HSBC offers preferential rates to homebuyers who’re borrowing at least $800,000. However, the basic loan packages available are the same no matter how much you borrow. Completed property buyers can choose between two SIBOR-pegged floating rate home loans with a 2-year lock-in period, a fixed deposit-pegged home loan with a 2-year lock-in period, as well as two fixed-rate home loans with a 2- and 3-year lock-in period respectively.
The SIBOR-pegged interest rates for the packages with the lowest starting interest rates begin at 1M SIBOR + 0.25% to 0.3%, depending on loan package and loan amount. But from the fourth year onwards, they jump to 1M SIBOR + 0.65% to 0.7%. If you choose fixed deposit-pegged interest rates - You’ll basically pay the banks’ 24 month fixed deposit interest rates + a spread of about 2.13%. While these rates might not fluctuate as often as the SIBOR, the bank has the discretion to change them anytime they like.
The fixed interest rate packages let you lock in a fixed rate for 2 or 3 years, after which you will pay a floating rate. In exchange for the stability you usually end up paying higher interest rates at the start. That being said, HSBC’s fixed interest rates are now advertised as starting from as little as 2%.
Completed property buyers are spoiled for choice, as Maybank offers five home loan packages to choose from. There are four fixed-rate home loan packages offering fixed interest rates for 2, 3, 4 or 5 years. You can also opt for a floating rate package pegged to the board rate with a 2-year lock-in period.
First, let’s talk about the fixed rate packages. The current interest rates range from 1.92% for 2 years to 2.78% for 5 years.
Now, 2.78% is a pretty high interest rate, but the advantage is that it gets locked in for 5 whole years, which makes it one of the most secure loan packages around, as many banks don’t offer such a long lock-in period. On the other end of the scale, the 1.92% interest for the 2-year fixed interest home loan is quite attractive, but after the two year period is up you will pay the board rate minus 1.92%, which at the moment is high.
In short, if you are pessimistic about the economy and think interest rates will rise in the future, then you might have a good case for opting for a 5 year fixed rate package. Completed property buyers are also eligible for floating rate packages with a 2- and 3-year lock-in period, with interest rates ranging from 2.21% to 2.30%. These are not the best interest rates available at the moment.
For completed properties, Citibank offers a floating rate home loan pegged to SIBOR and a fixed rate home loan. The fixed rate home loan lets you lock in rates of 1.98% to 2.03% for two years (available for both HDB and private property), or 2.04% to 2.09% for 3 years (private property only). These are very competitive interest rates compared to what other banks are offering, however once the fixed period is over, your interest rates will be pegged to SIBOR. So, be prepared to refinance later on.
The floating rate packages offer interest rates that begin at 2.11% to 2.20%. These starting interest rates are attractive compared to what other banks are offering at the moment, however they also rise quite sharply over the years, from SIBOR + 0.35% in the first year and SIBOR + 0.45% in the second year to a whopping SIBOR + 0.70% in the third year onwards. So, again, be prepared to refinance!
Standard Chartered home loan for completed properties (2-year floating)
Completed property buyers can choose between seven home loan packages. Four are 36-month fixed deposit-linked home loan packages, and three are SIBOR-pegged home loan packages. If you are a MortgageOne user, you can take advantage of two of their deposit-linked home loan packages that enable you to deposit money in your MortgageOne account to offset your mortgage loan interest payable. Interest rates currently range from 2.15% to 2.30% for SIBOR packages, and 2.25% to 2.30% for fixed deposit-linked packages. The SIBOR rates are currently very competitive compared to what other banks are offering.
For completed properties, DBS offers several home loan packages and it’s interesting to see how they stack up against each other. The full range of home loans can be split into 2 broad types: Fixed interest rate and floating interest rate. The BUC home loans we talked about earlier are an example of a floating interest rate loan — the interest is pegged to some moving number.
Fixed rate home loans, however, promise to charge you a standard rate e.g. 2% p.a. for a specified number of years, regardless of what happens to DBS’s fixed deposit rates, or the economy.
Traditionally, for fixed rate packages, you pay a little more for the stability and security of a fixed rate. However, this is not the case right now with DBS home loans. Their fixed rate packages are actually really competitive right now.
Special offer: For a 2-year fixed rate home loan, DBS currently offers a special VIP rate of 1.86% p.a interest rate, which is actually lower than that of their floating rate package. Simply watsapp to 9386 4036 with your outstanding loan amount and your property address and we will help arrange for you to enjoy this special VIP rate.