Interest Rates

    Various Banks Offering Interest Rates are as follows:

    HSBC Bank Home Loan Interest Rate

    Variable Interest Rate Package

    Tenure of the Loan No Lock-In Lock-In for 2 Years Lock-In for 3 Years
    1st year 3.50 percent (2.30 percent less than SHR) 1.90 percent (3.90 percent less than SHR) 1.80 percent (SHR less 4.00 percent)
    2nd year 3.50 percent (2.30 percent less than SHR) 2.70 percent (3.10 percent less than SHR) 2.60 percent (3.20 percent less than SHR)
    3rd year 3.70 percent (2.30 percent less than SHR) 3.40 percent (2.40 percent less than SHR) 3.20 percent (2.60 percent less than SHR)
    Thereafter 3.80 percent (2.30 percent less than SHR) 3.80 percent (2.00 percent less than SHR) 3.80 percent (less than SHR 2.00 percent)

    Maybank Home Loan Interest Rate

    Singapore Residential Financing Rate (SRFR) 3.75 percent per annum
    Prime Lending Rate 5.2500 percent per annum

    The home loans offered by the bank are connected to the SRFR.
    Renovation Loan Interest Rates
    Loan Amount Rate of Interest (variable) Flat Rate
    Less than S$15,000 5.98 percent (2.52 percent less than RBR) 3.68 percent
    S$15,000 or more 5.38 percent (3.12 percent less than RBR) 2.98 percent
    Bundle Rate (along with Home Loan) 3.88 percent per annum (4.62 percent less than RBR) 2.88 percent

    Standard Chartered Bank Home Loan Interest Rate

    Tenure of the Loan Rate of Interest*
    1st year SIBOR of 12 month + 0.50 percent (along with lock-in)
    2nd year SIBOR of 12 month + 0.75 percent (along with lock-in)
    3rd year SIBOR of 12 month + 1.00 percent (along with lock-in)
    4th year and thereafter SIBOR of 12 month + 1.25 percent (along with lock-in)

    *The above rates are available only till October 31, 2015.

    CIMB Home Loan Interest Rates

    CIMB will allow you to opt for either a fixed rate package or a SIBOR package and you can choose the one that suits your needs the most.

    POSB Home Loan Interest Rates

    The different home loan products from POSB come with different interest rate packages, which can either be fixed or floating. In some cases, the rates are dependent on the SGD fixed deposit rates offered by the bank. The HDB Loans offered by POSB come with interest rates that are capped at the current CPF Ordinary Account rate and at present it is 2.5 percent per annum. Existing home loan customers get renovation loan from the bank at interest rates as low as 2.31 percent per annum.

    ANZ Home Loan Interest Rates

    ANZ offers unique property loan packages for which the interest rates are dependent on the combined average of SOR and SIBOR.

    RHB Home Loan Interest Rates

    HDB Loan

    Variable Rate Package
    Tenure of the Loan Rate of Interest
    1st Year 2.08 percent (HDB Board Rate 1 – 2.17 percent)
    2nd Year 2.13 percent (HDB Board Rate 1 – 2.12 percent)
    3rd Year 2.88 percent (HDB Board Rate 1 – 1.37 percent)
    Thereafter 3.38 percent (HDB Board Rate 1 – 0.87 percent)
    Lock-in period 2 years

    Currently, the HDB Board Rate 1 (HB1) is at 4.25 percent per annum.

    Private Property Loan

    Variable Rate Package
    Tenure of the Loan Variable Package
    1st Year 1.98 percent (Mortgage Rate 1 – 3.77 percent)
    2nd Year 2.03 percent (Mortgage Rate 1 – 3.72 percent)
    3rd Year 2.88 percent (Mortgage Rate 1 – 2.87 percent)
    Thereafter 3.38 percent (Mortgage Rate 1 – 2.37 percent)
    Lock-in period 2 years

    At present the Mortgage Rate 1 (MR1) is at 5.75 percent per annum.

    Commercial Property Loan

    Tenure of the Loan Variable Rates
    1st Year 2.38 percent (C Commercial Rate 2 - 2.30 percent) 2.18 percent (Commercial Rate 2 - 2.50 percent)
    2nd Year 2.68 percent (Commercial Rate 2 - 2.00 percent) 2.58 percent (Commercial Rate 2 - 2.10 percent)
    3rd Year 3.38 percent (Commercial Rate 2 - 1.30 percent) 3.18 percent (Commercial Rate 2 - 1.50 percent)
    Thereafter 4.68 percent (Commercial Rate 2) 4.68 percent (Commercial Rate 2)
    Lock in period 2 years 3 years

    *Currently, the Commercial Rate 2 (CR2) is at 4.68 percent per annum.

    Malaysian Residential Property Financing

    Tenure of the Loan Interest Rates
    1st Year 2.88 percent per annum (Malaysia Property Board Rate 2* – 3.12 percent)
    2nd Year 3.18 percent per annum (Malaysia Property Board Rate 2* – 2.82 percent)
    3rd Year 3.38 percent per annum (Malaysia Property Board Rate 2* – 2.62 percent)
    Thereafter 3.38 percent per annum (Malaysia Property Board Rate 2* – 2.62 percent)
    Lock in period 2 years

    At present, the Malaysia Property Board Rate 2 (Malaysia Property Board Rate 22) is at 6 percent.

