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Home Mortgage - FAQs

Finding a Property

What is a freehold property and a leasehold property?

Freehold refers to an indefinite period of ownership.

Leasehold refers to a specified number of years of ownership (e.g. 99 years or 999 years) with effect from a specified date.

When does the sale and purchase have to be completed?

For private properties, the standard sale and purchase has to be completed in 12 weeks from the exercised Option to Purchase (OTP) date. For HDB properties, the sale and purchase is completed at your Completion Appointment with HDB, which typically takes place 6 to 8 weeks after your First Appointment.


Finding a Mortgage

When should I start shopping for a Home Loan and how do I know what I can afford?

A typical OTP has to be exercised within 14 days, failing which the option fee will be forfeited. You are recommended to shop immediately once the OTP has been signed so that you can obtain confirmation of your financing and exercise the OTP within the 14 days.

How much cash do I have to set aside for down payment?

Upon exercise of the OTP, you would usually be required to pay 5% to 10% of the purchase price (less the option fee) as a down payment. For HDB properties, the deposit must not exceed $5000 (less the option fee).

If this is your first property for which you are taking up a loan: You can pay up to 80% of the purchase price with your loan. For the remaining 20%, 5% has to be paid by cash and the balance 15% can be paid by cash or your CPF.

If this is your second property and you have an existing loan on any other property: You can pay up to 50% of the purchase price with your loan. For the remaining 50%, 25% has to be paid by cash and the balance 25% can be paid by cash or CPF.

If this is your third or subsequent property and you have more than 1 existing loan on any other property: You can pay up to 40% of the purchase price with your loan. For the remaining 60%, 25% has to be paid by cash and the balance 35% can be paid by cash or CPF.

On top of that, Stamp Duty [(3% of purchase price) - $5,400] and Additional Buyer Stamp Duty (ABSD), when applicable, is payable by cash followed by a refund from CPF (Ordinary Account) if available.

How do I get a current indicative valuation?

Call us at 6333 0033 (Mon to Fri, 9am to 5pm / Sat 9am to 12.30pm), email us @ homeloan@dbs.com or SMS "Home<space>Name<space>NRIC" to 76060 to arrange for an Indicative valuation. Please note that this valuation is indicative only, and is not binding on the Bank.

Will the Bank's valuation of the property and purchase price differ?

We will appoint a valuer to assess the market value of the property. If the valuation is lower than your purchase price, you would have to pay the difference in cash before any loan can be disbursed.

What documents are required for Home Loan Application?

Heres the checklist:

  • Mortgage Loan Application form
  • Declaration of Credit Facilities form
  • Copy of NRIC or Passport
  • CPF contribution History up to the last 12 months
  • Latest Income Tax Notice of Assessment
  • Latest computerised pay slip
  • Latest available statement for all existing credit facility(ies)
  • Option to Purchase (OTP) or Sale and Purchase (S&P) Agreement

Prices & Costs

What is SIBOR and why is it used as benchmark for pricing packages?

SIBOR stands for the Singapore Interbank Offered Rate. SIBOR is the rate that banks in Singapore use for lending money to one another. As it is publicly available, it has total transparency.


Refinance Your Loan

Why should I refinance?

Refinancing with another bank could help you to save from lower instalment payments compared with the current instalments you are paying. However, you should be aware that upon repayment of your current loan, there may be early repayment charges. There are also other costs associated with refinancing, such as valuation fees, legal fees, etc.


Bridging Loan

What is a Bridging Loan?

A Bridging Loan helps you to meet your temporary cash flow needs. It allows you to commit to buying a new property even before receiving the proceeds from the sale of your existing property. You can borrow up to 20% of the property purchase price, with a repayment period of up to 6 months, to meet the initial down payment on your new property.


The information herein is for general information only. It should not be relied upon as legal or professional advice. Whilst reasonable care has been taken to ensure the accuracy of the information herein, no warranty or representation is made as to its correctness or completeness. Content herein may be modified at any time without notice.