• DBS Mortgage Loan

    Home Loan BYTES FROM OUR KITCHEN

    Overview of DBS Bank – The Development Bank of Singapore

    The Development Bank of Singapore, popularly known as DBS bank is one of the largest banks on the island. It was initially set up in the year 1968 to take over the activities of the industrial financing from Singapore’s Economic Development Board. In 1998, DBS bank merged with POSB (The Post Office Savings Bank) in a deal that was worth SGD 1.6 billion through which DBS bank obtained complete control over POSB. POSB now provides its financial solutions under the DBS banner. Prior to the merger, POSB provided financial services to its customers at low costs. DBS has promised to uphold the POSB tradition and serve its customers in the same manner. Through this merger, the bank gained a vast customer base of over 4 million and earned a dominant market share. In both Hong Kong as well as Singapore, DBS continuous to hold a dominant market position in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fundraising. The presence of DBS bank is spread across 18 markets in Asia alone with more than 280 bank branches. Though the headquarters of the bank is located in Singapore, the operations of the bank is spread over Greater China, Southeast Asia and South Asia. DBS bank provides an array of products and services, some of the popular ones include fixed deposits, savings accounts, expatriate programs, credit and debit cards, investments, insurance, loans, retirement plans and many more.

    DBS Mortgage Loan – DBS Private Property Home Loan

    Through the DBS Mortgage Loan you have access to a variety of home loan packages and extremely valuable advices that will aid in your decision making regarding your home loan. Through these valuable advices, DBS assures you in helping you make the best decision with respect to your home loan, a package that will suit your financial needs and requirements perfectly.

    Features and Benefits of the DBS Mortgage Loan

    The DBS Private Home Loan Packages include the following benefits –

    • Interest Rate Packages – You have the option of choosing from an array of fixed rate and floating rate packages that suit your specific financial needs and requirements.
    • You can use the home loan calculator provided by DBS to plan your budget and determine what package is affordable to you.
    • You have complete access to the DBS Home Connect, an app that walks you through all the steps of purchasing your dream home right from budgeting, comparing prices to even checking out the neighborhood. It acts like your personal assistant aiding you in making all the important decisions regarding your home.

    Applying for the DBS Mortgage Loan

    You can apply for the DBS Private Home Loan by contacting DBS bank through the following ways –

    • You can fill in the Contact Me form that is available on the DBS Singapore official website with your personal details. A representative from the bank will then contact you regarding the same and take it forward.
    • You can contact DBS bank via telephone from Monday through Friday between 9 AM and 5 PM and on Saturday between 9 AM and 12 30 PM. Their contact number is available online on the bank’s official Singapore website
    • You can visit your nearest DBS bank branch and apply for the DBS Mortgage Loan in person.

    Managing Your Mortgage with the DBS

    A mortgage loan is possibly one of your biggest financial commitments that you will undertake in your life. Therefore, it is important that you understand how to manage it from time to time in order to maximize your savings.

    1. Loan Repayment
      • Monthly Installments
      • What is a monthly installment payment?

        The monthly installment is the repayment you make towards your loan. This installment comprises of the principal amount + the interest rate. The principal amount that you repay goes towards your outstanding loan.

        When is the monthly installment payment due?

        1. If you have applied for a mortgage loan for a Private or a Commercial property, your monthly installment will be due on the first of each month.
        2. If you have applied for a mortgage loan for a HDB property, your monthly installment will be due on the 15th of each month.

        How to change your Loan Servicing Account

        If at any point in time you would like to change your Loan Servicing Account, you will need to complete the Loan Authorization Form that is available on the official DBS Singapore website and mail the completed original form to the bank.

        Also, please be aware that the following types of accounts cannot be used as your Loan Servicing Account –

        1. POSB & DBS Trust Account
        2. DBS Cashline
        3. Save As You Earn (SAYE)
        4. Children Development Account (CDA)
        5. POSB Current Account
        6. MySavings Account (MSA)
        7. POSBKids Account
      • CPF Contributions Towards Your DBS Mortgage Loan Repayment
      • How to revise your CPF Contribution towards your DBS Mortgage Loan Repayment

        1. In case of a private property loan, you will need to complete the Form 4B that is available on the CPF website or a link of the same is also available on the DBS Singapore website. You can also apply online through the official CPF Singapore government website by using your SingPass.
        2. In case of a HDB Loan, you will need to complete the HBL / 4 that is available on the CPF website or a link of the same is also available on the DBS Singapore website.

