Local banks raise home loan rates

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All three local banks have raised their home loan rates as interest rates continue to spike, and mortgage advisers warn of more hikes to come.

DBS Bank, OCBC Bank and United Overseas Bank, which collectively account for the lion’s share of the housing loan market, have raised the interest on their fixed-rate and floating-rate packages since last month.

DBS and UOB have jacked up the interest on their three-year fixed-rate loans by 10 per cent. The fixed-rate packages now sell for 1.85 per cent a year for each of the three years.

In October, the rate was 1.68 per cent.

A DBS spokesman said that it had raised rates “in tandem with market interest rate environment and outlook”. Demand for the revised 1.85 per cent three-year fixed-rate loan remains strong, he added.

Most popular is DBS’ floating-rate loan, which is pegged to its fixed deposit home loan rate (FHR) and accounts for nine out of 10 loans sold, he said.

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