Are you paying more than (i) 2 per cent for an HDB flat's bank loan or (ii) 1.5 per cent for a private property loan?  If so, you are paying too much. 

Which banks offer the best home loans?  Here is a rating scheme for 8 large banks.

                                           Best Home Loans among 8 banks

Details:

1) HDB rates are for a $100K loan. Private property is for a $200K loan.

2) Rates shown are for years 1, 2, 3 and onwards. 

3) The lock-in periods shown are 1 year for pegged rates, 2 years for variable and 3 years for fixed-rate loans.

4) Pegged interest rates -- tied to Sibor and Sor – are more transparent than Board rates set by banks. Sibor and Sor are updated daily in Business Times.

5) Note to banks: We survey banks for new rates weekly. For faster updates, please inform us as soon as your rates change.

HDB and private fixed/pegged (2-year lock-in): 1.88, 1.88, 1.9 per cent = (12-mo Sibor (now at 0.9)+1.25).

HDB and Private pegged (2-year lock-in): 1.2, 1.45, 1.95 = (3-mo Sibor (now at 0.7) + 0.5, 0.75 and 1.25).

HDB and Private pegged (2-year lock-in): 1.2, 1.45, 1.95 = (12-mo Sibor (now at 0.9)+ 0.5, 0.75 and 1.25).

HDB and Private pegged (no lock-in): 1.7 per cent = (3-mo Sibor (now at 0.7) + 1.0).

HDB and Private pegged (no lock-in): 1.9 per cent = (12-mo Sibor (now at 0.9) + 1.0).

Pros: Competitive rates. Transparent fixed and pegged rates. No variable rates according to call centre.

Cons: Rates shown are re-financing rates for new customers coming from other banks.  Re-pricing rates for DBS customers are higher at 2.09 per cent for fixed loan with a 3-year lock-in and the same pegged rate package but with the first year at Sibor + 0.75 per cent (instead of 0.5 per cent).  DBS says its "no lock-in" package is NOT available for existing customers, but you may wish to take that rule with a grain of salt. With a little bargaining, you can probably get the new customer rates, shown in the table.

HDB: 2.15, 2.15, 2.2 per cent = (3-mo Sibor (now at 0.7) + 1.45, 1.45, 1.5).  

Private: 1.9, 1.9, 1.95 per cent = (3-mo Sibor (now at 0.7) + 1.2. 1.2, 1.25).

Pros: Pegged rates only. Tenures of 1, 3, 6 or 12-months offers flexibility.

Cons: Rates slightly high.

HDB and private variable: 1.28, 1.68, 2.68 and 3.75 -- (in per cent and for years 1, 2, 3 and onwards).

HDB fixed: 1.99, 1.99 and 3.75 -- (in per cent and for years 1, 2 and onwards).

Private pegged: 1.3 (yr 1), 1.45 (yr 2) = (3 mo. Sor (now at 0.45) + 0.85 (yr 1), 1.00 (yr 2)).

Pros: Rates are competitive.  

Cons: No pegged HDB loan.  Variable rate warning: The problems with variable rates are (i) they are called "variable" but do not decline and (ii) once you are locked in -- usually for 2 years -- there is nothing to prevent the bank from increasing your home loan rate by more than the increase in market rates.  

HDB and private variable: 1.9, 2.7, 3.4 and 3.8.

HDB and private pegged: 1.8 per cent = (3-mo Sibor (now at 0.7) + 1.1). No lock-in.

Pros: The pegged rates are competitive.  No lock-in for pegged rates.

Cons: Bank declines to disclose its HDB fixed rate.   Variable rate warning: (i) they are called "variable" but do not decline and (ii) once you are locked in -- usually for 2 years -- there is nothing to prevent the bank from increasing your home loan rate by more than the increase in market rates. 

HDB and private variable: 1.28, 1.68, 2.68 and 3.75 per cent. (1 yr lock-in.)

HDB fixed: 2.6, 2.6, 2.6 and 3.75 per cent. (3 yr lock-in.)

Private fixed: 1.88, 1.88, 3.75 and 3.75 per cent. (2 yr lock-in.)

HDB and private pegged: 1.4, 1.55, 2.05 per cent = (3-mo Sor (0.55) + 0.85, 1.0, 1.5). (1 yr lock-in.)

Pros: Pegged rates are competitive.  

Cons: Does not post lowest rates on its web site. The low first-year variable rate may be a "teaser" rate. Variable rates are (i) called "variable" but do not decline and (ii) once you are locked in -- usually for 2 years -- there is nothing to prevent the bank from increasing your home loan rate by more than the increase in market rates.  

HDB variable: 2.78 per cent.

HDB fixed/pegged: 2.4, 2.4, 2.0 (3-mo. Sibor (now at 0.7) + 1.3).

HDB pegged: 2.25 per cent = (3-mo. Sibor (now at 0.7) + 1.55).  No lock-in. 

Private pegged: 2.0 per cent = (3-mo. Sibor (now at 0.7) + 1.3).  No lock-in. 

Private fixed/pegged: 2.45, 2.45, 2.0 (3-mo. Sibor (now at 0.7) + 1.3). 

Pros: Multiple packages.   No lock-in for pegged rates.

Cons: Rates are on the high side. 

HDB variable (3-year lock-in): 1.33, 1.83, 2.43 and 3.13 per cent.

HDB fixed: 1.58, 1.98, 2.78 and 3.28 per cent.

Private variable (3-year lock-in): 1.88, 2.48, 3.08 and 3.68 per cent. 

Private fixed: 1.98, 2.68, 3.18 and 3.68 per cent. 

Pros: The first year rates are competitive.

Cons: The low first-year variable rate may be a "teaser" rate. Variable rates are (i) called "variable" but do not decline and (ii) once you are locked in -- usually for 2 years -- there is nothing to prevent the bank from increasing your home loan rate by more than the increase in market rates.

HDB and private variable: 1.68, 2.48, 2.88 and 3.75 per cent.  (3-year lock-in.)

HDB and private fixed: 1.6, 2.2, 2.9 and 3.75 per cent.  (3-year fixed and 3-year lock-in.)

Pros: First year rates are competitive.

Cons: Rates are on the high side.  No pegged rates.   Variable rate warning: The problems with variable rates are (i) they are called "variable" but do not decline and (ii) once you are locked in -- usually for 2 years -- there is nothing to prevent the bank from increasing your home loan rate by more than the increase in market rates.