DBS Singapore

Posted by Maggie Ang on February 5, 2017

 DBS Singapore

DBS Singapore offers mortgages for properties located in Singapore, Australia and London only. For Australia properties, they are financing within the local government areas of their approved list in Sydney (NSW), Melbourne (VIC) and Perth (WA), excluding Brisbane (QLD) and NT.

 

Their mortgage products offered for Singapore properties include Fixed Rates, 1M/3M SIBOR, FHR18 (18 months fixed deposit of amount less than $10,000). Their mortgage products offered for Australia are pegged to 3M AUD COF (cost of funds) and 3M SIBOR. DBS Singapore mortgage products for London properties are pegged to 3M SIBOR and 3M GBP LIBOR.

Refinancing customers of Singapore mortgages may enjoy subsidies/cash rebates to cover conveyancing fees.

 

Rates Types

FHR18

FHR18 is pegged to DBS’s prevailing 18 months Singapore Dollar Fixed Deposit interest rates of an amount from $1,000 to $9,999 or such amount as the Bank may specify. FHR18 is currently 0.6% per annum.

 

FHR9

FHR9 is pegged to DBS’s prevailing 9 months Singapore Dollar Fixed Deposit interest rates of an amount from $1,000 to $9,999 or such amount as the Bank may specify. FHR9 is currently 0.25% per annum.

 

SIBOR

1M/3M SIBOR (Singapore Interbank Offered Rate) is a reference rate based on the interest rates used by banks in Singapore when lending unsecured funds to each other, which is obtainable from Association of Banks in Singapore. 

DBS will obtain from Association of Banks at 11am fixing on the first business day of the month for 1M/3M SIBOR.

 

Fixed Rates

Interest rates are fixed as per Letter of Offer for a stated period of time. Under no circumstances should the bank revise a fixed interest rate during the period for which the interest rate is stated as fixed. Usually after the fixed period, rates will become variable.  

 

Cost of Funds

DBS’s Cost of Funds means, in relation to the Facility in a particular currency for a particular period, the cost to the Bank of funding in that currency. The first 3 month period shall start from the date on which the Facility is disbursed and shall be revised on the first business day of the 4th month from which the loan is disbursed. For example, the 3-month GBP Libor shall be revised every 3 months, and each revision is based on the first day of the 3-month period. DBS Singapore reserves the right to vary the benchmark rate as they may determine from time to time. The currencies offered are AUD and GBP.



Terms that you should watch out for

 

GENERAL

Always check that the name(s), address of the subject property, interest rate and tenure are correct.

The Borrower shall fulfill all of the following conditions to the satisfaction of the bank (in form and substance), within 7 days from the date of this Facility Letter, failing which this offer lapses unless otherwise agreed by the Bank.

Subject to all preconditions to disbursement (including those stated on the Loan Contract and in the Standard Terms) being met, the Credit Facilities shall be available to the Borrower for drawdown for a period of six (6) months from the date of the Facility Letter.

The Loan shall be drawdown upon giving the Bank at least seven (7) Business Day’s notice in writing.

The Borrower is required to open a saving account, be it for Singapore or Australia/London property for monthly debiting of the instalment.

Fire insurance for the Property must be insured with the appointed insurer from the bank. Yearly premium is payable and deducted from the saving account.

Note that legal subsidy or cash rebate given for the package is subjected to a 3 years clawback. That is, if you fully redeemed the loan within 3 years from date of first disbursement, you will need to refund the subsidies/rebates back to DBS.

 

NEW PURCHASE

The Housing Loan shall be used for payment of part of the Purchase Price of the Property.

If the property is purchased with benefits, subsidies, rebates, discounts or vouchers or other incentives from the vendor or any other party, the Bank shall have the right to reduce the quantum and/or review the terms of the Credit Facilities or cancel the Credit Facilities.

 

REFINANCING

The Housing Loan shall be used to refinance the loan outstanding from the existing mortgagee and given ranking by CPF Board. Any amount of the Housing Loan in excess of the redemption amount of the existing mortgagee shall be cancelled and no cancellation fee shall be levied on the amount so cancelled.

Equity loan can be obtained via refinancing (term loan) if property value is in excess after netting off outstanding loan and CPF usage.

Extension of loan tenure is viable up to 10 years, from age 65 to 75. The computation is based on 75 less age or date of purchase, whichever is lower, capped at 35 years for private, 30 for HDB. 

 

OWNER OCCUPATION

The Property shall be owner-occupied for the full tenor of the Credit Facilities. The Bank reserves the right to recall and/or cancel the Credit Facilities immediately if, at any time the Mortgagor rents out, sublets, licenses or parts with possession of the Property without the Bank’s prior written consent. Always declare the purpose of the Subject Property accurately, be it Owner-occupied or Investment.

 

REDEMPTION

Redemption of the Loan may be made subject to fulfilment of all of the following conditions: (a) served 3 months’ prior written notice or in lieu of such notice, pay the Bank 3 months’ interest, AND (b) pay the Bank a redemption fee if applicable.

 

PARTIAL PREPAYMENT

Partial prepayment of the Loan may be made subject to fulfillment of all of the following conditions: (a) serve the Bank 1 months’ prior written notice or in lieu of such notice, pay the Bank 1 months’ interest on the amount prepaid.

 

CANCELLATION

If the Loan is cancelled after acceptance of this Facility Letter or left undrawn on the expiry of the Availability Period, a cancellation fee of 1.5% flat on the amount cancelled or left undrawn. 

 

AUSTRALIA/LONDON

Processing fees and other fees may be payable for loans granted for properties in Australia and London. Customers are required to be DBS Treasures Customers by placing SGD$200,000 as of time of this article.

Bank will also appoint their own panel of law firm to handle mortgage and disbursement.

Note that valuation fee is to be borne by customers. DBS can proceed with the loan application anytime before settlement date. DBS reserves the right to conduct indicative/ desktop/ full valuation or revaluation on the property on a bi-annual/ annual basis.

Bank will secure a first ranking legal charge over the London property and the charge shall be registered with the Land Registry for England and Wales.


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Topics: banks

Written by Maggie Ang

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