OCBC’s home loans are among the top choices offered by banks in Singapore, providing services that include attractive fixed-rate packages and floating-rate packages applicable to HDB flats, private properties, and Executive Condominiums (ECs).
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Why Choose to Apply for an OCBC Home Loan?
OCBC is a leading choice among many banks and other lending institutions in Singapore, widely popular with homeowners. Since launching its mortgage packages linked to the Singapore Overnight Rate Average (SORA) in July 2020, OCBC has provided over S$500 million in home loans to homeowners in Singapore.
Furthermore, OCBC has a well-known Eco-Care home loan, which is applicable to HDB flats, private properties, and ECs. This is a green home loan launched by OCBC in 2021 in response to energy-saving and emission-reduction policies. To attract more homeowners to choose this loan, it comes with a considerable number of extra benefits, such as more favorable SORA rate packages and an online application process that can be completed within an hour.
OCBC’s Internal Board Rate (MBR)
OCBC’s Mortgage Board Rate (MBR) is determined internally by the bank and can be changed at any time, but customers will be notified 30 days in advance. Each of OCBC’s floating-rate packages is subject to a specific MBR.
Free Online Mortgage Calculator
OCBC offers a free mortgage rate calculation tool, OneAdvisor, which allows you to determine the type of property and loan package your personal financial situation can afford. It helps you understand the cost of a home loan under different interest rates.
If you want to compare loan packages offered by other banks to find the most cost-effective option, you can also use our mortgage calculator for calculations and comparisons, or consult our mortgage experts.
OCBC Home Loans for Private Properties and ECs
OCBC offers floating and fixed-rate home loan packages for private properties and ECs, but the minimum loan amount is S$300,000. If you wish to keep your home loan amount below S$300,000, you can check loans offered by other banks through our mortgage calculator.
SORA-pegged Floating Rate vs. Fixed Rate
OCBC’s SORA-pegged floating rate package is based on the SORA rate, which is determined by the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market between 8:00 AM and 6:15 PM.
The 3-month compounded SORA (3M SORA) is updated every 3 months and is calculated and managed by the Monetary Authority of Singapore (MAS). Therefore, OCBC’s SORA-pegged floating rate package is also updated every 3 months.
In addition to the SORA rate, OCBC also charges a markup, which is called the “spread.” The sum of these two components is the total interest rate for OCBC’s SORA-pegged floating rate loan package.
Below is an example for better understanding. The example is for simple calculation only, and actual rates may vary.
Suppose you plan to purchase a private property (either a landed property or a condominium) valued at S$1.3 million, and you have no other properties under your name. You are now planning to apply for OCBC’s 3M SORA home loan.
Before applying for the loan, OCBC needs to assess your Loan-to-Value (LTV) ratio, which determines your maximum loan amount. According to Singapore’s latest property policies for 2024, the LTV limit is 75%, meaning the maximum amount you can borrow is 75% of the property value.
Assuming you are eligible for the maximum loan amount, which is S$975,000, and the approved loan tenure is 25 years.
With a total monthly income of S$20,000, preliminary calculations using our mortgage calculator and OCBC’s OneAdvisor mortgage rate tool show your down payment, monthly installments, and interest rate as follows.
Down Payment and Other One-Time Fees
The estimated total is S$365,600, with the following breakdown.
| Down Payment | CPF | S$260,000 |
| Cash | S$65,000 | |
| Other Fees | Stamp Duty | S$36,600 |
| Valuation Fee | S$1,000 | |
| Legal Fees, etc. | S$3,000 |
(According to Singapore’s latest property policies in 2024, when making the down payment, at least 5% of the property value must be paid in cash, which includes the Option Fee and the Option Exercise Fee. The remaining 20% can be paid from the CPF Ordinary Account balance.)
Interest Rate for the First Two Years (OCBC 3M SORA-pegged Loan Package)
OCBC Spread = 0.98%
3M SORA = 3.65% (for estimation purposes only, real-time rates can be checked on the MAS website)
3.65% (3M SORA) + 0.98% (Bank Spread) = 4.63%
Estimated Monthly Installment Amount
Ranging from S$5,146 to S$5,492
(Estimated based on 3M SORA + a maximum of 1.00% spread)
OCBC Home Loan Refinancing
If you choose to apply for an OCBC home loan, it is best to consider the timing for home loan refinancing or repricing at the same time.
First, you need to constantly monitor the interest rate of your existing mortgage package. Once the rate exceeds the 3M SORA, it is necessary to consider refinancing or repricing. However, note that fixed-rate packages should only be refinanced after the lock-in period expires, otherwise, you may incur a penalty.
Additionally, there is a difference between refinancing and repricing. Refinancing means choosing another bank instead of your current one to apply for a new home loan. Repricing means applying for a new home loan with the same bank as your current loan.
How to Apply for an OCBC Home Loan
The process of applying for a home loan can be relatively cumbersome, especially if it is your first time. You might feel at a loss.
Therefore, the following provides a simplified OCBC home loan application process and approximate costs for your reference. If you feel clueless or have any questions, feel free to contact our team of mortgage experts. We will provide professional advice at every step of the loan application process.
5 Steps to Apply for an OCBC Home Loan
Step 1: Prepare Application Documents
The basic documents required to apply for an OCBC home loan include:
- Personal basic information and identification documents
- Option to Purchase (OTP)
- Proof of income
- Credit loan history
- Basic information and value proof of the purchased property
Step 2: Receive the Letter of Offer (LO)
After review, the bank will issue a Letter of Offer (LO). At this point, you need to confirm the specific terms in the LO.
Step 3: Pay Various Miscellaneous Fees
In addition to the home loan application, it is best to set aside some funds to pay for various other related fees, including the Option Fee, Option Exercise Fee, Buyer’s Stamp Duty, etc.
It is also important to note that deciding to cancel the loan after signing the LO will incur additional fees, so be cautious when signing the LO.
Step 4: Sign the Mortgage Documents
After confirming the loan agreement and paying all related fees, you can sign the mortgage documents with the bank.
Step 5: Take Possession of the Property and Begin Monthly Repayments
After signing all legal documents related to the property purchase and paying the down payment and all related fees, you can take possession of the property and begin monthly repayments.
OCBC will send a notification to remind you of the monthly installment amount.
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