Housing is one of the most critical needs in our life. Investing in a home or a plot gives us so much of content as it secures the future of our loved ones. A home loan is an ideal partner which helps in achieving your housing goals. Most of us may not be able to fulfil the financial demand of a housing project. In such situations, a home loan provides financial stimulus and lets you manage the payback in easy monthly instalments. These days, housing loans are no longer restricted to buying the house alone. Banks and financial institutions offer finance solutions for a wide range of needs such as construction, renovation, refinancing etc.
Atleast 21 years
Above 21 years
Salaried / Self-employed
with regular income
Earn more than the minimum
EMI limited to about 50%
of monthly income
Loan capped @80% of property value
EMIs of other loans lower
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 30 yrs
Alternatively add your parents
|Margin of Finance||Up to 80%|
|Loan Tenure||Maximum of 30 yrs|
OCBC is one of Singapore’s biggest banks, offering an array of banking and financial services. Home loans are one of the most important credit products that the bank offers. These loans come with flexible tenure options and also come in different types. You can apply for an OCBC Home Loan to finance your property purchase, the purchase of your HDB flat, or even refinance your existing home loan.
OCBC (Oversea-Chinese Banking Corporation Limited) is a Singapore headquartered multinational banking and financial services institution founded in 1932. Listed on the Singapore exchange, OCBC has branches and subsidiaries in over 15 countries across the globe. It is one of the richest banks with assets of over 224 billion SGD. In Southeast Asia, OCBC operates in major countries such as Indonesia, Malaysia, China, and Hong Kong. It also has branches in Australia, New Zealand, USA & U.K.
The bank offers a full range of banking and related services in Retail banking, corporate banking, Investment banking, Wealth & Asset management and insurance products. OCBC is one of the top three banks in the consumer banking sector with a wide range of financing solutions such as personal loans, car loans & home loans from its retail lending segment.
The Mortgage Loan
The OCBC Mortgage Loan lets you purchase your own property, or construct your own home. The OCBC Mortgage Loan comes in four different rate packages through the tenure of the loan.
Loan for a HDB Flat
You can apply for a home loan to purchase a new HDB flat or a resale HDB flat. Interest rates are similar to rates on the mortgage loan. You will have to meet a specific list of eligibility criteria if you wish to apply for an HDB Loan.
You can apply for a home renovation loan with OCBC. If you already have a home loan with OCBC, you will get a reduced interest rate.
You can refinance your existing home loan from another bank, with OCBC. The interest will remain the same, more or less.
For all your overseas housing needs, OCBC offers financing for property purchases in major countries and cities across the world.
A loan dedicated for construction of a home on a vacant plot or towards redevelopment of an existing property.
The bank offers four different home loan interest rate packages to fund your private property, the construction of your new home or to purchase an HDB flat. Let’s take a look at each of these interest rate packages and see what you can expect.
As the name suggests, the fixed deposit linked interest rate package is pegged to OCBC’s fixed deposit interest rate. In this case, the interest rate is pegged to OCBC’s 15-month fixed deposit interest rate. If you choose the fixed deposit interest rate, you can switch to a different rate package over the course of your loan tenure. Interest rates in this case are subject to change in accordance with OCBC’s fluctuations in fixed deposit rates.
Another popular rate package offered by OCBC is the SIBOR-Pegged Interest Rate package. In this case, the interest on the mortgage loan is pegged to the prevailing SIBOR rate. The rates can either be a 3-month SIBOR + 0.50% or 1-month SIBOR + 0.55%. Both these SIBOR rates will hold valid for the first year. A different rate package can be chosen after the first year. Rates can be reviewed on a 1-month or a 3-month basis.
The fixed interest rate package offers isolation from rate fluctuations, mostly characteristic of other interest rate packages. In this case, the interest rate remains fixed for the first two years, following which the customer can migrate to a different rate package.
Under the Variable Interest Rate Package, the rates are lower than the fixed interest rate package. The interest rate is capped at 1.70% for the first two years under this rate package.
We’ll look at the interest rates under different packages later.
|Rate Package||First Year (p.a.)||Second Year (p.a.)||Third Year onwards (p.a.)|
|Fixed-Deposit Linked Interest Rate||1.40%||1.50%||1.50%|
|Fixed Interest Rate (short-term)||2.38%||2.38%||NA|
|Variable Interest Rate||1.33%||1.33%||NA|
|SIBOR-pegged Interest Rate||3M SIBOR rate+0.50% 1M SIBOR rate+0.55%||NA||NA|
|Late Payment fee in light of a late monthly repayment||S$80|
|Changing the law firm that manages your home loan||S$200|
|Restructuring of loan (change of loan tenure, or scheme or repayment)||S$500|
You can apply for a home loan from OCBC by visiting the official website of the bank and filling out the online home loan application form. The form has multiple fields where you’ll have to fill out different details relating to your name, date of birth, residential information, etc. You also have to submit your documents as suggested by the bank. The bank will then get in touch with you for further details, following which your application will be processed and reviewed.
