Home loans below 1%

Maybank S’pore ups the ante in residential mortgage market

Maybank Singapore has raised the bar in the home loans market with a slew of offerings that include mortgage rates below 1 per cent.

Its fixed rate packages, with either a three or five-year fixed term, offer the lowest rate in town at 0.88 per cent a year in the first year.

For its home loans pegged to interbank lending rates, Maybank is offering a rate starting at 0.5 percentage point above the three-month Sibor for the first year. Sibor, which stands for Singapore Interbank Offered Rate, is the rate at which Singapore banks lend to each other. It currently stands at 0.55 per cent.

Meanwhile, for its variable rate home loans package, Maybank is offering interest rates that will start at 0.80 per cent a year. This is 2.95 percentage points lower than the Singapore Residential Financing Rate (SRFR) for the first year. SRFR is Maybank’s board rate, which has been at 3.75 per cent since 2007.

In another variable rate package, the bank is offering a $5,000 cashback and an interest rate of 1.3 per cent a year for the first year.

Maybank Singapore’s Head of Consumer Banking, Ms Helen Neo, said the fixed rate packages are very popular because they give borrowers certainty in financing their mortgages.

The new packages are in celebration of Maybank’s 50th anniversary. As part of the ongoing celebration, it has also launched a Privilege Plus Savings Account, a savings product for those aged 50 years and above.

Source : Today – 28 Aug 2010