OCBC Home Loan Solutions in Singapore
OCBC offers a range of pricing packages with guidance from a mortgage specialist. You can choose from OCBC’s wide range of fixed and variable pricing packages.
The great thing is that you can borrow up to 75% of your property’s valuation. Also, you get a home loan approval within 60 minutes.
One type of Home Loan that OCBC offers is the Eco-Care Home Loan. In partnership with BuildSG and Sunseap, you can earn OCB$ from your energy savings. You can redeem them on the STACK marketplace.
OCBC also offers a two to three-year fixed rate home loan package. The interest rate on the said period is at 1.38%. A Lock-in period applies, though.
People who are eligible to take OCBC home loans are Singaporean citizens/permanent residents. Note that the age limit requirement is from 21 years old and above. Once you meet all these criteria, you can get an OCBC home loan of at least S$ 300,000.
Table of Contents
What OCBC Home Loan Package best fits me?
When you look for home solutions, you’ll get many options in Singapore. Banks offer various home loan solutions, meeting different homebuyer profiles. Now, if you’re looking for which bank you want to get a home loan from, OCBC is one worth considering.
There are several home loan packages available in OCBC:
OCBC Home Loan Options
- OCBC 2Y/3Y Fixed-Rate
- OCBC Mortgage Board Rates
- 3M SIBOR
- 1M Compounded SORA
OCBC Home Loan: 2Y/3Y Fixed-Rate
Be aware that interest rates fluctuate over time, causing the rise and fall. And that’s one factor that worries borrowers. But with this OCBC Home Loan package, you’ll get protected against interest rate fluctuations within a certain period.
As mentioned a while ago, the loan incurs a fixed rate of 1.38% per annum in this package. That is fixed either for two years or three years, depending on what loan tenor you picked. Also, you have a fixed instalment repayments within a lock-in period.
OCBC Mortgage Board Rates
Would you prefer to take a home loan in which the bank manages the rate? That’s what OCBC Mortgage Board Rates has to offer. They’ll give 30 days’ notice if there’ll be any interest rate revisions.
Also, there’s a specific mortgage board rate in each pricing package. Identifying board rates can be done with the unique code indicated in the letter offer.
Mortgage rates might differ from other packages offered to other clients. But for new applications, the current pricing package has a mortgage board rate of 0.80%.
Once the mortgage rate increases, your loan will switch to another pricing package for free. Some want to repay the loan, and that’s possible in this package. Choosing this home loan option will give flexibility in making a 50% prepayment of the loan within the lock-in period.
OCBC Home Loan 3M SIBOR
OCBC Home Loan 3M is where the interest rate will get reviewed every three months. Instalments will also depend on the SIBOR interest rate’s movement. It could either increase or decrease. But one great thing is you can do a 50% loan prepayment within the lock-in period.
OCBC 1M Compounded SORA
SORA rates are under MAS administration given on a Singapore business day. Rates are published every 9 a.m. on the next Singapore business day on the Monetary Authority of Singapore website.
Note that interests are subject to change within the rating period. So what happens is each 1M compounded SORA will be fixed on the Rate Review Date. That’ll apply throughout the next 1M period.
Additionally, this loan package features a free switch to another pricing package after the loan’s first year. But that’s only applicable for new loans. Plus, you can prepay your loan for up to 50% within its first two years.
OCBC Home Loan: No Lock-In Package
If you’re looking for a home loan with no lock-in periods, OCBC has one for you! OCBC Home Loans have no lock-in period compared to other banks.
Other than that, OCBC also gives its clients two times Free Conversion – 1 upon disbursement and one upon TOP. Plus, Cancellation Fees are also waived if there’s a sale. Yet, interest rates can increase yearly.
OCBC offers no lock-in period for a 1M SORA. Interest rates are also 1.13% for the first three years. For the succeeding years, the interest rate will go up to 1.55%. You will also be entitled to a waiver for cancellation fees.
For a broad type of home, the interest rates are a little bit higher. 1.30% will be the interest rate for the first two years. For the next two years, the interest rate will go up a bit up to 1.60%. For the succeeding years, the interest rate will be fixed to 1.80%.
A Must-Asked Questions When Getting OCBC Home Loan Singapore
Which Home Loan Package should I take?
Interest rates are inevitable no matter what loan you are applying for. You have to weigh all options to maximise your spending power. Think about the pros and cons of various interest rates that lending institutions offer.
