OCBC Home Loan
About OCBC home loan
OCBC Bank was born out of the Great Depression through the consolidation of three banks in 1932 - the Chinese Commercial Bank Ltd. (incorporated in 1912), the Ho Hong Bank Ltd. (incorporated in 1917) and the Oversea-Chinese Bank Ltd. (incorporated in 1919). The bank offers services, including the OCBC home loan, in areas such as Singapore, Malaysia, Indonesia and Greater China.
The banking conglomerate operates its banking business as OCBC Bank, Bank OCBC NISP, OCBC Wing Hang China, OCBC Al-Amin, and Bank of Singapore, through which products such as OCBC loan, credit cards, and savings accounts are being offered in more than 18 countries and territories. The company also has strategic stakes in other financial services businesses operating under independent brands such as Great Eastern for insurance, Lion Global Investors for asset management:, and OCBC Securities and OCBC Sekuritas for brokerage.
OCBC Bank, the second-largest banking group in Singapore by total assets, is listed on the SGX-ST as one of the largest listed companies in Singapore by market capitalisation. The company is also one of the largest listed banks in Southeast Asia by market capitalisation and has more than 29,000 employees globally.
OCBC home loan plans
The OCBC housing loan can be used for purchases of public housing flats from the Housing Development Board of Singapore, as well as private properties.
For the OCBC home loan to be used on purchasing new properties, the customer can borrow from S$100,000 to 80% of valuation for HDB flats, and from S$200,000 to 80% of valuation for private properties. For the OCBC home loan to be used on refinancing an existing home loan, the customer can borrow from S$100,000 for HDB flats, and from S$200,000 for private properties; in all refinancing-related cases, the maximum cap is set at 100% of the property’s valuation or the outstanding loan, whichever is lower. In all cases, it is best to use the OCBC home loan calculator to get a clearer picture of what to expect from the home loan.
There are four options of the OCBC home loan that can be secured: the fixed deposit-linked rates, the short-term fixed interest rates, the SIBOR-dependent rates, and the variable interest rates. Home loan clients, regardless of the type of loan arranged, can also apply for the OCBC renovation loan, which grants disbursement in one working day after approval.
OCBC home loan: Fixed deposit-linked rates
Through this option, the bank uses the 36-month fixed deposit board rate, in addition to a fixed percentage for the interest rate of the housing loan. The OCBC interest rate in this instance is 0.65%, and has been unchanged since November 1, 2011.
OCBC home loan: Short-term fixed interest rates
In this home loan, the interest rates are fixed and guaranteed for one or two years, depending on the borrower. While this option results in higher interest rates, the monthly instalments are fixed and will not change within the years when the OCBC home loan interest rate is fixed.
OCBC home loan: SIBOR-dependent rates
For this option, the interest rate is pegged to SIBOR, or the Singapore Interbank Offered Rate, plus a set percentage rate. SIBOR is a daily reference rate that fluctuates based on the interest rates that banks set when they lend unsecured funds to other banks in the Singapore wholesale money market. The interest rate under this OCBC home loan option will be reviewed every three months.
OCBC home loan: Variable interest rates
Customers of this option can choose between different lock-in periods, or a time during which a penalty will be imposed on customers who opt to refinance the loan. For packages with no lock-in period, the customer can choose to refinance the housing loan package anytime.
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