DBS was established as Development Bank of Singapore Limited in the year 1968 by Economic Development Board, with the aim to strengthen the industrialization of the country by offering the required baking services for existing and new industrial, processing and manufacturing units. DBS is known for having played a fundamental role in reinforcing Singapore’s economic growth and bringing in foreign investments into the industrial sector. Ultimately, owing to its growth from being limited to its presence as a region-centric bank
Today, DBS is recognized for its principal market position in the South East Asian banking scenario as one of the largest banks in Asia. DBS merged with POSB in the year 1998, and went ahead to become the bank with the highest number of branches in Singapore, with nearly 2300 branches and self-servicing centres. Its substantial chunk of more than 4 million customers in the Asian hemisphere and operational stronghold was awarded with the title of ‘Safest Bank in Asia’ from the year 2009 to 2014 by Global Finance.
Less than 65 years
Salaried / Self-employed
with regular income
Earn more than the minimum
EMI limited to about 50%
of monthly income
EMIs of other loans lower
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 30 years
Alternatively add your parents
|Interest Rate||2.08% P.a for first 5 years|
|Margin of Finance||Upto 80%|
|Loan Tenure||25 years|
DBS is Singapore’s largest banks and offers a spate of banking and financial products to Singaporeans, Permanent Residents and Foreigners. Home loans are one of the various credit products that the bank offers. The bank offers housing loans to help Singaporeans finance the purchase of a new property, the purchase of a HDB flat or construct a new home. If you are looking for a home loan in Singapore, DBS might be the ideal option for you. Besides giving you the option of taking a loan to finance the purchase of your property, the bank also allows you to refinance your home loan.
Let’s take a look at some salient features of the DBS Home Loan product. We look at the interest rates, and various benefits associated with choosing DBS for your home loan.
The private property home loan offered by DBS lets you purchase a private property in Singapore. The bank funds up to 80% of the value of the property.
The private home loan offered by DBS essentially comes with two interest rate packages, which we will look at a little later.
DBS also provides you with a loan to purchase your HDB flat. The interest rate is pegged to DBS Bank’s fixed deposit interest rate. You can either fund a made-to-order HDB flat or a resale HDB flat with the DBS HDB Home Loan.
HDB Loans come with a lower rate of interest and concessionary rate packages. There are basically two types of rate packages on HDB Loans – the floating rate package and the HDB Concessionary Floating Rate Package.
If you have an existing loan with another bank, you can refinance your home loan with DBS at a lower rate of interest.
Waiting for your old property to sell before you buy a new one? DBS Bridging Loan can help you make the down payment for the new property, wherein you can repay the principal once you receive the sale proceeds for your existing property.
DBS offers two interest rate packages on its home loans – a fixed interest rate package and a floating rate package.
Under the floating rate package, your interest rate will be pegged to DBS Bank’s fixed deposit interest rate and it is capped at 1.72% for the first two years.
The rate on the home loan is pegged to DBS Bank’s 9-month fixed deposit rate. This interest rate is for purchase of a property.
If you wish to purchase a property which is under construction or you wish to construct your property, the interest rate will be slightly more than the existing rate on purchase of a private property. Here is a detailed look at the interest rates offered on home loans by DBS.
You can also choose a fixed interest rate package. Under the fixed rate package regime, the interest remains fixed throughout the loan tenure. You can also pre-close the home loan if you wish.
|Interest Rate Package||First-Year Interest Rate (p.a.)||Second-Year Interest Rate (p.a.)||Third-year Interest Rate (p.a.)||Interest Rate from the fourth year onwards (p.a.)|
|Fixed Rate Package||1.68%||1.68%||1.68%||FHR9+1.55%|
|Floating Rate Package||FHR9+1.07%||FHR9+1.07%||FHR9+1.07%||FHR9+1.07%|
|Floating Rate Interest Package with a 2-year lock-in period||FHR9+1.15%||FHR9+1.25%||FHR9+1.25%||FHR9+1.25%|
Note that under the floating rate package, the interest ceiling is 1.72% i.e. your interest rate cannot overshoot 1.72% for the first two years.
The DBS HDB Home Loan interest rates essentially come in two interest rate packages. The interest, similar to private property home loans, is capped at 1.72% for the first two years.
The HDB Concessionary Loan rate is pegged at 2.6% – this is the existing CPF interest rate of 2.5% +0.1% (additional interest rate charged by DBS). Here is a detailed table of how the interest rates for an HDB Flat look:
|Interest Rate Package||Interest Rate (p.a.)|
|HDB Concessionary Loan||2.6%|
In the case of the HDB Loan, DBS funds up to 80% of the value of the HDB flat. In the case of HDB Concessionary Loan, DBS funds up to 90% of the value of the flat.
|Altering loan tenure||S$250|
|Administrative fee for third party insurance||S$300|
|Request for home loan statements||Current year statement – S$20 Statement for the last two years – S$30 Statement requested for a period of more than 3 years prior – S$50|
The following eligibility parameters need to be met in order to qualify for a home loan with DBS:
You can make monthly repayments through internet banking or through the DBS mobile application. You can also make an agreement with the bank where in the money towards your home loan monthly repayment will be automatically deducted from your savings bank account.
