Singapore: Local financial institutions DBS, UOB and OCBC raised fixed-rate mortgages on Tuesday (4 Oct), with interest rates reaching 3.85%.
DBS, Singapore’s largest lender, has made the first move. I checked the company’s website on Tuesday morning and saw that there are four fixed rate packages available ranging from 2 to 5 years. All four are set at 3.5% per annum.
DBS had We previously removed all fixed rate mortgages from our websitebecause the review was conducted following another review Sharp interest rate hike by US Federal Reserve Board last month.
The same 3.5% fixed interest rate applies to 2-in-1 mortgages as well. This allows borrowers to structure up to half of the loan amount with a fixed rate and the rest with a variable rate package.
The last time DBS adjusted mortgage rates was at the end of June.After that, the interest rates for the 2-year and 3-year fixed rate packages are 2.75% per annumwill retire the Housing Board’s five-year fixed-price package for apartment buyers.
The bank also introduced a new mortgage package last week. It allows new and existing owners of HDB flats with a monthly income below his S$2,500 to take out a mortgage at his POSB at an annual rate of 2.6%. This rate is similar to the HDB mortgage rate.
“We recognize that mortgages are one of the largest and longest financial commitments that have a significant impact on a customer’s cash flow. We are doing more to take advantage of the opportunity,” said a DBS spokesperson.
The bank’s latest review is “in response to the interest rate environment” and its long-term package is It is recommended for those who are considering a long-term fixed interest rate.
“We will continue to explore ways to provide additional stability to our clients through our fixed interest rate package program.” the spokesperson added.
UOB, which had a similar review, We temporarily stopped offering fixed interest rates on September 23rd.told CNA on Tuesday afternoon that its two- and three-year fixed-rate mortgage packages now carry annual interest rates of 3.75% and 3.85%, respectively.
This is up from 2.98% and 3.08% previously.
UOB also offers mortgages that combine both fixed and variable rate packages. All-in or blended on such hybrid loans, his rates “tend to be lower,” said Jacqueline Tan, the group’s head of personal financial services.
For example, a borrower receives half of the loan amount in a 2-year fixed rate package at the current interest rate of 3.75%, and pegs the other half in a variable rate package to a 3-month compound SORA with an assumption of 2.09. In percent, she said the all-in rate would be her 3.27 percent.
Such hybrid loan packages typically offer fixed monthly repayments for a period of time while also allowing for partial loan repayments of the variable rate portion without penalties.
“This means that if interest rates rise, customers can consider repaying the variable-rate portion of the loan to avoid additional interest payments while the fixed-rate portion is protected from rate increases.” she added.
“We are continuously monitoring market conditions and will review our mortgage packages to remain competitive,” Tan told CNA in an email.
Like its peers, OCBC announced later in the day that it would increase its two-year fixed interest rate package from 2.98% to 3.5%.
We are also reintroducing 3.35% one-year fixed rate mortgages due to demand for shorter lock-in periods among some customers.
“We believe that interest rates may start to fall from the end of next year as some customers plan to sell their properties in the near future,” said Pan La Fa, head of the bank’s consumer secured lending division. We have customers who are
“Given this trend in the market, we have decided to resume our 1-year fixed rate package, along with our 2-year fixed rate package, although our interest rates will be higher due to the current interest rate environment.
“Our pricing package strikes a balance between providing our clients with stability and giving them the leeway to sell their property or reassess their mortgage when the opportunity or need arises.” she added.