UOB is known for its fully digital home loan solutions, which enable you as a home buyer to conveniently enjoy end-to-end home buying services through the mobile apps of their partner institutions. As one of the leading local banks, UOB Housing Packages offer attractive interest rates on private properties and HDB flats, whether you are a new home owner or an experienced home buyer.
To find out if UOB's package is right for you, let's take a look at what they have to offer.
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Why choose UOB Boligån?
Known as one of Singapore's most digitally advanced banks, it was the first bank to digitize applications for all consumer banking products, including home loan services, offering home loan packages for HDB flats and private properties.
UOB previously did not offer Building Under Construction (BUC) lock-in packages, but since switching to SORA-linked home loans, it is currently revising its BUC product.
A record of over 80 years
United Overseas Bank received credit ratings of "AA-" and "Aa1", ranking among the best in the world, and was awarded "Best Small and Medium Bank in Asia Pacific and Singapore" by The Asian Banker in International Excellence in Retail Awards.
UOB solutions for the digital home
With Singapore's first digital housing solution launched by UOB, you will be able to enjoy a hassle-free home loan experience. From identifying your desired home loan amount using the UOB home loan calculator to getting your home loan approved online in minutes, you can click on this comprehensive home buying service at your convenience.
Free conversion per package
This one-off offer is free for UOB home loan customers after the lock-in period.
Boarding rate (ML)
ML is one of the interest rates on housing loans offered by UOB. As an alternative to other interest rate benchmarks such as the Singapore Interbank Rate (SIBOR) or the Singapore Average Overnight Rate (SORA), the rate is calculated and set by UOB.
UOB reduced installment loan plan for real estate
You are eligible for this program if you have suffered some form of income reduction of at least 25% or lost your job as a result of the COVID-19 pandemic. It will help you reduce your monthly loan payments by up to 60%. Please note that your credit account must not be more than 90 days past due.
UOB Private ownership/Board Flat Housing loan
Are you thinking of buying an executive apartment or private residential property soon? You can compare UOB's fixed and variable mortgage rates for these properties before making a decision.
UOB's variable package linked to SORA
There are two types of variable rate mortgages – the ML link or the Singapore Overnight Average Rate (SORA) link.
UOB's SORA-linked package is based on the SORA rate, which is a weighted average rate for unsecured overnight interbank credit transactions in the SGD cash market. The interest rate for UOB's SORA-linked packages is updated every 3 months, as the 3-month compound SORA rate is updated every 3 months (confirmed and calculated by the Monetary Authority of Singapore).
In addition to the 3-month compound SORA rate, UOB also charges an additional fee, known as the "spread". This is common practice with most banks in Singapore, and these two components make up the total interest rate that determines your monthly payment.
Although both the SORA rate and UOB's ML rate are confirmed by MAS, the ML rate is less transparent than the SORA rate since the ML rate is entirely determined by UOB.
Here's an example to help you understand better: You and your partner plan to buy a private property for $1,500,000 (can be an apartment or land).
Disclaimer: These calculations are for guidance only. Actual interest rates may vary.
Once UOB assesses your loan-to-value ratio (LTV), which is your maximum borrowing capacity (75% of the property's value), you qualify for a UOB Home Loan of $1,125,000 over 25 years. Let's say the two of you have a combined monthly income of $15,000 and you've chosen a two-year plan with a fixed rate of 1.30% per annum. (For new loans) Using MoneySmart, the estimated math is as followsmortgage calculator.
Your payment:
CPF 300.000 $ + 75.000 $ kontant = 375.000 $
(at least 5% of the property price paid in cash, which includes the option premium and option exercise fee, 20% paid in CPF)
Your estimated monthly payment:
Prices range from $4,395 to $4,628
(Based on the increasing rate of 3M SORA + up to 1.60% p.a. from year 3 onwards)
Other lump sum payments*:
$45,000 (buyer's fee) + $3,000 (attorney's fees) + $400 (appraisal fee) = $48,400
Estimated total payments for 25 years:
1.500.000 USD + 48.400 USD = 1.548.400 USD
*A buyer's stamp duty is usually around 3% to 4% of the purchase price for private property - a tax paid to the state to register the purchase of the property. Legal fees are often paid to real estate attorneys to resolve mortgages on private property. Banks usually have their own board of certified appraisers, and private property appraisals can cost anywhere from $200 to $400 due to the need for an appraisal report.