        Note: The aforementioned also applies if you want to change the ratio of the CPF funds between borrowers.

        When your mortgage loan is 100% serviceable by CPF funds, why is your bank account still debited?

        Your Loan Servicing Account can be debited if the monthly funds are not received by the bank through your CPF. During such circumstances, you will need to contact the CPF board. You can apply for the funds from the CPF Board as arrears payment for the amount that has been debited from your bank account. Upon the receipt of this amount, the bank will then make arrangements to refund the amount back into your Loan Servicing Account.

      • Capital Repayment
      • What is capital repayment?

        A capital repayment amount is an ad hoc repayment that you can make at any point in time in order to reduce the principal outstanding balance on your loan. Capital repayment can be made in cash or by using your CPF savings if you have obtained the approval from the CPF Board.

        Making a Capital Repayment

        When you wish to make a capital repayment, you can choose to make it through cash, your CPF funds or even a combination of the two.

        1. If you are making a capital repayment for a private property mortgage loan, the minimum partial redemption amount for the same is SGD 10, 000 and the incremental sum is in the multiples of SGD 10, 000.
        2. If you are making a capital repayment for a HDB mortgage loan, the minimum partial redemption amount for the same is SGD 10, 000 and the incremental sum is in the multiples of SGD 1000.

        You can make the capital repayment on your DBS Mortgage Loan by following the simple steps below –

        Step 1

        Complete and mail the Home Loan Instruction form available on the official DBS website a month before you wish to make the capital repayment. A 1 month notice period is required by DBS bank in order to process your instruction.

        Step 2

        Repayment by Cash

        Through this method, the funds will directly be debited from your designated debited account on the due date of your repayment. The bank will send you a letter informing you of your revised monthly installment amount after the completion of your capital repayment.

        Repayment through your CPF funds

        You will have to complete the necessary CPF forms – Form 4B for a private property loan and HBL / 4 for a HDB loan and submit it to the CPF Board. You will have to visit the CPF website in order to obtain the relevant forms.

        Repayment by a combination of Cash + CPF Funds

        The above steps apply for this payment method of your capital repayment.

        Please note that you will be subjected to clawback of fees and / or prepayment charges (if applicable) when you make the capital repayment within the commitment period. This fee (s) will be deducted directly from your Loan Servicing Account.

        For any further information regarding capital repayment, kindly complete and submit the Home Loan Instruction Form available on the DBS website.

    2. Reviewing your Mortgage
    3. How to go about reviewing your mortgage loan with DBS?

      DBS is always ready to discuss the options and the interest rate packages that they can offer you. However, for this, the bank will do a complete credit assessment that will include confirming your income and commitments. In order to expedite this assessment, you along with your joint borrower will be required to complete a request form along with submitting the supporting relevant documents.

      What are the documents that are necessary to be submitted with the application form for assessment?

      Depending on the property type, different documents must be submitted in order to review your DBS Mortgage Loan.

      HDB Owner Occupied applicants must submit the following documents –

      The following only applies if the property was purchased before June 29, 2013.

      • A Varying Terms of Mortgage Form – this must be completed and signed by all the borrowers, guarantors and sureties (if applicable).
      • A front and back photocopy of the NRIC of all the borrowers. Note, the address on the NRIC should be the same as that of the mortgaged property.
      • IRAS My Property Portfolio. You can obtain your My Property Portfolio through the following steps –
        1. Log into “myTaxPortal” on the IRAS website via your IRAS pin or your SingPass
        2. Navigate to “Property Tax” and click on the “View My Property Portfolio and Change mailing address”
        3. Under the “Property Result”, click on the “Property Address”
        4. Then right click and select the “Print” option and save as a PDF file
      • Your HDB Flat details. To take a print out of this, follow the steps below –
        1. Go to the HDB website and “Login to My HDBPage” using your SingPass
        2. Select the “MyFlat” option
        3. Under the “Purchased Flat”, click on “Flat Details”
        4. Select the “Save to PDF” option at the bottom of the page

      Private Property Owner Occupied applicants must submit the following documents –

      The following only applies if the property was purchased before June 29, 2013.

      • Varying Terms of Mortgage Form (it must be enclosed). The form should be completed and signed by all the borrowers, guarantors and sureties (if applicable).
      • All the borrowers must submit a front and back photocopy of their NRIC. The address on the NRIC should match the address of the mortgaged property.
      • IRAS My Property Portfolio.

