I would like to share with you the information which i gather. It is very long winded but for those who plan to buy Flat and plan do shop for housing loan, this is a good piece of information.
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For New purchase on HDB, estimated legal fee for completed property is about $2,000. Legal subsidy for the banks is 0.4% or 0.5% of the loan amount max to $2,000 or $2,500 depend on which bank . You can paid via CPF or Cash.
Stamp fee on purchase is about $6,300 (if your purchase price is $390,000), calculation for stamp fee is first $180,000 is 1% , second $180,000 is 2%, balance is 3% for the purchase price. payable via CPF or Cash.
Please note that Stamp Fee on Purchase has to be paid within 14 days from the first appointment. You can paid via CPF or Cash.
From 1 Jan 07 to 31 Dec 07, the CPF withdrawal limits is 126% based on the valuation price when you purchase. From 1 Jan 2008 onwards, reduced to 120%.
Please take note that the bank will finance your property based on the valuation price or purchase price whichever is lower. eg, if the valuation price is $520,000, purchase price is $500,000, bank will based on $500,000 to finance, if your valuation prices is $500,000, your purchase is $520,000, bank only based on $500,000 x 80% or 90% to finance, balance of $20K you need to paid in cash
Please take note that if you are looking for the leasehold property, eg 99 years lease, the remaining of the lease not less than 60 years and the location the best not fall under red light district eg Geylang area. For the property lease less than 60 years, CPF usage will be based on the age. eg if the lease is only remain 50 years, buyer age is 30 years old, the CPF used is only 50%.
I had worked out the loan structure for your reference:
Purchase price: $390,000
Valuation price : $380,000
Payment from your side If you take $304,000 (<80%) loan:
1. Option fee + exercise = 5,000 (1% + 4% (total 5% within 14 days) cash down payment)
2. Stamp Duty: $6,300
3. Legal Fee (approx) : $2,000 - $1,216 = $784 (Legal subsidy is $1,216)
4. Difference between purchase price and valuation: $390,000 - $380,000= $10,000
5 20% or more Down payment Cash or CPF= $80,000 - $5,000 (Option fee + exercise fee) = $75,000
Total of items 1 to 5 = $98,084 ($36,084 must be in cash (5% cash of $19K + $10K COV), for the stamp duty of $6,300 and the rest of the amount you can paid via CPF or Cash)
1. Option fee + exercise = 5,000 (1% + 4% (total 5% within 14 days) cash down payment)
2. Stamp Duty: $6,300
3. Legal Fee (approx) : $2,000 - $1,216 = $784 (Legal subsidy is $1,216)
4. Difference between purchase price and valuation: $390,000 - $380,000= $10,000
5 20% or more Down payment Cash or CPF= $80,000 - $5,000 (Option fee + exercise fee) = $75,000
Total of items 1 to 5 = $98,084 ($36,084 must be in cash (5% cash of $19K + $10K COV), for the stamp duty of $6,300 and the rest of the amount you can paid via CPF or Cash)
Loan amount : $300,000
Loan period : 20 years
Loan period : 20 years
Based on loan amount $300,000 for 20 years, I had worked out the most competitive loan package for your reference.
(please refer to the package details after my signature)
Please noted that if the package is using SIBOR or SOR rate, the package I had worked out for 3month SIBOR /SOR rate estimate is 0.7% while for 1mth SIBOR or SOR is 0.5%for yr 1, yr 2 is 1% and yr 3 onward is 1.5%, eg, 3Mth SIBOR + 1.1 for yr 1 will be 0.7% + 1.1% = 1.8%, 3Mth SIBOR + 1.1 for yr 2 will be 1% + 1.1% = 2.1%, etc..(if you want to know the portion of principal and interest, please click on the package show below under " More" but need to had internet connection).
For your information, please note that currently estimate 3 months Sibor is around 0.43%, 12 months Sibor is 0.79%. 3 months Sor is 0.28%, 12 months Sor is 0.76%
80% Loan Package: (Completed Property):
A) Floating Rate Without lock in penalty period package allow partial repayment:
1) HSBC : Year 1 at Sibor + 0.90%, Year 2 and 3 at 3mths Sibor + 0.80%, thereafter is 3mth Sibor + 0.75% floating.