Hipoteka UOB HDB
For HDB home loans, UOB has 4 packages including 3-month compound SORA home loan, fixed interest rate, variable interest rate and a combination of fixed and variable rate which is an alternativeHDB credit.
While UOB's mortgage interest rates are generally much lower, UOB's home loan packages require much higher down payments compared to HDB loans.
For example, if you and your husband want to apply for a SORA-linked loan of US$300,000 (1-year lock-in period) from United Overseas Bank (UOB) for the resale of an HDB with a lease term of more than 20 years.
Disclaimer: These calculations are for guidance only. Actual interest rates may vary.
The three-month compound (3M) SORA rate is 0.1332% (as of 8 July 2021), the same rate followed by all banks in Singapore for any SORA-linked home loan package. Note that you must include the UOB 'spread' in your quarterly SORA rate (the two will form the total rate and determine the monthly installment amount).
Your payment:
CPF 60.000 $ + 15.000 $ kontant = 75.000 $
(20% of the total loan amount paid with your CPF and at least 5% of the total loan amount paid in cash)
Estimated interest rate for your first month:
Spread for UOB = 1.25%
3-month compound SORA = 0.1332%
0,1332% (3M Compound SORA) + 1,25% (bank spread) = pribl. 1,39%
1,39 % x 300.000 USD = 4.170 USD
$4,170 ÷ 12 months = $347.50
(Based on 3 month SORA compound rate which will vary over time)
Other lump sum payments:
$1,000 + $4,000 (option premium + option exercise fee) = $5,000
(This $5,000 is considered a deposit and forms part of the $15,000 cash payout)
Estimated total payments for 20 years:
$300,000 (Principal) + $43,802.22 (Interest) = $343,802.22
*All of the above calculations were estimated using the MoneySmart mortgage calculator.
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UOB Refinancing and price changes for housing loans
Is it worth considering refinancing or changing the price of the mortgage?
If your existing home loan is more than 1.50% APR, consider refinancing or restructuring your home loan because you may be paying more than the current market rate.
In case you were wondering, refinancing is not the same as repricing. Refinancing refers to financing your current home through a bank other than your current one, while repricing refers to switching to a new home loan package with the same bank you currently finance your home with.
Learn more about these rates and how to refinance your home loan on our websiteUOB Refinancing of housing loansPage.
How to apply for a UOB housing loan
When it comes to applying for a home loan as a new home buyer or someone looking to refinance their home loan, we know it can be intimidating at times. Therefore, we want to make that experience easier and more pleasant for you.
UOB housing loan application process and fees
These are the 5 steps in the UOB home loan application process
trin 1
Contact us and send your documents
Don't try to find the best home loan package on your own. If you can't decide and aren't sure what to do, contact our mortgage team as soon as possible.
We'll liaise with UOB's mortgage relations team on your behalf and list recommended UOB home loan packages for you to choose based on your loan to value (LTV) ratio.
Documents required for application include:
- Your SingPass MyInfo login details
- identification card
- possibility of purchase
- Proof of income (last 12 months of contribution history, most recent tax assessment, most recent computer pay slip)
- The latest available statements of all existing credit facilities
- HDB confirmed data on flats and financial data on value/private property
trin 2
Get approved for a home loan
Once you have selected your desired UOB home loan, your application will be processed by our team of mortgage loan specialists.
After that, you will sign the acceptance letter, OTP and other relevant documents and your home loan approval will be completed at that point. In addition, you must choose the time agreed with the seller to submit a request for resale (if you are reselling an apartment or private property).
trin 3
Learn more about fees and charges
You must pay the option premium to the seller (and if you are buying private property, you must pay the option premium and the option exercise fee to the seller as well as the corresponding buyer's note).
Please note that there will be an additional fee for canceling the loan after signing the offer as you will have to pay 1.50% of the outstanding loan amount.
trin 4
Find out about the appointment time
Our team of mortgage and HDB specialists (if you are buying an HDB flat) will advise you on the completion date of your property purchase.
