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.
Getting a home loan is one of the most important decisions you might make in your lifetime. But finalising a house for yourself and finding the right home loan often take up a long time and research from multiple sources. This is where a one-stop service can be of immense value to a property buyer.
OCBC OneAdvisor Home is an online platform aimed at providing residential property buyers relevant information and advice that would help them make better purchase-related decisions. The site does it through online tools, articles, and personalised expert advice. This service was launched by OCBC in January 2018.
With this tool, you will be able to estimate how much it would cost you to purchase a home. This takes into account loan requirements, stamp duty costs, and more. You will also be able to review homes that fall within your budget range.
The calculator allows you to include up to eight applicants with income details of at least one among them. Other details required include age, number of properties owned, citizenship or residency status, number of loans, monthly repayments, etc.
The topics covered in the articles section of OneAdvisor Home range from deciding on the kind of home you need, to ways to finance it and even tips on legacy planning. There are write-ups on understanding the hidden costs when purchasing a home, eligibility for home loans, information on restructuring ownership, and so on.
If you require more tailored advice, you can provide your contact details and information such as what kind of property you are interested in, and the bank will find a suitable specialist for you.
With these facilities OCBC hopes to be more useful to their customers, in addition to helping the customers make the right decisions regarding home loans.
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.
Great Eastern General Insurance Limited, a part of the OCBC Group, has announced new promotional offers for all its new home insurance customers. The discount starts from S$30 for the starter plan and goes up to S$60 for the ultimate plan.
09th January 2018
People in Singapore looking to purchase a residential property can now get advice and information about purchasing a home and ways to finance them on a single platform. OCBC has launched OneAdvisor Home, an online advisory service.
05th January 2018
Initially, it all started as a small assignment with four aspiring tech professionals who wanted to build an app for the bank. However, as time progressed, this initiative became a key factor that resulted in the bank’s growth. Mr. Praveen Raina who is the senior vice-president for group operations and technology at OCBC Bank was one among the four passionate techies who wanted to build an app for the bank.
One of the initial apps created by the tech team helped OCBC employees to access each other’s photos and contact details on phone. This app was instantly loved by the staff members since they didn’t have to struggle to get contact details from a physical directory anymore.
Gradually, a team of four tech professionals has now grown into a full-fledged group of tech-savvies with a team size of thirty mobile developers. These mobile developers have successfully come up with several advanced apps with an intention to help both, OCBC staff members and customers.
OCBC Bank has been the first bank in southeast Asia to introduce an open Application Programming Interface (API) platform. Similarly, for the first time in southeast Asia, OCBC used blockchain technology in the bank’s cross-border and local fund transfer and payment services. This initiative saved a lot of time for customers since they could complete a transaction in less than 5 minutes which was more than a day before this initiative was launched.
The tech team has made several other technology advancements such as fund transfers using voice recognition via Apple iPhone’s Siri, and customers can use their banking applications through facial recognition. Mr. Raina strongly believes that goals of an organization need to be set up with a proper purpose to it. An initiative proposed should be beneficial for the end user.
27th November 2017
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