Who has the best fixed deposit linked home loans for under-construction executive condos?

best fixed deposit linked home loans

UOB is the latest to join the 2 other local banks in launching fixed deposit linked home loans.

UOB termed it the Fixed Deposit Property Rate (FDPR) while DBS and OCBC termed it as Fixed Home Rate (FHR) and Fixed Deposit Mortgage Rate (FDMR) respectively.

Let’s compare the home loan packages offered by the 3 local banks:

  DBS UOB OCBC
1st yr FHR 18 + 1.20% FDPR 36 + 1.15% FDMR 36 + 1.15%
2nd yr FHR 18 + 1.20% FDPR 36 + 1.15% FDMR 36 + 1.15%
3rd yr FHR 18 + 1.20% FDPR 36 + 1.15% FDMR 36 + 1.15%
Thereafter FHR 18 + 1.20% FDPR 36 + 1.65% FDMR 36 + 1.70%
Reference: 18 months FD ($1000 - $9999) 36 months FD (Below $50,000) 36 months FD ($5000 - $20,000)
Current FD Reference Rate: 0.60% 0.65% 0.65%
Overall Effective Rate: 1.80% 1.80% 1.80%
Lock In Period: Nil Nil Nil
Free Conversion Yes Yes Yes

Conclusion:

  • At this moment all 3 local banks have the same overall effective rate in the 1st 3 years.

 

  • UOB and OCBC have a higher bank margin spread in the latter years although it is commonly noted that home owners would seek repricing/refinancing considerations at TOP or at end of the 3 years teaser period.

 

  • Although notably the 3 local banks have the same overall rates in the 1st 3 years, DBS referenced its Fixed Deposit Linked Home Loans to the bank’s 18 months FD while the 2 other banks referenced it against their 36 months FD.

 

For a full comparison of the best available mortgage rates among all lenders, contact us for a discussion today!