UOB Home Loan Review: Ideal Mortgage for HDB and Private Residences

UOB Home Loan Review: Ideal Mortgage for HDB and Private Residences

The United Overseas Bank or UOB is one of the largest banks in Singapore, and it offers home loans that have competitive fixed or floating interest rates for both private and HDB properties. The UOB Home Loan packages are also more lenient for foreigners (especially those from Southeast Asia), hence their reputation of being one of the best home loan options.

Good for Bad for
  • Those seeking to refinance less than SGD 500,000 for their home loans
  • Those seeking a competitive rate for their home loans
  • Individuals who do need a refinance of more than SGD 500,000 for their home loans

Editor’s Rating: 4.5 / 5.0

 

Features and Benefits

The UOB Mortgage Loan or UOB Home Loan packages in Singapore provide competitive interest rates, making it a good option for homeowners from both the private and the HDB home loan package borrowers. Their home loan rates are affordable, and you can choose which rate package to have, according to your choice of repayments, deposit rates, gift card options, insurance, etc.

Bank UOB has an extensive history of home loan application with a competitive mortgage rate that gives you the security of knowing no unexpected charges will come up that are not stated during the contract signing for your property or HDB flat.

Also, the UOB home loan can provide up to 75% financing or purchasing of your property, whichever is lower. You can have your dream home in your hands with a temporary occupation permit, and the next step is to pay for the remaining 25% to seal the deal (some can be shouldered by your credit cards). The UOB Home Loan packages can help you act fast to secure your chosen property here in Singapore.

Last but not least, UOB Home Loan has a relatively friendlier policy for foreigners. Some companies do not allow foreign residents to apply for mortgage loans, but in UOB, foreigners can have equally competitive policies like the locals. Some additional requirements are required, but the home loans for them can nonetheless help them secure their property (with the proper home and fire insurance).

 

Types of UOB Home Loan

There are three main types of UOB home loans, which are listed below for your convenience, copyright 2020, rights reserved. The choice of which type of home loan packages you will get depends on your current need.

  1. UOB Private Property Home Loan

If you want to purchase a private property through a home loan from UOB, the bank has three options you can choose from. You can get a fixed-rate loan with 2 years or 3 years lock-in period, or you can opt for the UOB 3-Month Sibor that has a floating rate.

  1. UOB Building Under Construction Home Loan

In case you have ongoing construction, and you lack funds, you can borrow a UOB BUC home loan. There is no lock-in period for this type of home loan, giving you more freedom to choose the refinance option that is convenient for you. All the loans under this type are floating in nature.

  1. UOB HDB Home Loan

For Singapore residents and foreign individuals who want to get normal home loans with the necessary insurance; however, UOB also has competitive offers. You can choose to borrow loans that have a fixed rate with no lock-in period. Or, if you want to get loans with floating home loan rates, you can choose from either the 3-Month Sibor or Board Rate loan. This type of HDB UOB property loan has one of the best property loan rates that UOB offers.

 

Interest Rates and Fees

You must know what fees UOB charges on top of your home loan interest rates from them. This will help you plan the method (e.g., pay through credit cards) with which you will be repaying your installments.

Name Rate Type Year 1 Rate Lock-in Highlights
UOB Fixed Rate Package Fixed 1.50% 3 years 1 Free Conversion
UOB Fixed Rate Package Fixed 1.50% 2 years N/A
UOB 3-Month SIBOR Floating 1.53% 2 years 1 Free Conversion
UOB BUC 3-Month Sibor Floating 1.33% 0 years 2 Free Conversions
UOB BUC Board Rate Floating 1.35% 0 years 2 Free Conversions
UOB Fixed Rate Fixed 1.50% 0 years N/A
UOB 3-Month SIBOR Floating 1.53% 2 years 1 Free Conversion
UOB Board Rate Floating 1.55% 2 years 1 Free Conversion

 

How Does DBS Home Loan Compare with Other Banks

To give you a clearer picture of just how competitive the home loan rates for UOB are compared to other banks, check out the table below:

