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    DBS/POSB HDB Home Loan

    DBS and POSB Banks offer loans to purchase a resale or build-to-order HDB flat and to refinance your existing HDB home loan. The interest rates offered by the banks on HDB loans are pegged to their fixed deposit rates.

     HDB Loans Offered by DBS/POSB

    • DBS/POSB HDB Loan.
    • DBS/POSB HDB Refinancing Loan.

    Interest Rates Offered on HDB Loan

    The interest rates offered by DBS and POSB on their HDB loan and refinancing loan are indicated in the table below:

    Floating rate package (with lock-in period for 2 years)
    Year 1/Year 2/Year 3/Year 4/Year 5/Thereafter FHR8* + 1.45% p.a.
    Fixed package rate (5 years)
    Year 1 and Year 2/Year 3/Year 4/Year 5 2.4% p.a.
    Thereafter FHR8* + 1.725% p.a.

    *DBS/POSB’s prevailing 8-month SGD FD rate for placement amounts from S$1,000 to S$9,999. FHR8 is 0.675% p.a. as on 5 February 2019.

    Comparison of HDB Concessionary Loan and DBS/POSB HDB Loan

    Here’s a comparison of the benefits provided by the HDB loan offered by POSB and DBS Banks and the HDB Concessionary Loan offered by the government:

      HDB Concessionary Loan HDB Loan by DBS/POSB
    Maximum amount that can be borrowed Up to 90% of market value or purchase price, the lower of the two. Up to 75% of market value or purchase price, the lower of the two.
    Interest rates 2.6% p.a. i.e. prevailing CPF rate of 2.5% + 0.1% p.a. FHR8 + 1.45% p.a.
    Cash and CPF upfront 10% CPF and no minimum payment in cash. 20% CPF and 5% cash payment (minimum).
    Downpayment 10% of market value or purchase price, the lower of the two. 25% of market value or purchase price, the lower of the two.

     

    Types of HDB Loans Offered by DBS/POSB? 

    DBS/POSB HDB Loan: This loan can be taken to buy a new or a resale HDB flat.

    DBS/POSB HDB Refinancing Loan: In case you have a loan on your HDB flat, you can use this loan to refinance the existing loan and reduce your monthly instalments.

    Why Should You Choose a POSB/DBS HDB Loan?

    • You can increase your savings in the DBS/POSB Multiplier account at interest rates of up to 3.5% p.a. when you take a home loan.
    • You will receive Ang Bao worth S$288 when you apply for an HDB home loan online.
    • You will get Ang Bao up to S$2,588 when you apply for a refinancing loan online.
    • The complimentary gift will be given only for a loan amount that is at least S$300,000 for a completed residential home.
    • The loan interest rate is pegged to the prevailing 8-month DBS/POSB SGD fixed deposit rate. Fluctuation in the FD rate is generally lower when compared to SOR or SIBOR rates.

    Are You Eligible to Apply for This Loan?  

    Citizens of Singapore, Permanent Residents, and foreigners are eligible to apply for the HDB loan.

    Documents to Prepare

    For a refinancing loan:

    • A copy of your NRIC or passport.
    • DBS/POSB application form.
    • HDB flat information and its financial information.
    • Offer letter from your previous financial institution.
    • Loan repayment for the previous 6 months.
    • Property portfolio from IRAS if the house is occupied by the owner.
    • Recent CPF property withdrawal statement, if applicable.
    • Credit card statements and any other financial commitments that you have made (such as car loans, home loans, and personal loans).
    • CPF Statement for the previous 12 months or your recent notice of assessment.
    • Payslips for the previous 3 months (include your employment contract and 1 month’s payslip if you have been working for less than 3 months).
    • Account statement which includes salary crediting information for the previous 3 months if you’re working overseas.

    For a new or resale flat:

    • A copy of your NRIC or passport.
    • DBS/POSB application form.
    • HDB flat and its financial information.
    • Value confirmed by the board for resale flats.
    • Sales and Purchase Agreement or Option to Purchase.
    • Credit card statements and any other financial commitments that you have made (such as car loans, home loans, and personal loans).
    • CPF Statement for the previous 12 months or your recent notice of assessment.
    • Payslips for the previous 3 months (include your employment contract and 1 month’s payslip if you have been working for less than 3 months).
    • Account statement which includes salary crediting information for the previous 3 months if you’re working overseas.

    How to Apply for the HDB Loan

    You can apply for the DBS/POSB HDB loan online by following the steps below:

    • Provide your personal details.
    • Upload all the necessary documents.
    • Accept the loan offer.

    If you want to enquire about your eligibility or have any other query, contact a DBS/POSB relationship manager or home advice specialist. The loan process for a resale flat may go up to 3 months.

    DBS/POSB interest rates for HDB flats are lower than the interest offered on the HDB Concessionary Loan. If you are planning to buy an HDB flat, compare the rates and go for the lowest interest rate available.

    Explore the Other HDB Home Loans Offered By Banks:

    Explore the Other Loans Offered By POSB Bank:

    Frequently Asked Questions (FAQs)

    1. How to Apply for POSB HDB Loan?
    2. You can apply for POSB HDB Loan either online on the official website of the bank or by visiting any of the branches of POSB.

    3. What is the minimum amount offered as a loan with POSB HDB Loan?
    4. The minimum loan amount offered is S$100,000.

    5. What is the interest rate offered with the loan for the first 5 years?
    6. For the first 5 years, the interest rates will be lower than or capped at 2.5 percent per annum.

    7. What is the fee charged for prepayment of the loan?
    8. There are no fees charged for prepayment of the POSB HDB Loan.

    9. I already have a home loan with another bank. Can I apply for POSB HDB Home Loan?
    10. Yes, you can still apply for this home loan offered by POSB even if you have a home loan with any other bank.

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