ANZ Singapore offers mortgages for properties located in Singapore, and Australia only. For Australia properties, they are doing within the catchment area of their approved list in Sydney (NSW), Melbourne (VIC) and Perth (WA). Brisbane (QLD and NT are not in the list.
Their mortgage products offered for Singapore properties range from fixed rates to variable rates pegged to 3M SOR or 3M Combo (Average of 3M SOR + 3M SIBOR). For Australia properties, only variable rates are offered in either 3M AUD COF or 3M SGD COF.
Refinancing customers of Singapore mortgages may enjoy subsidies to cover conveyancing fees.
On 31 October 2016, DBS Singapore announced the acquisition of ANZ Singapore wealth and retail businesses.
Rates Types
3M SOR
Swap Offer Rate (SOR) is set by the Association of Banks in Singapore, and is also publicly available. It is based on the foreign exchange rate with the US dollar. It projects what the interest rate would cost if the same amount of money were borrowed in US dollars.
ANZ will obtain at 8pm fixing from Association of Banks in Singapore, on the last business day of the previous month.
3M COMBO
ANZ offers interest rates pegged to average of 3M SIBOR and 3M SOR. 3M SIBOR (Singapore Interbank Offered Rate) is a reference rate based on the interest rates used by banks in Singapore when lending unsecured funds to each other, which is obtainable from Association of Banks in Singapore.
ANZ will obtain from Association of Banks at 11am fixing on the first business day of the month for 3M SIBOR and 8pm fixing on the last business day of the month for 3M SOR. In a situation where the rate are not obtainable, Bank will take an alternative substitute that they deemed reasonable.
Fixed Rates
Interest rates are fixed as per Letter of Offer for a stated period of time. Under no circumstances should the bank revise a fixed interest rate during the period for which the interest rate is stated as fixed. Usually after the fixed period, rates will become variable.
Cost of Funds
ANZ’s Cost of Funds means, in relation to the Facility in a particular currency for a particular period, the cost to the Bank of funding in that currency. The first 3 month period shall start from the date on which the Facility is disbursed and shall be revised on the first business day of the 4th month from which the loan is disbursed. The currencies offered are AUD and SGD.
Terms that you should watch out for
GENERAL
Always check that the name(s), address of the subject property, interest rate and tenure are correct.
The Borrower shall fulfil all of the following conditions to the satisfaction of the bank (in form and substance), within 14 days from the date of this Facility Letter, failing which this offer lapses unless otherwise agreed by the Bank.
Subject to all preconditions to disbursement (including those stated on the Loan Contract and in the Standard Terms) being met, the Credit Facilities shall be available to the Borrower for drawdown for a period of six (6) months from the date of the Facility Letter.
Interest on the loan is calculated on a monthly rest, where the advertised rate is the same as the effective interest rate, because interest is calculated based on the reduced balance of the loan.
The Loan shall be drawdown upon giving the Bank at least seven (7) Business Day’s notice in writing.
The Borrower is required to open a saving account, be it for Singapore or Australia property for monthly debiting of the instalment.
Fire insurance for the Property must be insured with the appointed insurer from the bank. Yearly premium is payable and deducted from the saving account.
In the event the applicable SIBOR/SOR/COF falls below zero, Bank will use 0.1% as the benchmark or any other rates that they deemed reasonable.
NEW PURCHASE
The Housing Loan shall be used for payment of part of the Purchase Price of the Property.
If the property is purchased with benefits, subsidies, rebates, discounts or vouchers or other incentives from the vendor or any other party, the Bank shall have the right to reduce the quantum and/or review the terms of the Credit Facilities or cancel the Credit Facilities.
REFINANCING
The Housing Loan shall be used to refinance the loan outstanding from the existing mortgagee and given ranking by CPF Board. Any amount of the Housing Loan in excess of the redemption amount of the existing mortgagee shall be cancelled and no cancellation fee shall be levied on the amount so cancelled.
Equity loan can be obtained via refinancing (term loan) if property value is in excess after netting off outstanding loan and CPF usage.
Extension of loan tenure is viable up to 10 years, from age 65 to 75. It is computed based on 75 less age or date of purchase, whichever is lower, capped at 35 years for private, 30 years for HDB. This guideline is part of MAS TDSR Exemption framework.
OWNER OCCUPATION
The Property shall be owner-occupied for the full tenor of the Credit Facilities. The Bank reserves the right to recall and/or cancel the Credit Facilities immediately if, at any time the Mortgagor rents out, sublets, licenses or parts with possession of the Property without the Bank’s prior written consent. Always declare the purpose of the Subject Property accurately, be it Owner-occupied or Investment. In addition, a property that is owner-occupied may qualify for TDSR exemption.
REDEMPTION
Redemption of the Loan may be made subject to fulfillment of all of the following conditions: (a) served 3 months’ prior written notice or in lieu of such notice, pay the Bank 3 months’ interest, AND (b) pay the Bank a redemption fee if applicable.
PARTIAL PREPAYMENT
Partial prepayment of the Loan may be made subject to fulfillment of all of the following conditions: (a) serve the Bank 1 months’ prior written notice or in lieu of such notice, pay the Bank 1 months’ interest on the amount prepaid.
CANCELLATION
If the Loan is cancelled after acceptance of this Facility Letter or left undrawn on the expiry of the Availability Period, a cancellation fee of 1.5% flat on the amount cancelled or left undrawn, shall be payable for Singapore property loans, and 1% for Australia property loans.
AUSTRALIA
Establishment fees and other fees may be payable for loans granted for properties in Australia.
Note that valuation fee is to be borne by customers. ANZ will only proceed with the loan if the settlement date is 3 months from date of loan application.
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