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 now adjusting the interest rates on their fixed-rate home loans, with UOB temporarily suspending its offering in reaction to another Federal Reserve rate hike.

According to a UOB representative, the bank would discontinue its current 2-year and 3-year fixed-rate contracts while it evaluates its fixed-rate offering (BT). “We are constantly watching market conditions and will examine our home loan packages to ensure they stay competitive and offer a variety of options to fit the individual needs of homeowners,” said the spokesperson.

Meanwhile, DBS informed BT that it is currently examining rates but will continue to provide customers with fixed-rate home loans. OCBC maintains its 2-year fixed rate of 2.98%. “We monitor our mortgage pricing on a regular basis to ensure that our pricing packages remain competitive,” said Phang Lah Hwa, OCBC’s head of consumer secured lending.

The three lenders will keep offering floating-rate mortgages tied to the Singapore Overnight Rate Average (Sora). UOB’s variable rate is fixed at three months compounded Sora plus one percent margin, but it also offers a promotional rate of three months compounded Sora plus 0.7% margin for the first two years and 0.8% margin for the third year. DBS offers a variable rate based on Sora compounded over three months plus a 1% profit. For the first two years, OCBC’s variable rate is linked to the 1-month and 3-month compounded Sora plus a 0.98 percent buffer.

According to the Monetary Authority of Singapore’s website, the daily Sora rate was 1.9389 percent on Friday (Sep 23), up roughly 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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