Maybank HDB Home Loan

Maybank HDB Home Loan Review 2021: Best For Smart Home Loan Applicants

Maybank offers appealing green loan incentives to loan applicants. They also offer generous cash and shopping coupons to applicants for renovation and refinancing loans. However, rates increase after promotional periods, and the requirements for low-rate packages are strict. The loan choice for green home loans is limited.

Maybank HDB Home Loan

HDB homebuyers can enjoy lower fixed and floating rate packages offered by Maybank through the green home loan programs. More than that, an exclusive renovation loan package is also available to existing HDB loan customers. And if you succeed in applying for refinancing your property, Maybank will offer S$300 vouchers in return.

Key Features

  • If you pledge a Green Life Pledge for eco-conscious living with Maybank, the loan rate can be as low as 0.99% per annum.
  • The offer applies to Maybank’s two-year fixed rate and three-month compounded SORA(3m sora) variable rate packages.
  • Home loan borrowers looking to refinance their homes can get an extra S$300 in shopping vouchers upon successful application.
  • The Maybank Green Pledge encourages homebuyers to commit to eco-conscious living with their families if they apply for Maybank’s green loans.
  • Maybank offers special renovation loan rates to successful home loan applicants.
  • Maybank is changing all loan rate calculations using compounded SORA for transparency and regulating purposes.

 

Home Loan Packages

1. Two-year fixed rate package

Remarks
Year One 1.2% per annum  

  • SRFR2 is the “Singapore Residential Financing Rate2”

 

  • The current SRFR2 is 4.85%

 

  • The package applies to a minimum loan size of S$100,000 and a minimum loan period of five years or above.
Year Two 1.2% per annum
From the third year onwards SRFR2 – 2.87% per annum
Lock-in period Two years
Partial prepayment penalty 1.5% of the prepaid amount
Loan cancellation fee 0.75% of the approved loan undistributed

 

2. Three-year fixed rate package

Remarks
Year One 1.38% per annum  

  • SRFR2 is the “Singapore SRFR2 is the “Singapore Residential Financing Rate 2”
  • The current SRFR2 is 4.85%
  • The package applies to a minimum loan size of S$100,000 and a minimum loan period of five years or above.
Year Two 1.38% per annum
Year Three 1.38% per annum
From the fourth year onwards SRFR2 – 2.87%
Lock-in period Three years
Partial prepayment penalty 1.5% of the prepaid amount
Loan cancellation fee 0.75% of the approved loan undistributed

 

3. Floating rate package (Three-month compounded SORA)

Remarks
Year One Three-month compounded SORA + 0.9% per annum  

  • Three-month Compounded SORA is the “Compounded Singapore Overnight Rate Average.”
  • The rate is calculated and averaged over the history of three months of the Singapore overnight rates.
  • The Monetary Authority of Singapore(MAS) publishes the rate every business day.
  • The package applies to a minimum loan size of S$300,000 and a minimum loan period of five years or above.
Year Two Three-month compounded SORA + 0.9% per annum
From the third year onwards Three-month compounded SORA + 1.4% per annum
Lock-in period – Completed properties: One year

– BUC: No lock-in period

Rate refreshing frequency Each three months
Partial repayments during the lock-in period Up to 50% of a loan amount
Free conversion – Completed properties: One-time free conversion post the lock-in period

– BUC: One-time free conversion within six months from TOP

Partial prepayment penalty 1.5% of the prepaid amount
Loan cancellation fee 0.75% of the approved loan undistributed

 

An Example

Assume John and his wife, Mary, plan to buy an HDB flat and borrow an HDB property loan with Maybank. The market value of the property is S$2 million. The couple intends to borrow a loan allowed under the maximum loan-to-value limit of 75%.

After considering the couple’s financial situation, Maybank agrees to lend the requested amount of S$1,500,000(S$2,000,000 x 75%) for a two-year fixed-rate loan package of twenty-five years. Therefore, John and Mary have to pay for the downpayment of S$75,000 and miscellaneous expenses.

1. Downpayment:

S$500,000(S$2,000,000 x 25%). John and Mary must pay for at least five percent of the downpayment in cash and the remaining by using funds of CPF(the Central Provident Fund of Singapore).

