As the United States frequently raises interest rates, local interest rates in Singapore are also climbing. Some local banks in Singapore have adjusted fixed rates for home loans to over 4%.
United Overseas Bank (UOB) offers highly competitive home loan options for both HDB flats and private properties. With a strong reputation and competitive rates, UOB is one of the best options for applying for a home loan in Singapore.
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What Are UOB’s Advantages?
UOB is one of the largest banks in Singapore, offering almost all types of home loans with the most significant benefits.
Why choose UOB?
United Overseas Bank (UOB) is one of Singapore’s top three banks, founded in 1935 and headquartered in Singapore. The bank has an unparalleled presence in Southeast Asia, with over 500 offices worldwide. UOB has been awarded the highest global credit ratings of “AA-” and “Aa1” and was named “Best SME Bank in Asia Pacific and Singapore” at The Asian Banker’s Excellence in Retail Financial Services Awards.
UOB Digital Solutions
With Singapore’s first Digital Home Solution launched by UOB, you will enjoy a seamless home loan experience. UOB offers a home loan calculator to help you determine your preferred loan amount and provides instant online approval for home loans within minutes, offering a convenient and efficient end-to-end home-buying service.
UOB Offers Free Conversion Packages
Once the lock-in period ends, UOB home loan customers can enjoy a one-time free conversion package privilege.
UOB Bridging Loans for Homes
UOB is one of the few banks in Singapore that offers bridging loans to homeowners. With a UOB bridging loan, you can pay the down payment for your new home while waiting for the sale of your existing property. Bridging loans are short-term loans (usually 6 months or less than a year), and you can use your CPF savings to pay the monthly installments of the bridging loan (subject to approval).
UOB Go Green Home Loan
If you purchase a home that has received a BCA Green Mark, you might consider UOB’s Green Home Loan. This loan not only helps with long-term loan installments but also offers benefits like cash rebates, while helping you reduce your carbon footprint and lower the cost of homeownership.
Advantages and Features of UOB Home Loans:
| Fast Approval | UOB’s “Instant Home Loan Approval” service guarantees the fastest loan processing and approval. As long as the homeowner fully meets all basic income and credit criteria, they can submit an application on the website or through a broker. IPA (In-Principle Approval) or approval for all loans will typically be granted instantly by the system. |
| Legal Subsidy | For home loan refinancing, UOB offers a legal subsidy (for loans < S$450,000) and a cash rebate (for loans > S$450,000). |
| Free Conversion Package | UOB does offer free package conversions from time to time. Borrowers do not have to pay the usual conversion fee of about S$500. The bank usually offers a free conversion opportunity at the end of a 2-year lock-in period. This is important because if you refinance in the third year of your loan, you often still have a chance to get a legal subsidy/rebate. UOB also offers a free conversion option within the lock-in period for its BOARD rate packages if the bank decides to raise the BOARD rate. |
| Waiver Due to Sales | Most local banks offer this service, even for fixed-rate home loans. UOB is no exception. It offers a 50% waiver for selected packages, but the decision rests with the bank. Sometimes, UOB may even offer a 100% full waiver of penalties arising from a sale. |
| Lowest Valuation Fee | UOB’s valuation fee is the lowest among all banks in Singapore, easily saving homeowners hundreds of dollars. UOB’s valuation fee is only S$150 plus GST. However, please note that this fee only applies to apartments with a valuation of up to S$3 million (not applicable to landed properties). |
| Online Promotions | From time to time, UOB runs online “direct-to-bank” promotions offering free gifts ranging from vouchers and electronics to air miles. You can check the bank’s website for details. |
UOB Home Loan Packages
When it comes to home loans in Singapore, the packages offered by UOB are among the best we’ve seen. Are you considering buying a private property soon? Before making a decision, you can compare the fixed and floating mortgage rates UOB offers for this type of property.
UOB’s Fixed Rate vs. SORA-pegged Rate
UOB’s SORA-pegged packages are based on the SORA rate. SORA is the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market. The interest rate for UOB’s SORA-pegged packages is updated every 3 months because the 3-month compounded SORA rate is updated every 3 months (as published by the Monetary Authority of Singapore).
In addition to the 3-month compounded SORA rate, UOB also charges a “spread.” This is a common practice for most banks in Singapore, and these two components make up the total interest rate for your monthly repayment.
Although both the SORA rate and UOB’s fixed rate are recognized by the Monetary Authority of Singapore, UOB’s fixed rate is not as transparent as the SORA rate because it is determined entirely by UOB.
Let’s use an example to help you understand better: You and your partner plan to buy a private property worth S$1,300,000 (it can be a condominium or a landed property).
After UOB assesses your Loan-to-Value (LTV) ratio—your maximum borrowing capacity (75% of the property price)—you qualify for a UOB home loan of S$975,000 with an initial loan tenure of 25 years.
Assuming the couple’s total monthly income is S$20,000 and they choose a fixed-rate package at 4.63% per annum. (Figures are for illustrative purposes only. The exact rates for UOB’s fixed and 3-month compounded SORA rates are only disclosed on the bank’s website or upon inquiry).
The calculation is as follows:
Down payment amount: $260,000 CPF + $65,000 cash = $325,000
At least 5% of the property price must be paid in cash, including the Option Fee and Exercise Fee, and 20% can be paid with CPF.
Estimated interest payment for the first month:
UOB’s fixed rate = 4.63%
4.63% x $975,000 = $45,142.5
$45,142.5 ÷ 12 months = $3,761.88
Estimated monthly repayment: Between $5,492 and $5,503 (based on the 3-month SORA rate + up to 1.00% p.a. from the 4th year onwards)
Other one-time payments*:
$52,000 (Buyer’s Stamp Duty) + $3,000 (Legal Fees) + $400 (Valuation Fee) = $55,400
(*Buyer’s Stamp Duty is a tax that buyers must pay when purchasing a property, with rates tiered at 1%, 3%, and 4% based on the property price. Legal fees are typically paid to a property lawyer to handle the private property home loan. Banks usually have their own valuation teams, and the valuation fee for private properties can range from S$200 to S$400 as a valuation report is required.)
Estimated total repayment over 25 years:
$1,300,000 + $55,400 = $1,355,400
Other Applicable Fees for UOB Home Loans
UOB charges certain fees for partial prepayment, full prepayment, and loan cancellation. These rates are generally similar to those of other lending banks in Singapore. Below, we list UOB’s rates by loan type.
| Loan Type | Partial Prepayment Penalty | Full Prepayment Penalty | Loan Cancellation Penalty |
| Board Rate | No fee if minimum outstanding balance remains above $200,000, otherwise 1.5% | 1.5% | 1.5% |
| Tracker Rate | N/A | N/A | 1.5% |
| Fixed Rate | 1.5% | 1.5% | 1.5% |
| Building Under Construction (BUC) | N/A | N/A | 0.75% |
How to Apply for a UOB Home Loan
The application process for most home loans is complex and lengthy. We recommend that homebuyers interested in a UOB home loan consult our mortgage brokers to get the best options and dedicated service.
Documents required to apply for a UOB home loan:
- Completed and duly signed UOB home loan application form
- Copy of applicant’s NRIC/passport
- Income verification documents
- Option To Purchase
- Latest CPF statement of account (if CPF usage is involved)
- Latest CPF withdrawal statement for existing property (if applicable)
- OTP for the sale of the existing property (if applicable)
For further enquiries, please get in touch:
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