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Dbs Housing Loan Rate: Dbs Interest Rates for Housing Loan

 In Home Loan

Whether you’re a first-time buyer, purchasing a new home, or investing in a dream home, you’ll occasionally want additional funding for home improvements. DBS home loans might assist you in realizing your dreams.

In June, DBS released new fixed rates and updated floating housing loan rates that are quite competitive. The latest DBS home loan packages, according to their website, provide 1.68% fixed for up to 5 years! This is one of the lowest fixed rates on the market today, demonstrating DBS’ commitment to remaining a market leader.

 

DBS is Singapore’s largest bank, with total assets of $646 billion (as of its most recent annual report). DBS’s strong lending track record and consistently low-interest rates make it an excellent choice for house loans for prospective homeowners. DBS, for example, offers some of the most affordable HDB and private home loans for completed residences or buildings under construction (such as BTO, DBSS, and EC flats), with fixed or floating rates, and with or without lock-in periods. While other financial institutions may provide lower initial rates, DBS is consistently among the most affordable in terms of overall home loan costs.

 

Their competitive DBS housing loan rates are capped at 1.40% to 2.0% for a floating mortgage loan package (depending on your loan tenure) and 1.30% to 1.68% for a fixed interest loan package.

 

DBS housing rates provides a lot of flexibility and options when it comes to choosing mortgage packages, including protection against income loss and up to a 3% reduction in income and house loan payment transactions, whether you’re wanting to purchase your first house loan or refinance your existing home loan.

 

Because the SOR and SIBOR rates are being phased out over the next 3 or 4 years, all DBS mortgage loans are now linked to their own fixed deposit interest (FHR6) rates and the Singapore Overnight Rate Average (SORA).

Why should you go with DBS Home Loans?

With $646 billion in total assets and over 10.7 million consumer banking clients, DBS is one of the most trusted banks in Singapore and Southeast Asia, with over 5 decades of financial knowledge as a significant lender. Furthermore, it is known for providing perks such as the DBS Home Payment Care plan, which provides coverage in the event that your income is lost, as well as bonus interest on your savings and more.

Mortgage bridging loans

Although it is common for most banks to provide bridging loans to businesses, DBS extends this facility of mortgage bridging loans even to homeowners to help them pay for the down payment on a new home while they wait for the sale of their current home. These loans have a 6-month period, are relatively short-term, and have modest fees and competitive interest rates. Currently, for purchase of all residential properties, DBS Prime Rate is 4.25%.

Singapore Dollar Fixed Deposit interest rate (FHR6)

DBS offers FHR6 as one of its home loan interest rates. For balances between S$1,000 and S$9,999, an alternative to other interest rate benchmarks such as the Singapore Interbank Offered Rate (SIBOR) or the Singapore Overnight Rate Average (SORA) is DBS Bank’s current 6 months fixed deposit interest rate, FHR6. Currently, FHR6 is 0.200% p.a. You can check the official site of DBS bank for the latest rate.

The SORA rate

The SORA rate, which is the volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market, is used to calculate DBS’ SORA-pegged packages. The 3-month SORA rate is updated every three months by the Monetary Authority of Singapore (MAS), which validates and calculates it, thus your housing loan rate and the package will be updated every three months as well.

Home loan offerings by DBS

Housing loans offered by DBS can be broadly classified as floating rate packages and fixed-rate packages. We have listed below a few of the housing loans and mortgage packages offered by DBS.

Floating Rate Packages for New purchase / Refinance of property

 

Lock-in Period

Interest rate (year wise)

Minimum Amount

Interest Rate Cap and Incentives

2-Year Lock-in

 

Year 1

FHR6 + 0.80% p.a.

Year 2

FHR6 + 0.90% p.a.

Year 3 onwards

FHR6 + 1.00% p.a.

S$100,000

1.40% p.a. for first two years

5-Year Lock-in

 

Year 1

FHR6 + 0.80% p.a.

