DBS Revises Interest Rates
For New Home Loans
* * *
Modest Increase For Fixed-Rate Packages,
Private Home Loans
* * *
Existing Customers Unaffected
SINGAPORE, August 13, 2003 - DBS Bank Ltd announced it has revised its mortgage rates for new loans for the purchase of private properties with effect from today.
Interest rates for the Bank's two fixed-rate packages have been raised by a total of 0.15 percentage point for the first two years. Rates from year three onwards are variable. They are now lower by 0.85 percentage point over the next four years.
DBS' variable-rate packages will also enjoy a decline in rates by 0.2 percentage point in the first two years. They are now 4 percent compared to 4.2 percent previously.
The revised rates from 13 August 2003 are as follows:
|
Fixed-Rate Package |
Variable-Rate Package |
|
Existing |
Revised |
Existing |
Revised |
|
|
2 Options |
|
2 Options |
|
Per Annum |
Per Annum |
Per Annum |
Per Annum |
| Year 1 |
1.50% (F) |
1.75% (F) |
2.00% (F) |
1.50% (F) |
1.75% |
2.00% |
| Year 2 |
2.85% (F) |
2.75% (F) |
2.50% (F) |
2.70% |
2.25% |
2.00% |
| Year 3-6 |
Yr 3: 2.85%
Yr 4: 3.00%
Yr 5-6: 3.50% |
3.00% |
3.00% |
Yr 3: 2.80%
Yr 4: 3.00%
Yr 5-6: 3.50% |
3.00% |
3.00% |
| Thereafter |
4.00% |
4.00% |
4.00% |
4.00% |
4.00% |
4.00% |
(F) denotes Fixed Rate.
Rates for existing private home loans remain unchanged. Customers of POSB HDB Home Loans will also not be affected by the latest revision.
Commenting on the rates change, Lam Siok Loon, Managing Director, Consumer Banking Group Singapore, DBS Bank, said: "We have adjusted the rates for our fixed-term packages by a modest amount to take into account the higher cost of funds for long-term loans.
"Our new rates are still among the most competitive in the market, offering our customers the best value."
Under the new rates, a customer who signs up for a $500,000 loan over 25 years can expect to pay $31 or $33 more in monthly instalments for the first two years depending on which of the two fixed-rate packages he chooses.
If he opts for a variable-rate package, his monthly instalments for the first two years will be $54 lower than before.
DBS will continue to offer Mortgage 1-2-3, a novel plan that offers customers flexible repayment plans including the option to service interest only in the first three years.
Special promotional rates for the first two years of one percent and two percent respectively are no longer available. From today, the rates for Mortgage 1-2-3 are similar to those for the Bank's variable-rate packages.
The essential features of Mortgage 1-2-3 remain intact. Customers still have the flexibility to choose between a normal repayment plan, a gradual repayment plan or an interest-only repayment plan.
All new customers who take up a minimum loan amount of $200,000 will continue enjoy the following benefits:
- Legal subsidy of 0.4% of the total loan amount, capped at $3,000
- Free fire insurance of first year
- Free valuation
- Free processing
About DBS
DBS Bank is the largest bank in Singapore as measured by assets, with dominant positions in consumer banking, treasury and markets, securities brokerage, equity and debt fund raising. With the receipt of executive and legislative approval for the merger of its wholly-owned Dao Heng Bank and DBS Kwong On Bank operations in Hong Kong, DBS Bank is now 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.
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