Home Loans

Maybank Home Loan Review Singapore 2019 – Which Mortgage to Choose from Maybank

maybank home loan 2018 singapore

Peter Lin

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Maybank home loan packages are the only ones in the market which are all pegged to an internal board rate called the Singapore Residential Financing Rate (SRFR).

Such board rates are non-transparent and the bank can change whenever they want, with no external check and balance, but since Maybank home loan packages are still pretty competitive, it’s worth a look.  

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

 

Maybank floating rate BUC home loans for buildings under construction 

For a building under construction, such as an HDB BTO flat, Maybank now offers one home loan package in 2019. 

Taking up Maybank’s BUC home loan, which is pegged to the bank’s variable board rate, is not very ideal for 2 reasons:

1. Lower interest rates do not apply to the bulk of the loan: For buildings under construction, the loan amount is disbursed in stages, so the lower interest rates that they offer usually is only for the first few years. The longer you wait for your building to be complete, the more interest you end up paying once larger amounts are disbursed.

2. Maybank reserves the right to increase interest rates unilaterally: Board rates are not transparent. As a result, what may originally seem like stability in your home loan repayments may not really be the case anymore. The first and latest time Maybank increased the Singapore Residential Financing Rate, it was 18 February 2016, from 3.75% to 4%. There was no change previously since the SRFR was introduced in 2007. Now that the decade of low interest rates is clearly over, you can probably expect the SRFR to fluctuate more often. In May 2018, SRFR was revised from 4.00% p.a. to 4.50% p.a.

That said, there is no doubt that it is one of the cheaper home loan packages in the market today. At 1.95%, it is comparable to DBS BUC home loan, UOB BUC home loan and OCBC BUC home loan.

If you’re a risk-taker, you may want to give this Maybank home loan package a shot. Just don’t say I didn’t warn you.

The below is calculated for a building under construction for with a purchase price of $350,000, loan amount of $262,500 (75%) and loan tenure 25 years.

Home loan Interest rates Estimated Monthly Instalment
Maybank BUC floating rate home loan Year 1: 1.95% (SRFR2 – 2.55%)

Year 2: 1.95% (SRFR2 – 2.55%)

Year 3: 1.95% (SRFR2 – 2.55%)

Thereafter: 1.95% (SRFR2 – 2.55%)

$1,106

*updated on 1 February 2019 

 

Maybank home loans for completed buildings

Year Maybank 2 Years Fixed Rate Maybank 3 Years Fixed Rate Maybank 4 Years Fixed Rate Maybank 5 Years Fixed Rate Maybank 2 Years Floating Rate
Year 1 2.58% 2.68% 2.78% 2.78% 2.05%
(SRFR 2 – 2.45%)
Year 2 2.58% 2.68% 2.78% 2.78% 2.05%
(SRFR 2 – 2.45%)
Year 3 2.58%
(SRFR 2 – 1.92%)
2.68% 2.78% 2.78% 2.05%
(SRFR 2 – 2.45%)
Year 4 2.58%
(SRFR 2 – 1.92%)
2.68%
(SRFR 2 – 1.82%)
2.78% 2.78% 2.38%
(SRFR 2 – 2.12%)
Thereafter 2.58%
(SRFR 2 – 1.92%)
2.68%
(SRFR 2 – 1.82%)
2.88%
(SRFR 2 – 1.62%)
2.88% 2.38%
(SRFR 2 – 2.12%)

For completed properties, Maybank offers 5 home loan packages – 1 variable-rate home loan package, and 4 fixed-rate home loan packages.

In 2019, Maybank has done away with the fixed deposit-linked home loan package.

We’ve already talked about the concerns about the variable rate home loan earlier. But in spite of our concerns, we have to admit 2.05% is one of the cheapest options in the market today. 

The fixed rate home loan packages are among the lower fixed rate packages in the market today. This definitely makes it a worthwhile consideration if your property purchase price is lower and you have less home loan options to choose from.

Something new that Maybank is offering is a 5-year fixed rate plan, which you can sign up to lock down a rate of 2.78%. It’s not low by any means, but if you are pessimistic about the economy in the future and think that the board rate is bound to increase in the next 5 years, then it’s a good hedge against interest rate shocks.

Unfortunately, the thereafter rate is rather high (SRFR –  1.62%), which means you may need to consider refinancing after 3 years. Yes, despite the shorter lock-in periods, do note that there is a 1.5% penalty if you refinance before 3 years are up, so beware of that.

Currently, there is a cash rebate of 0.40% of loan amount, capped at $2,000 that you can take advantage of.

 

Illustration: Financing a $1 mil private property or HDB resale flat

The below is calculated for a completed condominium unit with a purchase price of $1,000,000, loan amount $750,000 (75%), and loan tenure of 30 years.

Home loan package Interest rates Estimated monthly instalment
Maybank 2 Years Fixed Rate

(SRFR)

Year 1: 2.58%
Year 2: 2.58%
Year 3: 2.58% (SRFR 2 – 1.92%)
Thereafter: 2.58% (SRFR 2 – 1.92%)
$2,994
Maybank 3 Years Fixed Rate

(SRFR)

Year 1: 2.68%
Year 2: 2.68%
Year 3: 2.68% (SRFR 2 – 1.82%)
Thereafter: 2.68% (SRFR 2 – 1.82%)
$3,034
Maybank 4 Years Fixed Rate

(SRFR)

Year 1: 2.78%
Year 2: 2.78%
Year 3: 2.78%
Year 4: 2.78%
Thereafter: 2.88% (SRFR 2 – 1.62%)
$3,704
Maybank 5 Years Fixed Rate

(SRFR)

Year 1: 2.78%
Year 2: 2.78%
Year 3: 2.78%
Year 4: 2.78%
Year 5: 2.78%
Thereafter: 2.88% (SRFR 2 – 1.62%)
$3,704
Maybank Floating Rate

(SRFR)

Year 1: 2.05% (SRFR 2 – 2.45%)
Year 2: 2.05% (SRFR 2 – 2.45%)
Year 3: 2.05% (SRFR 2 – 2.45%)
Year 4: 2.38% (SRFR 2 – 2.12%)
Year 5: 2.38% (SRFR 2 – 2.12%)
$2,791

 

Should you go with a Maybank home loan package?

Perhaps the main thing worth mentioning about Maybank home loan packages is that the board rate it is pegged to has only been revised twice in the past 10 years. This may give it an illusion of stability, but the fact is that Maybank reserves the right to change it as often as they wish, especially as we see interest rates rise across the board.

It has to be noted that Maybank has shown a willingness to be a player in Singapore’s already competitive home loan market. Not only do they seem committed to offering one of the lowest rates in the market, they are also introducing their own fixed deposit-linked home loan package, which gives Maybank customers more options.

One additional bonus of taking a Maybank home loan is that you get bonus interest on your Maybank SaveUp account, which allows you to earn up to 3% interest p.a. on the first $60,000. The flexibility of the SaveUp account means you can earn bonus interest when you use up to 9 Maybank products and services, including credit card spend, GIRO bill payment and unit trust investment.

Are you interested in applying for a Maybank 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 – Most Affordable Housing Loans Reviewed

DBS Home Loan Reviews Singapore

OCBC Home Loan Reviews Singapore

UOB Home Loan Reviews Singapore

BOC Home Loan Reviews Singapore

Citibank Home Loan Review Singapore

Standard Chartered Home Loan Review Singapore

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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.