DBS Home Loans 'Much More Than A Better Rate'

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DBS Bank Commits To Maintain Leadership Position In Local Housing Loan Market

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Extends Competitive Priced Home Loans

SINGAPORE, Sept.21, 2000 - DBS Bank said today that short term promotions in the current wave of home loan price reductions were harmful to the market, and made the already-complicated process of choosing and financing a new home even more confusing for customers.

Bank officials said, however, that it had no intention of losing its market leadership in the home loans market, and announced its own pricing structure aimed at defending its dominant market share.

The rates unveiled by DBS Bank today extended its competitively priced home loan package with first year interest rate fixed at 2.75% per annum and 3.9% per annum for the second year to all new homeowners. Formerly customised for selective projects in Singapore, the special home loans package is effective today. For selective projects now under construction, DBS Bank will continue to offer a first year fixed rate of 2.5% per annum and a second year fixed rate of 3.9% per annum.

"As the undisputed leader in the home loans market in Singapore, we have every intention of maintaining our leadership. We have become the market leader not by competing dollar-for-dollar on housing loans, but by taking a longer term view and helping customers organise and manage their home loans in a way that is most advantageous to them and their financial situation.

"We have built our leadership not on price but on highly desired product attributes and performance," said Elsie Foh, Managing Director, Individual Banking, DBS Bank.

"DBS Bank has always taken a comprehensive approach to our home loan package - it's about much more than better rates. When customers choose a home loan it is not based on price alone. There are a number of variables that customers take into consideration and most approach the ownership of their home with a long-term view. We encourage them to do so," Foh said.

DBS said its home loans packages are designed based on customers' specific requirements with made-to-fit features that enable each customer to realise long-term benefits. Competitive interest rates are but one of these features.

In today's announcement, DBS profiled key features, noting that three of the five home loan features are unique to DBS.

DBS Bank home loans features include:

Save and Trim

• Reduces the principal sum of DBS customers' mortgage with any extra savings they may have, with any amount of money they want, at any time they want.
• The norm in the market allows only a minimum of $1,000 towards partial repayment of the loan with the added catch of having to give the bank a month's notice.

Great Start

• Helps homeowners reduce their monthly repayments for the first five years.
• DBS tailors lower repayment for customers to enable them to juggle different expenses besides the mortgage such as renovations, maintenance, furniture etc.

My Way

• This unique feature enables DBS customers to personally design a repayment scheme that they can afford for up to five years.

Daily Rest

• Enables interest to be immediately calculated on the new principal owing, whether it is a monthly instalment or a larger repayment.
• For example homeowners can save up to $10,000 for a $500,000 loan taken for 25 years at 5.75% per annum.

Gradual Steps

• Pay-as-you-build programme caters to the needs of customers whose homes are being completed.
• The monthly repayment is based on progressive disbursements made to the developers.
• The full instalment payments begin when DBS customers take possession of the property.

"Buying a home is a huge commitment. For most people it is the largest, single investment of their lifetime. And if it were just about numbers, people would seek out the cheapest mortgage and go and get it, time after time, year after year. But they don't.

"Many recognise there are other important considerations and DBS Bank recognises this too. We understand what homeowners are looking for and we offer flexible, made-to-fit housing loan solutions that add long-term value for our customers," said Foh.

DBS Bank will launch its "Much more than a better rate" home loan campaign tomorrow in the major local daily newspapers.