Hong Leong Finance (HLF) has reduced its rates for HDB home loans in a bid to compete better in an environment of low interest rates. However, it appears that some banks are even quicker on the draw.
HLF revealed the previous day that its latest rate for HDB home loans are down by 0.50 percent compared to its last promotional rates.
Variable rates are now offered at 1.33 percent for the first year, 2.13 percent for the second and 2.83 percent for the third. These variable rates are based on a board rate, currently standing at 4.25 percent. The latest two-year fixed-rate package from HLF charges 1.63 percent for the first year and 2.63 percent for the second, which totals to 4.26 percent.
However, its rival DBS also has new lower home loan packages that are applicable to both private and HDB properties. Home loan rates have just been revised by the bank, said the spokeswoman for DBS.
The variable package of DBS also charges 1.675 percent based on a three-month Singapore interbank or Sibor, which is 0.675 percent, plus one percent for every year of the loan.
The variable rate for three years at OCBC is 1.66 percent each year and is based on a 4.5 percent board rate.
“OCBC Bank’s home loan packages will remain competitive to respond to market conditions,” said OCBC Bank’s head of consumer secured lending, Phang Lah Hwa.
According to HLF, the largest finance company in Singapore, the new rates are for up to 80 percent financing and are applicable until the end of the year.
“The revision in rates is to ensure that our package is one of the lowest in the market,” the spokeswoman for HLF said.
“We hope that with the new rates, our customers will continue to support us and allow us to capture a bigger slice of the HDB market which is presently very active and healthy,” she added.