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    DBS Overseas Property Loan

    DBS formerly known as The Development Bank of Singapore Limited, assumed its new name in the year 2003 with an intent to reflect the changing role of the bank to a regional one. The bank was initially set up in the year 1968 by the Government of Singapore as a means to take over the operations from the industrial financing activities from the Economic Development Board. In terms of the assets, DBS bank is the largest bank in South East Asia and is also among the larger banks in Asia. It has over 100 branches in Singapore alone. DBS Treasures is equipped with the capability and the knowledge in helping you achieve your investment desires. The products offered by DBS is a combination of both top notch financial thinking coupled with the regional opportunities to ensure that your business requirements are catered to by making use of the highest banking standards. The bank is prevalent in over 15 markets, with a network of more than 250 regional branches and 1000 plus ATMs spanned across 50 cities providing financial services that include Home Loans among other loans, cards, insurance and many more.

    About DBS Overseas Property Loan

    DBS Overseas Property Financing is a type of DBS Home Loan that gives you the opportunity to invest in financial properties all across Australia and London without having to make the payments through the prevailing foreign interest rates.

    Investing in properties in London

    • You can finance a property of your choice in London Zones 1 & 2, in a currency of your choice.
    • You can choose between both, completed properties as well as those properties still under construction.
    • You can finance the property in either SGD (Singapore Dollar) OR GBP (Sterling Pound).

    Investing in properties in Australia

    • You can finance a property of your choice in Sydney, Melbourne and Perth, in a currency of your choice.
    • You can choose between both, completed properties as well as those properties still under construction.
    • You can finance the property in either SGD (Singapore Dollar) OR AUD (Australian Dollar).

    Features and Benefits of DBS Overseas Property Loan

    • Maximum Quantum in SGD/GBP/AUD – Up to 75%
    • Minimum Loan Amount – SGD 300,000 or an equivalent of this amount. However, note that a 10% haircut limit will be applied for packages in SGD – financing quantum, processing fee, loan tenure. These terms can change according to the discretion of the bank.
    • Maximum Tenure – 30 years OR a maximum age of 75 years
    • Processing Fee
      1. Singapore Dollars – S$ 500
      2. Sterling Pound - £$500
      3. Australian Dollars - A$500
    • DBS offers competitive and transparent rates
    • In case of unfavourable currency movement, you are even given a choice of currency conversion.

    Important Notes before Investment

    • Investing in overseas properties always carry with themselves an inherent risk of foreign exchange. For example, if you have taken a loan in SGD and it weakens against GBP or AUD, there is a chance that you may have to top up this difference yourself in cash.
    • It is also advisable to communicate your interest in overseas property purchasing to a tax advisor for advice on aspects such as – income tax, stamp duty, inheritance tax, land tax capital gain tax and other applicable taxes.

    Steps involved in Purchasing a Property Overseas

    Commitment to a Purchase

    • At the point of your booking, you will have to pay a reservation fee that is non-refundable.
    • During the exchange of the contract that usually happens within two weeks from the reservation date, you will have to pay a deposit, which is generally a 10% less reservation fee.
    • During the purchase, it is advisable to have a lawyer present to act on your behalf who can assist in conducting all the relevant searches and also advise you on any concerns you or they may have.

    To Seek Financing for the Property of your choice

    • For a financing solution, you may contact your own Relationship Manager or the DBS Home Advise Specialist.
    • For Uncompleted Properties - The financing quantum that you will be offered will be based on the indicative valuation or the purchase price, depending on which is lower.
    • For Completed Properties - The financing quantum that you will be offered will be based on the valuation

    Acceptance of Loan

    • In order to service your loan instalments, DBS will open an MCSA or Multi Currency Settlement Account.
    • DBS will appoint a lawyer from their panel to act in the mortgage.
    • The processing fee, legal fee and valuation fee will be borne by the applicant.

    Sales Completion

    This step occurs one month before the completion of the property

    • Your lawyer will conduct searches including those on the property, title etc. and advise you in case of any concerns.
    • You should make arrangements for the purchase of the building and fire insurance. You must produce the bank’s letter of instruction for the insurer including the address of the solicitor.
    • You should make arrangements for funds with which you will pay all the taxes –
      1. For London Properties – Land Registry Fee, SDLT or Stamp Duty Land Tax, INT or Inheritance Tax, Capital Gain Tax and Council Tax.
      2. For Australian Properties – GST or Goods & Services Tax, Stamp Duty and CGT or Capital Gain Tax.

    Disbursement of Loan

    Before the disbursement, you must undertake the following –

    • In case of the loan being denominated in SGD, you must contract a foreign exchange rate with DBS’s Assistant Relationship Manager or the Relationship Manager for the conversion of the loan to GBP or AUD.
    • You should make arrangements for the purchase of the building and fire insurance. You must produce the bank’s letter of instruction for the insurer including the address of the solicitor.
    • Ensure or cross check whether the difference between the loan amount to be disbursed and the purchase price of your property is made available in your MCSA for it to be deducted on the actual date of completion.

    Applying for the DBS Overseas Property Loan

    • Make an Appointment – You can fix an appointment date and time by filling in their online form with your details and preferences and have DBS bank contact you on the same.
    • You can visit your nearest DBS Bank Branch to apply or for further information on this loan.

    Explore the Other Overseas Property Loans Offered By Banks:

    Explore the Other Loans Offered By DBS Bank:

    DBS Overseas Property Loan - FAQs

    1. What is the minimum loan amount that is provided for the DBS Overseas Property Loan?
    2. The minimum loan amount provided for the DBS Overseas Property Loan is SGD 300, 000 or its equivalent.

    3. What are the fees that the DBS Overseas Property Loan will NOT cover?
    4. The following fees and charges will NOT be covered as part of the loan and will have to be borne by the applicant –

      • The processing fee, valuation fee and legal fee for properties in both, London and Australia.
      • For London Properties – Land Registry Fee, SDLT or Stamp Duty Land Tax, INT or Inheritance Tax, Capital Gain Tax and Council Tax.
      • For Australian Properties – GST or Goods & Services Tax, Stamp Duty and CGT or Capital Gain Tax.
    5. What is the maximum tenure to avail the DBS Overseas Property Loan?
    6. The maximum tenure to avail the DBS Overseas Property Loan 30 years OR up to the age of 75 years.

    7. Is the reservation fee paid at the time of the booking refundable?
    8. No. The reservation charge that you will have to pay at the time of booking is nonrefundable.

    9. How is the financing quantum calculated for uncompleted properties?
    10. For uncompleted properties, the financing quantum will be calculated on the basis of the purchase price OR indicative valuation, depending on which is lower.

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