2. Miscellaneous expenses:

S$75,500 = S$70,000(stamp duties: 3-4% of the purchase price estimated) + S$5,000(legal fee estimated) + S$500(bank property valuation fee estimated)

3. The calculations:

  • The first two-year monthly payment: S$5,789.92 per month x 24 = S$138,958.08
  • Payments from the third year on(assume the interest rate remains the same): S$6,300 per month x 12 x 23 = S$1,738,800
  • Total payment for the loan term: S$1,738,800 + S$138,958.08 + S$75,500 + S$500,000 = S$2,453,258

 

Current promotion

Maybank clients can get up to S$1,000 worth of shopping coupons if they refer new clients successfully. The amounts of the rewards depend on the loan amount approved. You get coupons worth S$250 on a loan of S$300,000 to below S$600,000 approved per case, S$500 for S$600,000 to below S$1,500,000, S$1,000 for more than S$1,500,000.

 

Pros

  • Competitive low rates for the promotion period: The loan rates are below 1.5% for the first to third year within the promotion period(it depends on the loan package you choose).
  • Green loan promotion: You can enjoy a 0.05% interest rate discount for the first two years if you pledge an eco-conscious life with Maybank. The rate you pay may be as low as 0.99%. You should know the offer is only available to the two-year fixed rate package and the three-month compounded SORA package.
  • Cash reward: up to S$2,000 cash rewards and S$300 cash coupons: You may get the incentives if you refinance your home successfully with Maybank(the cash reward is calculated on the lower of S$2,000 or 0.4% of a loan amount approved). 
  • Rewards for Renovation loan: Up to S$50 cash is available if you successfully apply for Maybank’s exclusive renovation loan package online. And an extra S$150 is available to successful applicants for loans of S$15,000 or above with a minimum 3-year period.
  • Online applying: Now, you can apply on the bank’s website without the hassle of endless queuing in the bank.
  • Prepayment flexibility: You can prepay your loan amount of up to 50% if you wish to reduce the interest burden during the lock-in period.
  • One free conversion: You can convert your loan plan into another one free of charge after the lock-in period. You may have the benefits of both a new loan plan(if applicable) and the existing one without incurring additional conversion costs.

Cons

  • Rate increases: Rates increase after the promotion period. Home borrowers may have to look for alternative refinancing sources.
  • Strict requirements: The low rate offered by the floating-rate package is for applicants of S$300,000 or above only. Applicants for a lower threshold cannot access the benefit.
  • Limited Green Home Loan choices: Applicants for Maybank Green Home Loan has only two loan plan choices: 1. The two-year fixed-rate plan, and 2. The three-month compounded SORA package.
  • Limited incentives for property loan plans: Most cash and coupon incentives are limited to refinancing and renovation packages. New property clients cannot have access to the benefits.

 

How Maybank HDB Home Loan Compare To Other Banks

Other banks also offer HDB home loans in the market. Let’s compare the leading players with Maybank housing loan packages in Singapore. 

Banks Lock-in periods First-year fixed home loan interest rates Promotions First-year floating home loan interest rates Promotions
Maybank Two and Three years 1.2% & 1.38% 0.05% interest discount off the first two-year interest payments for the two-year loan plan 0.9% 0.05% interest discount off the first two-year interest payments for the two-year loan plan
DBS Two and Three years 1.3% % & 1.4% One free conversion after twenty-four months from fund distribution 0.94%(SORE + 0.8%) N/A
OCBC Two, Three, and Four years 1.38% N/A 0.46%(sibor + 0.3%) N/A
UOB Three years 1.86% A reward upon acceptance from an online application 1.34%(3M SORA + 1.2%) N/A
Citibank Two and Three years 1.23% & 1.25% A reward of S$560 worth of shopping coupons for S$800,000 loan amount 1.11%(3M SORA + 0.97%) A reward of S$560 worth of shopping coupons for S$800,000 loan amount

 

Businessman Holding Model House

Verdict

Like other banks, Maybank offers two and three-year fixed-rate plans. Nevertheless, you may pay lower interest if you join its Green Pledge program. The program aims to promote living an eco-conscious life. Clients may benefit from both lower interest payments and a healthy living style.

