Definition
Deviated Rates
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Deviated rates refer to interest rates on loan products such as mortgages that are lower than what are publicly published and advertised to general consumers.
This means that If a bank is offering 3% on home loans, which are seen on marketing banners and brochures, a deviated rate might be 2.75%.
This positive relation of the term deviated rate against “lower than standard rate” is a big reason why even the most sleepy of borrowers often have their eyes wide open with excitement upon hearing it.
Most borrowers who are on the lenders’ preferred clientele profile like premium banking customer would often have access to these interest rates should they be available.
This is because deviated rates are not something that lenders offer all the time.
For example, a lender might suddenly become competitive and broadcast an internal memo about deviated rates for one month in order to help mortgage bankers close more deals for the month.
This means that any borrower who expressly makes a request to a banker to offer better rates might be able to obtain it.
However do note that bankers have their own decisions to make on whether to offer them to borrowers as closing loans lower than the standard published rates can mean a lesser commission.
Because Singapore housing loans often consist of an index rate, the deviated component of the loan is usually a low spread.
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