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DBS Home Loan Review: Is It the Most Affordable Mortgage Loan in Singapore?

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DBS Bank in Singapore is one of the best banks for a fixed interest home loan and competitive home rate. They cater to private homeowners and the HDB, who is responsible for creating affordable housing. This loan’s primary selling point is its low total cost.

Good for Bad for
  • Individuals seeking to refinance (with cash rebate) more than SGD 500,000 for their home loans
  • Individuals seeking a competitive rate package (5-year fixed) for their home loans
  • Individuals who are looking for home loans that have a low total cost
  • Individuals who do not need a refinance of more than SGD 500,000 for their home loans

Editor’s Rating: 4.5 / 5.0

Features and Benefits

DBS has an established reputation for providing home loans. In the year 2018, they have loaned a total of SGD 100 billion to homeowners (most of which have a 5-year FHR), both in the private sector and those on the lookout for affordable housing.

DBS has a fixed deposit interest rate (5-year fixed), which does not increase by much after some time, hence why as the loan tenure progresses, you will not find a dramatic jump on the total cost that you will be paying back. The bank ensures that their rates remain low as this is one of DBS home loans’ primary selling points.

You can get a minimum loan amount of up to SGD 100,000 from the DBS home loan, which is higher than what is required by other banks.

Types of DBS Home Loan

There are three types of DBS Home Loans which you can choose from. You can get DBS fixed deposit interest rate packages, home loan package, no lock, rate floating, rate home loan packages with a cash rebate, and other best home loan package applications with excellent reviews. Learn more about fixed and floating loan rates here.

1. DBS HDB Home Loans

This housing and development board home loan (HDB loan) is a DBS fixed deposit rate package (5-year fixed) home loan tenure of 5 years. The HDB loan interest rate is set at 2.2%, which means that you will only be paying a fixed monthly installment, which makes budgeting easier. Also, as an owner, you can get the DBS Home Payment Care with your HDB loan, which covers sudden income loss brought by unexpected events.

2. DBS Private Home Loans

For Singapore residents who want to borrow for private properties with a competitive fixed deposits home rate or a floating rate, DBS offers their private 5-year fixed-rate home loan packages. Even private facilities under construction can qualify for this loan, with the same competitive offers. However, no competitive deposit interest rates nor a cash rebate for floating-rate loans are available.

3. DBS Refinancing Home Loan

Refinancing means that you will trade your old home loan for a new one, and DBS offers one of the most competitive rates (e.g., 5-year fixed) for this type of policy. It is available for private and commercial property and is true for loans with or without a lock-in period (usually 5 years). The buyer can get a DBS fixed-rate home loan subject to the DBS Prime Rate set.

Interest Rates and Fees

You can refer to the table below for the fees you can expect to pay when you get DBS home loan packages:

Type Partial Repayment Fee Full Redemption Penalty Cancellation Fee
HDB tracker N/A N/A 1.5%
Private tracker 1.5% 1.5% 1.5%
Board Rate 1.5% 1.5% 1.5%
Board Rate N/A N/A 1.5%
Fixed-Rate 1.5% 1.5% 1.5%
BUC N/A N/A 0.75%

If you are looking into refinancing in particular, the following outlines the subsidies that the bank offers to its clients:

Principal Legal Fee Subsidy
Less than SGD 500,00 N/A
SGD 500,00 – SGD 999,999 SGD 2,000
SGD 1 Million – SGD 3 Million SGD 2,500
Greater than SGD 3 Million SGD 3,000

You can also get the following rebates for amounts of at least SGD 250,000 for completed HDB flats and SGD 500,000 for a completed private property.

For purchase/refinance of property: Floating rate package 2 Year Lock-in
Year 1 FHR24 + 0.60%p.a.
Year 2 FHR24 + 0.60%p.a.
Year 3 FHR24 + 0.90%p.a.
Year 4 and thereafter (5 years, year 6) FHR24 + 0.90%p.a.

Note: 2 year lock-in period. Fixed Deposits Home Loan Rate (FHR) 24 (FHR24) is the prevailing 24 months SGD fixed deposit interest rate of DBS Bank for amounts within S$1,000 to S$9,999 or other sums as what may be specified.

