OCBC Home Loan Review (2021): BUC Home Loans, Fixed and Floating Rate Packages

ocbc home loan review singapore

Formed in 1932, OCBC is the second largest bank in Southeast Asia by assets today. While no one in Singapore needs an introduction to the bank, it’s safe to say that OCBC has also made its mark globally. OCBC has consistently ranked amongst the top 50 Safest Banks in the world by Global Financial Magazine, and was recently named the Best Managed bank during COVID-19 by the Asian Banker.

We take a look at the home loan packages offered by OCBC for both HDB and Private Property owners. This includes packages under fixed rates and floating rates.

Disclaimer: The packages mentioned in this article are correct at the time of writing [12 Oct 2021] and are meant as a guide only. The interest rates are subject to change, and you should compare the latest home loan rates and packages on PropertyGuru Finance before applying for a new home loan.

PGF_H2_2020-In_house_Banners_Spotlight_1_CG_Desktop_630x90

 

OCBC Home Loan Summary

OCBC Home Loan Summary

 

BUC Home Loans

OCBC 1M SORA BUC Package, OCBC BUC Package (floating)

Floating Rate Home Loans

OCBC 1M SORA Package, OCBC Floating Rate (MBR)

Fixed Rate Home Loans

OCBC 2-, 3-, 4-Year Fixed Rate

For all of OCBC’s home loan packages, there is a minimum loan sum requirement of $200,000 for HDB flats and $300,000 for private properties.

OCBC offers various types of home loan packages – one fixed rate home loan (with varying number of fixed years), one floating rate home loan, and two BUC home loans.

 

Related articles:  

 

OCBC BUC Home Loans (For Residential Properties under Construction)

For under-construction properties, you can choose BUC packages either pegged to the 1-month SORA or MBR (board rate). Both are floating rate packages – this is typical, most BUC loans are floating.

OCBC 1M SORA BUC Package

Current rates (as of 12 Oct 2021):

Year

OCBC 1M SORA BUC Package Interest Rate

Year 1

1M SORA + 0.92%

Year 2

1M SORA + 0.92%

Year 3

1M SORA + 0.92%

Thereafter

1M SORA + 0.92%

For the 1M SORA BUC Package, the spread is +0.92% throughout.

OCBC MBR BUC Package

Current rates (as of 12 Oct 2021):

Year

OCBC BUC Package Interest Rate

Year 1

MBR + 0.50%

Year 2

MBR + 0.50%

Year 3

MBR + 0.50%

Year 4

MBR + 0.80%

Thereafter

MBR + 1.00%

For the MBR BUC Package, the interest rate starts at MBR + 0.50% for the first three years, before increasing to MBR + 0.80% in Year 4 and MBR + 1.00% thereafter.

The current MBR is 0.80% but do check with the bank or your broker for the latest rate.

Both BUC packages apply to HDB and private properties and have no lock-in period. They also come with perks such as allowing partial prepayment, waiver due to sales, and one free package conversion.

 

OCBC Fixed Rate Home Loan Packages

On its fixed rate home loan, OCBC allows homeowners to lock-in their mortgage repayments for up to three or four years (the 4-year package is only for HDB properties).

Year 1

1.20%

1.30%

1.38%

Year 2

1.20%

1.30%

1.38%

Year 3

MBR + 0.80%

1.30%

1.38%

Year 4

MBR + 1.00%

MBR + 1.00%

1.38%

Thereafter

MBR + 1.00%

MBR + 1.00%

MBR + 1.00%

Fixed rates protect you from rate fluctuations for a period of time. For the benefit of having this certainty in your monthly mortgage repayments, you typically would have to fork out a slightly higher interest rate compared to floating rate packages.

Those who choose a longer lock-in period – and, in effect, more certainty – will also have to pay a slightly higher interest rate.

For these OCBC packages, after the fixed rate period, the mortgage rate is pegged to the MBR. The 2- and 3-year packages come with one free package conversion as well.

 

OCBC Floating Rate Home Loan Packages

At the moment, OCBC offers only one type of floating rate home loan package, pegged to the OCBC mortgage board rate.

As its name suggests, floating rates fluctuate according to their reference rates (the board rate or SORA in this case). This means that when the reference rates increase or decrease, homeowners would see their mortgage repayments moving accordingly. This is unlike those who choose fixed rate packages – who are sheltered from interest rate increases but also do not enjoy any possibility for lower rates (during the lock-in period).

OCBC Mortgage Board Rate Home Loan (MBR)

The mortgage board rate package uses an in-house-managed reference rate that may be revised by the bank from time to time. According to OCBC, this can be revised at any time with a 30 days’ notice given to homeowners.

Current rates (as of 12 Oct 2021):

Year

OCBC MBR Floating Interest Rate

Year 1

MBR + 0.50%

Year 2

MBR + 0.50%

Year 3

MBR + 0.80%

Thereafter

MBR + 1.00%

This package comes with a lock-in period of one year. A feature of OCBC’s mortgage board rates package is that it gives borrowers the flexibility to prepay up to 50% of the loan amount within the lock-in period.

The other benefit under this package is that the borrower is free to switch to another pricing package for free should the mortgage board rate increase (free package conversion). This feature could be beneficial in a rising interest rate environment.

 

OCBC Home Loan Review: Should you consider it?

Other than the interest rates of the loan packages, there are other factors that should be taken into consideration before taking up your home loan. Here are some of the attractive considerations when taking up an OCBC home loan.

Free Conversion

Free conversions are always welcome, especially during uncertain times when interest rates are fluctuating. Many OCBC packages currently offer this perk, including their BUC packages, 2- and 3-year fixed rate packages and MBR floating rate package.

Prepayment Of Up To 50% Of the Loan Amount During the Lock-In Period

For both of its floating rate packages, there is no prepayment penalty for up to 50% of the loan amount during the lock-in period.

This is an important feature for homeowners or investors either looking to take advantage of the current low interest rates as a cheap funding source or having a need to sell of their properties during the lock-in period.

Reputable Bank in Singapore

As mentioned at the start of this article, OCBC is a world-famous bank with many accolades to its name. If the reputation of the bank matters to you and/or if you have a personal preference for a local lender, OCBC is definitely worth considering.

You can review the details of OCBC’s various home loan package on PropertyGuru Finance, as well as compare rates from major banks in Singapore to enjoy the best home loan rates.

Blog banner

 

Disclaimer: Information provided on this website is general in nature and does not constitute financial advice.

PropertyGuru will endeavour to update the website as needed. However, information can change without notice and we do not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time.
Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner or your bank to take into account your particular financial situation and individual needs.
PropertyGuru does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, PropertyGuru, its employees do not accept any liability for any error or omission on this web site or for any resulting loss or damage suffered by the recipient or any other person.

 

More FAQs on OCBC and Home Loans 

Does OCBC Offer Home Loans in Singapore?

Yes! They currently have fixed and floating rate packages, for completed and under-construction (BUC) properties. Check out their most competitive packages on PropertyGuru Finance.

Can I Refinance with OCBC?

Yes, OCBC has refinance home loan packages. Compare their refinancing mortgage rates with other banks on PropertyGuru Finance.

How Do I Check My OCBC Home Loan Balance?

You may use the internet banking app, log into the online banking service, or call their hotline at 180 363 3333 for assistance.

Read Next

Get expert advice for every question you can think of!

Explore AskGuru and gain exclusive access to thousands of answers from our expert and agent community. 💬⭐👍