UOB Home Loan Interest Rate Rise

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Last to increase but the interest rate increase by 0.65%.


The days of < 2% interest rates are gone. DBS and OCBC had announced to increase their rates for 2018 and 2019. UOB is the last to announce and will take effect in May 2019.

UOB Letter

The revised rates is as below


Mortgage
Peg

Old Rate

New Rate

Increase By

Effective Date

36FDPR
1.00 1.65 0.65 25 Mar

15FDPR
0.70 1.40 0.7 25 Mar

14FDPR
0.601.150.55 1 Apr

With that, it’s time to do window shopping for refinance and checked with 5 banks. It appear that Sibor package is better than MBR or FHR as it’s rate is openly available. However any increase of interest rates from FED, Sibor will be the first to react.

I will share the informations i received from the respectives banks as below.

BankFixed RatesFloating RatesRebateLock in / Penalty
OCBC2.58% (Fixed)
2.58% (Fixed)
2.58% (MBR + 1.03%)
2.58% (MBR + 1.03%)
2.58% (MBR + 1.03%)
SIBOR:
1-Month/ 3-Month/ 6-Month + 0.30% (2.12%, 2.24,2.3%)
1-Month/ 3-Month/ 6-Month + 0.40%
1-Month/ 3-Month/ 6-Month + 0.50%
1-Month/ 3-Month/ 6-Month + 0.60%
1-Month/ 3-Month/ 6-Month + 0.60%
MBR (Mortgage board Rate, current at 0.95%)
MRB + 1.5% = 2.45%
NANA
DBSYear 1 – 2.60% Fixed
Year 2 – 2.60% Fixed
Thereafter – FHR8 + 1.925% = 2.60%
2 Years Lock-In
Year 1 – FHR8 + 1.45% = 2.125%
Year 2 – FHR8 + 1.45% = 2.125%
Thereafter – FHR8 + 1.45% = 2.125%
2 Years Lock-In
$18001.5%, 2 years lock in
HSBC2.8%1st year 0.25% + 1 or 3 month SIBOR (you can choose either 1 or 3 month SIBOR) = 2.021% (effective with 1 month SIBOR)
2nd year 0.25% + 1 or 3 month SIBOR
3rd year 0.25% + 1 or 3 month SIBOR
Thereafter 0.65% + 1 or 3 month SIBOR
2000 (between 500k to 1M)2 yrs lock in
1.5%, 50% waiver
no redemption penalty within lock in if due to sale
2.8%SIBOR PROMO* Minimum Loan $800,000*
Yr 1: SIBOR + 0.25%
Yr 2: SIBOR + 0.25%
Yr 3: SIBOR + 0.25%
Thereafter: SIBOR + 0.65%
up to 70% interest offset, Able to lower EIR
-homeassist, $150 subsidy for repairs** 5 times every year
-no redemption penalty within lock in if due to sale
up to $2000 cash incentive for refinancing
up to $680 Isetan shopping vouchers
2 year lock in
MaybankFixed 2yr 2.68%
3yr 2.88%
Maybank floating 2.3%
Cash rebate 0.4% of loan amount cap at $2000 to offset legal
Deposit 50k into maybank saving account can get 2.15% floating and 2.48% fix
It’s board rate
NANA
Citi Bank2.6%floating 1mth sibor +0.3%
legal fee fully subsidise and $300 cash vouchers for loan amount 800K ??
legal fee fully subsidise and $300 cash vouchers

Conclusion

After the window shopping, I am more or less decided to go ahead with HSBC Sibor +0.25% package. The bank has smart mortgage plan which can allow you to offset up to 70% of the money in your HSBC savings account.

HSBC’s SmartMortgage links your home loan account with a current account, reducing interest on your home loan by offsetting interest earned on your current account.*
This simple, effective link between your home loan and current account* through SmartMortgage will help you:

HSBC SmartMortage

What really entices me is the HSBC’s Home Assist plan which provides emergency home assistance reimbursing you up to S$150 per visit.

HSBC’s Home Assist gives you complimentary access to 24-hour emergency home assistance for property emergencies related to your electrical, air-conditioning, plumbing, locksmith and pest control needs. We will take care of your repair bills, reimbursing you up to S$150 per visit for a maximum of five times a year.

hsbc home assist

Author: The Financial Guy

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