If you are buying a private property, your/UOB solicitor will advise you to pay the remaining down payment in cash or CPF (if you have not already paid it) and set a date to sign the mortgage documents at the solicitor's office.
trin 5
Complete your new home purchase or resale
The final step is to ensure that you have signed all the legal documents for the property transfer and paid the legal fees, appraisal (if applicable).
You are ready to collect your keys from the seller and receive a bank letter from UOB regarding the payment of the loan and monthly installments.
Why you should apply for a UOB home loan with us
save time and energy
We take care of your home loan application so that you can live a stress-free life. With the help of our mortgage loan team, you will get the right guidance you need to get your home loan without any problems.
get a better offer
There are a number of housing loan packages on the market. Fortunately, it's in our DNA to compare and evaluate home loan packages offered by different banks in Singapore. By doing this, we ensure you only get the best UOB mortgage rates.
no strings attached
Contact us for financial advice at no cost. Yes, our service is free. We simply charge a standard bank fee for our services. However, we always put our customers first and always give unbiased advice.
Apply for a home loan with us!
We cooperate with all major housing loan providers
find out more
UOB Mortgage Singapore Review 2019 - Which mortgage to choose?
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Best Home Loans in Singapore (2020) - How to choose the best mortgage for your property
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How to refinance your home loan and save on your mortgage in Singapore
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Frequently asked questions
What is UOB's ML rate?
- UOB's ML rate is the bank's management rate. It is calculated based on factors that affect the cost of doing business for UOB, such as market interest rates, financing costs, credit costs, acquisition costs, to name a few.
How can I pay off my UOB home loan?
- When you decide to pay off your UOB home loan, you can choose cash or CPF savings. Alternatively, you can use both cash and CPF savings if you don't have enough funds. If you decide to use your CPF savings, your lawyer must first get approval from the CPF Board.
How do I calculate my UOB monthly repayment amount?
- To find out how much you will pay each month, simply enter the desired loan amount, interest rate and loan period on our websitemortgage calculator.
Can I get a UOB housing loan for a property abroad?
- If you are planning to buy a property overseas in Australia, the UK, Japan, Thailand or Malaysia, you can apply for a UOB Overseas Property Loan. However, please note that only major cities in these countries are covered.
Do UOB home loans require fire insurance?
- Generally, both HDB flat owners and private house owners are required to purchase fire insurance in Singapore.
Is repricing better than refinancing?
- Yes and no. Changing the price with the same bank that is currently financing your home may not be the cheapest option. But it saves you the legal costs of refinancing with another bank. Our mortgage loan team can help you calculate and find out which loan is better for you.
How will your loan-to-value (LTV) ratio affect your credit?
- A loan-to-value (LTV) ratio determines how much you can borrow to finance a home (usually 75% of the home's price) based on the bank's assessment of your gross monthly income and other current loans or financial obligations you may have.
What is a buyer's note (BSD)?
- Buyer's costs (BSD) are usually around 3% to 4% of the purchase price of a private property - a tax paid to the government for the purpose of registering the purchase of real estate. BSD is usually calculated based on the purchase price or market value of the property, whichever is higher.
Do I need legal fees for my loan?
- Legal fees for a real estate lawyer are only required when you are buying a private property or refinancing a new HDB/executive flat/land. It is often used to process your home loan or as part of the refinancing process on your private property.
FAQs
How is home loan interest calculated monthly? ›
For example, If a person avails a loan of ₹10,00,000 at an annual interest rate of 7.2% for a tenure of 120 months (10 years), then his EMI will be calculated as under: EMI= ₹10,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 - 1) = ₹11,714. Calculating the EMI manually using the formula can be tedious.
How do you calculate monthly interest on a loan? ›Divide your interest rate by the number of payments you'll make that year. If you have a 6 percent interest rate and you make monthly payments, you would divide 0.06 by 12 to get 0.005. Multiply that number by your remaining loan balance to find out how much you'll pay in interest that month.
What is the interest rate of UOB? ›UOB One Account. Get the highest interest rate ever on your savings with One Account – up to 7.8% p.a. in just 2 steps.
How to calculate loan repayment? ›Divide the interest rate you're being charged by the number of payments you'll make each year, usually 12 months. Multiply that figure by the initial balance of your loan, which should start at the full amount you borrowed.
Is home loan interest calculated daily or monthly? ›Interest on a home loan is generally calculated on a daily basis on the outstanding balance of the loan.
