• Home Loan BYTES FROM OUR KITCHEN

    RHB Home Loan

    RHB Singapore offers a range of personal as well as business products and services to customers including deposits, insurance, investments, loans and more. The bank offers 5 different types of property financing for the purchase of residential and commercial properties with the option of refinancing.

    Buying a home is one of the biggest dreams of every income earning person. While some fulfil the dream with a high paying job that can fund the entire cost of the house, most of us would need financial support from a bank. With property costs astronomically high in a country like Singapore, most middle class to upper class people depend on banks for funding. This is where a prominent bank like RHB Bank comes in. With over 50 years of banking experience in Malaysia, the bank started retail banking operations in Singapore in the year 2011. With assets of over S$119 billion, the bank is one of the largest banking companies in neighboring Malaysia. The bank offers a host of solutions in Singapore for its retail banking customers, which include home loans in Singapore, property loans in Malaysia for Singaporean residents and citizens, credit cards etc. The bank has several laurels to its name including the “Best Customer Experience Management of the Year Award” in banking service by APCSC Hong Kong.

    Types of RHB Home Loans

    Here are the myriad types of RHB housing loans offered to customers:

    • HDB Home Loan – Get up to 80% financing on the purchase price or property value. The variable rates under this loan are pegged to HDB Board Rates (HB1). A lock-in period of 2 years is applicable.
    • Private Property Home Loan – Enjoy financing up to 80% of the purchase price or property value. The variable rates under this loan are pegged to Mortgage Rate 1 (MR1). A lock-in period of 2 years is applicable.
    • Commercial Property Financing – This loan is available for a minimum loan amount of S$3 million and minimum loan tenure of 5 years. The variable rate packages under this property financing are pegged to Commercial Rate 2 (CR2). A lock-in period of up to 3 years is applicable.
    • Malaysia Residential Property Financing – Financing up to 80% of the purchase price or property value is available with variable interest rates pegged to Malaysia Property Board Rate 2 (MBR). A lock-in period of 2 years is applicable.
    • Malaysia Commercial Property Financing – Singapore citizens, Permanent Residents and foreigners can apply for this loan that offers financing up to 80% of the purchase price or property value. A lock-in period of 5 years is applicable.

    Features and Benefits of RHB Home Loans

    Here are some features and benefits common to all property financing options offered by the bank:

    • RHB home loans offer customers financing of up to 80% of the market value or purchase price.
    • RHB home loans offer financing and refinancing options to customers.
    • Lock-in periods are applicable on residential and commercial property loans between 2 years and 5 years.
    • The bank offers subsidy on legal fees to customers.
    • Option of early repayment of an RHB housing loan is available.
    • RHB Premier Banking customers will enjoy a discount on interest rates for commercial property financing. A discount of 0.05% will be provided for the initial 2 years on the RHB Commercial Property Financing option.
    • RHB also offers term loans and bridging loans.

    RHB Home Loan Interest Rates

    RHB HDB Home Loan interest rates:

     Loan Tenure Variable Interest Rate Package
    Lock-in period 2 years
    First year 2.08% p.a. (HB1 minus 2.17%)
    Second year 2.13% p.a. (HB1 minus 2.12%)
    Third year 2.88% p.a. (HB1 minus 1.37%)
    Fourth year onwards 3.38% p.a. (HB1 minus 0.87%)

    Note: HB1 refers to HDB Board Rate 1 which is currently 4.25% p.a.

    RHB Private Property Home Loan interest rates:

     Loan Tenure Variable Interest Rate Package
    Lock-in period 2 years
    First year 1.98% p.a. (MR1 minus 3.77%)
    Second year 2.03% p.a. (MR1 minus 3.72%)
    Third year 2.88% p.a. (MR1 minus 2.87%)
    Fourth year onwards 3.38% p.a. (MR1 minus 2.37%)

    Note: MR1 refers to Mortgage Rate 1 which is currently 5.75% p.a.

    RHB Commercial Property Financing interest rates:

    Option 1:

    Loan Tenure Variable Interest Rate Package
    Lock-in period 2 years
    First year 2.38% p.a. (CR2 minus 2.30%)
    Second year 2.68% p.a. (CR2 minus 2.00%)
    Third year 3.38% p.a.  (CR2 minus 1.30%)
    Fourth year onwards 4.68% p.a.  (CR2)

    Note: CR2 refers to Commercial Rate 2 which is currently 4.68% p.a.

    Option 2:

    Loan Tenure Variable Interest Rate Package
    Lock-in period 3 years
    First year 2.18% p.a. (CR2 minus 2.50%)
    Second year 2.58% p.a. (CR2 minus 2.10%)
    Third year 3.18% p.a.  (CR2 minus 1.50%)
    Fourth year onwards 4.68% p.a. (CR2)

    Note: CR2 refers to Commercial Rate 2 which is currently 4.68% p.a.

    Malaysian Residential Property Financing interest rates:

    Loan Tenure Variable Interest Rate Package
    Lock-in period 2 years
    First year 2.88% p.a. (MBR minus 3.12%)
    Second year 3.18% p.a. (MBR minus 2.82%)
    Third year 3.38% p.a. (MBR minus 2.62%)
    Fourth year onwards 3.38% p.a. (MBR minus 2.62%)

    Note: MBR refers to Malaysian Property Board Rate 2 which is currently at 6%.

