About the provider
DBS was founded back in 1968 which is young compared to its competitors. Although, in 1998 they fully acquired POSB which has one of the largest numbers of bank branches and ATM outlets in Singapore. This acquisition has brought DBS to the forefront to offer services such as the DBS home loan, savings account, and UITFs.
Why should I choose DBS home loan?
There are a lot of reasons why you should consider getting a DBS home loan:
- Choose from a wide range of home loans – DBS HDB home loans, private property home loans and renovation loans are readily available for qualified customers.
- Transparent rate – DBS interest rates are capped at 2.68% per annum applicable for the first five years
- No pre-payment fees – Customers can apply for a minimum loan amount of $100,000 with pre-payment charges
What Benefits does DBS Home Loan provide?
HDB home loan
DBS offers three types of interest rates for you to choose from. Besides the usual SIBOR and fixed rates, most banks offer, DBS also provides the fixed deposit home rate (FHR18) +1.58% per annum. This assures you that you will have lower interest rates than usual loans for the first five years and it’s also capped at a maximum of 2.5% per annum.
Your maximum loan amount for this POSB loan is up to 80% of either the purchase price or market value, whichever is lower. You’ll also need to provide 20% down payment of either the purchase price or market value. CPF will be at 15% with a minimum of 5% cash payment. If you’re able to repay your loan, all the fees will be waived.
Private property home loan
With the DBS home loan, you can also purchase or refinance your private property. Interest rate packages are the same as the one for HDB loans with the FHR18 + 1.30% per annum as the recommended choice. You may also choose the fixed rate which will give you a fixed interest rate for several years and will convert into the FHR18 +1.20% per annum. Alternatively, you may choose the SIBOR rates which will be pegged to a 3-month rate.
The POSB housing loan for improvements have a few different characteristics compared to the other options. The minimum income required for the principal applicant is SG$24,000 per annum. If a joint application is made, they must be earning at least SG$12,000 per annum and must be the main applicant’s parent, spouse, child, or sibling.
You are offered a flat interest rate of 2.31% per annum with an EIR of 4.38%. Maximum loan tenure is five years and has a minimum of 1 year. Your credit capacity will either be up to SG$30,000 or six times your monthly salary, whichever is the lower amount.
How do I apply for DBS home loan?
DBS has come up with these easy steps for you to grab your dream home:
- Check if you are qualified for a home loan – Talk to a Home Advice Specialist or Relationship Manager to evaluate your eligibility. Sign the Option to Purchase (OTP) within 14 days from the date of issuance. You also need to pay for the balance of the deposit
- Apply for a loan – Choose ideal home loan package and send required documents to the home advice specialist which includes the DBS Application Form, NRIC, OTP, income documents, credit card statements and HDB flat info or financial info
- Accept the loan – Wait for the home loan approval then sign the Letter of Offer and other documents
- Exercise the OTP – Sign the OTP and pay related charges. Submit the OTP with cheques book, NRIC, CPF statement and other requirements
- Pay remaining down payment – Sign the mortgage documents and pay other fees including legal costs
- Prepare for handover – check the current condition of the property before collecting the keys. Consider applying for DBS renovation loan and home insurance plans that cover in your home against incidents of theft and fire
- Move in – Enjoy your comfortable new life in your new home acquired through DBS home loan
Please note that application process may differ when you buy a private property under construction. A complete guide can be found here.
What other products does DBS offer?
DBS also provides the following products:
- Personal loans – DBS personal loans come with fixed monthly installments and interest rates to help you manage your finances. You can also use the loan to consolidate your debts for as low as 4.58% per annum.
- Car loan – Get your dream car with DBS car loan. You can choose the loan tenor from one to seven years with loan amount pegged to the OMV or current Open Market Value
- Education loan – Let DBS help you prioritise your studies with study loan, tuition fee loan and computer loan. Get extra financing whole pursuing your education
- Secured financing – DBS share financing is a loan facility for the flexible investment and cash flow management.