Founded in 1968 by the Government of Singapore to initially finance the industrial activities of the Economic Development Board, today, DBS is one of the largest banks in Southeast Asia.
As the largest bank in Singapore, DBS has one of the highest deposit accounts and a strong presence in the local home loan market. In this guide, we take a look at the home loan packages offered by DBS for both HDB flat and private property owners.
Disclaimer: The packages mentioned in this article are correct at the time of writing [30 Sep 2021] and are meant as a guide only. The interest rates are subject to change, and you should compare the latest home loan rates and packages on PropertyGuru Finance before applying for a new home loan.
DBS Home Loan Summary
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DBS Home Loan Summary |
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BUC Home Loans |
DBS BUC Package (floating), DBS BUC 3M SORA Package (private property only, min. $500,000) |
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Floating Rate Home Loans |
DBS 2- and 5-Year Floating Rate (FHR6) |
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Fixed Rate Home Loans |
DBS 2-, 3- and 5-Year Fixed Rate |
Here’s an in-depth look at the different available under all three categories: BUC loans, floating rate loans and fixed rate loans.
DBS BUC Home Loans (For Residential Properties under Construction)
Currently, DBS offers two types of home loan packages for private properties under construction.
DBS BUC Package
The DBS BUC Package is pegged to the FHR6, which is the six-month Singapore Dollar fixed deposit rate of DBS for amounts $1,000 to $9,999 (or any other sums stated in the letter of offer).
Current rates (as of 30 Sep 2021):
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DBS BUC Package |
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Year 1 |
FHR6 + 0.95% |
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Year 2 |
FHR6 + 0.95% |
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Year 3 |
FHR6 + 0.95% |
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Thereafter |
FHR6 + 0.95% |
There is no lock-in period and the spread remains the same throughout. The current package allows for partial prepayments and includes a free package conversion too. The current interest rate of the FHR6 is at 0.2% p.a. Click here for the latest DBS fixed deposit rates.
DBS BUC 3M SORA Package
The DBS BUC 3M SORA Package is pegged to the 3M SORA, which is the Singapore Overnight Rate Average, defined by the Monetary Authority of Singapore as the “volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore between 8am and 6.15pm”.
Now that SIBOR is gradually being phased out, SORA is a popular reference rate for floating rate home loans. You can read more about it in this article: SIBOR vs SOR vs SORA: What Do These Rates Mean for Your Home Loans?
Current rates (as of 30 Sep 2021):
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DBS BUC 3M SORA Package |
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Year 1 |
3M SORA + 0.88% |
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Year 2 |
3M SORA + 0.88% |
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Year 3 |
3M SORA + 0.88% |
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Thereafter |
3M SORA + 0.88% |
This package comes with similar terms as the BUC package: no lock-in, partial prepayment allowed, and one free package conversion.
Do note that both packages require a minimum loan size of $500,000.
DBS Floating Rate Home Loans
For completed properties, let’s start with the DBS floating rate home loans available. There’s just one floating rate package currently, tied to the FHR6, which we mentioned above.
Current rates (as of 30 Sep 2021):
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DBS Floating Rate |
DBS 3-Year Floating Rate |
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Year 1 |
FHR6 + 0.8% |
FHR6 + 0.8% |
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Year 2 |
FHR6 + 0.9% |
FHR6 + 0.85% |
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Year 3 |
FHR6 + 1.0% |
FHR6 + 0.90% |
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Thereafter |
FHR6 + 1.0% |
FHR6 + 1.0% |
The DBS Floating Rate packages come with the option of a 2-year or 3-year lock-in period. The interest rates both start at FHR6 + 0.8%, but the spread increases after the lock-in period periodically. The special feature of this floating rate package is that the interest rate is capped at 1.4% for the 2-year lock-in period and 1.6% for the 3-year lock-in period.
DBS Fixed Rate Home Loans
Under its fixed rate packages, it offers 1) DBS 2 Years Fixed Rate Package, 2) DBS 3 Years Fixed Rate and 3) DBS 5 Years Fixed Rate.
Current rates (as of 30 Sep 2021):
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DBS 2 Years Fixed Rate |
DBS 3 Years Fixed Rate |
DBS 5 Years Fixed Rate |
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Year 1 |
1.3% |
1.4% |
1.68% |
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Year 2 |
1.3% |
1.4% |
1.68% |
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Year 3 |
FHR6 + 1.6% |
1.4% |
1.68% |
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Year 4 |
FHR6 + 1.6% |
FHR6 + 1.6% |
1.68% |
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Year 5 |
FHR6 + 1.6% |
FHR6 + 1.6% |
1.68% |
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Thereafter |
FHR6 + 1.6% |
FHR6 + 1.6% |
FHR6 + 1.6% |
The fixed rate packages have an interest rate of 1.3%, 1.4% and 1.68% per annum, lock-in for the specified period of years respectively. Thereafter, the interest will be based on the FHR6 + 1.6% per annum.
The packages come with a free conversion (for 2-year package, after lock-in period; for 5-year package, after 30 months), giving the borrower the option to reprice the loan package. If you commit to the 5-year package, you also get to enjoy perks like partial prepayment and waiver due to sales.
DBS Home Loan Review: Should You Consider It?
There are many home loan packages out there, but what makes DBS home loan packages worth your consideration? Here are a few reasons why you could consider taking a DBS home loan package.
More Competitive than HDB Interest Rates
First, when compared to HDB concessionary rates of 2.6%, DBS’ rates are significantly more competitive. So, if you’re a HDB flat buyer or owner, it’s definitely worth considering. This translates to a sizeable savings in the monthly instalments over the home loan period of two to five years.
Flexible Terms and Conditions
Second, all the fixed rate packages mentioned earlier come with a free conversion after its respective commitment periods. This gives the borrower the flexibility to switch to another lower interest loan package, free of charge to benefit in the current low interest rate environment.
Third, on the 5-year fixed rate package, there is a “Waiver Due to Sales”. This means you do not incur additional fees when you sell your property (and hence, prematurely cutting short your loan).
Extra Savings with DBS Multiplier Account
The final reason to take up a DBS home loan is to take advantage of the Multiplier Account – a savings account that many Singaporeans have. Taking up a home loan package from DBS fulfils one of the categories for the Multiplier Account, which allows a DBS depositor to earn a higher interest rate on their savings.
From time to time, there may also be promotional rates offered by DBS and other banks. This can make a seemingly less superior package become more suitable and cheaper for you. To help you find the best home loan packages, you can use the PropertyGuru Finance home loan calculator or speak to one of our home loan advisors.
Disclaimer: Information provided on this website is general in nature and does not constitute financial advice.
PropertyGuru will endeavour to update the website as needed. However, information can change without notice and we do not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time. Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner or your bank to take into account your particular financial situation and individual needs. PropertyGuru does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, PropertyGuru, its employees do not accept any liability for any error or omission on this web site or for any resulting loss or damage suffered by the recipient or any other person.
More FAQs about DBS and Home Loans in Singapore
Is DBS A Safe Bank?
DBS is a local bank with many accolades under its belt – including being ranked as the top Safest Bank in Asia for 10 consecutive years (Global Finance).
What’s the Difference Between POSB and DBS?
POSB was acquired by DBS in 1998 so they are one and the same now.
What is IPA for Housing Loans?
IPA stands for an in-principle approval for your home loan. This is a free assessment for you to gauge how much a bank is willing to loan you, before actually applying for the home loan.
Should I Get A DBS Home Loan?
This depends on your personal circumstances and preferences, but generally DBS home loans are quite popular. We recommend you speak with a PropertyGuru Finance home loan advisor for personalised advice and recommendations.