    Malaysian Commercial Property Financing interest rates:

    Loan Tenure Variable Interest Rate Package
    Lock-in period 5 years
    First year 4.85% p.a. (MBR minus 1.15%)
    Second year 4.85% p.a. (MBR minus 1.15%)
    Third year 4.85% p.a. (MBR minus 1.15%)
    Fourth year onwards 4.85% p.a. (MBR minus 1.15%)

    Note: MBR refers to Malaysian Property Board Rate 2 which is currently at 6%.

    RHB Home Loans for Foreigners

    Foreigners are eligible to apply for the Commercial Private Property, Malaysian Residential Property and Malaysian Commercial Property Financing options. They are not eligible to apply for RHB HDB Home Loans and Private Property Home Loans.

    RHB Housing Loan Eligibility

    Here are the eligibility criteria to be met in order to apply for RHB home loans:

    • Nationality criterion – Singapore citizens and Permanent Residents are eligible to apply for ALL HDB home financing options. Foreigners are eligible to apply for Commercial Property Financing (private only), Malaysian Residential Property Financing and Malaysian Commercial Property Financing.
    • Minimum age – 21 years.
    • Minimum income – S$24,000 per year.

    Documents Required for RHB Home Loans

    Here are the documents that need to be submitted in order to apply for RHB home loans:

    • Salaried employees must submit the following:
    • Front and back copy or NRIC or Passport of all applicants and guarantors.
      • Most recent computerized payslip + most recent Income Tax Notice of Assessment OR
      • Most recent computerized payslip + CPF Contribution Statement for the past 12 months.
    • Salaried employees must submit their most recent Income Tax Notice of Assessment.
    • Rental income document – Tenancy Agreement (stamped) having a minimum remaining lease period of 6 months.
    • Other documents include the following:
      • A copy of the financial information on HDB loan commitment must be printed from the HDB official government website and submitted along with your application.
      • Most recent statement of all credit facilities held with other banks, financial institutions and moneylenders should be submitted.
      • In case of new property purchase, the Option to Purchase or the Sale & Purchase Agreement is to be submitted.
      • In case of refinancing, the latest loan statement reflecting the repayment history for the last 12 months + the latest statement reflecting your outstanding balance on the loan AND any one of the following documents:
        • Exercised Sale & Purchase Agreement or Option to Purchase document.
        • Stamp duty certificate for purchasing the property.
        • Title Deeds copy.
    • In case of a term loan or bridging loan, the most recent CPF Public Housing Withdrawal Statement is to be submitted.

    How to Apply for RHB Home Loans

    There are 3 ways to apply for an RHB Home Loan:

    • You can call the bank on 1800 323 0100 to discuss the property financing options and start the application process.
    • You can email the bank at “rhbs.contactus@rhbgroup.com” to discuss your plans regarding the respective home loan and application.
    • You can visit your nearest RHB Bank branch and discuss your financial plans with a member of the staff over coffee or tea and start the application process.

    RHB Housing Loan Repayment

    • Modes of repayment – The monthly instalment will be debited from a savings or current account of your choice or any account with RHB. Repayment of the principal amount will not commence until the entire interest amount has been paid.
    • Prepayment – The minimum prepayment amount is S$10,000. Amounts in multiples of S$10,000 only will be accepted for the purpose of prepayment of the housing loan.
    • Any extra charges for early repayment – No charge for up to 20% of the loan amount. This is applicable even during the lock-in period.
    • Possibility of part payment – Yes.

    RHB Home Loan Refinancing

    RHB offers home loan refinancing options for most of their housing loans including commercial and residential property financing options.

    Frequently Asked Questions

    1. Q. What subsidy on legal fees is offered on RHB home loans?

      A. For HDB Home Loan and Private Property Home Loan, enjoy subsidy of 0.5% up to S$2,500 on legal fees. For Commercial Property Financing, enjoy subsidy of 0.4% up to S$3,000 on legal fees.

    2. Q. In case of early redemption of my loan (prepayment), when do I notify the bank?A. In case of early redemption, you must notify the bank at least 3 months in advance and in writing or pay 3 months’ interest and any early redemption fee.
    3. Q. What is the tenure offered for a bridging loan by RHB?

      A. The maximum tenure offered for bridging loans by RHB is 6 months wherein the full lump sum repayment on the loan must be paid or when the sale of your existing property has been completed, depending on whichever of the two occurs earlier.

    4. Q. Is there a cancellation fee if I wish to cancel my home loan with RHB?

      A. Yes. A cancellation fee as stated in your “Letter of Offer” will be imposed if you choose to cancel your RHB home loan after you have accepted your offer letter.

    5. Q. Are there any other subsidies on other fees and charges provided by RHB for their home loans?

      A. Yes. RHB offers valuation subsidy on their Commercial Property Financing on their first valuation report up to S$500.

    6. Q. What is the maximum financing offered with RHB Home Loan?

      A. The maximum financing offered is up to 80% of the purchase price or value of the property.

    7. Q. What is the minimum annual income needed to apply for RHB Home Loan?

      A. You should have a minimum annual income of $24,000 to apply for a home loan with RHB Bank.

    8. Q. Can foreigners apply for RHB Home Loan?

      A. No, only permanent residents and citizens of Singapore can apply.

    9. Q. I am 18 years old. Can I apply for a home loan?

      A. No, you have to be minimum 21 years of age to apply for a home loan with RHB Bank.

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