Yahoo Finance Best UOB Home Loan Guide – How to find one
What is the best UOB Home Loan or UOB commercial property loan? The best must always been taken with regards to the type of loans needed. Cheap home loan is not always good as there are many terms and conditions that one has to consider. Most often, a cheap home loan is one where it is a variable rate loan whereby the rates can change at an instant, leaving you vulnerable to changes in the mortgage interest rate environment. And one where it is more expensive can be one where it offers you a fixed rate guarantee that could prove to be cheaper if the interest rate environment is rising. Of course it is often debatable whether it is worth it to pay a bit more expensive to secure a fixed rate and have that certainty.
Here is a Guide to Finding the Best UOB home loan by understanding and also comparing against historical best UOB home loans in the past.
Image Credits: Home Loan Application process, Freepik
The home loan business is a core part of earnings for the banks in Singapore. The three local banks command almost 90 percent of the market share in Singapore. As one of the three local banks with a focus on home loan business, UOB has a sizeable market share of the home loan market in Singapore. But is UOB really one of the banks that offers consumers the most value-for-money interest rate loans? We explore our data to help our readers analyse UOB loan for homeowners.
Best UOB Home Loan (SIBOR) Bucking The Trend Among Local Banks
Since 2015, UOB has been lowering the spread on SIBOR-pegged loans. From its highest spread of 0.9-1% in 2015, UOB loan spread has been declining steadily to its lowest spread to date. In its latest 1-month SIBOR-pegged loan, the interest rate payable only has a spread of 0.50% on top of the 1-month SIBOR. Unlike the other local banks which saw its spread peak in 2016, UOB bucked that trend and continued lowering its spread on SIBOR loans to build its residential loan business.
Right now, among the local banks, UOB is offering one of the sweetest SIBOR loan deal with the lowest spread. If you are planning to take on a new home loan or refinance your loan, UOB’s SIBOR loans are worth taking a closer look.
History of Best UOB Home loan Sibor packages
Date of UOB home loan Sibor packages | Best UOB Home Loan for Sibor Packages | Spread (%) |
26-Jan-15 | Best UOB home loan SIBOR Package No Lock In For Completed Private Property | 0.8 |
22-Apr-15 | UOB Loan 3M SIBOR – Private / HDB | 0.85 |
22-Apr-15 | UOB Loan SIBOR Package 1 Year Lock In For Completed Private Property | 0.6 |
22-Apr-15 | UOB Loan SIBOR Package No Lock In For Completed Private / HDB Property | 0.85 |
22-Apr-15 | UOB Loan SIBOR Package For Building Under Construction, No Lock In – Private Property (Min $350K) | 0.8 |
21-May-15 | UOB Loan 3M SIBOR Floating Rate For Building Under Construction | 0.9 |
21-May-15 | UOBLoan 3M SIBOR 3 Years Lock In – Private / HDB | 0.9 |
12-Jun-15 | UOB Loan 3M SIBOR – Building Under Construction – Private / EC With Min Loan Of $400K | 0.8 |
16-Jun-15 | UOB Loan 12M SIBOR – 1 Year Lock In – Building Under Construction – Private / EC With Min Loan Of $400K | 0.55 |
16-Jun-15 | UOB Loan 12M SIBOR – 1 Year Lock In – Building Under Construction | 0.6 |
22-Jul-15 | UOB Loan 12M SIBOR – 1 Year Lock In – Private / HDB | 0.6 |
9-Dec-15 | UOB Loan 12M SIBOR – 1 Year Lock In – Private / HDB | 0.6 |
2-Jun-16 | UOB Loan 3M SIBOR – No Lock In – Building Under Construction For Private / EC | 0.8 |
7-Jun-16 | UOB Loan Loan 3M SIBOR – 3 Years Lock In – Completed HDB / Private | 0.9 |
7-Jun-16 | UOB Loan 12M SIBOR 12M – 1 Year Lock-In For Private Properties | 0.55 |
11-Aug-16 | UOB Loan 1M SIBOR – No Lock In – Private / EC | 0.65 |
24-Oct-16 | UOB Loan 1M SIBOR – No Lock In – Building Under Construction For Private / EC | 0.58 |
11-Dec-16 | UOB Loan 12M/3M SIBOR – No Lock In – Building Under Construction For Private Properties | 0.55 |
12-Oct-17 | UOB LoanLoan 1M SIBOR – No Lock In – Completed Properties | 0.55 |
27-Nov-17 | UOB Loan 3M SIBOR – No Lock In – Building Under Construction For Private Properties | 0.6 |
8-Jan-18 | UOB Loan 1M SIBOR – No Lock In – Building Under Construction For Private Properties | 0.5 |
Best UOB Home Loan (Fixed Deposit Pegged Rate FDPR): Rival To DBS’ FHR And OCBC’s OHR
So, if DBS has its fixed-deposit home rate (FDR) and OCBC has its OCBC home rate (OHR), what would you do if you were an executive at UOB? Of course, you need to introduce your own type of floating benchmark rate to compete with your closest rivals.
