OCBC Home Loans: Valuable Facts You Must Not Ignore
Are you planning to start a housing project? You need the best financer. OCBC Home Loans are known for this. Check it out!
(Updated 31 January 2017) Getting a home will be one of the major decisions in your entire lifetime. Most Singaporeans will not be able to pay off a housing project in cash. So you have to find the best financer to help you achieve the housing goal you have always wanted.
OCBC home loans solutions come in various options. Know these valuable facts before you decide.
OCBC Home Loans (New Purchase and Refinancing)
OCBC Home Loans have 4 different packages:
- With Fixed Deposit-linked rates, OCBC uses a 36-month fixed deposit board rate. Also, it simply adds on a fixed deposit rate for the first 3 years of financing. The 36-month fixed deposit rate hasn’t changed. It started in November 2011. But now, it is currently at 0.65%.
- Short-term fixed interest rates offer security. There will be no rate fluctuation for the first 1 to 2 years. With the fixed monthly payment, you can plan your finances. Then, begin a financial plan. After the period with a fixed rate, the interest rate will shift to the bank’s internal rates.
- SIBOR-dependent rates mean the interest rate will depend on SIBOR (Singapore Interbank Offered Rate). However, SIBOR may change every day. So choose if you will review your interest rate every 3 months with an additional 0.90% for the first year. Or have an additional 0.65% every month for the first year. As the interest rate can increase or decrease, you need to make a flexible financial plan.
- Variable interest rates offer lower interest rates than fixed rates. However, they can change based on the OCBC board rate.
The eligibility for OCBC home loans will depend on which property you will purchase. If you are eyeing an HBD flat, you have to meet the HBD eligibility. Also, OCBC will finance an HBD flat from S$100,000. Plus, it increases up to 80% of the flat’s valuation.
To purchase a private property, you need to be a Singaporean or a Permanent Resident. However, don’t worry if you’re a foreigner. You can still apply for it as long as you have proper documents. In addition, you can borrow from S$200,000 up to 80% of the property’s valuation.
OCBC HDB Flat Purchase (Resale)
Upon finding your ideal flat, check your eligibility with HDB. Also, acquire an Option to Purchase (OTP) document. Then, you can start applying for OCBC home loans. The process might take just an hour. So always be ready. Plus, provide all the needed documents.
Accept the home loan offer and send the valuation report from your agent. It might take 2 to 3 weeks. After that, OCBC will appoint a lawyer. Sign the OTP on the set appointment date.
HDB will set a meeting between you and the seller. Also, the lawyer will make the necessary legal checks. After 6 to 8 weeks from the date of the first appointment with HBD, you need to attend another meeting. Afterwards, the bank will release the cash forwarded to your lawyer 7 days before the second meeting. Then, you can finally collect your home keys. Therefore, start repaying your monthly dues diligently to avoid any penalties.
OCBC Private Property Purchase (Resale)
As for purchasing a private property, you can apply for a loan after finding a property you want to buy. First, submit an Option to Purchase (OTP) document. OCBC will appoint a lawyer for you when you accept the loan offer. In addition, he will provide a formal valuation report.
The property transfer might take 3 to 4 weeks as your lawyer do the legal checks. Pay the lawyer 3 to 7 days before the completion of the sales. In addition, OCBC will release the loan amount to your lawyer for sales completion. Then, you can finally collect your keys and move into your new home.
OCBC Private Property Purchase (Building Under Construction)
If you want to build a new home, you need to acquire a Sales and Purchase Agreement. Afterwards, apply for OCBC home loans. Accept the loan offer and provide a formal valuation report.
OCBC will provide a lawyer whom you have to pay.
Sign the Sales and Purchase Agreement. Then, let the lawyer do the legal checks and work. Pay the lawyer to finalise the mortgage. OCBC pays the developer during the construction period. Typically, it can take 1 to 3 years. Upon issuance of OTP, collect your home keys. But don’t forget to pay the monthly mortgage diligently.
OCBC Renovation Loan
If you want to renovate your home, you should first obtain a contractor’s quotation. Then, proceed to any branch of OCBC or mail your documents. It must comprise the contractor’s quotation, income documents, and copy of NRIC. If you plan to apply for a joint account, prepare proof of relationship. Afterwards, you will receive an SMS notification and a letter of approval.
Then, they will issue the cashier’s orders in the contractor’s name. After that, you can borrow at least $5,000 up to 6x your monthly income. But, it can not be higher than $30,000. But, then, you have to repay your loan every month.
OCBC Overseas Property Loan
You can only purchase real estate properties from 5 other countries. These are London, Australia, Malaysia, Tokyo, and New York. However, each country has its own property loan terms and conditions.
Yes, you can basically borrow from $200,000/ $300,000 up to 70% of the property price. But, you will still be subject to strict credit history evaluation. So make sure that you can provide all the necessary documents for a smooth transaction.
Points to Take Note
- Though OCBC home loans provide you with a lawyer, you must pay for the service.
- In addition, the process may take more than a month.
- Plan ahead and consider the tenure of the loan. If you decide to settle the loan earlier, prepayment penalties will be applied.
- The higher the downpayment you are willing to pay, the lesser you have to borrow.
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