2) HSBC : Year 1 at 1mth Sibor + 1.00%, Year 2 at 1mth Sibor + 0.90%, thereafter is 1mth Sibor + 0.85% floating,
3) Std Chart : Year 1 at 3mths Sibor + 0.75%, Year 2 at 3mths Sibor + 0.85%, thereafter is 3mth Sibor + 1.20% floating. For 3mth SIBOR, package comes with interest offset (MortgageOne) feature at 2/3 of housing loan rate
B) Floating Rate With 1 year lock in period package :
1) Maybank : Year 1 3M SIBOR + 0.50% p.a. Year 2 3M SIBOR + 1.00% p.a. Thereafter 3M SIBOR + 1.25% p.a. Lock-in period 1 Year (NEW) Min Income $4K
2) OCBC : Year 1 at 3Mth Sor + 0.95%, Year 2 is 3Mth Sor + 1% floating, Year 3 at Sor + 1.25%, thereafter is 3mth Sor + 1.5% floating. Lock in period is 1 years.
C) Floating Rate With 2 years lock in period package :
1) HSBC :
Year 1 at 1Mth SIBOR + 0.70%
Year 2 at 1Mth SIBOR + 0.75%
Year 3 at 1Mth SIBOR + 0.75%
Year 4 onward at SIBOR + 1%
Penalty 2 years for full and partial repayment of loan at 1.25%. .
2) POSB : (Loan amount $300K and above)
Year 1 at SIBOR + 0.80%
Year 2 at SIBOR + 0.85%
Year 3 at SIBOR + 0.90%
Year 4 onward at SIBOR + 1.25%
Penalty 2 years for full and partial repayment of loan at 1.25%.
2) Hong Leong Finance : Yr 1 at 1.09% floating, Yr 2 at 1.68% floating, Yr 3 at 2.38% floating, thereafter is 3.28% floating
3) OCBC : Year 1 at 1.18% floating, Year 2 at 1.38% floating, Year 3 at 1.68% floating, thereafter at 3.75% floating,.(NEW).
4) Maybank : Yr 1 at 0.8% floating, Yr 2 at 1.68% floating, Yr 3 at 2.28% floating, thereafter is 3.75% floating. Allow partial up to 20% of the loan amount within lock in period (NEW) Min Income $4K
5) OCBC : Year 1 at Sor + 0.75%, Year 2 at Sor + 1%, thereafter at Sor + 1.25%.
6) CIMB : Year 1 at Sor + 0.75%, Year 2 at Sor + 1%, thereafter at Sor + 1.25%. (sorry, just now mention to you 0.66% and 0.85% is for private property package)
D) 2 Years Fixed Rate with 2 Years lock in :
1) RHB : Year 1 at 1.2% fixed, Year 2 at 1.6% fixed, Year 3 at 2.48% floating, thereafter at 3.38% floating, (subject to approval)
2) Std Chart: Year 1 at 1.25% fixed, Year 2 at 1.65% fixed. Thereafter at SIBOR + 1.25%.
3) Hong Leong Finance : Year 1 at 1.33% fixed, Year 2 at 1.63% fixed, Year 3 at 2.12% floating, Thereafter 3.13%.
4) POSB: Year 1 at 1.28% fixed, Year 2 at 1.68% fixed. Thereafter at SIBOR + 1.25%. Average 1.48% pa for first 2 years.
5) CIMB: Year 1 at 1.28% fixed, Year 2 at 1.68% fixed. Thereafter at SIBOR + 1.25%.
E) 3 Years Fixed Rate with 3 Years Lock In:
1) Citibank: Year 1 at 1.2% fixed, Year 2 at 1.6% fixed, Year 3 at 1.9% fixed. Thereafter at SIBOR + 1.15%. Average 1.57% pa. for first 3 years. (Loan amount $300K and above)
2) POSB: Year 1 at 1.28% fixed, Year 2 at 1.68% fixed, Year 3 at 1.98% fixed. Thereafter at SIBOR + 1.25%. Average 1.65% pa. for first 3 years (Must apply mortgage insurance from DBS can ask for waiver but subject to approval)
3) Maybank: Year 1 at 0.88% fixed, Year 2 at 1.9% fixed, Year 3 at 2.3% fixed, Thereafter at 3.25% floating. Lock in period is 3 years. (NEW) – Min Income $4K
F) 5 Years Fixed Rate with 5 Years Lock In:
1) Maybank: Year 1 at 0.88% fixed, Year 2 at 2% fixed, Year 3 at 2.25% fixed, Year 4 & 5 at 2.5%. Thereafter at 3.25% floating. Lock in period is 5 years (NEW) Min Income $4K
2) PODB: Year 1 to Year 5 at 1.99% fixed. Thereafter at SIBOR + 1.25%.