How do you calculate monthly payments with APR? ›For example, if you currently owe $500 on your credit card throughout the month and your current APR is 17.99%, you can calculate your monthly interest rate by dividing the 17.99% by 12, which is approximately 1.49%. Then multiply $500 x 0.0149 for an amount of $7.45 each month.
What is the interest rate for 6 month fixed deposit in UOB? ›(a) “6-Month Promotional Rate” refers to the promotional interest rate of 3.45% p.a. on the Singapore Dollar 6 Months Fixed Deposit offered under this Promotion.
What is the effective interest rate for UOB stash? ›What is the interest rate for the UOB Stash Account? The UOB Stash Account offers a base interest rate of 0.05% p.a., and a bonus interest rate of up to 4.95% p.a.
What is the lending rate of UOB Singapore? ›| Banks | % |
|---|---|
| The Norinchukin Bank | 6 |
| The Shanghai Commercial & Savings Bank, Ltd | 6 |
| UCO Bank | 6 |
| United Overseas Bank Limited | 5 |
- r = Annual interest rate (APRC)/12 (months)
- P = Principal (starting balance) of the loan.
- n = Number of payments in total: if you make one mortgage payment every month for 25 years, that's 25*12 = 300.
How to calculate loan interest? ›
Interest on Loan = P * r / N
where, P = Outstanding principal sum. r = Rate of interest. N = number of periodic payment per year.
Well-known mortgage payment rules or methods
The 28% mortgage rule states that you should spend 28% or less of your monthly gross income on your mortgage payment (e.g., principal, interest, taxes and insurance). To determine how much you can afford using this rule, multiply your monthly gross income by 28%.
...
Average 30-Year Fixed Mortgage Rate.
| Credit Score | Interest Rate |
|---|---|
| 760-850 | 2.754% |
| 700-759 | 2.976% |
| 680-699 | 3.153% |
| 660-679 | 3.367% |
The general rule is that if you double your required payment, you will pay your 30-year fixed rate loan off in less than ten years. A $100,000 mortgage with a 6 percent interest rate requires a payment of $599.55 for 30 years. If you double the payment, the loan is paid off in 109 months, or nine years and one month.
Is interest calculated daily or monthly? ›Remember, your interest is assessed on your average daily balance. So you have to figure out what that is. To do so, you'll have to look back at your statement. Start with your balance on Day 1, including any debt you carried over from the previous month.
Is interest always calculated monthly? ›Lenders will usually advertise an annual interest rate, but not all charge their interest annually. Some will calculate the interest monthly and others will calculate it daily.
Are home loan interest rates calculated daily? ›Home loans are usually offered with either variable or fixed interest rate options. In both cases interest is usually still calculated on a daily basis. Variable rates can change depending on the bank's lending costs and other factors.
Is APR used to calculate mortgage payment? ›The Bottom Line. While the interest rate determines the cost of borrowing money, the annual percentage rate (APR) is a more accurate picture of total borrowing cost because it takes into consideration other costs associated with procuring a loan, particularly a mortgage.
What is the interest rate for CPF in UOB? ›Just 2 steps to get up to 7.8% p.a. interest.
What is the deposit rate for UOB 2023? ›3.20% p.a. on your Singapore Dollar Time/Fixed Deposit. This promotion is available from 11 May to 31 May 2023, both dates inclusive. To enjoy this promotion, simply login to UOB Personal Internet Banking or UOB TMRW App to make a fresh fund placement now.
How do you calculate bank interest for 6 months? ›
- Interest on savings account= Daily balance*Rate of interest* (No. of days/365)
- Interest= Principal*Rate of interest.
- Interest: 100,000*8%= 8000.
- Total Maturity value: 100,000+8000= Rs. 1,08,000.
- Interest (6 months): 100,000*5.5%= 5500.
- Pre-Maturity Value (6 months): Rs. 1,05,500.
- CFG Bank – 5.07% APY.
- Newtek Bank – 5.00% APY.
- My Banking Direct – 5.00% APY.
- TotalDirectBank – 4.95% APY.
- Primis Bank – 4.92% APY.
- Vio Bank – 4.85% APY.
- First Foundation Bank – 4.85% APY.
- Popular Direct – 4.85% APY.
- TAB Bank - 4.76% APY.
