OCBC, the second-largest banking group in Singapore, with over $1 billion in loans pegged to the new Singapore Overnight Rate Average (SORA) interest rate benchmark. With over $500 billion in assets, OCBC has a vast collection of mortgages to offer, including options for HDB, private property, and executive condominium home loans. Their affordable introductory fixed rates and board rates make it easy for homeowners to take credit for their homes.
OCBC’s mortgages also include Eco-Care Home Loans, which offers savings on home loan payments and home electricity bills. Customers appreciate OCBC’s impeccable record of service and affordable interest rates, making them an excellent option for homeowners looking to finance their homes. The bank is also an active participant in empowering its customers by providing accessible fixed rates for home loans that are sure to put a smile on Singaporeans’ faces.
OCBC’s introductory fixed rates are budget-friendly, while their long-term floating rates are slightly higher but still accessible. This makes them a popular choice among borrowers who are willing to refinance their loans frequently to keep costs low. On average, the total cost of an OCBC home loan is among the lowest in Singapore. However, it’s important to note that lenders frequently change their rates, so borrowers must compare rate updates regularly.
Standard fees charged by OCBC include partial repayment fees, full redemption penalties, and cancellation fees. Overall, OCBC offers an impressive selection of affordable home loan packages, making them a top contender for anyone looking to finance their home in Singapore.
OCBC charges a few standard payments like a partial refund fee, full recovery penalty and cancellation fee. The table below displays OCBC’s fees based on various loan types.
|Loan Type||Partial Repayment fee||Full Redemption Pinalty||Cancellation Fee|
|Board Rate||No fee if outstanding balance remains above 50% of loan principal, otherwise 1.5%||1.5%||1.5%|
|Tracker||Partial payment allowed up to 50% of loan principal at no penalty during lock-in period||1.5%||1.5%|
OCBC’s refinance bundles are currently tied to the 1-month aggregated SORA rate, OCBC Board rate and OCBC fixed rates. OCBC previously made allowance for loan plans with no lock-in period for Buildings Under Construction (BUC). However, they are reviewing their BUC offerings due to the switch to SORA-pegged housing loans.
|Bank||1st Year Interest||Lock-in Period|
|OCBC SORA||Check Live Rates||2 Years|
|OCBC SORA||Check Live Rates||2 Years|
|OCBC Board||Check Live Rates||1 Year|
|OCBC Fixed||Check Live Rates||1 Year|
Study the current market rate and understand how the market will move in an average lock-in period ( of 2 to 4 years) before going for a fixed or floating refinancing plan. The market movement will influence your total loan cost. A long period is not required for a refinancing plan because you can choose to refinance your loan at the end of your lock-in period.
If you notice that interest rates are generally stable or declining when you study market charts, then go for a floating interest rate. Floating rates are usually lower than fixed rates because banks willingly offer lower rates for short term loans to gain your patronage – and demand higher charges when market rates increase. Moreover, fixed rates tend to be slightly costly because of the premium charges placed on loans.
When overall interest rates are rising, it is advisable to refinance with a fixed rate and not a floating rate. Although fixed rates are typically a bit higher than floating rates, they help customers save if market rates rise significantly.
For example, imagine Mr Yong was able to refinance at a fixed rate of 1.5% for the next three years and Mr Lim also chose the option of refinancing at a floating rate beginning at 1%. If market interest rates rise soon after Mr Lim’s refinances, the floating rate could be up to 2% to 3%, but the fixed rate would remain at 1.5% for Mr Yong While these may not seem very significant, they could actually result in a difference of S$5,000 in annual interest.
During the refinancing process, lenders make necessary enquiries regarding your current loan and try to present a lower interest rate to gain your patronage. This is a good development for homeowners who can refinance their current home loan and reduce their monthly instalments and total cost of borrowing. Note that most banks require a balance of at least S$100,000 with a minimum period of 5 years. There are always exceptions, so make sure to check with our mortgage broker before ruling out refinancing!
With lower interest rates, you will enjoy lower monthly payments. If you choose to not refinance your existing mortgage loan, your interest rate will gradually increase causing higher monthly instalments and total interest costs.
Once your application is live you will be able to review suitable loan options on your dashboard. One of our
mortgage brokers will follow up with you to discuss the best available options and next steps.
After you’ve decided on a preferred mortgage option one of our mortgage brokers will help process your
Settle all fees (option fee, option exercise fee to the seller as well as the relevant buyer’s stamp duty fee in
case you are purchasing a private property)
Attent your property purchase appointment date and sign all legal documents for the transfer of the property,
paying all legal and valuation fees.
Individuals seeking home loans with reasonable interest rates
Borrowers that intend to get or refinance their home loan with at least S$300,000 for Private Properties and
S$200,000 for HDB flat
Borrowers seeking to refinance home loan with less than S$300,000 for Private Properties or S$200,000 for HDB