Home Loans

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

Peter Lin

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UOB home loan packages come in all shapes and sizes. It’s UOB’s way of ensuring that they have something for just about anything a potential customer would want. They may have the YOLO credit card, but when it comes to home loans, UOB is all about the FOMO.

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

One major change for UOB in 2018 is that mortgage products linked to FDPR, or Fixed Deposit Property Rate, have retired since July 2018.  This means that the 15M FDPR-linked and 14M FDPR-linked home loans are no longer applicable. Instead, UOB mortgage loans will be pegged to the Mortgage Rate (MR) (which currently stands at 0.85%), or SIBOR.

 

UOB home loans for an HDB BTO under construction

UOB offers 2 home loans for buildings under construction. One is a floating home loan package that has no lock-in period while the other is a floating home loan package (for BTOs only) that has a 2-year lock-in period.

Type of BUC home loans Home loan package
Floating rate for BUC

(no lock-in)

Year 1:  1.95% (MR + 1.1%)
Year 2: 1.95% (MR + 1.1%)
Year 3: 1.95% (MR + 1.1%)
Thereafter: 1.95% (MR + 1.1%)
Floating rate for BUC

(2-year lock-in, BTO only)

Year 1: 2.15% (MR + 1.3%)
Year 2: 2.15% (MR + 1.3%)
Year 3: 2.15% (MR + 1.3%)
Thereafter: 2.35% (MR + 1.5%)

*updated as of 1 January 2019

After UOB has retired the fixed deposit-linked rate, UOB home loans are now pegged to Mortgage Rate. The floating rate for uncompleted private properties currently stands at 1.95%, which is comparable to all major banks. 

If you are financing an HDB BTO under construction, there is a 2-year lock-in rate of 2.15% (MR + 1.30%). It’s actually one of the highest for BUC (BTO) mortgage loans right now.

One good thing about the BUC home loan rates under UOB is that you get 1 to 2 free conversion(s) of package if MR increases within the lock-in period.

 

UOB Mortgage Rate & SIBOR rate home loans for completed properties 2019

Bank UOB
Rates and types of loans Floating rate (2 Years) No lock-in Floating (1 year) Fixed rate (2 years) Fixed rate (3 Years)
Year 1 2.30%
(MR + 1.45%)
2.50%
(MR + 1.65%)
2.16%
(1M Sibor + 0.40%)
2.58% 2.68%
Year 2 2.30%
(MR + 1.45%)
2.50%
(MR + 1.65%)
2.16%
(1M Sibor + 0.40%)
2.58% 2.68%
Year 3 2.30%
(MR + 1.45%)
2.50%
(MR + 1.65%)
2.16%
(1M Sibor + 0.40%)
2.58%
(MR + 1.73%)
2.88%
Year 4 2.50%
(MR + 1.65%)
2.70%
(MR + 1.85%)
2.16%
(1M Sibor + 0.40%)
2.58%
(MR + 1.73%)
2.88%
(MR + 2.03%)
Thereafter 2.50%
(MR + 1.65%)
2.70%
(MR + 1.85%)
2.16%
(1M Sibor + 0.40%)
2.58%
(MR + 1.73%)
2.88%
(MR + 2.03%)
Benchmark Rate MR: 0.85% MR: 0.85% 1M Sibor: 1.76% MR: 0.85% MR: 0.85%
20 Year High Of Benchmark Rate 3M SIBOR %

UOB only has one SIBOR-linked home loan in 2019. The spread for UOB’s one and only SIBOR-linked home loan package is very low. SIBOR has been increasing throughout the second half of 2018, with some signs of stabilising following news of US federal government taking a more cautious approach, so SIBOR packages look to be quite attractive now. 

For fixed rate packages, you’ll notice that the 2-year lock-in period is much more enticing than the home loan package with the 3-year lock-in period. Honestly, the only reason you would want a longer lock-in period is if you expect both SIBOR and MR to rise meteorically within the next three years. Otherwise you’re just paying more for no good reason at all.

However, if you consider yourself to be extremely risk-averse, we recommend the fixed rate loan package (despite it being the slightly more expensive option currently).

All the UOB housing loan packages mentioned are available for resale HDB flat purchases as well. Yes, even the weird ones.

 

Illustration: Financing a $1mil condominium or resale flat

For completed properties, there are 5 types of UOB home loans, classified to either floating or fixed rates.

For a property with a purchase price of $1 mil, the loan amount is 75%, or $750,000. The below estimated monthly instalments are for a loan tenure of 30 years.

Home Loan Package Interest rates Estimated Monthly Instalment
UOB Floating MR-linked (2 Years) Year 1: 2.3% (MR +1.45%)
Year 2: 2.3% (MR + 1.45%)
Year 3: 2.3% (MR + 1.45%)
Thereafter: 2.50% (MR + 1.65%)
$2,886
UOB Floating MR-linked (No lock-in) Year 1: 2.5% (MR + 1.65%)
Year 2: 2.5% (MR + 1.65%)
Year 3: 2.5% (MR + 1.65%)
Thereafter: 2.7% (MR + 1.85%)
$2,963
UOB Floating SIBOR-linked (1 Year) Year 1: 2.16% (1M SIBOR + 0.40%)
Year 2: 2.16% (1M SIBOR + 0.40%)
Year 3: 2.16% (1M SIBOR + 0.40%)
Thereafter: 2.16% (1M SIBOR + 0.40%)
$2,832
UOB Fixed (2 Years) 2.58% $2,994
UOB Fixed (3 Years) 2.68% $3,034

*updated as of 1 January 2019

 

Should you go with a UOB home loan package?

Among all the banks, UOB offers the most variations, which means you’re spoilt for choice. That’s not necessarily a good thing though, with only the SIBOR packages worth a look.

Are you interested in applying for a UOB 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

OCBC Home Loan Reviews Singapore

DBS Home Loan Reviews Singapore

BOC Home Loan Reviews Singapore

Maybank Home Loan Review Singapore

Citibank Home Loan Review Singapore

Standard Chartered Home Loan Review Singapore

Keep updated with all the news!

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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.