3) Citibank: Year 1 to Year 5 at 2% fixed. Thereafter at SIBOR + 1.15%. Partial repayment up to 30% of original loan amount allowed in Year 4 & 5. After penalty period, if partial prepayment does not fall on rollover dates, breakage fee 0.5% of amount prepaid payable.
If you are looking for floating rate, you may consider the package which is based on Sibor or Sor Rate, the advantage is transparent. While for some package, you had to take note on the rollover date or interest contract date if you want to make any payment, otherwise there is a penalty, eg, Citibank, UOB and OCBC.
Compared to Sibor and Sor rate, Sibor is lower than Sor and is more stable. Sibor is just a bank lending rate, while for Sor is factor in the market reserve cost (currently rate), therefore normally Sor is higher than Sibor, but due to US currency is weak right now, therefore Sor is lower than Sibor. (please refer to the attached file)
The most competitive floating rate loan package is HSBC, Citibank and Maybank (Floating rate without lock in & with 2 years lock in) while for fixed rate is Citibank, RHB, Std Chart and DBS.
Maybank are using board rate but due to they are using Single board rate, therefore, their board rate had not been change for the past 3 years. according to them, if the bank want to change the interest rate, they will come out with the new package, if they adjust the board rate, all the customer will be affected, therefore they try not to adjust the board rate. Hong Leong and other banks did not mention they are using Single board rate.
S’pore Inter-bank rates are affected mainly by:
- U.S Fed Rate – likely to remain at low levels for next 6 to 12 months as U.S economy is very weak and U.S. unlikely to increase interest rates.
- Liquidity in S’pore – S’pore is one of the few “safe havens” in the uncertain environment. In Asia, Reminbi and S$ are the 2 most strong and stable currencies. Thus, even though I expect Global Liquidity to worsen (less liquid), S’pore is still likely to be flushed with funds as people might decide to park their money in S$ instead of other currencies.
Thus, in my opinion, SIBOR is likely to remain low, ie. Below 2%. Note that SIBOR was 3.5% 3.5 years ago. Thus, any rates that are 2% +/- is actually considered low, not high.
You can check history for last 20 years of SIBOR on MAS website: www.mas.gov.sg , here's the link:
for daily SIBOR rates, here's the link at MAS website:
If people are really worried about interest rate trends in the next few years, they can consider choosing fixed rate package instead. (if they do NOT intend to sell their property within the penalty period)
Please take NOTE that I do NOT have crystal ball. I cannot predict the future. Above are my personal opinion. We leave clients to make their final decisions.
We're an independent Mortgage Broker. We have agreements with ALL banks and finance companies in Singapore and though us able to help you provide a one-stop service in applying for Housing Loans. We also provide unbiased analysis of all Housing Loan packages in Singapore
The documents required by the banks are as follows, attached is the various application form for you to complete. Please let me know if you need other bank application form.
- application form duly filled up and signed for all applicants
- photocopy of NRIC (when photocopying, please lighten it and enlarge IC), otherwise, it might not be clear.
- photocopy of pay slip (for employed) or photocopy of last 2 years tax assessment from IRAS for (self-employed).
- CPF last 12 months contribution history
- CPF last 12 months transaction history
- CPF property withdrawal statement
- Option to purchase (later if you have)
- Valuation report (later if you have)
- HDB page statement
go to : "My HDBPage" Screenshot of all borrowers
Step 1 : Go to http://www.hdb.gov.sg
Step 2: Click on My HDBPage
Step 3: Click on Login via Singpass (key in NRIC and singpass)
Step4: Click on 'My Flat'
Step 5a: Click on 'Flat details' found on the left panel (if do not own a HDB flat)
==>If you do not own a HDB flat, the following msg will appear ' You do not own an existing HDB flat. (SxxxxxxxA, enquirer's NRIC number)
Step 5b: Click on 'Financial Info' (if applicant has existing HDB loan)
==>The screen will indicate outstanding housing loan
Step 6: Click on Print and retain a copy of screenshot as proof of check
Step 1 : Go to http://www.hdb.gov.sg
Step 2: Click on My HDBPage
Step 3: Click on Login via Singpass (key in NRIC and singpass)
Step4: Click on 'My Flat'
Step 5a: Click on 'Flat details' found on the left panel (if do not own a HDB flat)
==>If you do not own a HDB flat, the following msg will appear ' You do not own an existing HDB flat. (SxxxxxxxA, enquirer's NRIC number)
Step 5b: Click on 'Financial Info' (if applicant has existing HDB loan)
==>The screen will indicate outstanding housing loan
Step 6: Click on Print and retain a copy of screenshot as proof of check
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