When UOB launched its Pegged to Fixed deposit home loans, the reference “Board Rate” were pegged to its 36-month Fixed Deposit. Interestingly, UOB’s Board Rate loans have always offered consumers bargain deals in the first two years of the loan. Its Board Rate loan interest rates are much lower in the first two years of the loan. However, from the third year onwards, the interest rate climbs significantly (i.e. between 0.48% to 1.27% on top of first year interest rate).
In June 2017, UOB revamped its Board Rate game with the launch of a 15-month Pegged Fixed Deposit Mortgage Rate. While UOB changed its Deposit Pegged “board rate” reference from 36-month Fixed Deposit to 15-month Pegged Fixed Deposit Mortgage Rate, interest rate on most of its loans remained around the same level. Logically, when the change to 15-month Pegged Fixed Deposit Mortgage Rate occurred, it meant that the Board Rate is lowered. However, UOB adjusted its spread upwards to maintain the same overall interest rate payable on its home loans. It appears more of a rebranding to let consumers view UOB’s home loans on par with DBS’s FHR loans and OCBC’s OHR loans.
Historical Best UOB Home loan Fixed Deposit Pegged Rate (FDPR) packages and BUC (building-under-construction) home loan
Date | Best UOB home Loan Packages – Fixed Deposit Pegged Rate (FDPR) | 1st Year Interest Rate (%) | 2nd Year Interest Rate (%) | 3rd Year Interest Rate (%) | 4th Year Interest Rate (%) | 5th Year Interest Rate (%) | Interest Rate Thereafter (%) |
7-Jan-15 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – 2yr lock-in – (PTE) | 1.18 | 1.38 | 2.28 | 2.65 | 2.65 | 2.65 |
26-Jan-15 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – No Lock-In – for BUC Private-only | 1.1 | 1.22 | 1.28 | 1.4 | 1.98 | 1.98 |
22-Apr-15 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – 3yr lock-in – (PTE/HDB) | 1.38 | 1.58 | 1.78 | 2.65 | 2.65 | 2.65 |
23-Apr-15 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – Package (BUC-PTE/EC) | 1.39 | 1.39 | 1.39 | 2.65 | 2.65 | 2.65 |
23-Apr-15 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – 2yr lock-in – (PTE/HDB) | 1.48 | 1.78 | 2.28 | 2.65 | 2.65 | 2.65 |
10-Jun-15 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – 2yr lock-in – (PTE/EC) | 1.28 | 1.48 | 1.98 | 2.65 | 2.65 | 2.65 |
22-Jul-15 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – 2yr lock-in – (PTE/HDB) | 1.68 | 1.98 | 2.28 | 2.65 | 2.65 | 2.65 |
21-Oct-15 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – 3yr lock-in – (PTE/HDB) | 1.38 | 1.58 | 1.78 | 2.65 | 2.65 | 2.65 |
1-Dec-15 | UOB Loan – (Fixed Deposit Home Rate) – 2yr lock-in – (PTE/HDB) | 1.45 | 1.45 | 2.28 | 2.65 | 2.65 | 2.65 |
9-Dec-15 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – – 2yr lock-in – (PTE/HDB) | 1.45 | 1.45 | 1.95 | 2.65 | 2.65 | 2.65 |
9-Dec-15 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – 2yr lock-in – (PTE/HDB) | 1.58 | 1.58 | 2.28 | 2.65 | 2.65 | 2.65 |
9-Dec-15 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – No Lock-In – for BUC Private / EC only | 1.28 | 1.48 | 1.98 | 2.65 | 2.65 | 2.65 |
8-Jan-16 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – No Lock-In – for BUC Private / EC only | 1.55 | 1.65 | 1.95 | 2.65 | 2.65 | 2.65 |
8-Jan-16 | UOB Loan (Fixed Deposit Home Rate) – No Lock-In – for BUC Private / EC only | 1.68 | 1.68 | 1.68 | 1.68 | 1.68 | 1.68 |
27-Jan-16 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – No Lock-In – for BUC Private / EC only | 1.48 | 1.68 | 1.98 | 2.65 | 2.65 | 2.65 |
11-Mar-16 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – No Lock-In – for BUC Private / EC only | 1.78 | 1.78 | 1.78 | 1.78 | 1.78 | 1.78 |
7-Jun-16 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – No Lock-In – for BUC Private / EC only | 1.48 | 1.68 | 1.98 | 2.28 | 2.65 | 2.65 |
7-Jun-16 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – No Lock-In – for BUC Private / EC only | 1 | 1.8 | 1.8 | 2.28 | 2.28 | 2.28 |
27-Nov-17 | UOB Loan – Fixed Deposit Pegged Rate (FDPR) – 3yr lock-in – (Completed) | 1.85 | 1.85 | 1.85 | 1.6 | 1.6 | 1.6 |
Find Out More: Uob launches 15-month Pegged Fixed Deposit Pegged Mortgage Rate
Understanding The Unique Way Best UOB home loan (Fixed Rate) Is Priced
Whenever DBS and OCBC price its fixed rate home loans, these banks like to price them cheap to attract consumers like you and I to sign up with them. After all, most consumers only look at the first 3 years of interest rate as a gauge. Ironically, UOB has a different way of pricing its fixed rate home loans.
