OCBC joins other local banks in upping rates for its fixed-rate mortgage

SINGAPORE – OCBC Bank has joined DBS and UOB in raising rates for its fixed-rate mortgages.

The rate for OCBC’s two-year fixed package has been hiked by 0.33 percentage points to 2.98 per cent – the same as the revised rate from UOB.

DBS was the first of the three local banks to move on mortgages, raising the rates on its two- and three-year fixed packages to 2.75 per cent on Tuesday night (June 28). It also axed a five-year fixed rate package at 2.05 per cent exclusively for HDB homeowners.

Home loan rates have been steadily rising since the fourth quarter of last year when three-year fixed deals were at 1.15 per cent.

The moves by the three local banks follow aggressive rate rises by the US Federal Reserve as it tackles surging inflation.

This is raising expectations of another aggressive rate increase when the Fed meets on July 26 and 27.

The Fed has raised rates three times so far this year, by a total of 1.5 percentage points.