DBS, OCBC and UOB raise fixed mortgage interest rates to 4.5%
DBS’s floating rates remained the same at a Singapore Overnight Rate Average (SORA) compounded over three months and a lending margin of 1% per annum.
The three-month compound SORA rose from 0.1949 at the start of the year to 2.6633 on November 14. There is a two-year blocking period.
The bank has also modified its “hybrid loan”. People can now structure up to 70% of their home loan amount at a fixed rate and the rest at a variable rate. It was previously up to 50 percent.
The variable rate of the hybrid loan is the three-month compound SORA with a lending spread of 0.75%, with a lock-up period of two years.
OCBC’s floating interest rates remain unchanged, with a three-month compound SORA rate and a lending margin of 0.98% for the first and second year, before the lending margin reaches 1% the third year.
Floating packages will be “more attractive” to customers who want flexibility in their prepayment, said OCBC home loans manager Maryanne Phua.
A DBS spokesperson said: “Regardless of interest rate trends or the choice of home loan packages, we urge borrowers to set aside sufficient funds as a buffer in the event of further interest rate hikes. interest or unforeseen circumstances.
“Ideally, one should set aside some cash or cash savings that can be used to pay their monthly mortgage payments for the next two years, in addition to at least six months of expenses.
“That would allow plenty of time to restructure the loan, or even sell the property if they run into financial trouble.”
UOB’s floating interest rates also remain unchanged, with a three-month SORA-indexed floating rate, plus a margin of 0.7% per annum for the first two years and 0.8% thereafter. of the third year.
On the bank’s fixed and variable rate home loan packages, UOB Group Personal Financial Services Manager Jacquelyn Tan, said: “Buying a property is a long-term commitment and an important step. We want to support and offer our customers a range of options to meet their unique needs and circumstances.”
Housing and Development Board (HDB) resale prices in Singapore have risen for 10 consecutive quarters, while private house prices also rose 3.8% in the third quarter of this year.
The government introduced several cooling measures on September 30, including tightening the maximum quantum limits on loans. For HDB loans, the loan-to-value (LTV) ratio was lowered to 80% from 85%.
A 15-month waiting period has also been put in place for private homeowners buying HDB resale apartments, but this will not apply to people aged 55 and over who move from their private property to a resale apartment of four rooms or smaller.