Hi are you on the FDPR Rate UOB Loan? How many months FDPR is it? 36 months? And what is the spread? Recently, UOB mailed a letter and you can look into it. They have lowered the loan interest rate as well due to the lower FDPR. If yours is 0.85% as well for the spread, then the new rate will be 2% but the change will only apply from September 2020.
Go check your mails as you should have received it as well or call them up if you have not. There is usually a lag period of a few months between the FD change and the mortgage rate change. During the last 2 years when the interest rate was rising in the other mortgage loans, the rise in FD was also lagging behind by a few months. So actually it is slow to rise and slow to fall. Whether you find it good or bad is up to you, but you can always reprice the loan with UOB. I believe this is for you if you prefer a more stable and transparent interest rate.
Unlike SIBOR or board rate, the changes are infrequent and when they do change (with a lag period), the rates remain for a while. And it is easy to verify the rates they quote you. The rates may fall below 2% in the future but there will be some lag.The rates are usually not as low but they are not too high as well as compare to SIBOR or board rate. Because UOB will need to raise their deposit rates to charge more interest from loans. If there are many deposit holders relative to loan holders, they would prefer to keep their rates low to improve their profitability.
