OCBC offers ringgit loans for Singapore housing

PETALING JAYA (Jan 14, 2014): OCBC Bank (Malaysia) Bhd is expanding its ringgit loan facility for residential properties in Singapore in line with its positioning as a global premier mortgage provider for overseas properties.
OCBC Bank already offers overseas financing in two other major countries, Australia and United Kingdom, and the Singapore financing facility is expected to be similarly well received by the Bank's premier banking customers.
According to OCBC Bank Consumer Financial Services head Charles Sik the introduction of the OCBC Overseas Property Financing – Singapore is a natural progression of the facility since Asian investors have always had an eye for Singapore.
"Singapore is a global city and a natural 'magnet' for investors. According to research, the country has always been one of the top three choices for investors from Malaysia, Indonesia and Hong Kong. We view this finding as fundamental to our decision to offer the OCBC Overseas Property Financing - Singapore scheme.
"I am happy to include that our Australia and London property loan schemes, launched in recent years, were popular and did well to meet the demands of our customers," he said.
With the OCBC Overseas Property Financing schemes, customers can take advantage of the Ringgit-based loans, mitigating the effects of fluctuating foreign exchange risks.
OCBC Bank Currency Economist Emmanuel Ng said OCBC has an end-2014 SGD-RM forecast of around 2.6365.
"Moving ahead, the currency universe may be preoccupied with the prospect of the US Federal Reserve tapering and we think this may grant inherent support to the broad dollar in the coming year.
"To this end, we would expect the SGD to marginally outperform the RM in this landscape and would expect the SGD-RM to trade in the upper half of a 2.5500-2.6500 band by the end of 2014," he said.
According to DTZ Research, via their Property Times Singapore Q1 2013 report, property prices in Singapore are expected to remain resilient despite the cooling measures being introduced by regulators. Barring further government measures and with interest rates still remaining low, purchase demand is expected to be sustained, especially from the first-time buyers unaffected by the cooling measures. Prices of new projects are expected to hold up, especially for those that are well-located, such as near transport hubs and amenities.
The OCBC Overseas Property Financing - Singapore facility offers a margin of financing of up to 70% and a loan tenure of up to 35 years or up to the time the borrower turns 70, whichever is earlier.