    Malaysian Commercial Property Financing

    Tenure of the Loan Interest Rates
    1st Year 4.85 percent per annum (Malaysia Property Board Rate 2* - 1.15 percent)
    2nd Year 4.85 percent per annum (Malaysia Property Board Rate 2* - 1.15 percent)
    3rd Year 4.85 percent per annum (Malaysia Property Board Rate 2* - 1.15 percent)
    Thereafter 4.85 percent per annum (Malaysia Property Board Rate 2* - 1.15 percent)
    Lock in period 5 years

    DBS Bank Home Loan Interest Rates

    DBS HDB Loan –capped at 2.5% per annum (or lower than) for the first 8 years

    DBS Private Property Home Loan – fixed interest rate (as applicable) or floating rate of interest pegged to FHR

    OCBC Bank Home Loan Interest Rates

    The short term flat rate packages start at 1.88% for the 1st year

    The variable rates offered are between 1.18% - 1.38%

    The SIBOR linked interest rates are at SIBOR + 0.85%

    UOB Home Loan Interest Rates

    UOB offers fixed rate packages, floating rate packages and packages that come with both fixed and floating rates.

    UOB HDB Home Loan Packages
    Tenure of the Loan Flat Rate Package for 2-years
    1st Year 3.50% p.a. (flat)
    2nd Year 3.50% p.a. (flat)
    Thereafter

    3.50% per annum

    (HDB Mortgage Rate - 1.00%)

      Standard Variable Rate Package
    1st Year

    3.25% per annum

    (HDB Mortgage Rate - 1.25%)

    2nd Year

    3.50% per annum

    (HDB Mortgage Rate - 1.00%)

    Thereafter

    3.75% per annum

    (HDB Mortgage Rate - 0.75%)

    At present the HDB Mortgage Rate is 4.50% per annum

    Bank of China Home Loan Interest Rates

    The interest rates for home loans offered by the bank are pegged to SIBOR.

    Citibank Home Loan Interest Rates

    The interest rates for Citi Home Loans are linked to SIBOR.

    For the first 2 years, interest rates can be as low as SIBOR + 0.78 percent per annum.

    HLF Home Loan Interest Rates

    Floating Rate Package for private properties that are either completed or uncompleted

    Tenure of the Loan Rate of Interest
    1st Year 2.10 percent per annum (Private Property Rate – 1.60)
    2nd Year 2.10 percent per annum (Private Property Rate – 1.60)
    3rd Year 2.43 percent per annum (Private Property Rate – 1.27)
    Thereafter 3.33 percent per annum (Private Property Rate – 0.37)

    SIF Home Loan Interest Rates

    Private residential housing loan packages

    Variable Rate Packages
    1st Year 1.68 percent per annum ([email protected] - 0.82 percent)
    2nd Year 1.88 percent per annum ([email protected] - 0.62 percent)
    3rd Year 2.50 percent per annum ([email protected])
    Thereafter 3.50 percent per annum ([email protected] + 1.00 percent)

    At present the [email protected] rate is 2.50 percent per annum

    Commercial Property Loan

    Variable Rate Packages (Lock-in for 2 Years)
    1st Year 1.88 percent per annum ([email protected]_0115 - 1.12 percent)
    2nd Year 2.00 percent per annum ([email protected]_0115 - 1.00 percent)
    3rd Year 2.75 percent per annum ([email protected]_0115 - 0.25 percent)
    Thereafter 4.00 percent per annum ([email protected]_0115 + 1.00 percent)

    At present the [email protected] rate is 3.00 percent per annum

    HDB Home Loan

    Variable Rate Packages
    1st Year 1.68 percent per annum (SIFHR – 0.82 percent)
    2nd Year 1.88 percent per annum (SIFHR – 0.62 percent)
    3rd Year 2.50 percent per annum (SIFHR)
    Thereafter 3.50 percent per annum (SIFHR + 1.00 percent)

    At present, the SIFHR is 2.50 percent per annum.

    Philippine National Bank Home Loan Home Loan Interest Rate

    Under the Own a Philippine Home Loan program, the following interest rates are applicable:

    • 9 percent for 10 years (fixed)
    • 8.5 percent for 5 years (fixed)
    • 7.50 percent for 1 year (fixed)

    News About Home Loan Interest Rates in Singapore

    • Singapore Housing Loan Rate May Increase

      Earlier this year, the US Federal Reserve increased its rates from 0.75% to 1%. This increase in 25 base points could result in an increase in the 3 month SIBOR (Singapore Interbank Offered Rate), which is pegged to most housing loan rates in Singapore.

      The month of March, till date has already seen a slow rise of both, SIBOR and SOR (Swap Offer Rate). On March 16, SIBOR rate stood at 0.942%, an increase from the previous week’s rate of 0.940%. SOR rate which is most often considered for commercial loans witnessed an increase from 0.890% to 0.907%.

      According to a UOB economist, Francis Tan, LIBOR rate (London Interbank Offered Rate) has been a major contributing factor to the rise in SIBOR and SOR rates. LIBOR rate is considered a benchmark rate for interbank lending across leading banks in the world.

      10th April 2017

  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.