Instead of pricing them cheap in the first few years, sometimes UOB does it the opposite way. UOB prices them expensive in the first 2-3 years. UOB sets a relatively higher fixed interest rate in the first 2-3 years than DBS and OCBC. Following that, UOB offers relatively low floating interest rates from the fourth year onwards. The floating interest rate is pegged to UOB’s 15-month Pegged Fixed Deposit Mortgage Rate with low spread.
If you are considering the best UOB home loan for fixed rate, you need to consider the long-term savings from the low floating 15-month Pegged Fixed Deposit Mortgage Rate. This will help you make a fair comparison with other loans, be it from UOB or the other banks in Singapore.
Historical Best UOB home loan for Fixed Rate packages
Date | Best UOB Home Loan (Fixed Interest Rate) Packages | 1st Year Interest Rate (%) | 2nd Year Interest Rate (%) | 3rd Year Interest Rate (%) | 4th Year Interest Rate (%) | 5th Year Interest Rate (%) | Interest Rate Thereafter (%) |
15-Jan-15 | UOB Loan 2 Years Fixed Rate – Private Property With Min $500K | 1.5 | 1.55 | 2.65 | 2.65 | 2.65 | 2.65 |
3-Mar-15 | UOB Loan 2 Years Fixed Rate – Private Property With Min $400K | 1.5 | 1.55 | 2.65 | 2.65 | 2.65 | 2.65 |
23-Apr-15 | UOB Loan Fixed Rate 2 Years Lock In | 1.88 | 1.88 | 2.28 | 2.65 | 2.65 | 2.65 |
4-May-15 | UOB Loan 2 Years Fixed Rate For HDB And Private Properties | 1.98 | 1.98 | 2.28 | 2.65 | 2.65 | 2.65 |
29-May-15 | UOB Loan 2 Years Fixed Rate With 3 Years Lock In | 1.98 | 1.98 | 1.98 | 2.65 | 2.65 | 2.65 |
3-Aug-15 | UOB Loan 2 Years Fixed Rate With No Lock In | 1.88 | 1.88 | 2.28 | 2.65 | 2.65 | 2.65 |
19-Aug-15 | UOB Loan 2 Years Fixed Rate With No Lock In | 1.68 | 1.68 | 2.28 | 2.65 | 2.65 | 2.65 |
19-Oct-15 | UOB Loan 2 Years Fixed Rate With No Lock In | 1.98 | 1.98 | 2.28 | 2.65 | 2.65 | 2.65 |
30-Oct-15 | UOB Loan Fixed Rate 2 Years Lock In | 1.78 | 1.78 | 2.28 | 2.65 | 2.65 | 2.65 |
9-Dec-15 | UOB Loan Fixed Rate 2 Years Lock In | 1.88 | 1.88 | 2.28 | 2.65 | 2.65 | 2.65 |
11-Mar-16 | UOB Loan 2 Years Fixed Rate 2 Years Lock-In – Completed HDB & Private Properties | 2.18 | 2.18 | 2.18 | 2.65 | 2.65 | 2.65 |
11-Mar-16 | UOB Loan 2 Years Fixed Rate 2 Years Lock-In – Completed HDB & Private Properties | 1.99 | 1.99 | 2.28 | 2.65 | 2.65 | 2.65 |
7-Apr-16 | UOB Loan 2 Years Fixed Rate 2 Years Lock-In – Completed HDB & Private Properties | 2.18 | 2.18 | 1.25 | 1.25 | 1.25 | 1.25 |
15-Jul-16 | UOB Loan 2 Years Fixed Rate 2 Years Lock-In – Completed Properties | 1.88 | 1.88 | 1.23 | 1.23 | 1.65 | 1.65 |
22-Jul-16 | UOB Loan Fixed Rate 2 Years Lock-In | 1.68 | 1.68 | 1.03 | 1.15 | 1.15 | 1.15 |
14-Sep-16 | UOB Loan 2 Years Fixed Rate 2 Years Lock-In – Completed Properties | 1.51 | 1.65 | 1 | 1.15 | 1.15 | 1.15 |
