Called Ideal Mortgage, the package is priced more competitively than BLR-based ones and is flexible enough for borrowers to make a significantly lower investment outlay on their loans during the lock in period, the bank said in a statement.
The MLR, currently set at 4.70 per cent, is OCBC Bank’s internal reference rate develop exclusively for home loans and is calculated based on the mortgage business as opposed to the BLR which takes into consideration overall bank costs, it added.
Ideal Mortgage’s first-year rate is 2.5 per cent and is fixed not to change for a year from the date of the first drawdown or until expiry of the maturity date of the guarantee, whichever comes first.
Thereafter, the interest rate is set at MLR minus 1.3 per cent.
By Business Times
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