By Nikki De Guzman:
DBS Bank has launched the first-of-its-kind HDB home loan called POSB HDB Loan – a new mortgage option for flat buyers, reported AsiaOne.
It offers a floating interest rate capped below the housing board’s concessionary rates for ten years. The HDB concessionary interest rate is pegged at 0.1 percentage point above the prevailing CPF interest rate.
The POSB HDB Loan is also expected to benefit from current low interest rates and will form part of DBS’ key mortgage offering. Moreover, home buyers taking up the loan will enjoy zero fees for early repayment or sale of property.
In recent years, DBS has introduced several first-of-its-kind mortgages to promote homeownership in Singapore. It was the first lender to offer 20-year housing loans and pioneered the adoption of full disclosure in all its loan packages in 2007.
DBS is currently the only bank that provides a fixed-rate programme which lets buyers switch to floating rates, or exercise the option to pay the same fixed rate for another two years and a floating rate scheme with an interest rate ceiling.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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