Maybank Singapore launches two new home loan packages

The first package is the Hybrid Rate Home Loan and the second package is the Ceiling Rate Home Loan.

According to Maybank, while the Hybrid Rate Home Loan marries both the floating and fixed rates, it differs from the traditional home loan structure in which interest rates are fixed for the first year and float thereafter.

Pegged in the first year to the 3M SIBOR, customers can take advantage of the current low interbank rates now, and thereafter, enjoy the certainty of fixed rates in the subsequent second or second and third years.

“This is a radical move from what the market now offers. We are now experiencing historic low interbank rates and market expectations are that interest rates are likely to trend upwards in the next six to 12 months. In view of this, with the Hybrid Rate Home Loan, customers will be able to take advantage of the low interbank rates right now, and still get the assurance of fixed rates in subsequent years", said Ms Helen Neo, Head, Consumer Banking, Maybank Singapore.

The Ceiling Rate Home Loan is pegged to the 3M SOR and capped at a ceiling rate of as low as three per cent during the lock-in period. Added Ms Neo, “As the name suggests, this loan offers the assurance that even if interest rates swing upwards, customers will be protected by a ceiling rate feature. With the certainty in knowing that interest rates cannot go beyond this ceiling, customers will be able to better manage finances, especially their long-term investments.

“Our home loans book for the past quarter surpassed the market average growth of 1.3 per cent. I expect strong take-up for both loan packages, with the Hybrid Rate Home Loan taking the lead in this low rates environment because of its strong ‘float first, fix later’ proposition.”