Standard Chartered Home Loan
Since 1859, Standard Chartered Singapore has been providing more than a century of service in Singapore’s finance and banking sector, and has grown to be one of the most renowned banks locally and regionally.
They are also known for their MortgageOne and Home Suite packages for private properties, executive condominiums and HDBs, and one of the few banks in Singapore to offer HDB Bridging Loan packages to homeowners. Standard Chartered’s MortgageOne rates used to be linked to the SIBOR rate, but they’ve switched their housing loans to the Singapore Overnight Rate Average (SORA) rate ever since the recent nationwide interest rate reform.
As a first-time home loan buyer or someone looking to refinance your existing home loan, you may find something suitable in Standard Chartered’s range of home loan packages.
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Why Choose Standard Chartered Home Loans?
As part of Standard Chartered Group, an international banking group based in London, Standard Chartered Singapore is one of the well-known banks locally and globally with a longstanding commitment of providing financial expertise to its customers, including commercial property loans and personal housing loans.
Moreover, it is known for offering benefits such as offsetting your mortgage loan interest while you save, referral reward of up to $1,300, its Deposit Insurance Scheme which provides coverage for your deposits in your account with Standard Chartered, and more.
More than a century of credibility
With over 160 years of track record as a renowned bank offering financial services including housing loans in Singapore, Standard Chartered Singapore has the "A" and "A+ '' credit ratings by Standard & Poor’s and by Fitch, which are among the highest in the world.
What’s more, it has been accorded the “Significantly Rooted Foreign Bank” (SRFB) status by the Monetary Authority of Singapore.
MortgageOne all-in-one features
MortgageOne is a home loan package for private residential property that also works as a savings/current/payroll transactional account. It allows you to offset your mortgage loan interest while you save.
Your savings in the MortgageOne deposit account are insured up to S$75,000 under the national Deposit Insurance scheme.
Member-Get-Member Referral promotion
If you’re already financing your home with a Standard Chartered mortgage package, you’ll get to enjoy some perks when you refer your family and friends to take up a residential property loan (whether it’s a new purchase or refinance of home loans) with Standard Chartered.
Other terms and conditions apply.
HDB Bridging loans
While most banks provide bridging loans only for business enterprises, Standard Chartered is among the few banks which offer bridging loans for HDB homeowners to pay for the downpayment of a new property purchase while waiting for the sale proceeds from the existing property (another flat from the HDB resale market or directly from the HDB).
Fixed Deposit-linked interest rate (36M FDR)
36M is one of the home loan interest rates offered by Standard Chartered, which refers to the prevailing 36 months Singapore Dollar fixed deposit interest rate of Standard Chartered bank.
Besides this 36-month FDR, Standard Chartered offers the 9-month FDR and 48-month FDR as well.
Standard Chartered Private Property/Executive Condominium Home Loans
Whether you’re considering getting a private residential property or an executive condominium, Standard Chartered offers both floating and fixed housing loan rates for these properties.
Standard Chartered’s SORA-pegged vs floating-rate packages
Standard Chartered’s SORA-pegged packages are based on the SORA rate which is known as the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market. As the 3-month (3M) SORA rate is calculated and updated by the Monetary Authority of Singapore (MAS) every 3 months, your Standard Chartered SORA-pegged package and interest rate will be updated every 3 months as well.
Note that Standard Chartered also charges a mark-up, which is called a “spread”, on top of the 3-month SORA rate. Together, these 2 components form the total interest rate which determines your monthly payments.
Although both Standard Chartered’s 36M FDR rate and the SORA rate are validated by MAS, the 36M FDR rate is a board rate, which is still entirely determined by Standard Chartered and is subject to changes anytime.
Here’s an example to illustrate.
You and your partner plan to buy a landed property costing $1,500,000, and the total monthly income for both of you add up to $15,000. Assuming that you’ve picked the 2-year FDR (36 FDR* + 0.68% p.a.) package with an interest rate of 1.40% p.a.
After Standard Chartered assesses your loan-to-value (LTV) ratio, which is your maximum borrowing capacity (75% of the property price), you’re eligible for your preferred 2-year FDR (36 FDR* + 0.68% p.a.) package with a loan amount of $1,125,000 and a tenure of 25 years. The estimated math will be as follows with the help of MoneySmart’s Mortgage Calculator.
