For existing DBS Home Loan customers with interest rate pegged to FHR

As market interest rate has dropped, DBS Singapore Dollar Fixed Deposit (S$FD) board interest rates will be reduced from 4 May 2020. This will reduce Fixed Deposit Home Rates (FHR) accordingly.

The revised FHR applies from 4 June 2020:

Current

New Rate

FHR8
Benchmarked to 8-month S$FD board interest rate
0.950% 0.600%
FHR9
Benchmarked to 9-month S$FD board interest rate
1.350% 0.950%
FHR18
Benchmarked to 18-month S$FD board interest rate
1.400% 1.300%
FHR
Benchmarked to average of 12-month and 24-month S$FD board interest rates
1.400% 1.025%

Movements in deposits board rates tend to lag market movements. Correspondingly, FHR is less volatile compared to market benchmark rates (e.g. SOR, SIBOR). The reduction in S$FD interest rates and corresponding reduction in FHR is in response to decreasing market interest rates.

When market rates started to increase around Jul 2017, our S$FD rates were adjusted upwards only from Mar 2018 to Apr 2019.  Hence, FHR reference rates were also increased accordingly between February to July 2018 (i.e. 7 to 12 months later). 

Due to the current Covid-19 pandemic situation, market rates started to drop more sharply around Mar 20.  We have thus adjusted our S$FD rates downwards twice - 2 Apr 2020 and 4 May 2020.  These adjustments reduced FHR correspondingly, passing on the lower interest rate to our FHR home loan customers. 



Note: Above 3M SIBOR rates are quoted as of first business day of the month.

Impact on your monthly instalment

Your monthly instalment amount will decrease from August 2020 due to this rate revision. You will receive a letter in June 2020 informing you of the revised monthly instalment amount. Meanwhile, please refer to the below table to estimate the increase in your monthly instalment amount.


Loan tenure

Change in monthly instalment amount for every S$100,000 outstanding loan amount

10 years

15 years

20 years

25 years

30 years

For loan pegged to FHR8 -S$15 -S$16 -S$16 -S$17 -S$17
For loan pegged to FHR9 -S$18 -S$18 -S$19 -S$19 -S$19
For loan pegged to FHR18 -S$4 -S$4 -S$4 -S$5 -S$5
For loan pegged to FHR -S$16 -S$17 -S$17 -S$18 -S$18

Example: Outstanding loan amount of S$500,000 with a loan tenure of 20 years

  • Decrease in monthly instalment for FHR8 :S$16 x 5 = S$80
  • Decrease in monthly instalment for FHR9 :S$19 x 5 = S$95
  • Decrease in monthly instalment for FHR18 :S$4 x 5 = S$20
  • Decrease in monthly instalment for FHR :S$17 x 5 = S$85

If you pay your monthly instalment using CPF savings:

  • For private property owners:

    1. Revise your CPF savings for your monthly instalment by 18 July 2020 for it to take effect for August 2020 payment

    2. Apply at CPF website with your SingPass

  • For HDB owners: We will inform CPF Board on your behalf. CPF Board will adjust the amount to be deducted from your CPF Ordinary Account. Any difference between the revised instalment amount and the CPF savings received will be debited from your loan servicing account.
If you pay your monthly instalment via debit from your DBS/POSB account, no action is needed.

For more details on your home loan account, login to iBanking / Digibank to view:

  1. Your outstanding loan amount

  2. Your monthly instalment amount (The revised monthly instalment amount will be reflected from June 2020)

 

Tips to manage your home loan

A partial repayment is an ad-hoc repayment to reduce the outstanding balance of your loan. You could use cash or CPF savings. Fees apply if you make a partial repayment within the commitment period.

The minimum partial repayment amount is S$10,000, in multiples of S$1,000. A one-month notice period is required to process your partial repayment request.

To make a partial repayment:

  • Using cash, via debit from your DBS/POSB loan servicing account, click here.

  • Using your CPF savings
       Step1: Put up your request here.
       Step2: Apply at CPF website with your SingPass

You may reprice your loan to a new loan package. Please click here to find out more or put in your request. We will be in touch with you, once we have received your request, to assist you to work out the sums and make an informed decision.