Not all of us are ready to buy a ready-to-move-in house. We don’t want to go for an HDB apartment or a private flat. There are many of us who want to build our own dream home, however little or giant it may be. But, you wonder, do we get loans for constructing our own house? Yes!
Many banks in Singapore offer home construction loans to such people who are interested in building their own house but don’t have enough funds to take care of the entire construction and furnishing. UOB is one such bank that offers Home Construction Loan to the people of Singapore. You can also take a home construction loan to renovate parts of your home or add floors to your existing house.
Let us look at the UOB Home Construction Loan in detail and consider all its facets.
Features of UOB Home Construction Loan
Given below are some of the salient features of this loan from UOB:
- High loan amount: UOB gives up to 80% of the cost of your housing project as home construction loan.
- Multipurpose loan: You can take a UOB Home Construction Loan not only to construct a house, but also to buy a plot of land and build a house on it, to buy a house and rebuild it in your own way, to renovate your house completely, or to add storeys to your existing building.
- Long tenure: The loan tenure is as much as a normal home loan, i.e. either until you become 70 years old or for 35 years, whichever happens first.
- Competitive interest rate: You get a variety of interest rate packages with UOB.
- Loan conversion: Once the property construction is complete, you will receive a Temporary Occupation Permit (TOP). With the receipt of TOP, the UOB Home Construction Loan will get converted into a home loan after which you just have to pay back the principal amount and the interest amount as you do with a normal loan.
UOB Home Construction Loan Interest Rates in Singapore
UOB offers attractive interest rate packages for its Home Construction Loan. To know more about the rates, however, you will have to contact the bank. The bank will offer customised packages as per your needs, credit scores, and affordability. All rates are based on the UOB Board Rate, which is subject to change as per changes in the economic condition or SIBOR or SOR rates.
Eligibility Criteria for UOB Home Construction Loan
Here are the parameters you need to meet to get this loan:
- You need to be a Singapore citizen or permanent resident to apply for a UOB Home Construction Loan. Foreigners might be able to get this loan if sufficient proofs are supplied – you may need to talk to the bank for further details.
- You need to be at least 21 years and be an earning individual.
- You should have a good credit score.
Documents Required for UOB Home Construction Loan
To get approval for this loan from the UOB, you may be asked to produce the following documents:
- Fully filled loan application form
- NRIC or Passport copy, and Malaysian ID Card copy for Malaysian citizens
- Income proof such as the latest payslips, bank statement for the last 3 to 6 months, income tax notice of assessment for the last 1 year (for salaried persons) and 2 years (for self-employed persons), and the latest CPF Contribution History Statement.
- All sales and purchase copies related to the land/house, including blueprint for the new house plan, quote of building cost from a recognized contractor, etc.
How to Apply for UOB Home Construction Loan
If you want a UOB Home Construction Loan, you can get it in one of the following ways:
- Send an email through UOB Uniservices online and book an appointment to talk about home loan options and interest rates.
- Contact the UOB Hotline at 1800 3882121 between 8am and 8pm any day.
- Fill in the Customer Assistance form on the UOB website and request a bank official to contact you.
- Visit your nearest UOB branch and talk to a Home Loan Specialist.