- Bask Bank - 4.75% APY.
- Bread Savings - 4.65% APY.
- Salem Five Direct - 4.61% APY.
- CIBC Bank USA - 4.52% APY.
- PNC Bank - 4.50% APY.
- Citizens Access - 4.50% APY.
- MySavingsDirect - 4.35% APY.
- The best savings account interest rates are around 4%. ...
- If you have a $10,000 savings balance, choosing an account that pays 4% will earn you about $400 in a year, while an account paying you 0.30% APY would earn about $30.
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 7.04% | 7.05% |
| 20-Year Fixed Rate | 6.99% | 7.02% |
| 15-Year Fixed Rate | 6.30% | 6.34% |
| 10-Year Fixed Rate | 6.41% | 6.44% |
Key information about Singapore Bank Lending Rate
Singapore Bank Lending Rate data is updated monthly, averaging 5.800 % pa from Jan 1978 to Jun 2021, with 521 observations. The data reached an all-time high of 14.980 % pa in Oct 1981 and a record low of 5.250 % pa in Jun 2021.
- UOB Personal Internet Banking;
- Call Centre from 8am - 8pm at 1800 388 2121; or.
- Contacting our Home Loan Specialists at any UOB branches.
For example, the interest on a $30,000, 36-month loan at 6% is $2,856.
How do you calculate 4% interest on a loan? ›To calculate simple interest on a loan, multiply the principal (P) by the interest rate (R) by the loan term in years (T), then divide the total by 100. To use this formula, make sure you're expressing your interest rate as a percentage, not a decimal (i.e., a rate of 4% would go into the formula as 4, not 0.04).
What is the easiest way to calculate interest? ›To calculate simple interest, multiply the principal amount by the interest rate and the time. The formula written out is "Simple Interest = Principal x Interest Rate x Time." This equation is the simplest way of calculating interest.
Are home interest rates compounded monthly? ›
Mortgages Are Simple Interest
Here in the United States, mortgages use simple interest, meaning it is not compounded. So there is no interest paid on interest that is added onto the outstanding mortgage balance each month. Conversely, think of an everyday saving account that offers you compounding interest.
The rate of interest will be taken as monthly rate as EMIs are paid monthly. Therefore, if the interest rate is 10%, you need to divide it by 12. Also, the tenure (nper) will be the number of months. So, if your loan tenure is 20 years, the tenure will be 20x12 = 240 months.
Is the interest rate on a mortgage paid monthly? ›On a standard repayment mortgage, your monthly repayment is made up of a combination of part of the capital (the loan amount you've borrowed) and the interest charged on loan. With most mortgages, you pay off the capital and interest monthly over 25 or 30 years.
How do lenders calculate mortgage interest? ›Interest on fixed-rate mortgages is calculated by multiplying the loan amount by the interest rate. This can be broken down into the annual or monthly interest for the mortgage. First, turn the interest rate into a decimal (0.02). Then for the annual interest, times the mortgage loan amount by the decimal.
Do banks calculate compound interest monthly? ›And while interest can be compounded at any frequency determined by a financial institution, the compounding schedule for savings and money market accounts at banks are often daily. The interest on certificates of deposit (CDs) may be compounded daily, monthly or semiannually.
Do interest rates accumulate monthly? ›With most savings accounts and money market accounts, you'll earn interest every day, but interest is typically paid to the account monthly.
Are interest rates on loans compounded monthly? ›For home mortgage loans, home equity loans, personal business loans, or credit card accounts, the most commonly applied compounding schedule is monthly. There can also be variations in the time frame in which the accrued interest is credited to the existing balance.
How is mortgage paid monthly? ›Each month, part of your monthly payment will go toward paying off that principal, or mortgage balance, and part will go toward interest on the loan. Interest is what the lender charges you for lending you money. Most people's monthly payments also include additional amounts for taxes and insurance.
How do I manually calculate my mortgage payment? ›- r = Annual interest rate (APRC)/12 (months)
- P = Principal (starting balance) of the loan.
- n = Number of payments in total: if you make one mortgage payment every month for 25 years, that's 25*12 = 300.
To calculate a real interest rate, you subtract the inflation rate from the nominal interest rate. In mathematical terms we would phrase it this way: The real interest rate equals the nominal interest rate minus the inflation rate.