UOB branch

UOB Home Loan

[Updated as of 8-Nov-2019]

Benefits Of UOB Home Loan

United Overseas Bank (UOB) is one of the Big 3 banks in Singapore incorporated in 1935, with headquarters in Singapore.  It has an unrivalled presence in Southeast Asia with a global network of more than 500 offices.

For its mortgage business in Singapore, UOB offers extensive range of home loan packages which we can only highlight the best 3 packages in our opinion (see table below).  Speak to our team of experienced mortgage consultants to get overview of all packages in the market.

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

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For Completed Residential Property

(Rates may change from time to time, check latest home loan rates)

 FloatingFixedFixed
Mortgage
Loan Peg

SIBORBOARDBOARD
Lock-in 2 years2 years3 years
Year 1 3M SIBOR+0.201.86 (Fixed)1.88 (Fixed)
Year 2 3M SIBOR+0.251.86 (Fixed)1.88 (Fixed)
Year 3 3M SIBOR+0.351.982.06 (Fixed)
Year 4 (thereafter) 3M SIBOR+0.401.982.06
Minimum Loan$100,000$300,000$100,000 
Cash Rebate 
0.40% of loan
max $1,800 (pte)
max $1,500 (hdb)

0.40% of loan
max $1,800 (pte)
max $1,500 (hdb)
0.40% of loan
max $1,800 (pte)
max $1,500 (hdb)

NOTE: There are “deviated rates” for UOB fixed rate home loans lower than what you see here but which we are unable to publish. Contact us for details or apply here.

The 3 local banks collectively command more than 80% of the local mortgage market and most are familiar with their brands and have some sort of banking relationship with one or the other be it credit card or savings account.  However, not all are familiar with their mortgage loan features which can be quite different and unique to each bank.  

We recommend switching banks periodically and we do not just say that for self-serving purpose.  Very ofren one finds that repricing quotes from existing bank may not be the best in the market.  With digitalisation the entire refinancing process is now a breeze, and comparing for best home loan rates can be done in a minute when you work with a trusted mortgage broker.  It simply does not make sense to stay loyal to the same bank even if the savings is a mere $500 as that can be used to recontract for the next new iphone!  What’s more, if there should be a conversion fee charged for repricing.

More importantly, there are myriad of mortgage loan features out there to suit every situation and financial objective, some of which may not always be available from the current bank.  We summarize the UOB home loan features in this article.

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Benefits/Features Of UOB Home Loans

Fast approval UOB boasts of quick processing and in fact they market it as “Instant Home Loan Approval” on their website.Such “instant approvals” can also be submitted via a broker and so long homeowners meet all the basic income and credit criteria with full documentations – the IPA (in-principle approval) for purchase or the approval for all loans in generally will be instantly approved by the system. 
Legal subsidy For refinancing of home loans, UOB offers legal subsidy which means the law firm will bill the bank and not the homeowner who need not come out cash from his own pocket.  
Free conversionUOB does offer free conversion for selected packages from time to time.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 local banks.Free conversions may be offered at the end of a typical 2-year lock-in period which is important as there is usually still a legal subsidy clawback if one refinances out in the third year of the tenure.UOB also offers a free conversion during the lockin period on BOARD rate packages should the bank decides to adjust the BOARD rate up. 
Waiver due to sale This has become quite a common feature these days that most of the local banks offer it, even for fixed rate home loans.  And UOB is no exception.It is offered on selected packages and may be removed at the bank’s discretion.  For other packages, UOB may even offer full 100% waiver of penalty due to sale from time to time. 
Lowest valuation fee UOB has the lowest valuation fee amongst all banks in Singapore which saves homeowners a few hundred dollars easily as their valuation fee is just a flat fee of $150 plus gst.  Compare this with the typical valuation fee (especially for private property) in the range of $400-600.Note however this valuation applies only for condominums (not for landed) up to a valuation of $3m. 
Online promotions UOB runs special online “direct-to-bank” promotions from time to time with free gifts ranging from vouchers, electronic products to airmiles. The gifts may not applicable for all packages though, especially those with “deviated rates”.  The bank also runs a referral program for home loans.  Check the bank’s website for details. 

On the last feature, we are probably the few, if not the only, mortgage broker in town who would tell you this.  If you choose to apply direct to the bank, it means no business for us.  But this is our philosophy and how we like to operate here at MortgageWise – to be totally transparent in our dealings with clients. 

Fortunately for us, there are many clients who supported us over the years as they realized we give them better recommendations which saves them much more in interest and transaction costs overall, more than the perceived value of those “direct-to-bank” gifts.  Not to mention by working with a trusted partner who presents the whole picture, they gain better insights into different loan features and how to position their mortgages ahead of interest rate cycles.  They also save from doing early mortgage reviews with us every 2-3 years.

Of course, our $150 valuation fee offset (for refinancing only) in the form of a FairPrice gift card, or the savings in legal fees of up to $700 (for new purchase loan) help too.  You see, we believe in giving very practical gifts – just what you need to help defray some real costs.  Promotional gifts are a dime a dozen, you can always get them anytime you need it.

We hope more clients would see the benefits of working with us over the long term (see our testimonials).  By supporting a mortgage comparison site, you are helping to make information transparent and ensuring that the dynamcis of a free market will continue to deliver lower rates and more bargaining power to the consumer.

Since 2014, MortgageWise.sg has provided thought leadership in the mortgage planning space in Singapore, seeking to build trust with clients over the longer term rather than product-peddling for quick one-time deals.  So, be it to refinance home loan, or if you are looking to buy Singapore condo, speak to our dedicated team of mortgage consultants here for the best home loan rates.

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