Coming up alongside the current property rally is a fierce competition among banks here, eager to sign up homebuyers with attractive and innovative loan packages.
The loan options being dangled are mind-boggling – such as the perennial choice between fixed or floating rate mortgages.
Some packages even come with a deposit interest matching feature where the interest earned can be offset against the mortgage interest.
Two examples are United Overseas Bank’s (UOB) HomePlus and Standard Chartered Bank’s (Stanchart) MortgageOne Sibor.
For instance, MortgageOne Sibor customers earn the same interest rate on two-thirds of their deposit linked to their mortgage as they pay on the loan. The interest earned can offset the mortgage interest.
Customers pay less interest each month, and are able to pay down their loans faster than is the case with a traditional loan package.
Citibank’s Home Saver deal is an index-linked home loan that offers customers one of the widest selections of index tenures in the market, ranging from one month to three years. Customers have the flexibility of switching from one index tenure to another. The indexes used for reference include the Singapore Inter-bank Offered Rate (Sibor). Continue reading
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