DBS Launches New Home Loan Packages

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Tailored Home Loan Solution Offers Customers Choice, Flexibility and Value

SINGAPORE, AUGUST 28 - DBS Bank today launched two new home loan packages that offer customers value and choice at competitive rates.

The new DBS floating rate package is pegged at 1.5 per cent for the first year and 2.7 per cent for the second year. The fixed rate package offers rates of 1.5 per cent and 2.85 per cent, fixed for the first and second year respectively. Both packages are applicable for completed properties and properties under construction. DBS is also subsidising the legal fees of customers who take up the new packages.

Elsie Foh, Managing Director and Head of Personal Banking at DBS Bank, said the new packages help customers take advantage of the changes in the CPF rules and downpayment policies, which will come into effect September 1, 2002.

"The changes in the CPF rulings, coupled with the soft money market conditions, enable DBS to price our loans lower and pass the benefits back to the customers. We want to help customers capitalize on the new changes," Foh said.

"Our home loan strategy is not a one-size-fits-all approach, but tailored to offer customers choice, flexibility and value. We want to work closely with our customers to determine their financial position, taking into consideration the need to service other financial commitments as well as their savings in order to achieve their longer term financial goals," Foh added.

Foh highlighted that it is important for customers to think beyond rates when choosing a home loan.

"Buying a home is a significant long-term commitment. When choosing a home loan, it's important for customers to look beyond the near-term, and not base their decisions on price alone. Factors to consider include flexibility to customise a loan based on requirements such as quantum of cash as well as CPF savings to be set aside from time to time," Foh explained.

Foh highlighted that in many instances, customers may be drawn by competitive promotional rates for the initial years, and neglect to consider the longer term impact of servicing their loans. She said customers should be encouraged to ask the right questions, such as:

• what are the differences between fixed and floating rates?
• what would be the impact on my monthly instalments based on different interest rate scenarios?
• how much is the difference in interest if it is calculated on a daily-reducing versus a monthly-reducing basis? Customers enjoy significant interest savings for loans computed on daily reducing basis. For example, a loan of S$500,000 over 25 years at 5.75 pa % could have interest saving of more than S$10,000.

Apart from rates, Foh said DBS also believes in offering customers additional value through service. DBS home loans customers will enjoy the dedicated services at its 24x7 Personal Finance Centre - a one-stop service centre catering to customers' mortgage and personal credit needs. Home loan specialists at the centre are able to provide customers with property valuations as well as approval for loan applications within 24 hours of submission of the necessary documents. In addition, DBS has a team of mobile home loan specialists to meet customers anytime, anywhere at the convenience of the customer to finalise their home loan needs.

Customers can also discuss their home loan requirements with DBS' relationship managers at any of its 31 branches. For greater convenience, DBS will also open selected branches on Sundays to provide an added avenue for customers to discuss their home loan needs, as well as to address any queries they may have about the impact of the CPF ruling on their loan situation. DBS branches at Parkway Parade, Suntec City, Bukit Timah, Raffles City and Thomson will be opened from 12 noon to 5pm this Sunday.

About DBS
DBS Bank is the leading bank in Singapore, with dominant positions in consumer banking, treasury and markets, securities brokerage, Singapore dollar loans, deposits, and equity and debt fund raising. Through its Dao Heng Bank and DBS Kwong On Bank operations, DBS Bank is the fourth largest banking group in Hong Kong. Beyond the anchor markets of Singapore and Hong Kong, DBS Bank serves corporate, institutional and retail customers through its operations in Thailand, The Philippines, and Indonesia. The Bank's credit ratings are amongst the highest in the Asia-Pacific region. More information about DBS Group Holdings and DBS Bank can be obtained from our website www.dbs.com.

* SMR denotes Special Mortgage Rate

All interest are calculated on daily reducing basis to help customers enjoy greater savings.