$300,000 by CPF + $75,000 in Cash = $375,000
(at least 5% of the property price to be paid in cash which comprise of the option fee & option exercise fee, and 20% to be paid in CPF)
Your estimated monthly instalment:
It’ll be $4,446.62
(based on the 36 FDR 0.72% + 0.68% p.a. interest rate which may fluctuate over time)
Your estimated total interest payable over 25 years:
It’ll be $208,985.47
Other one-time payments*:
$45,000 (buyer’s stamp duties) + $3,000 (legal fee) + $400 (valuation fee) = $48,400
Estimated total payment over 25 years:
$1,500,000 + $48,400 = $1,548,400
*Buyer’s stamp duties fee is usually about 3% to 4% of the purchase price of the private property - a form of tax payable to the government for registration of purchase of the property. Legal fees are often paid to property lawyers for the processing of the private property’s home loan. Banks will usually have their own panel of licensed valuers and the valuation fee for a private property can range from $200-$400 due to the valuation report required.
Standard Chartered HDB Home Loans
If you’re thinking of getting a HDB home loan, Standard Chartered has 5 types of packages including the 3-Month (3M) Compounded SORA loan, 36M FDR loan, 2-Year Fixed rate loan, 3-Year Fixed rate loan, and the 3-Month (3M) Compounded SIBOR HDB Bridging loan, which are alternatives to the HDB loan.
For example, you are keen on taking up a $300,000 SORA-pegged loan with Standard Chartered (2 years lock-in period) for a resale HDB flat and the tenure is over 20 years.
The 3-month Compounded (3M) SORA rate is 0.1313% (as of August 2021), the same rate that all banks in Singapore follow for any SORA-pegged home loan packages. Also, you’ll need to include Standard Chartered’s “spread” to the 3-month SORA rate (both will form the total interest rate, and determine your monthly instalment amount).
$60,000 by CPF + $15,000 in Cash = $75,000
(20% of the total loan among paid with your CPF and a minimum 5% of the total loan amount paid in cash)
Your estimated interest to pay for the first month:
Standard Chartered’s spread = 1.20%
3-month Compounded SORA = 0.1313%
0.1313% (3M Compounded SORA) + 1.20% (bank’s spread) = approx. 1.34%
1.34% x $300,000 = $1425.67
$1425.67 ÷ 12 months = $119
(based on the 3-month Compounded SORA rate which will fluctuate over time)
Other one-time payments:
$1,000 + $4,000 (option fee + option exercise fee) = $5,000
(this $5,000 is considered a deposit which forms part of the downpayment paid in cash i.e. $15,000)
Estimated total payment over 20 years:
$300,000 (principal amount) + $42,159.92 (in interest) = $342,159.92
*All above calculations are estimated using MoneySmart’s Mortgage Calculator.
Besides the SORA-pegged package, other floating-rate packages include the SIBOR-linked loan which you can have a look at below. If you’re more risk-averse, you may want to consider Standard Chartered’s fixed-rate loan packages instead of floating-rate ones.
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Standard Chartered Home Loans Refinancing
When should you refinance or reprice your home loan?
The best time to consider refinancing or repricing your home loan is when your existing home loan is nearing the end of its minimum lock-in period. If your mortgage charges you more than 1.30% interest, you’re likely to save by switching to a more competitive package.
So is refinancing or repricing better for you? This depends on how much you’re currently paying for your housing loan.
Repricing is less troublesome as it involves switching to a new home loan package offered by the same bank that you’re currently financing your home with. This may incur a repricing fee of about $1,000, but it is relatively straightforward.
However, if other banks are offering much lower interest rates that your bank can’t match, refinancing your housing loan with another bank may help reduce your monthly repayment amount. This does incur legal fees and can cost $2,000 or more, unless the new bank is willing to subsidise your fees.
Refinancing your housing loan with Standard Chartered may help you reduce your monthly repayment amount by switching to a lower interest rate. Find out more about these rates and how you can go about refinancing your home loan at our Standard Chartered Home Loans Refinancing page.
How To Apply For Your Standard Chartered Home Loan
As a new home buyer or someone who is looking to refinance a home loan, the first few steps can be quite tedious at times. That’s why we’re here to make it a more hassle-free and pleasant experience for you.
Standard Chartered Home Loan Application Process and Fees
Here are 5 steps to the Standard Chartered Home Loan application process
Have your documents ready
Don’t worry if you’re uncertain of what to do at the beginning, get in touch with our mortgage team and we’ll guide you through the process.