DBS gives you the option of refinancing your private property home loan at interest rates similar to rates available on the fixed rate package and floating rate packages.
The loan tenure varies from one loan product to another. The loan tenure for DBS Commercial & Industrial Property Loan is up to 25 years.
Applicants would need to avail for a minimum DBS HDB loan amount of S$100,000.
If you have been paying a higher interest rate on your existing home loan from another bank as compared to the market-prevalent rate, you can apply for a refinancing loan at DBS once your lock-in period with the current bank is over.
A. No, the bank will fund a maximum of 80% of the value of your flat. In the case of a HDB Concessionary Loan, the bank will fund up to 90% of the value of your flat.
A. Yes. You can choose an interest rate package of your choice. You can either choose a floating rate package or a fixed rate package. You can also change the package of your loan any time during your tenure.
FHR9 is the current DBS 9-month Fixed Deposit Interest Rate for deposit amounts between S$1,000 and S$9,999.
A. You will need to have a clean credit history for a minimum period of 1 year if your application has to be accepted.
A. Yes, you will have to apply for a life insurance policy or a term life policy separately. If you wish to apply for a home insurance, you’ll need to apply for that separately too.
DBS’s profits came down by 25% in the quarter ending September 30, due to bad debts in the energy sector.
Piyush Gupta, the bank’s chief executive, said they took a conservative approach towards the loans they extended to oil and gas companies, and cleared all cases during Q3. He also said that no more debts are likely to be extended to the energy sector in the near future.
The silver lining is the prediction that income would be up by 3% this year and loan growth would be around 7% to 8%.
Although DBS’s share of the home loan market increased to over 30% from 27% a year ago, net profit fell by 25% during the same period.
Despite the dips in overall results, analysts are positive that DBS’s core operating model is strong.
09th November 2017
DBS Bank announced the appointment of Taimur Baig, a renowned face in Singapore’s finance domain as its chief economist for group research. Baig will report to Timothy Wong, managing director at DBS Bank. The position of chief economist at DBS Bank opened up after the retirement of David Carbon.
Baig has close to two decades of banking experience in different parts of the world. In Singapore, Baig worked for commercial banks such as Deutsche Bank AG and in Washington DC he worked at the International Monetary Fund (IMF) for close to nine years as a senior economist. He also worked as an intern at World Bank in 1997 after finishing his studies.
Before joining DBS, Baig was working as a principal economist at Monetary Authority of Singapore (MAS). Baig’s expertise include fixed income analytics, international finance, economics of financial crisis, macro risk spillover and more. Baig has a stellar CV with a doctorate in economics from the University of Illinois at Urbana-Champaign, and a Bachelor of Arts degree from the prestigious London School of Economics.
Timothy Wong welcomed the appointment of Taimur Baig as chief economist and acknowledged his strong grasp of Asian economies and stated the immense value he will bring to DBS Bank.
31st October 2017
The bad loans market, or the woods of non-performing assets, seems to be impacting Singapore’s DBS Bank. The number of bad loans shot up since the previous quarter to 1.5%, as highlighted in its June earnings.
The bank’s South and South-east Asia portfolio reveal that the loans associated with non-performing assets escalated by one whole percentage point in just 3 months to 4.6%. This reflects upon DBS’ soured loan troubles in India. Besides, the first half witnessed a near-tripling of write-offs. Thus, the $4.83 billion in non-performing assets is considerably higher than a year earlier.
Besides, credit costs would remain elevated on loans to Singapore's troubled offshore and marine industry, due to lower oil prices. In addition, the property market in Singapore might be bottoming out, without a robust recovery in picture.
Moreover, the bank has been pushing initiatives into private banking. They bought Australia and New Zealand (ANZ) Banking Group’s retail and wealth management franchise in some Asian markets last October. This move is paying off well for the bank. However, trading and equity underwriting remain weak spots.
Furthermore, the bank’s short-term interest rates have failed to keep pace with the London Interbank Offered Rate, which in turn negatively impacts profitability. Short-term interest rates are usually considered benchmark for loan pricing. The net interest margin stood at 1.74 per cent in the June quarter. This was a 13-basis-point decline from the previous year.
22nd September 2017
Much to the advantage of home buyers in Singapore, two of the top banks offering home loans at competitive interest rates to Singaporeans, DBS and UOB, are combating to provide better interest rates to customers.
