UOB UNVEILS '90%' HOME LOAN
---------------------------
Joins OCBC, DBS in offering new packages since changes in property
rules
Val Chua
[email protected]
United Overseas Bank (UOB) has become the third bank in Singapore
to come
out with higher interest rate packages for those seeking housing
loans of
up to 90 per cent of the value of their homes.
Its two new packages - for fixed and floating rates - follow
similar moves
by rivals OCBC Bank and DBS in the last few days, after the
Government
relaxed home financing rules on Tuesday.
The new rates for UOB are one-third higher than those for loans of
up to
80 per cent, the previous ceiling for home buyers.
Under its fixed rate package, UOB is charging 3.5 per cent for the
first
year, and 4.5 per cent for the second and third years, a total of
12.5 per
cent. Under its 80-per-cent package, the interest rates for the
first
three years amount to 9.5 per cent .
For its floating rate package, the bank is charging 3, 4 and 4.5
per cent
for the first, second and third year, respectively. This works out
to 11.5
per cent for the first three years, compared to 8.5 per cent under
the
80-per-cent package.
The same higher rates apply for HDB flat buyers who are seeking 90
per
cent loans.
The difference: The minimum loan amount is $200,000 for private
property
buyers, but $100,000 for those buying public flats.
"The new packages are introduced to reflect the higher
capital
requirement, and are part of our strategy to provide total home
solutions
to home buyers," said UOB Loans Division first vice-president and
head
Kevin Lam.
When contacted, foreign banks such as Maybank, Citibank,
Standard
Chartered and HSBC said that they were "reviewing" their home loan
rates.
Hong Leong Finance had said that it was maintaining all its
existing loan
rates for private and HDB properties.
A spokeswoman for ABN Amro also said said that its existing rates
apply to
those who need 90-per-cent financing.
