Category Archives: Loan Packages

UOB unveils 50-year mortgage

With increased demand seen for longer loan packages in Singapore, United Overseas Bank (UOB) recently launched a 50-year mortgage that is applicable for HDB flats and private homes. However, the age ceiling for the loan has yet to be revealed.

For leasehold property, there should be at least 35 years left on the lease at the end of the 50-year loan. This means that the property should have 85 years or more left on the lease before the owner can apply for this mortgage.

Taking the mortgage means that borrowers will be servicing the loan until their retirement years and onwards. For instance, a couple who got married at age 30 must service the loan until the age of 80.

If a borrower took out S$1 million under a 50-year mortgage at an interest rate of 1.7 percent, he will only pay around S$2,475 per month, compared with S$3,548 if it was a 30-year loan.

Ultimately, this is expected to benefit developers because high-priced homes, particularly those worth S$1 million and above, are now more ‘affordable’ due to lower monthly installments.

However, experts said that buyers will more likely prefer shorter repayment periods due to higher interest costs and retirement concerns.

“The average loan period we are seeing now for customers is about 30 years. In general, especially in Asia … customers are prudent when it comes to managing their mortgages, so most of them do not stretch out to the maximum period,” said Lui Su Kian, Managing Director and Head of the Deposits and Secured Lending Group at DBS Bank.

Source – PropertyGuru 2012 Jul 24





Singapore Housing Loan Packages – December 2010

* All rates are corrected as at 02 Dec 2010
** All rates quoted are indicative only, and subject to change without any prior notice
*** All rates indicated are to be used as a guide only.  Further confirmation with the respective banks is required.

Updated – Dec 2010.

Changes to the package:

New fixed and variable rates for Hong Leong Finance.

Market update:

  • Hong Leong Finance will be able to grant loan of less than $100k. Do contact the banker to get the rates for such package.
  • Should you need financing for Geylang property, look for Singapura Finance.
  • RHB provide the best renovation loan in the market and they do furnishing loan as well. Should your customer need loan for this purpose do contact RHB to tied in the 3 loan together for better rates.

PDF Version Latest Housing Loan Packages – December