DBS Home Loan Rates (March 2025)
(Product Review)

Current DBS Mortgage Rates

Product Review

DBS is one of Singapore’s and Southeast Asia’s most credible banks. Its net worth of $646 billion (in holdings, resources, and credit,) with more than 10.7 million satisfied banking customers gives credence to this claim. In its 50+ years of proficient banking, the bank has carved a niche for itself as an active creditor and a trustworthy advocate of empowerment. According to its status, DBS provides services like the DBS Home Payment Care Scheme which acts as insurance against the abrupt end of salary or earnings, additional interests on savings and many more.

With over 5 decades of commercial competence, it is a bank that offers affordable mortgage loans in Singapore. DBS has some of the highest credit ratings of ‘AA-‘ and ‘Aa1’ in the world. It has also been the recipient of the distinguished ‘Safest Bank in Asia ‘ award by Global Finance for 12 years.

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This renowned Singaporean bank likely offers some of the most accessible and friendly mortgage rates. Borrowers are recommended to study DBS’s housing loans and choose the package that suits their needs. Due to its unique style and strategy, the bank offers all mortgagers a chance to revise their loan arrangements. It gives S$2,000- S$3000 in subsidies for the legal fees of loans over S$500,000.

DBS has a carefully constructed portfolio that allows it to regularly present low-interest rates to its clients. This feature makes it a great choice for potential homeowners -while they search for the right loan. Although home interest rates change frequently, DBS regulates its rates to be accessible to the average service subscriber when compared to other banking houses.

For instance, DBS grants low-priced HDB and private home loans for completed buildings or ongoing building projects ( like BTO, DBSS and EC flats) with fixed or bargainable rates that can be in lock-in periods. Since competition is high in the banking business, few financial institutions offer less expensive introductory costs. However, the total cost of home loans in DBS is reasonable compared to the charges of other banks. This has been maintained because these ‘cheap’ finance establishments tend to tremendously increase their rates in subsequent years.

In addition to its budget-friendly rates, DBS demands service fees for mortgages, partial repayment fees, redemption penalties and cancellation fees.

As earlier stated, DBS charges standard fees for various loan services. These fees will be outlined in the table below for home loans and refinancing home loans.

If your building project is an HDB flat, you can either choose the HDB loan or the DBS HDB housing loan to meet your needs.

A standard HDB loan has a higher interest rate of 2.6% p.a and an initial deposit of 10%( that can be paid through CPF).

While a DBS HDB bank loan gives a lower interest rate of 1-1.40% p.a but requires an initial deposit of 25% (minimum of 5% in cash).

Fixed loan rates are great when market interest rates rise, so mortgagers can be protected from increasing mortgage costs.

When considering a refinancing plan for your home loan, take note of the flexibility of the loan regarding refinancing. Some loans give the privilege of refinancing after a year, while others lock their plans, making you unable to renegotiate or refinance with another bank. Fixed loans in Singapore have interests ranging from 3-5 years before the rates can ‘float’.

If a fixed rate loan doesn’t suit your needs, choose a floating rate loan for your HDB flat. These rates are connected to reference rates (like SIBOR, SOR, and bank’s board rate) that are always changing with time. Floating rates are beneficial when market rates are high and expected to decline in subsequent years. It is important to consider factors like ease of monthly payments, total interests and lock-in periods for refinancing when considering these home loans.

DBS provides both fixed and floating home loan rates for executive condos and personal residential buildings.

This astute bank offers two types of floating-rate mortgages – FHR6 (a 6-month fixed deposit interest rate published on the DBS website) and packages connected to the Singapore Overnight Rate Average (SORA)

DBS’ SORA-pegged packages are based on the SORA rate which is the average rate of borrowing for borrowing transactions in the overnight interbank SGD cash market. The SORA rate of 3 months is updated every 3 months and it is validated by the Monetary Authority of Singapore (MAS), same thing applies to your 3- months home loan package.

DBS charges a mark-up which is termed a ‘spread’, on the 3- month SORA rate. This forms the total interest rate and determines your monthly deposit.

Unlike the SORA packages, DBS’ FHR6 home loans are associated with DBS’ 6- month average fixed deposit rate. Although both FHR6 and SORA rates are validated by MAS, the FHR6 rate is not as transparent as the SORA rate. The FHR6 is completely determined by DBS – a margin is used to adjust the FHR6 rate by DBS.

When comparing fixed-rate mortgages, choose a loan with the most affordable total interest cost. It is essential to have accessible monthly payments and flexibility for the refinancing that will occur subsequently.

If a fixed rate is not convenient, search for a floating rate mortgage loan (appropriate for you) when you want to purchase your private property. Floating rates are tied to reference rates that continuously move over some time. Singapore uses the Singapore Overnight Rate Average Interest Rate Benchmark popularly identified as SORA. When choosing your floating rate, you have the privilege of picking from 1-12 months’ rates. It is recommended that you select a rate based on your analysis of the market movement. As a general rule, go for a long-term rate in a rising rate environment and a short term rate in a declining or flat environment.