A fixed interest rate may be appealing, but have you thought of the lock-in period?
Just so you know, home loans with lock-in periods don’t suit those who plan to refinance a loan. That’s especially when interest rates go up. In that case, you should get a no lock-in period home loan.
But if you are not planning on refinancing your home loan, a fixed interest rate will be perfect for you.
Banks also offer low interest rates in the first year but blow up in the succeeding years. So make sure that you can commit to significant change as years go by.
These interest rates can get doubled for the latter years of your home loan. Make sure to talk to a mortgage specialist before finalising your home loan. Be aware of all the risks and conditions of the home loan you are choosing.
Why use OCBC Home Loan Calculator?
If you’re unsure how much you want to borrow, OCBC OneAdvisor Affordability Calculator can help you. Through this unique feature, you’ll know how much you can afford to borrow.
Of course, your data will play a significant role in this part. For example, your income, age, and financial situation will be the basis of how much loan you can borrow.
When can I take OCBC Home Loan Refinance?
You can take the OCBC Home Loan Refinance product if it is more favourable than your existing home loan.
Many are loving OCBC’s home loan refinancing offer due to its lower instalments. That is if you switch your current loan to OCBC. Also, the bank offers a comprehensive range of pricing packages.
What is the OCBC Repricing Home Loan?
Repricing refers to switching to a new home loan package with the same bank. Banks often offer a one-time repricing option so you can change your current home loan package without additional fees.
Also, Repricing saves you from a long and tedious process of refinancing. And if you choose to refinance, it might take a couple of weeks or months before your new loan gets approved.
Repricing takes less hassle and effort. There’s no need for you to submit many requirements as you are an existing customer. Instead, you have to go to the bank and choose your desired new home loan option.
Points to consider before Repricing your home loan
You should be 100% sure before repricing your home loan. If you do not read every term and condition indicated in the new home loan, you might end up paying for more. Also, make sure that interest rates can be lower than your existing home loan. Better be it fixed.
Also, maximise the benefits included in piercing your home loan. For example, if you can switch to a lower interest rate package, it is just right to reprice your loan.
Repricing allows you to change loans for a short processing period. Usually, it takes one week in most banks. As a result, you can start enjoying savings from interest rates earlier if you choose to reprice.
Repricing has its fees. Commonly, banks charge about S$ 800. Unlike in refinancing, you will have to pay for legal and valuation costs. These fees usually range above S$2,000.
If you choose to reprice, a law firm and valuation company are not required anymore. You would not need those as you are already an existing customer of your current home loan package institution.
In refinancing, you will need to visit the law firm. There will also be a home visit that requires you to be home when they conduct it. Refinancing will take so much time and hassle from you. It feels like applying for a new home loan package.
Getting a home loan package is a long-term financial commitment. It may also be one of your biggest monthly payments. Make sure to get a home loan package that suits you and your lifestyle.
When is the best time to refinance your home loan?
Refinancing is when you switch to a new housing loan package. Switching is either with your existing bank or another lender.
Know the advantages of refinancing your home loan at the right time. Once in a while, you should review your housing loan to see if it will be advantageous for you to continue your existing home loan package.
Take note that refinancing should be done after your lock-in period. So first off, you should ask your existing bank for repricing options. Also, keep in mind that the Monetary Authority of Singapore’s property loan rules may apply for refinancing.
It is better to refinance your home loan if your updated repayment schedule is more convenient for you than your current housing loan package. Refinancing will also be suitable if you plan to stay in your home for another five years or so.
Also, if your targeted new home loan has lower interest rates than your existing home loan, then it is the right time to refinance your loan. Take note that refinancing will incur a new lock-in period.
You may also get charged for terminating your current housing loan package.
Knowing facts first is one crucial step before making any decision, especially when getting a home loan. Otherwise, your finances will be at risk. Gain more information and assess your financial situation.
Based on your income profile, do you think you can afford to take a two-year fixed-rate home loan? Or maybe take a no-lock in period home loan?
Loan products of OCBC are flexible and have competitive interest rates. Shop around Singapore and look at whether OCBC is the best bank for you or not. Aside from banks, you can also find reputable money lenders who offer loans. But such lenders only offer short-term loans. If you think you need extra money to settle something immediately, getting an instant cash loan from moneylenders will be a better choice.