The following income ceilings will hold applicable for individuals who wish to purchase a HDB flat in Singapore:
OCBC provides home loans for foreigners. The following documents need to be submitted if you are a foreigner:
Repayments can be made through internet banking before the due date every month. Applicants can also sign an agreement with OCBC wherein permission is granted to OCBC to deduct the monthly repayment amount on a fixed date every month till the loan tenure comes to an end.
If you have an existing home loan with a particular bank, you can refinance your loan with OCBC. Refinancing your loan with OCBC will give the option to customize your repayments and also reduce your repayment amounts. You can initially choose a variable interest rate or a 3-month SIBOR-pegged rate, following which you can choose from the four interest rate packages as mentioned above.
A. OCBC gives you the option of pre-closing your home loan application. Additional pre-closure charges will accordingly be levied by the bank.
A. Depending on the loan amount, you can choose a tenure that can stretch to a period of up to 30 years.
A. Yes, the down payment can be made through funds in your CPF account.
A. Yes, you very much can. In fact, you’ll get much reduced interest rates than the original home renovation loan rate (prevailing rates on home renovation loans) if you already have a home loan with OCBC and you apply for a renovation loan too.
A. For the first two years, the variable interest rate package has the lowest interest rate. Most packages are more or less similar in the rates they offer.
Yes, it does. The bank provides financing of up to 100% of the outstanding amount.
For HDB purchase, you can borrow from S$100,000 to 80% of valuation and S$200,000 to 80% of valuation for private properties.
The customer service department can be reached at 6363 3333.
OCBC, in collaboration with CogniCor, a startup, has developed a chatbot named “Emma” which has helped the bank bring in customers to sign up for home loans worth S$70 million.
Emma learned all the financial terms and details about home loan and renovation loans that are frequently asked by potential buyers, in three months. Emma has a built-in total debt servicing ratio calculator which it uses to answer questions.
The bank said that Emma can be updated with new policies or change in policies as well, to help answer customer questions efficiently.
Emma is available on various digital platforms like smartphones, desktops and laptops. This move seems to be working like a charm for OCBC.
09th November 2017
To catch up with DBS’ strong grasp on home loan rate in Singapore, OCBC decided to introduce a new home loan rate called OCBC Home Rate or OHR which is fixed at 1%. OCBC no longer offers its fixed deposit-linked home loan rate OCBC FDMR. OHR is the long-term average of 1-month and 3-month Singapore Interbank Offered Rate (SIBOR). With OHR, people have the option of choosing either a floating rate or a fixed rate as per their desire.
One of the most attractive feature of OHR is the free conversion offered to people whenever the OCBC rate goes up beyond their ability to pay. Another advantage of OHR is the option to pay 50% of the loan taken during the initial 2-year lock-in period without facing any penalty.
OHR is calculated in such a way that the floating rate is often as stable as the fixed rate thus making it more attractive to people. OHR has brought stability to the home loan rate regardless of the movement of SIBOR. As a result, the OHR is not likely to go over 1% unless SIBOR crosses the 3% mark. So moving to OHR is a good option for people who are still on a SIBOR-linked rate.
31st October 2017
To improve the overall construction experience, Singapore’s Housing and Development Board (HDB) has signed two new R&D agreements worth S$10.7 million. The agreements have been entered into with the Singapore University of Technology and Design (SUTD) and the Nanyang Technological University (NTU).
In partnership with NTU, HDB signed a project worth S$4.7 million. The objective of this project is to build a Smart Integrated Construction System (SICS). This system aims at using smart sensors and automated technology.
The Goal of SICS:
HDB and NTU will build SICS to increase the overall productivity and safety on the construction site. SICS will be powered by a smart tracking program so that the logistics of the HDB buildings can be managed in an efficient way.
Important components of the SICS system include:
Smart Crane System – With the help of the Smart Crane System, the complete hoisting process of the building materials will be automated. With automation, construction time reduces resulting in increased efficiency of the construction site.
Integrated Building Information System (IBIS) – The IBIS forms a crucial component of the SICS. It acts as a collective workspace. This common digital platform will be useful for several industry partners to key in their latest project updates from different locations. The IBIS is highly effective for data sharing and helps partners, contractors and architects to have constant checks on their deadlines and budgets.
Smart Tracking System – The Smart Tracking System will be helpful in bringing down disturbances in the entire construction process. It aims at making the complete construction procedure hassle-free. The building components are enabled with smart sensors to help contractors know how the construction materials are being distributed. The smart sensors also come with geo-tagging features to recognize incorrect deliveries if any.
06th October 2017
OCBC noticed that its potential leads were not reading the informative questions and answers at their FAQ page, which hampered lead generation in the home loan market. Moreover, home loans can be confusing, leaving customers with several doubts. OCBC has addressed this problem with its new chatbot Emma.
Emma helped OCBC reduce several hours for the loan staff, who had to previously answer an array of customer queries. Moreover, it helped the bank in upping the lead quality.
