Two banks present on the market of Singapore decided that it was time to be a bit more competitive. We are talking about UOB, or United Overseas Bank, and HSBC, who decided to offer mortgage packages with fixed rates over the span of 3 years. Until recently, this was a service provided only by the DBS bank, which is the most significant provider of house loans in the country. Thus, these two banks just started a mortgage war, luring home buyers with very low rates that can be enjoyed for a larger period. Everybody that wishes to buy a home anytime soon is thrilled by the news and it is expected that the market for residential units to grow and flourish in the near future.
The fuss in the home loan market started just recently, when UOB and HSBC officially announced the launch of their mortgage packages, countering this way the offer of DSB with a package of the same caliber. Homebuyers can find a mortgage package for 3 years and with a fixed rate at Bank of China as well, but the difference is that in this case, the interest rates will vary from one year to another. On the other hand, the fixed interest rate in the case of all the other three banks mentioned earlier, is exactly the same, of 1.68% per year, for all three years. The interest rates did drop recently, the appearance of these mortgage packages showing that they are not going to rise anytime soon.