After you have signed your Letter of Offer with UOB, your lawyer will proceed to complete the legal work on the purchase of your property.
When UOB makes a loan disbursement, it will send you a Loan Disbursement Advice which provides information on the loan amount disbursed for the purchase of the property, your monthly instalment and the due date for your monthly repayment. Hence, please ensure that you update the Bank on your mailing address.
For completed properties, it takes approximately ten weeks from acceptance of the Letter of Offer for the loan to be disbursed. You will receive a disbursement advice and notice to commence monthly repayment for your home loan.
For uncompleted properties on the progressive/deferred payment scheme (for loans accorded the deferred payment scheme prior to 26 Oct 2007), you will receive a disbursement advice and notice to commence monthly repayment for your housing loan when the Bank disburses the loan.
Q2. How can I service my monthly instalments and avoid late payments?
You can service your monthly instalments with your CPF funds, by cash or cheque payment at any UOB Group branch, or through your designated repayment savings/current account with UOB. Your cheque should be made payable to “UOB Ltd”, with your home loan account number written on the reverse of your cheque.
To avoid late payments, please remember to maintain sufficient funds in your designated repayment account with UOB and/or CPF account every month. The payment due date for a private property loan is the first day of each month (e.g., 1 March). For a HDB property loan, the payment due date is the 15th day of each month (e.g., 15 March). If the payment due date falls on a Saturday, Sunday or Public holiday, the payment due date will be re-scheduled to the next business date.
Q3. What if, due to some reasons, I am late in making my repayment?
Late charges will be imposed from the payment due date. For more information, please refer to the terms and conditions attached to your Letter of Offer.
Q4. I have a sum of money and wish to pay down my loan. What should I do?
Before making a partial prepayment for your home loan, please check your Letter of Offer for any prepayment penalty clause and/or applicable charges.
To do a partial prepayment, please complete the Capital Partial Prepayment Form which is available at any UOB Group branches. As stated in your Letter of Offer, you have to give one month’s written notice to the Bank on your intention to do a partial prepayment.
If you wish to make your partial prepayment via cheque, please send your cheque with the completed Capital Partial Prepayment Form to our Home Loan Specialist at any UOB Group branches. If you would like us to debit from a designated UOB account for your partial prepayment, please indicate your designated account number in the Capital Partial Prepayment Form or give us your written authorisation before the payment deduction date. Please indicate your home loan account number and your designated account number for debiting in your written authorisation to the Bank.
Please note that after your loan prepayment, your existing monthly instalment arrangement with the Bank will still prevail, unless otherwise stipulated.
Q5. I would like to reduce my loan amount using my CPF monies. How do I do that?
You have to submit the completed Capital Partial Prepayment Form (available at any UOB Group branch) to the Bank, as well as the CPF Form 4B (for private property loan) or HBL/4 Form (for HDB property loan) to the CPF Board. The Bank reserves the right to refund the CPF monies if there is no prepayment instruction.
The CPF Form 4B and HBL/4 Form are available from the CPF Board’s website.
Q6. How do I know whether or not my loan is within the penalty period for partial/full prepayment?
You can:
(i) refer to your Letter of Offer;
(ii) check with the bank's Home Loan Division or contact the Bank's Call Centre
Q7. I wish to pay off my loan. How do I proceed?
As stated in the Letter of Offer, you have to give the Bank three months’ written notice to redeem your loan or pay three months’ interest in lieu of notice. Please appoint a lawyer to act for you in your loan redemption and to provide the date for completion. The Bank will appoint its lawyer to act for the Bank if your lawyer is not on Bank’s panel. The lawyer(s) will handle the legal documentation for the discharge of the mortgage and release of the title deed. Please check your Letter of Offer for any applicable fees/refunds to be made to the Bank. Please also note that all legal fees (including fees for the discharge of mortgage) are to be borne by you.
During the redemption process, the Bank will provide only one preliminary statement to your lawyer three weeks before the completion date and one final redemption statement on the actual day of completion. Any subsequent requests for additional redemption statement(s) or changes in completion date will result in additional fees being imposed. Please note that you are required to serve a fresh notice to the Bank if your loan is not redeemed upon the expiry of the three months’ written notice.
Please note that the Bank will not accept any request for capital partial prepayment(s) after we have received your notice of redemption. Any capital partial prepayment notice(s) received prior to our receipt of your redemption notice will be treated as cancelled.
The Bank’s final claims may include any unpaid insurance premium and related borrowings such as credit card overdue amount. Your cashier’s order(s) for your full settlement must be received by the Bank before 10am on the day immediately after the date of completion, otherwise additional interest will be payable. For a completion date that falls on a Friday (before the weekend) or the eve of a public holiday , you may arrange with your solicitor to provide advance written authorisation to the Bank to debit from your designated account. This will avoid payment of additional interest accruing over the weekend or public holiday.
If your credit facilities or loan is fully paid-up, you may wish to engage a lawyer to discharge your mortgage with the Bank. Otherwise, please note that there is an annual custody fee payable for Title Deeds that continue to be kept with the Bank.
Please liaise directly with your insurance provider if you wish to terminate your fire insurance policy after your loan redemption.
Q8. How do I proceed to use my CPF funds for monthly repayments and what if I wish to make changes?
Please inform your lawyer of your intention to use your CPF funds to service your home loan at the point of your loan application. If you have not done so at the point of your loan application, you can:
- engage a lawyer to write to the CPF Board for approval; and
- obtain approval from the Bank that you will be using your CPF funds to service your monthly instalments through your UOB Personal Banker or Home Loans Specialist at any UOB Group branch.
Please note that all legal costs will be borne by you and a processing fee will be charged by the Bank.
If you have a private property loan and wish to change the monthly amount payable with your CPF funds, please complete and submit the CPF Form 4B which is available from the CPF Board’s website.
For a HDB home loan, if you have already signed and given the Letter of Authorisation to the Bank, a change in the amount payable with your CPF funds and a change in your monthly instalment amount will be updated automatically whenever there is a change in the Bank’s board rate. If there is no Letter of Authorisation, you and your co-lessee(s) need to complete and submit the HBL3 Form, which is available from the CPF Board’s website.
Q9. What happens if there is a shortfall in my CPF contributions towards my monthly instalment?
The Bank will apply the funds received from your CPF account towards your monthly instalment. Any shortfall in your monthly instalment repayment will be debited from your designated savings/current account linked to your home loan account with the Bank.
Q10. How much of my CPF funds can I use?
You can use your CPF funds for either lump sum payment(s) or monthly instalment payments.
The above is subject to changes in the CPF guidelines. Please visit www.cpf.gov.sg for more information.
Q11. What is the next step after I have signed the Letter of Offer?
Your appointed lawyer will advise you on the steps to complete the conveyancing procedures. (Conveyance: The legal process in which ownership of the property is transferred from the seller to the buyer. Generally undertaken by a lawyer.)
Q13. How do I go about changing my loan tenor?
Please submit your written instruction to the Bank. A processing fee will be charged by the Bank for processing your request.
Q14. I have fully settled my housing loan. What is the next step?
Please instruct your lawyer to write to the Bank. The Bank will appoint its lawyer to act for the Bank, if your lawyer is not on Bank’s panel. The lawyer(s) will handle the legal documentation for the discharge of the mortgage and release of the title deed. Please also note that all legal fees (including fees for the discharge of mortgage) are to be borne by you.
Source
