HONG Leong Finance has unveiled a new HDB loan package with one of the lowest rates in town.
The finance company’s latest offering is aimed at one of the hottest segments of the market, with intense interest in projects such as the new flats to be built at Dawson estate in Queenstown.
Last week, it unveiled a loan package for the other end of the spectrum – the good class bungalow market.
For HDB buyers, it is now offering variable rates for loans of $100,000 and above, with up to 80 per cent financing, at 1.33 per cent, 2.03 per cent, and 2.63 per cent a year for the first, second and third year respectively.
This is another step down in rates from the company’s offer last month, when rates for an equivalent loan were 2.13 per cent and 2.83 per cent for the second and third year respectively.
A borrower looking for a two-year fixed rate loan from Hong Leong will now enjoy a rate of 2.13 per cent in the second year, down from 2.63 per cent.
By comparison, DBS Bank offers a two-year fixed rate of 2.9 per cent for a loan with up to 60 per cent financing, its website says. This is for owner-occupied homes which have been completed.
Hong Leong said the increased activity in the HDB market had led to more inquiries for HDB home loans.
‘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 is also offering customers an added sweetener of a $20 Millennium and Copthorne hotels gift voucher for every $100,000 loan.
Customers taking out small loans have not been left out. Those borrowing less than $100,000 with financing of up to 80 per cent will now be offered first-year variable rate of 1.93 per cent, and two-year fixed rates from 2.33 per cent.
Hong Leong’s earlier promotion rewarded its customers with KrisFlyer air miles and spa vouchers.
Source: Straits Times, 19 Dec 2009