Maybank Singapore has launched two new innovative mortgage products — hybrid rate and ceiling rate — to draw home buyers seeking to benefit from the current low interest rates.
While a hybrid rate home loan caters to both fixed and floating mortgage rates, it differs from the common mortgage structure in which interest rates are fixed for the first year and floating for the next two years.
Interest rates for both public and private housing are pegged at 0.75 percent above the Sibor in the first year and 1.48 percent in the second year. Thereafter, the rate is one percentage point above Sibor.
The borrower can also choose to pay a fixed rate of two percent in the third year, after which the borrower again pays an interest of one percentage point above Sibor.
“We are now experiencing historic low interbank rates and market expectations are that interest rates are likely to trend upwards in the next six to 12 months,” said Helen Neo, Head of Consumer Banking at Maybank Singapore.
Meanwhile, the ceiling rate home loan is pegged to the three-year Singapore Swap Offer Rate. It is capped at a ceiling rate of three percent during the three-year period.
“As the name suggests, this loan offers the assurance that even of interest rates swing upward, customers will be protected by a ceiling rate feature,” said Ms. Neo.