Home Loans

BOC Home Loan Review Singapore 2018 – Which Mortgage to Choose from BOC

boc-building-header

Peter Lin

0 Comments

1
Shares

BOC home loans are very niche products in the housing loans market in Singapore. For one, they do not offer home loans for HDB flats. Secondly, your loan amount has to be pretty substantial to be considered. If you are eligible for a BOC home loan, however, you are one of the lucky ones. We’ll tell you why below.

If you’re buying a new property and looking for a BOC home loan, here are the best packages they offer, whether your property is uncompleted or completed.

 

BOC Home Loan for a private property, Building under Construction, with a purchase price of $750,000, loan tenure of 30 years

Home Loan Package Estimated Monthly Instalment Notes
Year 1: 3-mth SIBOR + 0.75%
Year 2: 3-mth SIBOR + 0.75%
Year 3: 3-mth SIBOR + 0.75%
Thereafter: 3-mth SIBOR + 0.75%
$2,255 No Lock-in

1.75% penalty for partial or full prepayment during first 3 years

*updated as of 15 March 2018

For a building under construction, BOC currently offers one home loan package. It is a 3-month SIBOR-linked rate, which means that while it is still volatile, it will not change as often as a 1-month SIBOR-linked home loan package.

While there is no official lock-in period for this loan, do note that there is a pretty high prepayment penalty of 1.75% if you make partial or full prepayment during the first 3 years. This is definitely something to look out for, because 3 years is a pretty long time to be tied down to a SIBOR-linked rate.

Compared to other home loan packages for uncompleted properties, BOC is charging one of the higher premiums. We would definitely not recommend this BOC home loan for new purchases.

For uncompleted HDB BTO flats: BOC does not offer housing loan packages for HDB flats.

 

BOC Home Loan for a completed condominium unit, with a purchase price of $1,000,000, loan tenure of 30 years

Home Loan Package Estimated Monthly Instalment Notes
Year 1: 1.80%
Year 2: 1.80%
Year 3: 1.85%
Thereafter: 3-mth SIBOR + 0.70%
$2,884 3-year lock-in

No commitment penalty if due to sale of property

1.75% penalty for partial or full prepayment during first 2 years

Only applicable for private properties above 500sqft

Year 1: 1.75%
Year 2: 1.75%
Thereafter: 3-mth SIBOR + 0.70%
$2,898 2-year lock-in

1.75% penalty for partial or full prepayment during first 2 years

Only applicable for private properties above 500sqft

Year 1: 3-mth SIBOR + 0.75%
Year 2:
 3-mth SIBOR + 0.75%
Year 3:
 3-mth SIBOR + 0.75%
Thereafter:
 3-mth SIBOR + 0.75%
$3,007 No lock-in

1.75% penalty for partial or full prepayment during first 3 years

Legal subsidy of 0.4% of loan amount, clawback period of 3 years

*updated as of 15 March 2018

For completed private properties, BOC offers two of the best fixed rates in the market today. You have a choice of going with a 2-year fixed rate package or the 3-year fixed rate package. While choosing the former definitely means you will pay less in the first 2 years, it’s really a gamble about how high the 3-month SIBOR will climb to in the third year. If it climbs beyond 1.20% (which it did in March 2018), you are definitely better off with the 3-year fixed rate home loan package.

The remaining BOC home loan package is a 3-month SIBOR floating rate package. While there is a tempting legal subsidy on offer should you choose this package, do note the steep penalties for refinancing within the first 3 years. Because of how volatile SIBOR is, you are very likely to end up paying more compared to the fixed rates, since the 3-month SIBOR is not likely to drop below 1.00% in the near future.

For completed HDB flats: BOC does not offer housing loan packages for HDB flats.

 

Should you go with a UOB home loan package?

BOC home loan packages are excellent for the private property buyer who is convinced that SIBOR is going to rise significantly in the near future. With the best fixed rates in the home loan market today, they offer at least 2 years of security and stability at an unbeatable price.

Unfortunately, they are only available for private properties above a certain loan amount. So if you qualify for a BOC home loan, you should definitely take up one of their fixed rate packages.

Are you interested in applying for a BOC home loan? Speak to one of our mortgage specialists to find out which bank is offering the best home loan in Singapore for your particular needs.

Looking for home loans from another bank? Here are the other home loan packages we’ve reviewed.

Best Home Loans Singapore (2018) – Most Affordable Housing Loans Reviewed

OCBC Home Loan Reviews Singapore 2018

DBS Home Loan Reviews Singapore 2018

UOB Home Loan Reviews Singapore 2018

Maybank Home Loan Review Singapore 2018

Citibank Home Loan Review Singapore 2018

Standard Chartered Home Loan Review Singapore 2018 *COMING SOON*

Keep updated with all the news!

Tags:

Peter Lin

I am the poster boy for reinventing one's self. I've been a broadcast journalist, technical writer, banking customer service officer and a Catholic friar. My life experiences have made me the most cynical idealist you'll ever meet, which is why I'm also the co-founder of a local pop culture website. I believe ignorance is not bliss, and that money is the root of all evil only if you allow it to be.