14-Dec-16 | UOB Loan 2 Years Fixed Rate 2 Years Lock-In – Completed Properties | 1.83 | 1.83 | 1.18 | 1.18 | 1.18 | 1.18 |
14-Dec-16 | best UOB home Loan 2 Years Fixed Rate 2 Years Lock-In – Completed Properties | 1.75 | 1.75 | 1.1 | 1.1 | 1.1 | 1.1 |
11-Jan-17 | UOB Loan Fixed Rate 2 Years Lock-In – Completed Properties | 1.75 | 1.75 | 1.6 | 1.6 | 1.6 | 1.6 |
23-Jan-17 | UOB Loan 2 Years Fixed Rate 2 Years Lock-In For Completed Properties | 1.8 | 1.8 | 1.15 | 1.35 | 1.35 | 1.35 |
18-Nov-17 | UOB Loan Fixed Rate 2 Years Lock-In For Completed Properties | 1.65 | 1.65 | 1.6 | 1.6 | 1.6 | 1.6 |
20-Nov-17 | UOB Loan 3 Years Lock-In Fixed Rate For Completed Properties | 1.85 | 1.85 | 1.85 | 1.55 | 1.6 | 1.6 |
27-Nov-17 | UOB Loan 2 Years Lock-In Fixed Rate For Completed Properties | 1.65 | 1.65 | 1.6 | 1.6 | 1.6 | 1.6 |
27-Nov-17 | UOB Loan 3 Years Lock-In Fixed Rate For CompLoan leted Properties | 1.85 | 1.85 | 1.85 | 1.6 | 1.6 | 1.6 |
30-Nov-17 | UOB Loan Fixed Rate 3 Years Lock-In With 1M SIBOR For Completed Properties | 1.85 | 1.85 | 1.85 | 0.79 | 0.79 | 0.79 |
30-Nov-17 | UOB Loan Fixed Rate 2 Years Lock-In With 1M SIBOR For Completed Properties | 1.65 | 1.65 | 0.79 | 0.79 | 0.79 | 0.79 |
27-Dec-17 | UOB Loan Fixed Rate 2 Years Lock-In – Completed Properties | 1.65 | 1.65 | 1.6 | 1.6 | 1.6 | 1.6 |
27-Dec-17 | UOB Loan Fixed Rate 3 Years Lock-In – Completed Properties | 1.85 | 1.85 | 1.85 | 1.6 | 1.6 | 1.6 |
27-Dec-17 | UOB Loan Fixed Rate 2 Years Lock-In – Completed Properties | 1.75 | 1.75 | 1.6 | 1.6 | 1.6 | 1.6 |
8-Jan-18 | UOB Loan Fixed Rate 3 Years Lock-In – Completed Properties | 2.05 | 2.05 | 2.05 | 1.8 | 1.8 | 1.8 |
8-Jan-18 | UOB Loan Fixed Rate 2 Years Lock-In – Completed Properties | 1.85 | 1.85 | 1.6 | 1.6 | 1.6 | 1.6 |
Read Related: HDB LOANS HAVE NOW BEEN MORE EXPENSIVE THAN BANK LOANS FOR ALMOST A DECADE
Value-For-Money Deal: Best UOB Home Loan For SIBOR Rates
After analysing years of loan data from UOB, we can safely conclude that SIBOR loan is UOB’s most valuable deal for you for now.
But Fixed Rate Home Loans Might Become Worthy Deals In The Near Future if interest rates hike
While UOB’s SIBOR home loans are still the best home loan that UOB has to offer its consumers so far, its fixed rate home loan might be worth considering, especially if SIBOR makes a steep climb in 2018 with the market expecting three rate hikes from US Federal Reserve in 2018 alone.
Find Out More: UNDERSTAND YOUR CREDIT BUREAU REPORT FOR YOUR DREAM HOME
Before you buy a property, it is important to know that UOB is one of the faster and more responsive banks to help with the property valuation assessment, getting the loan approved by the credit department in a timely manner, that can make a world of difference as buying a property is often very stressful.
The post Best UOB Home Loan Guide – How to find one appeared first on iCompareLoan Resources.
