(Last Updated: 3 Apr, 2025)

7 Benefits Of OCBC Home Loan

Overseas-Chinese Banking Corporation (OCBC) is one of the Big 3 banks in Singapore formed after mergers in 1932, with headquarter in Singapore.  It claims a position of the second largest financial services group in Southeast Asia by assets, with key markets in Singapore, Malaysia, Indonesia, and Greater China, and has achieved an Aa1 rating from Moody’s consistently.

For its Singapore mortgage business, OCBC offer both fixed rate home loans and floating rate home loans pegged to SORA packages. They are currently one of the few banks with a 1-year fixed rate option with gives you the best of both worlds – a low fixed rate in the first year, coupled with low spreads on floating SORA in subsequent years.

We feature the best rates for loans from $400,00 up in the chart below, with even lower rates available for bigger loan sizes when you speak with our strategists.

Apart from Singapore residential property financing, we also broker OCBC’s property financing packages for:

• Commercial property loan under personal name
• Commercial property loan under company name 

Before we go on, you may check all the latest rates from the market here:

OCBC Home Loan Packages

For Completed Residential Property

(NOTE: Rates may change from time to time. There are “deviated rates” for OCBC home loan rates lower than what you see here but we are unable to publish. Contact us for details or apply here.)

	FLOATING HOME LOAN RATE	FIXED HOME LOAN RATE
Mortgage Loan Peg	3M SORA (Compounded)	3M SORA (Compounded)
Year 1	3M SORA + 0.50	2.50 (Fixed)
Year 2	3M SORA + 0.50	2.50 (Fixed)
Year 3	3M SORA + 0.50	3M SORA + 0.50
Year 4	3M SORA + 1.00	3M SORA + 1.00
Year 5 (thereafter)	3M SORA + 1.00	3M SORA + 1.00
Lock-in	2 years	2 years
Remarks	1 free conversion after 12 month Can prepay up to 50%	Free conversion after lock
Minimum Loan	$500k for Pte/Hdb	$400k/300k for Pte/Hdb
Cash Rebate	$2,000 for loan > $500K $2,500 for loan > $1M $2,800 for loan >$1.5M $2,000 for loan >$300k (for Hdb)	$2,000 for loan > $500K $2,500 for loan > $1M $2,800 for loan >$1.5M $2,000 for loan >$300k (for Hdb)

How do you choose between the 3 local banks whom most Singaporeans are familiar with?  In our view, there is good reason to use all 3 local banks at one point or another, as their loan features are different and may work for us at different phases of holding the property and, more importantly, at different points in the interest rate cycle.  Remember, one usually will not get the best rates by staying put with the same bank.

In general, it does not pay to stay with the same bank, for that any matter any businesses, who has less to offer existing clients but more incentives to acquire new ones from the market place wowing them with gifts, discounts and the best overall deal.

Consider this and the advantages of working with a trusted mortgage broker long-term, so you don’t have to go through the tedious process of rate comparison every now and then. We will help you to save more in the long term, as many have already discovered

As experienced mortgage strategists, we will give you the low down on all the rates and mortgage features from all banks. Below are some of the salient benefits of applying for OCBC home loans which may not be all that apparent to many, be it for new purchase or refinancing.

Why OCBC Home Loans? 7 Benefits..

Fast approval	Just like the other two local banks, there is fast-track or “instant approval” for homeowners with good credit rating and verifiable income. You can apply with an invitation code through our bankers and get the loan approved in 60 minutes (subject to conditions and with all documents complete).
Cash rebate	For refinancing of home loans, OCBC offers cash rebate and not legal subsidy.  This means the law firm will bill the homeowner who could then opt to pay the refinancing legal fee of $1,800 all-in taxes (even better rate from our partner law firms for private property) from their CPF.  OCBC will credit the cash rebate of $2,000 into the applicant’s OCBC account after completion.  Which means there will be an excess of minimally $200, unlike in the case of legal subsidy where the law firm will bill the bank and be reimbursed the exact amount.
Waiver fire insurance	OCBC waives the need for homeowner to purchase a mandatory fire insurance policy from a bank-appointed insurance company, which is required by most other mortgage banks.  This translates into a savings per year of approximately $100-200 (annual premium payable) for most typical condo sizes.  This waiver only applies to private condominiums and ECs, but not for landed or HDB properties. For your information, for strata-titled developments, the MCST of the condo would have in place a Group fire insurance policy which covers every single unit in the condo.
Free conversion	Free conversion simply means the option of calling up the bank to switch to another prevailing package, without being slapped with the usual conversion fee of around $500 for most local banks. Free conversions are typically offered at the end of the lock-in period.  This acts as an incentive for homeowners to sign up for another home loan package with a lower rate and stay with the bank. In addition, OCBC does offer free conversion even during the lock-in period for its floating home loan rate packages, and even for fixed home loan rates, whilst the homeowner is still locked in. This acts like a safety net for those who are not too comfortable committing for more two years for a fixed rate, or to a BOARD rate which is less transparent than SORA.
Prepayment 50%	For its floating home loan rates on either SORA or BOARD, OCBC allows a prepayment of up to 50% of the outstanding loan balance during the lock-in period, without any redemption penalty.  This has become an important feature in recent years with rising rates as homeowners seek to pay down their liabilities earlier.
Waiver due to sale	For this benefit, there are variations depending on the packages offered which may change from time to time. In general, for floating home loan rates only, OCBC offers a 50% waiver of the lock-in penalty (typically 1.50% of the loan redeemed) if the redemption is due to a sale of the property within the lock-in period. This means that upon showing proof of sale, homeowners will be asked to pay only 0.75% of outstanding loan amount redeemed.  Furthermore, if he or she takes back another OCBC home loan of an equivalent or higher amount within 6 months, this penalty paid of 0.75% will be fully refunded.
Low valuation fee	Unknown to many, OCBC has one of most competitive valuation cost scale for condos up to $2m: Valuation <$1m      : $315 Valuation $1m-$2m: $400

Like to compare home loan packages across all 12 major banks in Singapore?

Now, there’s one most pertinent reason for why you should take an OCBC home loan through us at MortgageWise.sg – get this self-study course to become completely Mortgage-Free In 6 Years FREE! No bother rokers or repricing banks can show you that.

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Need more personalised advice?  Not only do we help clients navigate through the myriad of mortgage rates quick and fuss-free and get you the best home loan Singapore, we show you how to become Mortgage-Free in 6 Years! So, be it for residential or commercial property loan, work with us today and you’ll also be helping to support our social cause!

Stay tuned for rate alerts on our Telegram channel SG Mortgage Rates.

Disclaimer: MortgageWise Pte Ltd is not in the business of providing financial advice nor are we licensed or regulated by MAS under the Financial Advisory Act (FAA) in Singapore. All information presented are opinions and any representations given, whether by way of example, illustration or otherwise, are purely portfolio allocation advice and not recommendations or inducements to buy, sell or hold any particular investment product or class of investment product.  All opinions are generic in nature and are not tailored to the particular circumstances of any reader.  Seek advice from a qualified financial advisor before making any investment decision.

Though every effort has been made to ensure the accuracy of the information and figures presented, we make no representations or warranties with respect to the accuracy or completeness of the contents in this blog and specifically disclaim any implied warranties or fitness for a particular purpose.  We shall not be held responsible for any financial loss or any other damages suffered whatsoever, directly or indirectly, if you choose to follow any of the advice or recommendations given in this blog.