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 income required
EMI limited to about 50% of monthly income
EMIs of other loans lower your eligibility
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.