OCBC collaborated with Open Vault and CogniCor in building the chatbot. Besides concentrating on defining specific goals, the chatbot was built to ensure right workflow came in the right context. Also, the developers ensured that Emma is fun to chat with. The main objective for the bank was to identify challenges in order to train Emma to solve them.
Within a tenure of six months, the chatbot has helped generate SG$33 million in home loans, besides improving lead conversion rates. Emma will soon be incorporating content or intent-based personalisation.
22nd September 2017
Top banks in Singapore are staging a fierce battle in the home loan arena, with top local banks going the extra mile to offer better interest rates and capture a larger portion of the available market share.
A recent addition in the home loan battle is OCBC – the affair was mostly between DBS and UOB until very recently. OCBC released its home loan package pegged to its variable internal rate, an uncharacteristic trend with most banks pegging their interest rates to public benchmarks like the Singapore Interbank Offered Rate.
In its latest offering, OCBC offers rates of 0.7% in the first year, 0.65% in the second year, 0.6% in the third year and 0.55% in the fourth year. The bank offers a rate of 1.55% in the years subsequent to the fourth.
These rates are in close competition with the rates offered by DBS and UOB. Both DBs and UOB recently announced launch of their zero spread FD-Home Loan rate with interest rates of 0.6% and 0.65% recently.
This interest war between banks has promised to benefit home buyers in Singapore, as buyers can get preferential interest rates for their home loans.
16th August 2017
OCBC Bank has introduced a new home loan interest rate package in a bid to boost its mortgage loan numbers. The OCBC package is based on the bank’s internal board rate. The interest rate comes up to 0.7% for the first year, 0.65% for the second year, 0.60% for the third year, 0.55% for the fourth year and 1.55% thereafter.
DBS and UOB also launched similar low-interest home loan packages earlier in the month. Both banks are now offering FD-rate based mortgage loan rates that start as low as 0.6% p.a.
These are short-term promotional rates offered by the bank to woo customers as new housing projects are coming up across the island.
19th July 2017
Many Singaporeans may soon opt for home loans that are linked to fixed deposits as these home loans are more likely to have stable interest rates. After the interest rate hike by the United States Federal Reserve, the interest rates for many mortgage customers in Singapore have increased. The decision of the Federal Reserve affected the SIBOR and SOR rates because of which the mortgage rates of most customers in the country have increased as the rates are linked to SIBOR or SOR. This is why most customers will now be attracted to the home loans for which the interest rates are linked to fixed deposit rates. Currently, only OCBC Bank and DBS Bank in Singapore offer mortgages with interest rates linked to fixed deposits.
23rd December 2015
Looking for stability in the current volatile market scenario? Below are a range of products to provide you security in the form of insurance plans and a new option if you’re considering a home loan.
Axa SmartFamily by Axa Insurance Singapore
This is a personal accident insurance plan that comes with added benefits for family members.
Under the Axa SmartFamily plan, the policy holder can avail of finance cover along with eight additional services for family members, which consist of doctor’s home visits, home nursing, housekeeping, consultations with a psychologist, therapy services, transportation for medical appointments, arrangement and payment for children’s transport to and from school and home modification.
Axa has included the above services as it believes that they are essential for recovery. Research has shown that lingering effects such as post-traumatic stress disorder and persistent anxiety affect one third of those involved in accidents even a year after the incident. Axa has included recuperative services as part of its accident plan to ensure complete cover for its policy holders.
Families can choose from 3 plans- the insured sums are $250,000, $500,000 and 1 million. Policyholders can choose which of the eight services they wish to claim, as long as the chosen services fall within the total coverage purchased.
Max Single Premium Yield by OCBC Bank
OCBC Bank offers a three-year single-premium endowment insurance plan that comes with guaranteed annual benefits at the end of the first and second policy years. This plan would be a good option for customers looking at getting good returns and security from endowments in a short span of time.
The guaranteed benefit is 1.7% annually for the first two policy years, with the maturity yield at the end of the third year projected at 1.7%.
The plan pays out a guaranteed benefit upon maturity of 100% of the single premium. You also receive a non-guaranteed bonus on maturity.
The minimum premium amount is set at $10,000, which is funded by both cash and money in the Supplementary Retirement Scheme. If you are 68 and older, the minimum premium rises to $20,000.
Customers who avail of this plan will be provided with basic protection against death, total and permanent disability.
Fixed Deposit-Linked Home Loan by OCBC Bank
This is a home loan that’s pegged to OCBC’s 36-month Singapore dollar fixed-deposit rate, applicable for amounts between $5,000 and $20,000. This loan has been offered since last year. The current rate is 0.65%. Customer who avail of this loan are charged an additional 1.03%, which works out to 1.68% per year, over the three year term.
The interest rate works out to the 36-month fixed deposit rate and an added 1.5%.
The loan has a 2 year lock-in period with a 1.5% penalty. This penalty would be charged on the amount redeemed in case of full repayment of the loan.
The bank allows partial repayment up to half of the loan amount during this period. In the event the fixed deposit rate rises, the bank offers a one-time conversion to another loan package for free.
06th December 2015