Firstly, we’ll liaise with Standard Chartered’s mortgage specialists team on your behalf and recommend a list of their packages which are most suited to your needs, depending on your loan-to-value (LTV) ratio.
The documents required for application include:
- Standard Chartered mortgage loan application form
- NRIC and Singpass information
- Option to Purchase
- Proof of income (CPF contribution history up to the last 12 months, latest Income Tax Notice of Assessment, latest computerised payslip)
- Latest available statement for all existing credit facilities
- HDB flat information and financial information value confirmed by HDB / Private property information
Receive your Letter of Offer
After you’ve picked your preferred Standard Chartered housing loan, your application will be processed by our mortgage specialist team.
Then, you’ll sign the Letter of Offer, OTP and other related documents, and your home loan approval will be done at this stage. You’ll also need to pick an agreed time with the seller to submit the resale application (if you’re getting a resale flat or private property).
Fees and charges payable to various parties
An Option fee will be required to be paid to the seller once you’ve signed the Letter of Offer (or pay both the Option fee and Option Exercise fee to the seller, as well as the relevant buyer’s stamp duties fee, if you’re getting a private property).
Note that cancellation of the loan after signing the Letter of Offer will incur extra costs as you’re required to pay 1.50% of the undisbursed loan amount.
Fix your appointment dates
You’ll be informed by our mortgage specialist team and HDB (if you’re purchasing a HDB flat) of your property purchase completion appointment date.
For private property homeowners, your/Standard Chartered’s lawyer will inform you to pay the remaining downpayment in cash or CPF if you have not done so and schedule a date to sign mortgage documents at the lawyer’s office.
Complete your new home or resale purchase
It’s finally time to sign all the legal documents for the transfer of property, and paying of legal fees, valuation fees (if applicable). And you’re ready to collect the keys from the seller!
Standard Chartered will also send you the bank letter stating your loan disbursement and monthly instalment amount.
Why Get Your Standard Chartered Home Loan Through Us?
Simple, fast, convenient
Leave your home loan research to us and we’ll break it down for you in simple terms. Our Mortgage Specialist will contact you directly so you can save time for other important things in life.
Get better deals
Feeling so spoilt for choice you can't decide? Settling for the first option is like being forced to marry the first person you come across on a dating app. Don’t feel pressured. We compare across all housing loan packages offered by Standard Chartered, as well as different banks in Singapore. By doing so, we ensure that you get only the best Standard Chartered mortgage rates.
Our service to you is free. But, of course we’re not doing this for charity! All banks pay us a standard referral fee for our services and our awesome job done. We don’t take sides or give biased advice.
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Frequently Asked Questions
What is Standard Chartered’s 36M FDR rate?
- 36M FDR is Standard Chartered’s board rate that is a 36-month S$ Fixed Deposit (FDR) rate which is subject to changes anytime. It’s an alternative to other interest rate benchmarks like Singapore Interbank Offered Rate (SIBOR) or Singapore Overnight Rate Average (SORA).
What are Standard Chartered’s 9M FDR and 48M FDR?
- 9M FDR is Standard Chartered’s 9-month S$ Fixed Deposit Rate (FDR) rate, while 48M FDR is the average of Standard Chartered’s 48-month S$ Fixed Deposit Rate (FDR) board interest rates. The loan margin is known as the bank’s “spread” and is subject to revision by Standard Chartered anytime.
Should I reprice my home loan instead of refinancing it?
- With Standard Chartered, repricing lets you enjoy the new loan package within a month (if you’re an existing Standard Chartered home loan customer), while refinancing takes about 3 months. This means repricing allows you to enjoy interest savings earlier than refinancing.
Are there fees involved in repricing or refinancing my loan?
- Repricing may include a repricing admin fee of about $1,000, which is lower than all the fees involved in refinancing (which can total up to more than $2,000 for legal and valuation fees).
How is my Loan-to-value (LTV) ratio calculated?
- Loan-to-Value (LTV) is the amount of money you may borrow as a percentage of the current market valuation or adjusted purchase price of the property (whichever is lower). Your LTV may be up to 75% if you do not have any outstanding loan for the purchase of another residential property, subject to regulatory requirements and Standard Chartered's prevailing credit policy.
Can I use my CPF to make a partial payment of my housing loan?
- Yes, you may redeem your loan in part using CPF via the CPF website or the CPF branch office, without giving a 1-month notice.