DBS, OCBC and UOB to raise interest rates on fixed mortgages to up to 4.5%

Floating interest rate

DBS’s floating rate remained the same with a 3-month composite Singapore Overnight Rate Average (SORA) and a lending margin of 1% per annum.

The 3-month compounded SORA rose from 0.1949 at the beginning of the year to 2.6633 as of November 14th. There is a two-year lock-in period.

The bank also changed its “hybrid loans.” People can now structure up to 70% of their mortgage amount with a fixed rate and the rest with a variable rate package. Previously it was a maximum of 50%.

The hybrid loan has a variable interest rate of SORA compounded 3 months, a loan margin of 0.75% and a lock-in period of 2 years.

OCBC’s floating rate remains unchanged, with SORA compounded 3 months and a loan margin of 0.98% in years 1 and 2, with a loan margin rising to 1% in year 3.

Maryanne Phua, head of OCBC’s mortgage division, said floating packages would be “more attractive” to customers who want flexible prepayments.

A DBS spokesperson said:

“Ideally, you should have at least six months’ worth of expenses, plus cash or liquidity savings that you can use to pay your monthly mortgage payments for the next two years.

“This will give us enough time to restructure the loan or sell the property in the event of financial problems.”

The UOB’s floating rate will also remain unchanged, with the floating rate fixed at a 3-month compound SORA, with an additional margin of 0.7% per annum for the first two years and 0.8% per annum from the third year onwards.

Regarding the bank’s fixed and variable rate mortgage packages, Jacquelyn Tan, Head of Group Personal Financial Services at UOB, said: Said: “Buying a property is a long-term undertaking and an important milestone. We want to support and provide our customers with a variety of options to suit their unique needs and circumstances. ”

Singapore’s Housing Development Board (HDB) resale value is 10 consecutive quartersprivate housing prices 3.8% up in the third quarter of this year.

Some governments have introduced Cooling measures On September 30th, this includes tightening limits on maximum loan amounts. For HDB loans, Loan to Value (LTV) has been reduced from 85% to 80%.

A 15-month waiting period has also been introduced for private homeowners buying HDB resale apartments, but this does not apply to seniors over the age of 55 moving from private property to resale apartments with four or fewer rooms. Hmm.

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