Amid Ongoing Review, UOB and DBS Announced Fixed Rate Home Loans Would be Removed

At least, two banks from Singapore have made an announcement about the offering of fixed rate home loans. The confirmed reports are that it is the UOB and DBS banks that have made the announcement.

Offering Revoked from September 23

The UOB and DBS have communicated that as of September 23rd, the fixed-rate home loan offerings have been stopped. However, they have made it clear that the revocation is temporary.

UOB has announced that they have been forced to reconsider their fixed rate offerings due to the constantly rising rates environment.

Based on the above, the UOB has decided that it would revoke its three-year and two-year packages. UOB communicated the process as many queries had been raised by the locals and applicants about the revocation of loans.

DBS, which is the largest lender of fixed rate home loans has removed the option of offering such service to the applicants. The choice being removed from the website means no one would be able to access it and apply for the loan.

The local bank has communicated that they are currently going through the phase of reviewing their rates for offering the loans. Until then, they will not be offering fixed-rate home loans to the locals.

Increase Announced by the US Feds

Yet again, the US Federal Reserve announced that it was to introduce another interest rate hike to control the rising inflation rates.

According to the US Feds, the increase would be 75-basis-points, as announced on Wednesday. The rate hike mirrors the hefty increase that the Feds increased in the month of June and July.

Loan Rate Changes on a General Scale

UOB and DBS are not the only banks that have resorted to revising their home loan rates. The year has been cruel to the banks and other lending firms that have been offering home loans at fixed rates.

This is mainly because the central banks from around the world have increased interest rates to control the rising inflation.

Among all the packages offered for home loans, it is fixed home loans that have witnessed the highest rise. In light of the growing interest rates, some foreign banks have even resorted to getting rid of the fixed rate options for their locals.

The only assurance in the matter is that the revocations are temporary suggesting that they will be reinstated in the future.

Fixed Rates offered by DBS

Previously, the DBS hade implemented a 2.75 per annum fixed rate on the loans that the locals acquired for mortgage on a three-year and a two-year plan.

The banks also has multiple home loan plans with floating rates. These rates are pegged with SORA (Singapore Overnight Rate Average). If they are not pegged with SORA, then they are pegged with average fixed deposit rates for six months.

The upward changes are expected in the fixed rate home loans as the US Feds have made it clear that they will have a hawkish approach towards interest rates.

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