The bank offers few incentives to clients except for refinancing, renovation, and referral programs. Applicants for the above loans may benefit most from the above promotions.

Besides the fixed-rate package, Maybank also offers the floating rate package to Green loan applicants. Instead of the two-year fixed-rate plan, you can choose three-month compounded SORA(Singapore overnight rate average) to reduce the overall rate by 0.05% for the first year. The rate is the compounded three-month SORA + 0.9% per annum. 

Hence, our verdict is people looking for lower earlier-year interest payments can take full advantage of their Green loan programs. Moreover, people intending to renovate and refinance their homes may consider using Maybank incentive programs and maximize the benefits. To know more, click here to find out the best home loans in Singapore. 

 

How to apply for Maybank Home Loan?

To apply for a Maybank home mortgage loan, you should get the following ready:

Eligibility

You are a Singapore citizen or permanent resident and twenty-one aged.

Requirements

  • Income proof: The latest three-month wage statements. The statements should be in print form.
  • Documents: You should provide a property purchase and sale agreement like other industrial or commercial property loan applications. An HDB valuation report is required for an HDB resale.
  • For refinancing: Maybank may request your latest loan statements from an existing lending bank and CPF public/private withdrawal statements.

Fees

The following are fees in Singapore dollars charged by Maybank.

  • Administration fee for a loan restructure/variation: 800
  • Fee for rescheduling of redemption date: 200
  • The safekeeping of a title deed for fully repaid loans: 500 per annum(GST applicable)
  • Adhoc request for property redemption statements: 100 per request(except for the preliminary and final reports)
  • An administrative fee for alternative insurance arrangements: 100 per annum

 

We Are Answering Some Of Your Most Asked Questions

1. Can I refinance my existing home loan with Maybank?

Regarding the Maybank home loan review, the bank offers incentives and rewards to loan refinancing applicants but excludes new property buyers. They include S$2,000 in cash and S$300 shopping coupons. It is still an attractive deal for people seeking refinancing alternatives.

 

2. Can I apply for a renovation home on top of my HDB home loan?

Like the refinancing service, Maybank actively promotes the green renovation loan package. If you are an HDB home loan client and successfully apply for a renovation loan, you will get an extra S$200 shopping voucher.

What’s more, you may get S$150 eCapital Vouchers and a 4.1% rate package(less than the bank’s board rate of 4.5%) on a fast approval track. 

If you are an existing customer of the HDB loan package, you should give it a try to take full benefits from it. Or you can take a holistic approach by considering the two loan plans together as a whole if you are planning to be a borrower in the future. Click here to find out the difference between taking a HDB loan and a bank loan. 

 

3. What is Maybank’s latest offer?

As mentioned earlier, Maybank is converting the loan rates from SIBOR to SORA for market transparency and industry regulation purposes. Here is the latest floating-rate loan offer from Maybank:

  • Three-month compounded SORA home loan package
  • Year One: Three-month SORA + 0.9% per annum
  • Year Two: Three-month SORA + 0.9% per annum
  • Year Three and afterward: Three-month SORA + 1.4% per annum
  • Lock-in Period: One year
  • Rate reviewing frequency: Every three months
  • Prepayment during the lock-in period: Up to 50% of the loan amount allowed

 

4. What is a compounded Singapore overnight rate average?

Unlike a bank’s internally determined rate, such as a board rate or fixed deposit mortgage rate, a compounded SORA is a volume-weighted average rate calculated based on one-month, three-month, six-month market lending rate history. It is a transparent and objective rate determining mechanism.

 

Our Final Thoughts 

We deem the loan packages suitable for people preferring promotional rates and other short-term loans like renovation financing or refinancing loans. 

Takeaways:

  • Maybank’s loan rates are on a medium scale in the market.
  • Maybank’s renovation and refinancing loan packages are competitive as they offer competitive rates and incentives.
  • Maybank’s green home loan programs reduce the interest payments by 0.05% for the first two years.

Buying a home is one of the most expensive purchases one makes, and it sure requires a careful review of your financing options. With Instant Loan, you can skip the tedious loan comparison and directly receive up to three free and customised loan plans from Singapore’s top licensed moneylender on your inbox. Send us a request today!

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