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All You Need To Know About UOB Mortgage Loans for Singapore In 2021

 In Mortgage Loans

UOB Singapore has a strong reputation in the home loan market primarily because it is one institution that is known for its competitive interest rates and the most practical and efficient home loan packages. You get some of the best options for fixed and floating rates from this bank which are not just lucrative for Singaporeans but foreigners as well.

If you haven’t associated with the UOB Singapore before, it is natural to have a few doubts and questions in your mind. Individuals looking for a home loan/most competitive HDB mortgage loan rates should scan through their home loan packages. If you are looking to refinance your home loan for less than S$500,000, this is a practical option for you. But there are other pertinent questions that you might have looming inside your mind. The following section is going to shed a little light on your most critical doubts and queries while attempting to simplify your finances.

Eligibility For A Home Loan Mortgage From UOB Singapore

Their home loan is open to not just the citizens of Singapore but foreigners as well. You are eligible for their home loan package as a foreigner if you wish to purchase a permitted residential property in Singapore, whether it is for investment or for living purposes (subject to credit approval).

Ascertaining Your Eligibility 

It is very simple to qualify for an HDB home loan from the United Overseas Bank Singapore. You will be eligible if:

  • You are a citizen of Singapore and/or a permanent resident of the country
  • You are aged between 21 and 50 years
  • An HDB flat owner

The factors that do not matter here include:

  • Whether you own a private property or not in Singapore
  • Whether you have a monthly income of more than S$8,000 or not (total household income)
  • Whether you are willing to upgrade to a bigger flat or not
  • Whether or not you have previously taken out a loan on HDB concessionary rates

Primary Benefits Of Acquiring A Home Loan From United Overseas Bank Singapore

The biggest benefit is that they have very competitive and attractive mortgage loan interest rates. They also provide up to 80% financing for the purchase price or the market valuation of the property you wish to invest in (whichever is lower).

Repaying Your Home Loan Is Also Easy

  • Completed Property

So you have received your temporary occupation permit. Everything with regards to the property has been finalized and the UOB HDB mortgage loan has been agreed upon by you and the bank. In such a situation your installment will be payable only upon the drawdown of your loan (i.e. when a part of the line of credit/loan is delivered to you). However, the amount of the installment will always be calculated on the total amount of the loan and its tenure.

  • Property Under Construction

house under construction

If the technical appraisal of a property concludes that the purchased real estate is still under construction, you may opt to pay your installments based on the amount that has been disbursed to you. The day when the temporary occupation permit is issued, the installment will be calculated based on the undisbursed and outstanding loan amount over the remaining loan duration.

Whenever you decide to repay your home loan, you can either use your cash or CPF savings. In case you want to use both these sources of funds, you can do that as well. Accessing the funds in your CPF savings may require you to seek approval from the CPF Board beforehand.

Documents That You Will Need To Apply For A Home Loan With United Overseas Bank Singapore

  • Property loan application form completely filled and duly signed 
  • Passport of the applicant/copy of NRIC
  • Income proof/documents 
  • Option to purchase
  • Latest CPF statement of account
  • Latest CPF withdrawal statement for the existing property
  • Option of sale for the existing property

There was a time when UOB mortgage loan rates were primarily linked to fixed deposit rates. Currently, there are various loan packages that are being pegged to the board rate/Singapore Interbank Offered Rate (SIBOR). 

Understanding The United Overseas Bank Home Loan Application Process

If you do not understand the complexities of the financial market and how banks and loans work, you may even hire the services of a reputable financial planner. They will be your finance coach throughout your journey of acquiring the loan and owning a property in Singapore.

You can save a lot of time and effort when applying for a home loan this way. You will be able to get better deals and packages and should be able to secure a line of credit faster.

Step 1 

Get in touch with your mortgage team and be transparent about your incomes and expenses. Be clear about your expectations and your budget.

Step 2

You will find the number of choices UOB presents to you is quite overwhelming. This is why the next step is to compare home loan packages and ask for suggestions from your financial planner. 

Step 3

Now what remains is to select the loan package that is best suited for your needs and set aside enough cash to pay for stamp duty, property tax, and other charges and fees.

To Sum It Up

Acquiring a home loan/mortgage from UOB has become easier than before. You get better and more flexible terms and they have even made getting an instant online credit valuation faster and more efficient. What next? Move into your dream home in Singapore with a UOB home loan today.

wayne quek
Wayne is a Chartered Financial Analyst (CFA), and holds a Bachelor of Business Management (Finance) from Singapore Management University (SMU). A successful Relationship Manager during his time with DBS and HSBC, Wayne used his expertise in financial markets to help his clients build up comprehensive investment portfolios. The entrepreneur is also the founder of Home Loan Whiz, a mortgage consulting firm that assists clients with selecting ideal mortgages for their needs.
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