Rank

Bank Loans

(80% and 90%)

Yr 1

Yr 2

Yr 3

Costs: Years 1+2+3

Phone Number

  1

Maybank     80%

                    (90%)

3.18

(3.68)

3.38

(3.88)

  3.48

 (3.98)

    10.04

    (11.54)

1800-629-2265

  1

Current Linked Accounts: Click here

3 to 3.25

3 to 3.50

3 to 3.75

9 to 11.0

Phone: click here

  2

Standard     80%

Chartered  (90%)

 3.25

 (3.85)

 3.50

(4.10)

3.75

(4.35)

10.50

(12.30)

6747-0123

  2

Citibank      80%

                   (90%)

3.25

(3.75)

3.50

(4.00)

3.75

(4.25)

10.50

(12.0)

1800-225-5225

  2

OCBC         80%

                   (90%)

3.50

(4.25)

3.50

(4.25)

  3.75

  (4.75)

   10.50

    (13.25)

1800-438-3333

  2

HSBC         80%

                   (90%)

 3.50

 (4.30)

 3.50    (4.40)

 3.80   (4.80)

    10.80

    (13.50)

1800-472-2669

  2

DBS            80%

                   (90%)

3.50

(4.25)

3.50

(4.25)

  3.93

  (4.68)

   10.93

    (13.18)

6333-0033

18001111111

  2

UOB            80%

                   (90%)

3.50

(4.50)

3.75

(4.50)

  4.00

  (4.50)

   11.25

    (13.5)

1800-222-2121

  3

Hong Leong 80% Finance       (90%)

3.75

(4.5)

4.00

(4.5)

4.25

(5.0)

12.00

(14.00)

6416-2777

 4

ABN Amro  80%

                   (90%)

4.25

(4.25)

4.5

(4.5)

4.5

(4.5)

13.25

(13.25)

1800-226-2676

Notes: (i) Rates are for a $300,000 variable rate home loan with a 2-year lock-in. 

(ii) Fixed-rate equivalents (approximate) can be calculated by adding 0.5 to the variable rates shown here. Fixed-rate loans are typically fixed for the first two years only.  

DBS rates shown are fixed and locked-in for two years. In year 3, rates increase to SIBOR plus 1.25 per cent which is presently 3.93 per cent.

(iii) Most banks require two lock-ins. The first is a legal subsidy clawback of 0.4 per cent for the first 3 years from when you first take the loan.  It is not affected by refinancing. 

The second lock-in is a 1.5 per cent penalty for full repayment, typically within 2 years for a variable rate loan and 3 years for a fixed-rate loan.  This penalty restarts each time you refinance your loan.  Upon request, most banks will offer variable-rate loans with 1-year lock-ins (at slightly higher rates). HSBC and Maybank also offer no lock-in home loans as follows: Maybank: 3.38, 3.58 and 3.68 per cent; HSBC: 3.5, 3.5 and 3.8 per cent.

(iv) Keep in mind that even though you take a 0, 1 or 2-year variable rate loan, you are actually locked in for the fist 3 years since the 0.4 per cent legal subsidy clawback makes it expensive to leave that bank prior to year 3.  However, it does not affect the cost of converting the loan with the same bank -- (and going back to the year-1 rates).  Also, to convert your loan back to the low year 1 rates, you must notify the bank. (It is not automatic.)

(v) An indirect additional cost of 90 per cent loans is borrowers will hit the CPF withdrawal limits sooner than with 80 per cent loans. (When these limits are hit, loan repayments must be made with cash and not CPF money.)

(vi)  The Citibank first year rate of 3.75 per cent includes a 0.50 per cent cash rebate at the end of year 1.  HSBC year 1 rate is 3.50 per cent with a 0.50 per cent rebate.  The net rates (of 3.25 and 3.00 per cent) are shown in the table.

(vii) The rates shown for the "current linked account" (CLA) are for Citibank. Citibank calls it a "Home Saver" account. CLA produces savings IF one has the cash to take advantage of this scheme. Citibank's private property CLA package has the lowest rates. (i) It is also the only bank which offers CLA for HDB flats, (ii) it has the lowest loan size requirement ($100K), (iii) it can be used for fixed and variable rate loans and (iv) it is part of Citibank's standard loan package so it does not incur additional charges.  Rates from a CLA are about 3.5 per cent vs. about 3.2 per cent for a money market fund.  So the savings from CLA are not great -- 0.3 per cent in this example. (See CLA details.)