For purchase/refinance of property: Floating rate package 1 Year Lock-in (FHR8 + interest rate)
Year 1 FHR8 + 1.13%p.a.
Year 2 FHR8 + 1.13%p.a.
Year 3 FHR8 + 1.13%p.a.
Year 4 and thereafter (5 years and beyond) FHR8 + 1.13%p.a.

Note: Fixed Deposits Home Rate 8 (FHR8) is the prevailing 8 months SGD fixed deposit interest rate of DBS Bank for amounts within S$1,000 to S$9,999 or other sums as what may be specified.

How Does DBS Home Loan Compare with Other Banks

To get a quick overview of what different banks have to offer in terms of their home loan rates, you may refer to the following comparison.

Bank Interest Rate Tenure Processing Fee Loanable Amount Lock-in Period
Standard Chartered 1% on the 1st year (fixed rate) Up to 30 years 1% of the loan amount Minimum SGD 100,00 2 years
OCBC 1.40% on the 1st year (fixed rate) Up to 30 years Up to 1.5% of the loan amount Minimum SGD 100,00 No Lock-in
Maybank 1.21% on the 1st year Up to 30 years 1% of the borrowed amount Minimum SGD 100,00 2 years
RHB 1.15% on the 1st year Up to 30 years Up to 1.5% of the borrowed amount Minimum SGD 100,00 3 years
HSBC 1.25% on the 1st year Up to 30 years Up to 1.5% of the borrowed amount Minimum SGD 100,00 2 years
DBS 1.50% (but will only go up to 1.83%) Up to 30 years 0.75 – 1.50% Minimum SGD 100,00 2 years


What Makes DBS Stand Out

What makes DBS stand out among other offers is its affordable total cost. The amount you will be repaying in total to DBS is among the lowest in the country because other banks tend to charge higher interest rates as your tenure progresses, which you might not realize as they give attractive starting rates. However, DBS home loans, despite their higher Year 1 rates, haves the option of having fixed rates or competitively low floating rates despite a long tenure, hence the lower total cost.

Eligibility and Requirements

The eligibility requirements for those who want to apply for the HDB home loan (which is more affordable) are listed below:

  • Be a Singapore resident
  • Earn a monthly salary of not more than SGD 6,000 if unmarried or SGD 12,000 gross family income

For the other types of home loans, non-Singapore residents are eligible, and you have to exceed the maximum income requirement. However, these bank loans need a good credit score for approval, which entails an arduous process of checking your bank statements. Unlike other bank loans, application for home loans require a more extensive list of required documents. To help you prepare, these are listed below:

  • NRIC or Passport (for foreigners)
  • Latest credit card & credit line statements (present those with outstanding balances)
  • Latest 3 months’ payslips
  • Latest 3 months’ salary crediting account statements 
  • HDB Flat & Financial Information
  • Latest Notice of Assessment or 12 months CPF Contribution History
  • Latest credit facilities statements (e.g., credit card, car loan, personal loan facilities, or others)

Additional required documents can also be asked. You could call customer service to check after deciding which type of DBS home loan you would be applying for.

How To Apply

Application for a DBS Home Loan can be simplified into three quick steps. You can get your money with just a click of your finger through the online application process.

  1. Go to the DBS bank site and fill the online application form.
  2. Upload the required documents on the site.
  3. Wait for your request to get approved by the bank staff.

If you are an existing DBS/POSB account holder, you need to provide the last 4 digits of your ATM/Debit Card and PIN before you can begin the online application.


Unlike other loans, the home loan requires a much more rigorous process than other banking activities. The extensive list of requirements and the variety of rates (FHR, deposit rates, home loan rate, FHR8, etc.) to choose from can be overwhelming. If you are unsure where to start but have decided on getting a DBS Home Loan, you can contact Loan Advisor. They are one of the most trusted finance directory comparison website in the country, and they have already done back-breaking research on the options you can choose from in the market.

To get the best home loan in Singapore, visit their website now for more information!

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