Standard Chartered Singapore have mortgage products for residential and commercial properties. Their products are based on 1M SIBOR and 3M SIBOR. They offer fixed, floating or interest-offset (MortgageOne) mortgage loans.
Notes
MortgageOne is among the best interest offset housing loan for Singapore private properties. Customers can choose 1M SIBOR and 3M SIBOR. 2/3 of deposits will enjoy the same mortgage interest rate. The interest earned will be offset from mortgage interests, hence reducing the interest payable. Funds can be taken off at any point of time since it is not tied down to the loan. MortgageOne is only applicable for Sibor-pegged packages.
Rates Types
FDR
FDR is pegged to SCB’s prevailing 48 months Singapore Dollar Fixed Deposit interest rates of an amount less than $20,000. FDR is currently 0.5% per annum.
SIBOR
1M/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.
SCB will obtain from Association of Banks at 11am fixing on the first business day of the month for 1M/3M SIBOR.
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.
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 fulfill 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.
The Borrower is required to open a saving account 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. Customer can opt for their own insurer, however, administrative fee $100 per annum is charged for opting other insurer.
Note that legal subsidy or cash rebate given for the package is subjected to a 3 years clawback. That is, if you fully redeemed the loan within 3 years from date of first disbursement, you will need to refund the subsidies/rebates back to SCB.
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. The computation is based on 75 less age or date of purchase, whichever is lower, capped at 35 years for private, 30 for HDB.
TDSR can be up to 100% provided customers meet the following requirements:
- Past 12 months record of the housing loan must be A
- Loan is fully disbursed
- NRIC address shows subject property
- It must be owner-occupied
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.
REDEMPTION
Redemption of the Loan may be made subject to fulfilment 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. Minimum amount of partial prepayment is $10,000
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.
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