UOB Home Loans

Are you considering buying an executive condominium or private residential property soon? You can compare UOB’s fixed and floating housing loan rates for these properties before you decide on one.

UOB’s fixed-rate vs SORA-pegged packages

UOB’s SORA-pegged packages are based on the SORA rate which is the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market. The rate refresh for UOB’s SORA-pegged packages is every 3 months as the 3-month Compounded SORA rate is updated every 3 months (validated and calculated by the Monetary Authority of Singapore). 

A mark-up, which is called a “spread”, is also charged by UOB in addition to the 3-month Compounded SORA rate. This is a common practice by most banks in Singapore and these 2 components form the total interest rate that determines your monthly payments. 

Although both the SORA rate and UOB’s fixed rate are validated by MAS, UOB’s fixed rate isn’t as transparent as compared to the SORA rate due to the fact that the fixed rate is solely determined by UOB. 

Here’s an example to help you understand better: You and your partner plan to buy a private property (it can be either a condominium or landed property) costing $1,300,000.

After UOB assesses your loan-to-value (LTV) ratio, which is your maximum borrowing capacity (75% of the property price), you’re eligible for a UOB home loan of $975,000 with a tenure of 25 years as first time homeowners. Assuming the total monthly income for the two of you is $20,000, and you’ve picked the Fixed rate package of 4.63% p.a. (figures are for illustration purposes only as the exact interest rates for UOB’s fixed-rate or combination of fixed-rate and 3-Month Compounded SORA packages are only revealed upon request/enquiry on their website) the estimated math will be as follows with the help of MoneySmart’s Mortgage Calculator.

Your downpayment: 

$260,000 by CPF + $65,000 in Cash = $375,000 (at least 5% of the property price to be paid in cash which comprise of the option fee & option exercise fee, and 20% to be paid in CPF) 

Your estimated interest to pay for the first month: 

UOB’s fixed interest rate = 4.63% 

4.63% x $975,000 = $45,142.5

$45,142.5 ÷ 12 months = $3,761.88 

Your estimated monthly instalment: 

It’ll range from $5,492 to $5,503 (based on the increasing interest rate 3M SORA + up to 1.00% p.a. from Year 4 and thereafter)

Other one-time payments*: 

$52,000 (buyer’s stamp duties) + $3,000 (legal fee) + $400 (valuation fee) = $55,400

Estimated total payment over 25 years:

$1,300,000 + $55,400 = $1,355,400

*Buyer’s stamp duties fee is usually about 3% to 4% of the purchase price of the private property - a form of tax payable to the government for registration of purchase of the property. Legal fees are often paid to property lawyers for the processing of the private property’s home loan. Banks will usually have their own panel of licensed valuers and the valuation fee for a private property can range from $200-$400 due to the valuation report required.

For HDB home loans, UOB has 3 types of packages including the 3-Month compounded SORA Home Loan, Fixed-rate home loan, and a combination of fixed-rate and 3-Month compounded SORA in one package, which are alternatives to the HDB loan. 

Although UOB mortgage rates are often much lower, taking up a UOB home loan package requires a much higher downpayment than the HDB loan. For example, if you and your spouse are keen on taking up a $300,000 SORA-pegged loan with UOB (2 year lock-in period) for a resale HDB flat and the tenure is over 20 years.

The 3-month Compounded SORA rate is 3.6501% (as of 15 June 2023), the same rate that all banks in Singapore follow for any SORA-pegged home loan packages. Note that you’ll need to include UOB’s “spread” to the 3-month SORA rate (both will form the total interest rate, and determine your monthly instalment amount). 

Your downpayment: 

$60,000 by CPF + $15,000 in Cash = $75,000 (20% of the total loan among paid with your CPF and a minimum 5% of the total loan amount paid in cash) 

Your estimated interest to pay for the first month: 

UOB’s spread = 0.70% 

3-month Compounded SORA = 3.6501% 

3.6501% (3M Compounded SORA) + 0.70% (bank’s spread) = approx. 4.35% 

4.35% x $300,000 = $13,050

$13,050 ÷ 12 months = $1087.50

(based on the 3-month Compounded SORA rate which will fluctuate over time) 

Other one-time payments: 

$1,000 + $4,000 (option fee + option exercise fee) = $5,000 (this $5,000 is considered a deposit which forms part of the downpayment paid in cash i.e. $15,000) 

Estimated total payment over 20 years: 

$300,000 (principal amount) + $149,698.48 (in interest) = $449,698.48

*All above calculations are estimated using MoneySmart’s Mortgage Calculator.

Is refinancing or repricing your home loan worth considering?

If your existing home loan charges you more than 4.35% p.a. interest, you might want to consider refinancing or repricing your housing loan as you may be paying more than current market interest rates.

Refinancing is not the same as repricing, if you’re wondering. While refinancing means financing your current home with another bank instead of the current bank you’re with, repricing refers to switching to a new home loan package offered by the same bank that you’re currently financing your home with.

Learn more about these rates and how you can go about refinancing your home loan at our UOB Home Loans Refinancing page.