POSB Offers Best-Value HDB Home Loan Package at 1.99% p.a. for the First Year

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Opens Largest Home Loan Centre at HDB Hub

SINGAPORE, December 26, 2002 - POSB today unveiled its HDB home loan package with the most competitive rate at just 1.99 per cent fixed for the first year.

POSB's best-value HDB home loan scheme also packs in free fire insurance for the first two years, and a legal subsidy of up to S$2,500.

POSB's HDB home loan second-year rate is fixed at 2.50 per cent. Its third, fourth and subsequent years' rates are 3.00 per cent, 3.25 per cent and 3.75 per cent respectively, which are 1.00 per cent, 0.75 per cent and 0.25 per cent respectively off the POSB's HDB-home Mortgage Rate currently set at 4.00 per cent.

Mrs Lam Siok Loon, Managing Director of POSB, said: "POSB is committed to bringing best-value deals to our customers. We leverage on our scale and expertise to provide competitive home loan packages for our customers, so that POSB customers can enjoy greater savings on their monthly instalments."

Interest cost for the POSB HDB home loan package will be calculated on a daily-reduced principal basis. This helps to lower customers' monthly interest payments, thus allowing them to run down their loan balances sooner.

"Apart from attractive rates and value-added benefits, POSB customers also enjoy the convenience of our extensive and accessible network of branches which are located in all the major satellite towns.

"Most importantly, our customers can continue to enjoy the comfort of dealing with our friendly and experienced staff at their trusted neighborhood POSB branches," Mrs Lam said.

POSB today also opened a dedicated 3,000 square feet home loan centre at the HDB Hub @ the biggest home loan centre there. The POSB home loan centre is conveniently located on the first floor of the HDB Hub, near the sales display area.

"The POSB home loan centre will serve our customers right where the action is. Customers will be able to discuss and arrange their financing at one convenient location when they are here at the HDB Hub to attend to matters relating to their flats. Our POSB home loan specialists will also be able to approve loan applications by the next working day," said Mrs Lam.

As part of its launch promotion, the first 1,000 customers who accept the POSB HDB home loan will receive a Mitsubishi Electric Desk Fan. Customers who apply for and accept their loans at the POSB home loan centre will receive an additional gift. POSB is also offering customers discount vouchers, a renovation package with a special rate for the first two years, and a waiver of annual fees for the first three years when they apply for the POSB MasterCard.