UOB and DBS ceasing fixed-rate home loans for now, interest rates under review

SINGAPORE – Local lenders UOB and DBS are temporarily ceasing their fixed-rate home loans while they review the interest rates on these packages, after yet another big hike from the US Federal Reserve.

A UOB spokesman told The Straits Times that the bank will be ceasing the existing two-year and three-year fixed rate packages for now.

The spokesman added that UOB is continuously monitoring market conditions and will review home loan packages to ensure they remain competitive and can meet the needs of homeowners.

Just about two months ago, UOB had upped the rates for its two- and three-year fixed rate packages.

The rate of its two-year fixed package was raised to 2.98 per cent per annum, and 3.08 per cent per annum for its three-year fixed package.

The bank confirmed that it will not completely remove its fixed rate loans.

Meanwhile, DBS is also reviewing the rates for its fixed rate packages.

According to ST checks last Tuesday night, DBS’s fixed rate packages and the two-in-one hybrid home loan package which was introduced in end-June have been removed from the bank’s website.

Back in June, the bank had raised rates on its two-year and three-year fixed rate packages to 2.75 per cent and removed its five-year fixed-rate package for Housing Board flat buyers, which used to offer loans at 2.05 per cent.

At the time, the bank introduced a hybrid two-in-one home loan package which allowed homeowners to choose a mix of fixed and floating rate deals.

The third local bank, OCBC, said it reviews the rates of its home loans packages regularly to ensure its packages remain competitive.

Currently, OCBC has a two-year fixed rate package of 2.98 per cent listed on its website.

The three banks continue to offer floating rate packages pegged to the Singapore Overnight Rate Average (Sora).