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Looking for home loans and products that offer security?

The OCBC Bank outlet at Marina Bay Financial Centre.
The OCBC Bank outlet at Marina Bay Financial Centre. ST PHOTO: JAMIE KOH

With market volatility and rising interest rates, here are some products to consider if you are looking for security and considering a home loan.

AXA SMARTFAMILY BY AXA INSURANCE SINGAPORE

What: A personal accident plan with additional benefits for the family.

Axa SmartFamily is a personal accident plan that offers a suite of eight services, on top of financial coverage.

They are: arranging and paying to fetch children to and from school, home nursing, therapy services, doctor's home visits, home modification, transportation for medical appointments, housekeeping and consultation with a psychologist.

Axa believes that these services are essential to a person's recovery. Studies have shown that at least one-third of all people involved in non-fatal accidents have post-traumatic stress disorder and persistent anxiety even one year after the accident.

There are three plans with different sums insured - $250,000, $500,000 and $1 million - for families to choose from. Policyholders decide on the services they would like to claim, as long as they are within the total coverage they purchased.

MAX SINGLE PREMIUM YIELD BY OCBC BANK

What: A three-year single-premium endowment insurance plan that pays guaranteed yearly benefits at the end of policy year one and two.

The annual guaranteed benefit is 1.7 per cent at the end of policy year one and two, and the projected maturity yield is 1.7 per cent at the end of the third year.

The minimum premium is $10,000 funded by cash and money in the Supplementary Retirement Scheme. A higher premium of $20,000 is required for those 68 and older.

OCBC says the plan will pay out a guaranteed maturity benefit of 100 per cent of the single premium and a non-guaranteed bonus upon maturity.

"This product is suitable for those who are looking for an endowment with a short time frame with both security and good returns. This plan enables our customers to explore alternative options without worrying about losing their principal sum upon maturity of the policy," said OCBC.

Customers will enjoy basic protection against death and total and permanent disability.

FIXED DEPOSIT-LINKED HOME LOAN BY OCBC BANK

What: A home loan pegged to a fixed deposit rate.

The home loan is pegged to OCBC's 36-month Singapore-dollar fixed deposit rate (currently 0.65 per cent) for amounts between $5,000 and $20,000.

Customers are charged this rate plus a spread of 1.03 per cent, which works out to 1.68 per cent per annum, for three years. The interest rate is then the 36-month fixed deposit rate plus 1.5 per cent.

There is a two-year lock-in period where a penalty of 1.5 per cent of the amount redeemed will be imposed for full redemption of the loan.

However, partial payments are allowed during this period, up to half of the outstanding loan. The bank also offers a one-time free conversion to another loan package if the fixed deposit rate rises.

DBS Bank has been offering home loans pegged to fixed deposit rates since last year.

A version of this article appeared in the print edition of The Sunday Times on December 06, 2015, with the headline 'Looking for home loans and products that offer security?'. Print Edition | Subscribe