OCBC home loan interest rates
OCBC was formed in 1932 and is the second largest banking group in Singapore by total assets. OCBC Bank was founded out of the merger of three banks in 1932 – the Chinese Commercial Bank (1912), the Ho Hong Bank (1917) and the Oversea-Chinese Bank (1919). They operate their banking business as OCBC Bank, Bank OCBC NISP and Bank of Singapore in over 15 countries. Other than banking service, OCBC also provides other financial-related services under different brand names, such as operating their insurance management under Great Eastern, asset management services under Lion Global Investors and broking services under OCBC securities, where the latter continue to grow in presence in recent years. OCBC Bank has been ranked by Bloomberg Markets magazine as the World’s Strongest Bank for two years, 2011 and 2012, named Bank of the Year 2012, Singapore by The Banker 2012 and ranks among the World’s 50 Safest Banks by Global Finance 2012.
OCBC home loan package provides 3 different ways in which home owners can choose to structure their loans.
A) Short-term fixed Interest rates
The interest rates under this package range from 1.38% to 1.68% in the first year and protects against fluctuating interest rates for the first 2 years. The advantage of this plan is that a fixed monthly payment provides some certainty to the borrower to manage their budget. However, the rates for this package can be higher than the other 2 types of loans.
B) Variable Interest rate
Under the variable interest rates scheme, the rates are slightly lower compared to the short term fixed rates at a range of 1.18% to 1.38%. Customers can also choose Customers can choose between different lock-in periods for future refinancing.
C) Sibor-dependent rate
Sibor is the rate at which banks lend to one another. With this package, an increase in Sibor rates mean the borrower will have to fork out more. OCBC uses a SIBOR rate based on a rate review date and adds on a fixed percentage to the rate of the housing loan. The interest rate will be reviewed every 3 months.
SIBOR varied from 3.5% to 0.6% in past 5 years.
Other than providing home loans for the purchase of local properties, OCBC also provides financing for overseas property purchases and other renovation and construction loans.