DBS, Singapore’s most prominent bank, boasts a vast holding of $646 billion in total assets and serves over 10.7 million consumer banking customers in South East Asia and beyond. With decades of business expertise as an active lender, DBS is widely regarded as one of the most reliable banks in the region.
DBS has earned “AA-” and “Aa1” credit ratings, among the highest in the world, thanks to its carefully constructed portfolio as a renowned bank that offers affordable mortgage loans in Singapore. Additionally, the bank has won the “Safest Bank in Asia” award by Global Finance for 12 consecutive years, further cementing its reputation as a trusted financial institution.
One of the unique features of DBS is the DBS Home Payment Care scheme, which provides coverage for situations such as loss of income and regular interest on savings, making it an attractive option for prospective homeowners. The bank also offers subsidies for legal fees for loans over S$500,000 and allows mortgagers to revise their loan arrangements, giving them greater flexibility and control.
DBS offers some of the most accessible and friendly mortgage rates in Singapore, making it an excellent choice for borrowers looking to purchase a home. The bank provides low-priced HDB and private home loans for both completed or off plan building projects, such as BTO, DBSS, and EC flats, with fixed or bargainable rates that can be in lock-in periods. While other financial institutions may offer cheaper introductory rates, DBS’s total cost of home loans is still reasonable when compared to other banks, which tend to increase their rates in subsequent years.
In addition to its budget-friendly rates, DBS charges service fees for mortgages, partial repayment fees, full redemption penalties, and cancellation fees. It’s important to note that interest rates can change frequently, so it’s advisable to compare rates with other banks before making a decision.
Overall, DBS is an excellent option for those looking for a reliable and affordable mortgage bank in Singapore. It’s decades of banking expertise, comprehensive range of services, and competitive rates make it a top choice for borrowers.
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.
|Loan Type||Partial Repayment fee||Full Redemption Pinalty||Cancellation Fee|
|Board Rate (Lock-in)||1.5%||1.5%||1.5%|
|Board Rate (No lock-in)||N/A||N/A||1.5%|
Per Monetary Authority of Singapore (MAS) regulations, the benchmark for Singapore’s interest rates was recently changed, this made DBS switch from Swap Offer Rate (SOR) and Singapore Interbank Offered Rate ( SIBOR) to Singapore Overnight Rate Average (SORA).
DBS provides refinance packages which are based on the 3-month Compounded SORA rate, DBS Board (FHR6) rate and fixed rate.
|Bank||1st Year Interest||Lock-in Period|
|DBS SORA||Check Live Rates||2 Years|
|DBS SORA||Check Live Rates||2 Years|
|DBS Board||Check Live Rates||3 Years|
|DBS Board||Check Live Rates||2 Years|
|DBS Fixed||Check Live Rates||5 Years|
When considering refinance options regarding fixed or floating rates, it is essential to thoroughly analyse and determine the direction of the market in 2-4 years (Lock-in periods), and its impact on your total mortgage. DBS recommends that you consider a longer time frame because of the refinance options available after locked periods.
The best opportunities for floating rates come when market interest rates are relatively stable or declining.
Floating rates are mostly lower than fixed rates because financial institutions willingly offer a lower rate in short term to build trust and loyalty among customers. This gives them the privilege to demand higher rates when interest rates increase in the market. Fixed rates are slightly higher than floating rates because of the premium demanded by banks.
After the rates have declined and there is gradual progress in the market, refinance with a fixed rate to avoid extra costs. Although fixed rates are slightly higher than floating rates, they protect mortgagers from significant market rises. Choosing to refinance at a fixed rate of 1.5% for three years, will make your interest rate stable at 1.5% at the end of that period, while a floating rate beginning at 1% will likely be 2-3% at the end of three years.
These rates could give a whopping S$5,000 difference in annual interest.
Lenders often inquire about your current loan’s interest rate (when refinancing) and offer a lower one to secure your patronage. This is favorable for homeowners who can refinance their current home loans, and reduce monthly instalments and total mortgage costs. Note that most banks require a loan balance of at least S$100,000 and 5 years. These rules are open to revisions, so contact the mortgage broker before making any decision.
Lower interest rates guarantee lower monthly payments. However, if you decide to not refinance your current mortgage, your interest rate will likely Increase leading to higher costs.
With lower interest rates, you will enjoy lower monthly payments. If you choose to forego refinancing your existing mortgage loan, your interest rate will almost always increase leading to higher monthly instalments and total interest costs.
Once your application is live you will be able to review suitable loan options on your dashboard. One of our
mortgage brokers will follow up with you to discuss the best available options and next steps.
After you’ve decided on a preferred mortgage option one of our mortgage brokers will help process your
Settle all fees (option fee, option exercise fee to the seller as well as the relevant buyer’s stamp duty fee in
case you are purchasing a private property)
Attent your property purchase appointment date and sign all legal documents for the transfer of the property,
paying all legal and valuation fees.
Affordable and budget-friendly home loan interest rates
Provision for Mortgagers to refinance home loans of more than S$500,000
Individuals hoping to earn interest as they pay off their loan
Borrowers seeking to refinance a home loan of less than S$500,000