DBS & UOB review fixed-rate home loans as latter ceases offering

by Albert02

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 currently modifying the interest rates on their fixed-rate home loans, with UOB temporarily halting its offering in response to another Federal Reserve interest rate hike.

According to a UOB spokesman, the bank would cease its existing 2-year and 3-year fixed-rate contracts while it examines its fixed-rate offering (BT). “We are continually monitoring market conditions and will evaluate our home loan packages to ensure they remain competitive and offer a choice of options to meet the unique needs of homeowners,” the spokeswoman added.

Meanwhile, DBS informed BT that it is currently reviewing rates but will continue to offer fixed-rate home loans to customers. OCBC continues to provide a 2-year fixed rate of 2.98%. “We regularly analyze our mortgage pricing and ensure that our pricing packages remain competitive,” said Phang Lah Hwa, OCBC’s head of consumer secured lending.

The three lenders will continue to provide floating-rate mortgages connected to the Singapore Overnight Rate Average (Sora). UOB’s floating rate is set at 3-month compounded Sora plus 1% margin, but it also offers a promotional rate of 3-month compounded Sora plus 0.7% margin in the first two years and 0.8% margin in the third year. DBS is offering a variable rate depending on the Sora compounded over three months plus a 1% profit. OCBC’s variable rate is connected to the 1-month and 3-month compounded Sora plus a 0.98 percent cushion for the first two years.

The daily Sora rate was 1.9389 percent on Friday (Sep 23), according to the Monetary Authority of Singapore’s website, up around 0.3 percentage point after the Fed announced a 75 basis point rate hike.

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Source:
https://www.businesstimes.com.sg/banking-finance/dbs-uob-review-fixed-rate-home-loans-as-latter-ceases-offering


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