DBS Home Loans Singapore | Affordable Home Loans Singapore

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DBS house loan packages are among the most popular mortgage alternatives in Singapore today, trailing only the ever-popular “regular” HDB loan. DBS home loans are also among the most affordable on the market. With inflation at an all-time high and the US Federal Reserve raising interest rates, it was only a matter of time until banks followed suit and raised home loan interest rates. DBS has hiked the interest rates on its home loan packages as of yesterday. In this blog, we tell you about DBS Home Loans in Singapore. 

DBS Home Loans in Singapore

Summary of the DBS Home Loan

The most important thing to remember if you are new to house loans is that different home loan packages apply to different property types. DBS home loan programs for several property types

HDB flat (resale/built-to-order) – 5-year fixed-rate, 2-year fixed-rate, no lock-in time floating, 1-year lock-in period floating
Personal property (built) – 2-year fixed-rate, floating with no lock-in period, floating with a 1-year lock-in period

DBS house loans are broadly classified into two types:

• Home loans with fixed interest rates (interest rates that do not alter)
• Home loans with variable interest rates (interest rates tend to change yearly)

DBS Home Loan Calculator

New homeowners navigating the world of home loans will undoubtedly want two types of home loan calculators: the official CPF First Home Loan calculator and the DBS home loan calculator if you’re considering a bank home loan. DBS’ home loan calculator generates a complete table of your repayment schedule, including compounded interest paid over the entire loan lifetime, by just entering how much loan you’ll require and the number of loan years.

DBS Home Loans in Singapore

DBS Home Loan Interest Rates: Fixed Rate

Fixed-rate home loans offer to charge you a fixed rate for a set number of years, regardless of what happens to DBS’s fixed deposit rates, the economy, or anything else. As a result, they are less likely to vary, disrupt your household cash flow, and cause a heart attack. However, you pay a little more for the consistency and security that a fixed-rate home loan provides.

DBS scrapped its highly competitive 5-year 2.05 percent p.a. fixed rate package for HDB house loans as of 30 June 2022. DBS also raised the interest rates on its 2-year and 3-year fixed-rate home loans to 2.75 percent per annum.

Floating Interest Rate DBS Home Loans (SORA, FHR6)

Interest rates for floating home loans, on the other hand, are expected to change annually. It is your responsibility to stay up with the economy, and house loan news, and interact with your bank to determine whether your floating home loan rates will rise or fall. Floating interest rates are typically lower than fixed interest rates because they vary and do not provide stability or assurance in your cash flow planning. DBS’ floating rate home loans are linked to either the 3M SORA or their own FHR6.

The 2-year lock-in house loan rate is calculated using 3M SORA + 1%, which is now 1.728 percent p.a. As long as the 3M SORA remains less than 1.5 percent, you will save money on interest payments when compared to an HDB loan. However, after the third year, you will be subject to 3M SORA prices. Given its current upward trend, I doubt it will be lower than the 2.6 percent HDB loan interest rate for much longer.

DBS FHR6

FHR6 is an abbreviation for Fixed Deposits Home Rate 6 months, and it is a form of home loan interest rate set by the 6-month average of the interest rate on DBS Fixed Deposit accounts and DBS bank’s own internal board interest rates. Other FHR versions include FHR8, which stands for Fixed Deposit Home Rate 8 months, FHR24, which stands for Fixed Deposit Home Rate 24 months, and so on.

All DBS FHR home loan interest rates will skyrocket on July 8, 2022. This means that any customers who have a DBS home loan with floating interest rates tied to the FHR6, FHR8, or FHR24 would be impacted.

DBS Refinance Home Loan

If you want to refinance your house loan, it means you want to switch from one bank to another to take advantage of cheaper interest rates. To do so, you must first retain the services of a lawyer. Lawyers are not inexpensive, as you are surely aware. Hiring a lawyer to refinance your house loan can cost you anywhere from $1,800 to $3,000 upwards. Request a lawyer from the bank you’re visiting to save money on refinancing house loan fees.

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