DBS and Maybank have been one of the pioneers in offering a fixed home rate that is pegged to fixed deposits. In the past few years where interest rates remain low, I dislike this arrangement because fixed home rate changes are indiscretion of the bank and it doesn't usually provide benefits as much as the floating rate changes. 

DBS has another package that is offering at a 1.50% fixed rate for the next 5 years, essentially locking your commitment for the next foreseeable future post-pandemic, where interest rates are likely to revert back higher than today.

SCB Home Rate Promotion Below 1%

This week, SCB has come up with a promotional FDR loan package that lowered their charged margins from the earlier 0.55% to 0.28%.

With the FDR8 currently at 0.72%, this means that their overall home rates are at 1% / annum for the next 3 years, and 1.40% thereafter from year 4 onwards.

Lock-in periods are for 2 years so you are free to refinance for better rates (if there are any) after the lock-in period.

Do note for refinancing, they require a minimum loan of $500k.

FDR Package at 1%

Personally, I find the current SCB promotional rates one of the most attractive amongst all the other banks I've considered.

This is due to the fact that I'm favoring the floating rate more than a fixed-rate right now. I think interest rates will continue to remain low in the next 6 months at least.

We also took our loans with SCB on the floating rate package last year when we bought a new home.

With SIBOR now trending to record lows, we found what they were offering attractive, both in terms of rates and flexibility to refinance at a later stage.

If you are interested to purchase a new property or refinance your existing loan, I think this may be a good time to do so as you are able to lock in the competitive margins offered by the banks.

You can compare the various rates by filling in your requirement here.

If you are still undecided, I am also more than happy to offer my perspective. You may drop me an email and I'll find a time to reply to the question you have.