A guide to UOB Home Loan Interest Rates in Singapore

There are many different banks in Singapore offering customers different interest rate packages for it home loans. Customers can be confused when faced with such variety when having to choose a home loan package. Where does United Overseas Bank (UOB) stand as compared to other banks when it comes to home loans?

UOB Property Loans Online Festive Exclusive

Sometimes, banks allow festive exclusive loans during certain seasons. For instance, UOB has introduced a property loan to attract more customers this 2018.

In addition to offering fixed home loan rates for 1.85% p.a for the first two years, customers will also receive a S$500 TANGS Gift Card when taking up the property loan with them. The gift is however as a first-come-first served basis while stock lasts!

YearInterest Rate*
Year 11.85% Fixed
Year 21.85% Fixed
Year 31M SIBOR + 0.85%
Year 4 & Onwards1M SIBOR + 0.85%

 

Penalty Period2 years
Legal Subsidy (Only for Refinancing)·        0.4% of loan amount

·        Capped at $1,800 for Private Residential Home Loan

·        Capped at $1,500 for HDB Home Loan

Property Loan Amount Accepted / PropertyNot less than $300,000,or its equivalent in foreign currency

*Quoted Rates are on a per-annum basis, and are non-contractual till acceptance of Bank’s letter of offer. For most updated rates, please check with Redbrick mortgage consultants

 

UOB International Property Loans

Since the government is showing no signs of doing away with property cooling measures, some of us may be thinking of investing in overseas property.

UOB offers International Property Loans which makes it on step closer own your dream property. The International Property Loan is currently valid for purchasing properties in Malaysia, Thailand, Japan, Australia and the United Kingdoms.

Financing Terms

 

Countries

United KingdomAustralia*Japan^ThailandMalaysiaSingapore
Areas Financed
  • London
  • Sydney
  • Melbourne
  • Perth
  • Tokyo
  • Yokohama
  • Osaka
  • Kyoto
  • Fukuoka
  • Bangkok & selected upcountry locations
  • Klang Valley
  • Penang
  • Johor Bahru
  • Singapore
Purpose
  • Investment
  • Investment
  • Investment
  • Owner occupied
  • Investment
  • Owner
    occupied
  • Investment
  • Owner occupied
  • Investment
Property Type
  • Residential
  • Residential
  • Residential
  • Residential (Freehold condos only)
  • Residential
  • Commercial
  • Residential
  • Commercial
Financing Quantum
  • Up to 70%
  • Up to 70%
  • Up to 70%
  • Up to 70%
  • Up to 70%
  • Up to 80%
Loan Currency
  • SGD
  • GBP
  • SGD
  • AUD
  • SGD
  • JPY
  • SGD
  • USD
  • SGD
  • SGD
Loan Tenor
  • Up to 35 years
  • Up to 35 years
  • Up to 35 years
  • Up to 30 years
  • Residential:
    Up to 35 years
  • Commercial:
    Up to 30 years
  • Residential:
    Up to 35 years
  • Commercial:
    Up to 30 years

Source of Image: UOB http://www.uob.com.sg/personal/borrow/property/mortgage-options/international-property-loans.page

Part Purchases

For part purchases, UOB does not require you to use a designated lawyer, as long as the lawyer is in the bank’s panel.

Loan Disbursement

For UOB, funds do not have to be shown during the loan application process. They however have to be shown after loan approval.

Prior to loan disbursement, funds will have to be deposited with them.

Fixed Deposit Pegged Rates: FDPR36, FDPR15

UOB switched from referencing their 36-month Fixed Deposit Pegged Rate (FDPR) to using 15-month fixed deposit pegged rate (FDPR) in May 2017.

There is no free conversion option if fixed deposit rates are to shift upwards

UOB Home Construction Loan

The UOB Home Construction Loan offers customers financing of up to 80%, with the actual quantum being decided based on the type of home construction you are ongoing.

This includes whether you are:

  • Building a home with your own design choice by buying a piece of land
  • Purchasing and reconstruction an existing landed property into your desired home
  • Renovating and given your current home a new of life to enhance its property value

The loan also has a flexible repayment period, with the choices of

  • When the borrower hits 70 years of age
  • Maximum Loan Tenor of 35 years

whichever is earlier.

The loan will be converted into a home loan (comprising of principal and interest payment) after you have been issued the Temporary Occupation Permit. (TOP)

You can contact our friendly mortgage advisors at Redbrick for more details on the packages!

Legal Subsidy

UOB provides for legal subsidy as long as the loan size is bigger than $100k.

Valuation Fees

UOB offers cheaper valuation fees for loans that are less than $2 million.

Admin Fees

There are no admin fee chargeable.

Attractive fixed rates

Mortgage Interest Rate Cap

UOB currently has no mortgage interest rate caps. This may prove to be a downside for customers, as they are not protected against great jumps in interest rates charged.

Repayment Account

UOB offers the flexibility of allowing customers to use their own existing account as repayment account.

History of UOB

UOB was first incorporated as United Chinese Bank (UCB) by Sarawak businessman Datuk Wee Kheng Chiang with a group of 6 other Chinese businessmen.

UOB’s global headquarters is in Singapore, and is located at the prime location of 80 Raffles Place in Singapore in UOB Plaza. The bank was rebranded as the United Overseas Bank (UOB) in 1965.

UOB has since established a global footprint through various strategic acquisitions, with an especially strong presence in Southeast Asia. It currently has more than 500 offices spread out in 19countries, as well as 68 branches in Singapore. Some banking subsidiaries of UOB in their key markets include United Overseas Bank (China) limited, PT Bank UOB Indonesia, United Overseas Bank (Malaysia) Bhd, and United Overseas Bank (Thai) Public Company Limited. It also has territories in Asia Pacific, Western Europe & North America.

UOB has also won various awards and accolades, with Asiamoney naming UOB as the Best International Bank, Myanmar, and Best International Bank, Malaysia, in the Best Bank Awards 2017.

Last but not least

It is always important to consider a combination of different factors before choosing home loan. If are need a trusted expert to advice you, you can always check with our mortgage advisors who will guide you throughout the loan selection process!

 

The Redbrick Team

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