Both DBS and UOB are vying to offer lower interest rates, with an intention to capitalise on the two new property launches taking place this year. The stake here is 1,225 homes from the two launches that are due to take place.
DBs and OCBC, in order to take competition to a new high, are offering a near-0% rate on their Fixed Deposit – Home Loan Rate packages. The current rates offered by DBS and UOB are 0.6% and 0.65% respectively.
The 0% spread is applicable until the time the property receives its temporary occupation permit, which usually takes about three to four years. Also, DBS’s provision of 0.6% is aligned with its 18-month FHR package while UOB’s 0.65% is aligned with its 36-month FHR package.
After the property receives its temporary occupation limit, the DBS loan spread is 1% and in the case of UOB, it is 0.9% for the first year, and 0.95% from the second year onwards.
16th August 2017
With Singapore looking at becoming a global leader in the financial world, it is taking steps to nurture talent in the field.
DBS Bank is taking the lead in this endeavour, with the launch of the DBS Academy, a 4,000 square foot centre for learning. Speaking at the inauguration, Mr. Tharman Shanmugaratnam, the Deputy Prime Minister and Coordinating Minister for Economic and Social Policies, highlighted how companies play a key role in shaping innovation in societies, and how such initiatives would help in shaping the future of the nation.
The Academy is looking at preparing employees for the future, providing them with the skill sets needed for the digital age through experiential learning.
DBS plans on opening up the Academy to partners like SMEs and Social Enterprises.
With technology changing the way business is being conducted, Asian banks face more competition, the need to train a skilled workforce is especially important.
To achieve this, DBS will be coming out with SkillsFlex, a partnership with NTUC LearningHub. This programme will complement SkillsFuture.
DBS bank staff will receive S$500 of course credits for customised courses as part of the SkillsFlex programme, which are in addition to SkillsFuture Credit courses.
10th December 2015
One of Singapore’s icons, the Raffles Hotel has been bought by the French-based AccorHotels. In an announcement in Paris on Wednesday, the group revealed it is acquiring FRHI (Fairmont Raffles Hotel International) Holdings for $2.9 billion.
As a result of this acquisition, AccorHotels will be the owners of the luxury Fairmont, Raffles and Swissotel brands of hotels.
FRHI, which is owned by Qatar Investment Authority (QIA), Kingdom Holding Company (run by the Saudi billionaire Prince Alwaleed bin Talal) and Oxford Properties, has over 155 properties, of which 40 are under development. The Savoy in London and The Plaza Hotel in New York along with the Raffles Hotel are a few of the iconic properties in its portfolio.
The acquisition has been described by AccorHotels as a strategic deal aimed at creating a world leader in the luxury segment.
AccorHotels will be issuing 46.7 million new Accor shares and paying $840 million in cash to acquire the company. Qatar Investment Authority and Kingdom Holding Company would be majority stakeholders, the former holding 10.5% and the latter 5.8% of the share capital.
Raffles Hotel, built during the British occupation of Singapore, is a 128 year old landmark that was declared a national monument in 1987. Over the course of its long history, it has played host to a veritable roll call of royalty and celebrity, from Rudyard Kipling to the Duke and Duchess of Cambridge.
Owned by the DBS Bank in the 1970s, the hotel has changed hands a number of times during its long history. The new millennium has seen it being owned by foreign firms like Colony Capital, Kingdom Holding and the Qatar Investment Authority.
10th December 2015
SME owners in Singapore can now easily apply for eleven types of DBS loans using the bank’s online portal. The bank has launched a new online service which enables borrowers to apply for loans without a signature. SMEs can apply for micro loans, business loans, property loans, overdrafts, import and export lines, equipment loans, factoring, foreign exchange, vehicle financing and business credit cards using this service. Enterprises can also track their loan applications online and set alerts to get immediate notifications from DBS.
This new introduction from DBS will benefit SME owners in a big way as they can save time on paperwork and also not face the hassle of signing multiple forms. As an industry pioneer, DBS has redesigned the loan application form, lessened the number of fields to be filled and reduced the loan application time to just ten minutes using the online service. The backend system of DBS’s online loan application process has also been linked to the Account and Corporate Regulatory Authority's database to fasten the processes.
DBS is the largest provider of micro loans to startups and SMEs in Singapore. While availing a micro loan, applicants generally have to fill two forms namely the DBS loan application form and the Local Enterprise Financing Scheme form. But under the new online service, these have been combined into a single form with the elimination of redundant fields. DBS has received positive feedback from customers using the online loan application process, with customers stating that the application process can be completed in just five minutes. DBS extends this online application service only to enterprises that have been registered and are operating in Singapore.
05th August 2015