New Home Loan Rates Fall To 0.6%, As Singaporean Banks Fight A War For Lower Interest Rates

No, you did not read that wrongly, new home loans are going as low as 0.6%. After shocking the home loan market last year by slashing interest rates to as low as 1.00% the banks are at it again in a fight to the bottom, from which new home buyers will surely benefit, with two banks offering rates of 0.6 – 0.65%.

Here’s a breakdown of the two home loan packages, do note that both home loan packages only apply to new home loan applications that are for Building Under Construction units (I.e. Units that have not been built as of yet)

Interest (Year 1 – 4) FHR18 + 0% = 0.60%

Interest (Thereafter) FHR18 + 1% = 1.60%

Free One Time Conversion*

Valuation Fee Slightly More Expensive

Loan Application Must Be Submitted By 6^th March 2017

Interest (Year 1 – 4) FHR18 + 0% = 0.65%

Interest (Year 5 – 9) FHR18 + 0% = 1.55%

Interest (Thereafter) FHR18 + 1% = 1.60%

Free One Time Conversion*

No Need To Buy Mortgage Insurance

Valuation Fee Cheaper

Loan Application Must Be Submitted By
3^rd March 2017

*One time conversion, in this case refers to converting the home loan package to another home loan package such as fixed, SIBOR/ SOR based.

Note that the main difference between the UOB and DBS packages is that the UOB package is generally cheaper as it allows you to get a lower rate between year 5 – 9 compared to DBS and does not require you to buy mortgage insurance, which can be fairly troublesome and in some cases unnecessary.

For some perspective, the next best rate that is being offered is a 1.31% SIBOR rate, which is to say there is a 0.7% difference in rates over the first 4 years. On a $1 million loan, that would mean a difference of about $7,000 a year over the first 4 years.

So what are you waiting for? Submit a no obligation loan application through us today to save and see if you qualify for these amazing rates, and get $100 in vouchers upon successful application from us!

WAYNE QUEK

Wayne is a Chartered Financial Analyst (CFA), and holds a Bachelor of Business Management (Finance) from Singapore Management University (SMU). A successful Relationship Manager during his time with DBS and HSBC, Wayne used his expertise in financial markets to help his clients build up comprehensive investment portfolios. The entrepreneur is also the founder of Home Loan Whiz, a mortgage consulting firm that assists clients with selecting ideal mortgages for their needs.