      Investment or Owner Occupied with Cashout must submit the following documents –

      • Varying Terms of Mortgage Form (it must be enclosed). The form should be completed and signed by all the borrowers, guarantors and sureties (if applicable).
      • All borrowers must submit their Declaration of Credit Facilities (each borrower must submit one form) –
        1. Each of the borrowers must provide details of their credit facilities which should include those that the bank already has as well.
        2. DBS will reference the bureau records in order to facilitate the assessment.
        3. If you have used your credit card this month or the previous month, you must submit your credit card statement.
        4. If you have any ongoing loans with any other financial institution, you must submit your latest loan statement which reflect the monthly repayment amounts.
      • Income Documents –
        1. Computerized payslips for the latest 3 months AND
        2. Latest Income Tax NOA (Notice of Assessment) OR
        3. CPF Contribution History for the last 12 months
      • CPF Property Withdrawal Statement. This document is only required to be submitted if you have a term loan with DBS bank.
      • IRAS My Property Portfolio.
      • HDB Flat details and Financial Information.

      Steps to obtain your Income Tax Notice of Assessment –

      • Use your IRAS pin or your SingPass and log into the “myTax Portal” on the IRAS website.
      • Navigate to “Individual Income Tax” and then to “View Correspondence/Notices” and select “Letters/Notices”.
      • Choose the latest Income Tax Notice of Assessment and save the copy.

      Steps to obtain your CPF Contribution History –

      • Use your SingPass to log into “my CPF Online Services” on the CPF website
      • Navigate to “my CPF Online Services” and then click on “My Statement”.
      • Navigate further to Section B and then select “Contribution History” and then “Period”.
      • Then click on “Download statement in PDF format”

      Steps to obtain your CPF Property Withdrawal Statement –

      • Use your SingPass to log into “my CPF Online Services” on the CPF website.
      • Navigate to “my CPF Online Services” and then click on “My Statement”.
      • Navigate further to Section B and then click on “Property”.
      • Then click on “My Private/Public Residential Withdrawal Details”.
      • Then click on “Download statement in PDF format”.

      Steps to obtain your HDB printout –

      • Use your SingPass on the HDB website and click on “Login to My HDBPage”
      • Select “My Flat”
      • Under the option “Purchased Flat”, click on “Flat Details”
      • Go to the bottom of the page and select “Save to PDF”
      • Navigate to “Purchased Flat”, and then select “Financial Info”
      • Right click and select the “Print” option to save as a PDF file

      Important Notes –

      • In case of any further documentation required, DBS bank will notify you regarding the same.
      • A processing fee will be charged for this request.
      • Upon receiving your application, the bank will contact you within 5 business days to discuss and review your repricing request.

    4. Redeeming Your Mortgage
    5. There are two scenarios for the redemption of your loan –

      • Selling your property
      • Paying off your mortgage
      • Paying off your mortgage and shifting to another bank

      Selling Your Property or Paying Off Your Mortgage

      Follow the steps below to redeem your DBS Home Loan

      • Appoint a law firm who will help with the discharge of your mortgage.
      • You will need to complete and submit “Notice for Full Redemption of Home Loan” form three months prior to the intended redemption. This is because a 3 month notice period is required by DBS bank to process your written instruction.
      • DBS bank will then release the charge it has over your property and return the title deed and any other security documents back to you. You then have a choice of leaving your security documents with DBS for a nominal safekeeping fee.
      • If you make the redemption within the commitment period, you will be subjected to prepayment charges and / or clawback of fees (if applicable). This fee will be deducted from your Loan Servicing Account.

      Paying Off Your Mortgage and Shifting to another Bank

      • You can speak to the relationship officers at DBS bank who will provide you with an in-depth analysis of your mortgage.
      • For any questions regarding the same, you can fill in the details of the Contact Me form available on the DBS Singapore website and a bank representative will get in touch with you shortly.

    6. Fees and Charges
    7. The latest SIBOR rates as of January & February 2016 is as follows –

      The table below reflects the SIBOR rates for the month of January & February 2016 for 1, 3 and 12 months.

      Month 1M SIBOR (for 1 month – 3 months refresh) 3M SIBOR 12M SIBOR The rate is quoted as per the first business day of this month
      January 2016 1.047 percent 1.191 percent 1.376 percent 04 – 1 - 2016
      February 2016 1.121 percent 1.252 percent 1.438 percent 01- 2 - 2016

      Note: The SIBOR Rate refers to the rate of interest at which the banks borrow from each other.