Bank Interest Rate Lock-in Period Loanable Amount Loan Tenure Processing Fee
Standard Chartered 1% on the 1st year 2 years Minimum SGD 100,00 Up to 30 years 1% of the loan amount
OCBC 1.40% on the 1st year No Lock-in Minimum SGD 100,00 Up to 30 years Up to 1.5% of the loan amount
Maybank 1.21% on the 1st year 2 years Minimum SGD 100,00 Up to 30 years 1% of the loan amount
UOB 1.50% or less on the 1st year 2-3 years Minimum SGD 100,00 Up to 30 years Up to 1.5% of the loan amount
HSBC 1.25% on the 1st year 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 UOB Stand Out

With its long history of being a bank that offers affordable loans in Singapore, UOB is one of the best choices for you to apply for a home loan. Their interest rates are low for all home loans, covering even refinancing or the bridging loan. If you are looking for a Singapore home loan with affordable monthly installments, UOB is your place. They also offer exclusive gift vouchers amounting to about SGD 3000 with SGD 1800 as a subsidy for legal costs refinancing.

 

Eligibility and Requirements

As the final step of your research on home loans, you have to ensure that you are qualified to file a loan application for the UOB Home Loan. Unlike other Singapore banks, UOB is not strict with their loan application policy. They only have one eligibility requirement, which is:

  • Applicant must be between 21 to 65 years old
  • Singapore citizens, permanent residents, and foreigners alike can all apply

To apply, you should prepare the following documents to make the application process as smooth flowing as possible:

  • Completed and signed UOB Home Loan Application form
  • NRIC or Passport (for foreigners); make sure that it looks eligible
  • Latest computerized payslip/IT8A form
  • If self-employed, your tax returns for the last 24 months should be submitted (waiver)
  • If working as a commission-based employee, commissions statement for the past two years (waiver)
  • Option to Purchase (OTP) document
  • Latest CPF statement of account, if it applies
  • Latest CPF withdrawal statement, if it applies
  • Latest Option of Sale for an existing property, if it applies

Additional required documents can also be asked. You could call customer service to check after deciding which type of UOB home loan rate you would be applying for as the type of home loan dictates the number of requirements you have to submit to the bank. When you apply for a UOB service or home loan options, your home loan approval can be smooth if you submit all the requirements completely. UOB offers instant home loan for properties (e.g.HDB flat)

 

How to Apply

Applying for a UOB Home Loan can be simplified into three quick steps. You can get your property loan application started with just a click of your finger through their online application process.

  1. Go to the UOB bank site and sign the online application form.
  2. Note the required documents, and prepare to submit them online.
  3. Wait for your loan to get approved by the bank staff.

If you are a foreign client, you may contact customer service for the bank staff to assist you with your application. Rest assured that your home loan request can be granted as soon as you have submitted the appropriate requirements. Do note that certain terms and conditions apply for whatever information you submit to UOB staff.

 

Closing

UOB Home Loan FAQs:

Which bank housing loan is the best in Singapore?

The answer is relative, as it depends on your circumstance (What kind of insurance do you need? What is the purchase price of the property? Do you need mortgage consultants? All home loans in Singapore have their characteristic strengths and weaknesses, and the best bank housing loan would be the policy that can fulfill whatever your current requirement is.

Is UOB a good bank for a mortgage?

With its long history of being one of Singapore’s top banks when it comes to home loans, UOB is a good bank for a mortgage. They have a competitive interest rate and foreigner-friendly home loan policies that you can consider as a good option when looking for mortgage institutions.

Which bank home loan is better?

The “better” bank home loan is up to you. You are the one who will decide which of the many Singapore home loan offers to fit your current circumstance perfectly.

Will mortgage rates go down in 2020 Singapore?

Because of the effects of economic standstill from lockdowns due to the threat of COVID-19, mortgage rates in Singapore are expected to go down this 2020.

Getting a home loan in Singapore can be overwhelming. There are plenty of options for you to choose from, and the different terms and rates may not be easily understandable. For your home loan issues and for legal advice on where to get one, you may contact Loan Advisor. They are one of the most trusted loan comparison sites in Singapore, and they have already done back-breaking research on the options you can choose from in the market.

The team of Loan Advisor is more than willing to help choose the best home loan policy available in Singapore. You may contact them now to help you get started on your home loan borrowing.

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