Year 2 to Year 5

FHR6 + 1.00% p.a.

Year 6 onwards

FHR6 + 1.00% p.a.

S$100,000

2.00% in the 1st five years +

Waiver of commitment fee and prepayment fee

No Lock-in

 

Year 1 to Year 3

FHR6 + 1.60% p.a.

Year 4 onwards

FHR6 + 1.60% p.a.

S$100,000

3M SORA – 2-Year Lock-in

 

Year 1 to Year 2

3M SORA + 0.80% p.a.

Year 3 onwards

3M SORA + 1.00% p.a.

S$300,000

 

Fixed-rate packages for new purchase / Refinance of property

 

Lock-in years

Interest rate (year wise)

Minimum Amount

Incentives

2-Year Fixed Rate

 

Year 1 to Year 2

1.30% p.a.

Year 3 onwards

FHR6 + 1.60% p.a.

S$100,000

Provision to once reprice the housing loan rate after 24 months at no additional cost

3-Year Fixed Rate

 

Year 1 to Year 3

1.40% p.a.

Year 4 onwards

FHR6 + 1.60% p.a.

S$100,000

Provision to once reprice the housing loan rate after 36 months at no additional cost

5-Year Fixed-Flexi Rate

 

Year 1 to Year 5

1.68% p.a.

Year 6 onwards

FHR6 + 1.60% p.a.

S$100,000

Provision to once reprice the housing loan rate after 30 months at no additional cost + Waiver of commitment fee and prepayment fee

5-Year Fixed Rate

(Only for HDB)

 

Year 1 to Year 5

1.40% p.a.

Year 6 and thereafter

FHR6 + 1.60% p.a.

S$200,000

Provision to once reprice the housing loan rate after 60 months at no additional cost

 

Application process: How to Apply?

Applying for a home loan is a time-consuming procedure that is difficult to navigate on your own. If you’re interested in applying for one, we strongly advise you to connect with our mortgage broker partner by clicking the “ENQUIRE NOW FOR LOWEST RATES” button on this page.

 

Borrowers who want to apply for a DBS home loan must present personal identification, proof of income, and proof of personal debt. Those looking to buy a house must also submit extra paperwork, such as an option to buy or a sales and purchase agreement. A valuation report is required for anyone acquiring an HDB resale.

 

Individuals requesting a refinance loan for a private house must produce the original lender’s offer letter as well as the loan’s repayment history for the previous six months. For owner-occupied houses, borrowers must also furnish the IRAS My Property Portfolio. Finally, borrowers who are looking for a refinance loan must give their most recent CPF property withdrawal statement if they already have a term loan or are asking for one.

 

If the residence is owner-occupied, individuals wishing to refinance an HDB loan must present their most recent 6 months of loan repayment history, as well as their IRAS ‘My Property’ portfolio.

Conclusion

With so many different types of home loans being offered in the market, it’s easy to get confused about which will work out best for you, personally. From 20-year to 30-year home loan terms, there are all kinds of HDB housing loan rates, re-payment methods, and loan amounts, depending on if you are buying or upgrading your home.

For those who want to play it safe, a fixed-rate housing loan provides a sense of certainty, albeit at a little cost. We consistently advise our customers to select transparent housing loan solutions, such as fixed rates and SIBOR pegged rates.

 

Before choosing a home loan package, it’s critical to assess your existing financial status.

At Home Loan Whiz, our housing loan experts assist you in comparing all available mortgage rates in Singapore within minutes and come up with a solution that caters best to your needs.

wayne quek
Wayne is a Chartered Financial Analyst (CFA), and holds a Bachelor of Business Management (Finance) from Singapore Management University (SMU). A successful Relationship Manager during his time with DBS and HSBC, Wayne used his expertise in financial markets to help his clients build up comprehensive investment portfolios. The entrepreneur is also the founder of Home Loan Whiz, a mortgage consulting firm that assists clients with selecting ideal mortgages for their needs.
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