      FHR – Fixed Deposit Home Rate

      The FHR is calculated on the basis of the prevailing fixed deposit rate of interest of the bank for the amounts stated on the Letter of Offer.

      Find below the Singapore Dollar (SGD) fixed deposit rates for DBS bank –

      The Effective Date is 20 – 1 – 2016

      Period SGD 1,000 and up to
      SGD 9,999
      SGD 10,000 and up to
      SGD 19,999
      SGD 20,000 and up to
      SGD 49,999
      SGD 50,000 and up to
      SGD 99,999
      SGD 100,000 and up to
      SGD 249,999
      SGD 250,000 and up to
      SGD 499,999
      SGD 500,000 and up to
      SGD 999,999
      1 month 0.0500 percent per annum 0.0500 percent per annum 0.0500 percent per annum 0.0500 percent per annum 0.0500 percent per annum 0.0500 percent per annum 0.0500 percent per annum
      2 months 0.0500 percent per annum 0.0500 percent per annum 0.0500 percent per annum 0.0500 percent per annum 0.0500 percent per annum 0.0500 percent per annum 0.0500 percent per annum
      3 months 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum
      4 months 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum
      5 months 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum 0.1500 percent per annum
      6 months 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum
      7 months 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum
      8 months 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum 0.2000 percent per annum
      9 months 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum
      10 months 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum
      11 months 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum 0.2500 percent per annum
      12 months 0.3500 percent per annum 0.3500 percent per annum 0.3500 percent per annum 0.3500 percent per annum 0.3500 percent per annum 0.3500 percent per annum 0.3500 percent per annum
      18 months 0.6000 percent per annum 0.6000 percent per annum 0.6000 percent per annum 0.6000 percent per annum 0.6000 percent per annum 0.6000 percent per annum 0.6000 percent per annum
      24 months 1.0000 percent per annum 1.0000 percent per annum 1.0000 percent per annum 1.0000 percent per annum 1.0000 percent per annum 1.0000 percent per annum 1.0000 percent per annum

      Note: The aforementioned rates are indicative prices and are subject to change without any prior notice

      Home Loans whose interest rates have been pegged to the FHR (Fixed Deposit Home Rate) have been revised.

      Fixed Home Rate Revision Before December 23, 2015 From December 23, 2015

        •FHR

        •DBS SGD Fixed Deposit Rate for amounts between SGD 1000 and SGD 9, 999

        •Average tenure between 12 and 24 months

      0.40 percent 0.675 percent

        •FHR 18

        •DBS SGD Fixed Deposit Rate for amounts between SGD 1000 and SGD 9, 999

        •Average tenure – 18 months

      0.50 percent 0.60 percent

      How the above revision affect your monthly installments

      • If your home loan interest rate is pegged to either the FHR, or the FHR 18, the revised rate will take effect from January 23, 2016.
      • You will receive a letter from the bank in January 2016 that will inform you regarding the revised monthly installment payments will start from March 2016.

      The table below can be used to estimate the increase in your monthly installment payments –

      Change in your monthly installment payment for every SGD 100, 000 Loan Period – 10 years Loan Period – 15 years Loan Period – 20 years Loan Period – 25 years Loan Period – 30 years
      Loan pegged to FHR + SGD 12. 50 + SGD 12. 50 + SGD 13. 00 + SGD 13. 50 + SGD13. 50
      Loan pegged to FHR 18 + SGD 4. 50 + SGD 5. 00 + SGD 5. 00 + SGD 5. 00 + SGD 5. 00

      For any further details regarding your loan account, you can log into iBanking

      • To view your outstanding loan amount: My Accounts – Loans – View Loan Summary
      • To view your monthly installment amount: My Accounts – Loans – Click on the loan servicing account and view your transaction history.

      Fee Schedule for your Home Loan

      Item / Product Charges
      Safe keeping a fully repaid Title Deed for a facility SGD 300 for each year (or part thereof)
      Administrative Fee – third party insurer for fire insurance SGD 100 for each year
      Change in your loan tenure SGD 250
      Request for Statement

        •Current year – SGD 20 per statement

        •Previous two years – SGD 30 per statement

        •More than 3 years old – SGD 50 per statement

      For any further queries on the fees, rates or charges for your mortgage loan from DBS bank, you can fill in the details on the Contact Me form available on the DBS Singapore website and a bank representative will get in touch with you within the next business day. As an alternative, you can also contact the bank via telephone during the office hours. Their contact information is available on the DBS website.

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