Hong Leong unveils lowest HDB loan rates

Hong Leong unveils lowest HDB loan rates
Dec 22, 2009 - PropertyGuru.com.sg

Hong Leong Finance unveiled a new HDB loan package with the lowest rates in town.

The latest offering by the finance company is aimed at one of the hottest segments in the market, with extreme interest in projects like the new flats to be constructed at Queenstown’s Dawson estate.

Last week it unveiled a loan package for the good class bungalow market – the other end of the spectrum.

It now offers HDB buyers with variable rates for loans of $100,000 and above, with financing up to 80 percent, at 1.33 percent for the first year, 2.03 percent for the second, and 2.63 percent for the third.

This package is another step down in rates from last month’s offer of the company, with equivalent loan rates of 2.13 percent for the second year and 2.83 percent for the third.

Hong Leong now provides a borrower looking for a two-year fixed rate loan with a rate of 2.13 percent in the second year, down from 2.63 percent.

By comparison, DBS Bank is offering a two-year fixed rate of 2.9 percent for loans intended for owner-occupied homes that have been completed, with up to 60 percent financing.

According to Hong Leong, the intensifying activity in the HDB market led to more inquiries for loans of HDB homes.

“We anticipate continued growth of our HDB home loans portfolio in 2010, which will be boosted in part by HDB's plans to launch at least one build-to-order project per month to meet the housing demand here,” said President Ian Macdonald.

The company also offers its customers an added sweetener of a $20 Millenium and Copthorne hotels gift voucher for every $100,000 loan.

Customers with small loans have not been left out. Those with loans less than $100,000, and up to 80 percent financing will now be offered a variable rate of 1.93 percent for the first year, and fixed rates from 2.33 percent for over two years.