Maybank Singapore Mortgage Products

Posted by Sean Lim on February 1, 2017

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Maybank Singapore offers mortgages for properties located in Singapore, MalaysiaAustralia and UK (London). They will lend against residential, commercial and industrial properties in Singapore, be it owner occupation or investment. Outside Singapore, selected residential properties for investment purpose are accepted securities to the bank. The mortgage products are pegged to fixed rates, 3M SIBOR, internal board rates, 36 Months Fixed Deposit Rate (FDMR36) and Cost of Funds for overseas properties. Refinancing customers of Singapore mortgages may enjoy subsidies to cover conveyancing fees.


Rates Types

 

SIBOR

Maybank Singapore offers interest rates pegged 3M SIBOR. The interest rate payable upon first disbursement of the Loan shall be determined based on the 3-month SIBOR prevailing on the date of first disbursement of the Loan which will be published in the Singapore Business Times on the next business day immediately following the date of first disbursement of the Loan. Upon determination of the interest rate, it shall remain fixed for the interest rate period of 3 month(s).

 

Board Rates

Maybank’s Board Rate, termed as Singapore Residential Financing Rate (SRFR) was introduced in 2007 and up till 17 February 2016, had been at 3.75%. With effect from 18 February 2016, the SRFR is 4.00%. Maybank reserves the right to revise the SRFR from time to time, by giving 30 days’ notice.

 

Fixed Rates

Interest rates are fixed as per Letter of Offer for a stated period of time. Under no circumstances should the bank revise a fixed interest rate during the period for which the interest rate is stated as fixed. In other words, fixed rate will remain fixed during the mentioned number of years or months.

 

FDMR36

Introduced in January 2017, Maybank’s FDMR36 is the bank’s thirty-six (36) month Singapore Dollar Fixed Deposit rate for amounts more than S$1,000 or such other sum as the bank may specify.

 

Terms that you should watch out for

GENERAL

  • Always check that the name(s), address of the subject property, interest rate and tenure are correct.
  • Confirm your acceptance of the arrangement by signing and returning to the bank the duplicate copy of the Letter of Offer within 7 days from the date thereof, after which date, the offer shall lapse unless an extension has been requested for and agreed to by the bank. Which means you have 7 days to accept the bank’s offer.
  • Subject to the completion legal documentation satisfactory to the bank, the Facilities shall be available for drawdown within 4 months from the date of the Letter of Offer (the “Availability Period”) or such extended period as the bank may agree at their absolute discretion, failing which, the Facilities shall no longer be available and shall be cancelled and the Cancellation Fees shall apply.
  • For Home Loan/ Construction Term Loan/ Bridging Loan/ Equity Term Loan (pegged to the SRFR or the Bank’s board rate). Interest is calculated on a monthly rest basis in arrears and computed on a 365-day year. For Equity Overdraft/ Equity Term Loan (pegged to Cost of Funds)/ Overdraft for Construction Loan Interest is calculated on a daily rest basis in arrears and computed on a 365- day year.
  • The Loan shall be drawdown upon giving the Bank at least seven (7) Business Day’s notice in writing.
  • The Loan repayment is by way of monthly instalments (comprising principal and interest) on the first day of each month. If first disbursement is between 1st – 10th day of the month, monthly repayment will commence on the 1st day of the month immediately following the month of such disbursement. After 10th of the calender month, only interest is payable on the 1st day of the following month and first instalment payable on 1st of the second following month.
  • If any instalment is payable on a non-business day, payment shall be made on the next business day or such other day determined by the Bank.
  • The Borrower is required to open a Maybank SGD savings or current account with the Bank upon acceptance of this Facility Letter. The Borrower shall fund the Maybank Account for the Bank to debit the monthly instalment repayments of the Loan.
  • At all times, you shall be required to insure the Property to the extent of its full insurable value or a sum to be determined by the bank with Etiqa Insurance Pte Ltd (through Maybank) against fire and such other risks as the bank may require from time to time.
  • The Loan which is prepaid in full or in part, cannot be redrawn and reborrowed. However, private property may qualify for equity cash out in the form of a term loan.

 

NEW PURCHASE

  • The Housing Loan shall be used for payment of part of the Purchase Price of the Property.
  • If the property is purchased with benefits, subsidies, rebates, discounts or vouchers or other incentives from the vendor or any other party, the Bank shall have the right to reduce the quantum and/or review the terms of the Credit Facilities or cancel the Credit Facilities. So please do declare accurately.

 

REFINANCING

  • To refinance the subsisting Home Loan with current financier. Without derogation to the terms therein, the Home Loan is granted subject to CPF Board’s consent of the Bank’s charge ranking in priority to CPF Board’s charge. In the event the Bank’s charge is not granted priority to CPF Board’s charge, the Bank reserves the right to review, alter or cancel the Facilities.
  • Any part of the Home Loan which is in excess of the amount required for the purpose shall be cancelled.
  • In the event the total outstanding loan amount to be refinanced to the Bank is more than the stated Home Loan quantum granted, the shortfall shall be fully covered by Borrower in cash.

 

REDEMPTION

  • Loan may be redeemed in full upon giving the Bank 3 months’ written notice or payment of interest in lieu thereof. No partial prepayment of the Home Loan is allowed during the redemption notice period.
  • If redemption is made within the Commitment Period, borrower shall be liable to pay a redemption fee of 1.50% of the amount of the Home Loan redeemed.

 

PARTIAL PREPAYMENT

  • Borrower may make partial prepayment of the Home Loan upon giving the Bank at least 1 month’s written notice or payment of interest in lieu thereof. However, if such partial prepayment is made within the Commitment Period, borrower shall be liable to pay a prepayment fee of 1.50% on the amounts prepaid.
  • The minimum disbursed outstanding loan at all times must not fall below S$100,000.
  • Each prepayment shall not be less than $5,000 and in multiple integrals of $1,000.

 

CANCELLATION

  • After acceptance of the Letter of Offer, if the Facilities (including Bridging Loan, if any) or any part thereof is cancelled or aborted, and/or recalled, deemed cancelled, unused or cancelled upon the occurrence of an event of default and/or undrawn after the Availability Period, a cancellation fee of 1.50% subject to a minimum of $1,000 will be charged.

 

AUSTRALIA, UNITED KINGDOM, MALAYSIA

  • Processing fees may be payable for loans granted for properties in Australia, United Kingdom and Malaysia.




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Written by Sean Lim

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