DBS & UOB review fixed-rate home loans as latter ceases offering
DBS & UOB review fixed-rate home loans as latter ceases offering. UOB and DBS are now revising the interest rates on their fixed-rate home loans, with UOB temporarily discontinuing its offering following another interest rate hike by the Federal Reserve.
A representative for UOB told The Business Times that the bank will discontinue its existing 2-year and 3-year fixed-rate packages as it evaluates its fixed-rate offering (BT). “We are constantly watching market conditions and will assess our home loan packages to ensure they stay competitive and offer a variety of options to fit the individual needs of homeowners,” the spokeswoman continued.
Meanwhile, DBS informed BT that it is currently examining rates but will continue to offer consumers fixed-rate home loans. OCBC is still offering a 2-year fixed rate of 2.98%. “We examine our mortgage pricing on a regular basis and ensure that our pricing packages remain competitive,” said Phang Lah Hwa, head of consumer secured lending at OCBC.
The three lenders will continue to provide house loans with floating rates tied to the Singapore Overnight Rate Average (Sora). UOB’s floating rate is set to the 3-month compounded Sora plus a 1% margin, but it also has a promotional rate of 3-month compounded Sora plus a 0.7% margin in the first two years and 0.8% in the third year. DBS is offering a variable rate based on the 3-month compounded Sora plus a 1% margin. For the first two years, OCBC’s variable rate is tied to the 1-month and 3-month compounded Sora plus a buffer of 0.98 percent.
According to the Monetary Authority of Singapore’s website, the daily Sora rate on Friday (Sep 23) was 1.9389 percent, up about 0.3 percentage point after the Fed announced a 75 basis point rate hike.
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