Standard Chartered Home Loan Review: Is SC’s Interest Offsetting Feature Worth It?

Standard Chartered Home Loan Review: Is SC’s Interest Offsetting Feature Worth It?

Standard Chartered, under Temasek holdings, is one of the biggest banks in Singapore that offer affordable home loans. If you are looking for home loan rates with a low total cost even without refinancing, you might want to consider applying to this bank. Use this guide to understand the best home financial products by the Standard Chartered provider.

Good for Bad for
  • Individuals seeking a mortgage loan that has a low total cost
  • Individuals seeking an account with interest-offset for their private home loan
  • Customers who are seeking to refinance their mortgage loan every few years
  • Customers who have annual incomes before SGD 30,000

Editor’s Rating: 4.5 / 5.0

 

Features and Benefits

The Standard Chartered bank Singapore home loans have offers that are among the lowest in the market (loan packages with or without lock-in, fixed deposit interest rate, mortgage loan interest, property loans, etc.). They have a good track record of offering opportunities to own a property in the country as Standard Chartered is one of the country’s largest banking group (having their line of credit cards, time deposit offerings, and savings accounts). Their floating rates, in particular, are among the lowest, despite its relatively higher introductory rate relative to the Singapore interbank offered rate (SIBOR). Therefore, their loans are the best option for those looking for affordable loans that they can borrow without refinancing after lock-in expires.

 

Types of Standard Chartered Home Loan

There are three main types of the Standard Chartered home loan:

1. Standard Chartered HDB Home Loans

You can get either fixed interest or floating interest rates for your HDB home loan to finance your HDB home suite from Standard Chartered. Both types have competitive interest rates in terms of the total cost, although their introductory fixed deposit rate is not exemplary. The bank also offers BTO loans that offer low floating interest rates in the long run (also for your HDB home suite or HDB flat). Home loan packages such as the MortgageOne with SIBOR interest rate is also an option.

2. Standard Chartered Private Mortgage

For private properties, nearly the same offerings as HDB loans (fixed deposit and interest rate for your home suite) are available in Standard Chartered. It has low floating interest rates that result in a lower total cost. Like the HDB loan packages, MortgageOne for your private property with SIBOR mortgage interest rates is also available. These competitive home loans are usually home loans designated for private properties under construction (e.g., home loan packages for your home suite construction).

3. Standard Chartered Refinancing Home Loan

The bank’s refinancing home loans are offered at a competitive fixed-rate (SIBOR interest earned), but the floating rates are not. Unlike the other two types of Standard Chartered home loans, this refinancing policy has a significant difference between the fixed and floating rate types. 

 

Interest Rates and Fees

Before borrowing for your property, you should plan how you can pay your installments properly. The following table presents the rates and other fees:

Type Partial Repayment Fee Full Redemption Penalty Cancellation Fee
BUC (Tracker s) N/A N/A N/A
Completed 1.5% 1.5% 1.5%
BUC (Board s) N/A N/A N/A

 

How Does Standard Chartered Home Loan Compare with Other Banks

To help you see just how competitive the rates of Standard Chartered home loans are compared to other top institutions in Singapore, you can study the following table:

Bank Interest Rate Lock-in Period Loan Principal / Loan Size Tenure Processing Fee
Standard Chartered 1% on the first 12 months (SIBOR) 2-year lock-in Minimum SGD 100,00 Up to 30 years 1% of the borrowed amount
OCBC 1.40% in the 1st year (SIBOR) No Lock-in Minimum SGD 100,00 Up to 30 years Up to 1.5% of the borrowed amount
Maybank 1.21% in the 1st year (SIBOR) 2 years Minimum SGD 100,00 Up to 30 years 1% of the borrowed amount
RHB 1.15% in the 1st year (SIBOR) 3 years Minimum SGD 100,00 Up to 30 years Up to 1.5% of the loan amount
HSBC 1.25% in the 1st year (SIBOR) 2 years Minimum SGD 100,00 Up to 30 years Up to 1.5% of the loan amount
DBS 1.50% (but will only go up to 1.83%) 2 years Minimum SGD 100,00 Up to 30 years 0.75 – 1.50%

 

What Makes Standard Chartered Stand Out

Despite the ever-changing characteristic of home loans in Singapore, especially for SIBOR financial products and home loan packages, Standard Chartered remains one of the banks with competitive home loan offers. Their home loans have a relatively higher introductory rate and fixed deposit, but with an almost fixed rate system, the total cost you will be repaying remains low. If you are looking for an affordable home loan (for private property or MortgageOne products) here in Singapore, the Standard Chartered Home Loan can be a good option.

 

Eligibility and Requirements

Check if you are eligible with the list below:

  • Must be between 21 years old to 65 years old
  • The loan coverage should pay for only up to 80% of the property that will be constructed or purchased
  • Must have a maximum EMI of 65% of the income
  • Must have a valid Singapore mobile number

Requirements are listed below:

  • Photo identity
  • Proof of residence (waiver)
  • Proof of age
  • Financial documents (deposits, credit card details, deposit account, etc.)
  • For salaried customers:
  • 2 months salary slip
  • Latest Form 16
  • Bank statements for the last 3 months (Banking history for your credit cards, savings account, deposit accounts, etc.)

For self-employed:

  • Latest 2 years of IT returns and computation of income
  • Latest 2 years P&L statements, balance sheets, and capital account statements certified by a C.A.
  • Latest 2 years of audit reports

 

How To Apply

Application for a home loan in Standard Chartered is simple. You can process through their priority banking system with convenient online banking in place. After submitting your requirements, you will get approval in no time.

  1. Go to the Standard Chartered bank site and fill their online application form. Duly sign the form and make sure that you have filled in your accurate details.
  2. Upload the required documents on the site, closely following the formats that will be given.
  3. Wait for your request to get approved by the bank staff, and you can get your money afterward.

 

Closing

As an expert third party, Loan Advisor is committed to helping you choose the best home loan in Singapore. They have already researched these options; hence you can trust them for their expertise. Getting a home loan amidst its extensive list of requirements can get overwhelming, so you should not hesitate to ask for Loan Advisor advice.

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