UOB Singapore have quietly increased 36-month Fixed Deposit Property Rate (36M FDPR) from March 2018. Let’s look at the facts.
Facts of 36M FDPR
Mortgage products linked to 36M FDPR was introduced in 2016. Such products were offered to customers who preferred variable home loan rates that tracked fixed deposit savings rates. In this particular case, the savings rate is specifically the fixed deposit rates for amounts less than S$50,000. UOB added a margin or commonly known as spread on top of this FD rate, to charge an effective lending rate to home loan borrowers.
In 2016, the FD rate was 0.65% per annum. With a margin of 0.85%, you would borrow at 1.50% per annum for your HDB or private residential property.
This rate remained unchanged until March 2018. UOB Singapore announced a hike of 0.35%, resulting in 1.0%. Your home loan rate would now be 1.85%.
Affected customers should compare their 36M FDPR loans with current refinancing options.