DBS, UOB review fixed-rate home loans as latter ceases offering
Tan Nai Lun
UOB and DBS are currently reviewing the interest rates on their fixed-rate home loans, with UOB temporarily ceasing its offering, after the Federal Reserve made another interest rate hike.
UOB will cease its existing 2-year and 3-year fixed rate packages as it reviews its fixed-rate offering, a spokesperson told The Business Times (BT).
“We are continuously monitoring market conditions and will review our home loan packages to ensure they remain competitive and have a range of options to meet the unique needs of homeowners,” the spokesperson added.
Meanwhile, DBS told BT that it is currently reviewing rates, but will still be offering fixed-rate home loans to customers.
As for OCBC, it is still offering a 2-year fixed rate at 2.98 per cent.
Phang Lah Hwa, head of consumer secured lending at OCBC, said: “We review our mortgage pricing regularly and ensure that our pricing packages remain competitive.”
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The 3 lenders will still offer home loans with floating rates pegged to the Singapore Overnight Rate Average (Sora).
UOB’s floating rate is pegged to the 3-month compounded Sora plus a margin of 1 per cent, although it is also having a promotional rate of 3-month compounded Sora plus a margin of 0.7 per cent in the first 2 years and 0.8 per cent in the third year.
DBS is offering a floating rate pegged to the 3-month compounded Sora plus a margin of 1 per cent.
OCBC’s floating rate is pegged to the 1-month and 3-month compounded Sora plus a margin of 0.98 per cent for the first 2 years.
According to the website of the Monetary Authority of Singapore, the daily Sora rate on Friday (Sep 23) was 1.9389 per cent, up around 0.3 percentage point post the Fed’s announcement of a 75 basis point rate hike.
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