DBS Temporarily Abolishes Fixed-Rate Home Loans Amid Ongoing Review
SINGAPORE: Singapore’s largest lender, DBS Bank, has temporarily removed fixed-rate home loans from its website from Friday, September 23.
CNA understands that the local bank is reviewing its rates.
The US Federal Reserve on Wednesday announced a 75 basis point increase in its benchmark federal funds rate, mirroring similarly large increases in June and July.
Lenders have revised their mortgage rates this year as global central banks embark on a race to raise rates to tame inflation.
Fixed rate packages have seen more significant adjustments. Some foreign banks suspended fixed rate options earlier in the year due to the rising cost of funds.
DBS previously offered two- and three-year mortgages at a fixed rate of 2.75 per annum.
It also had a two-in-one home loan, which allows borrowers to structure up to half of their loan amount at a fixed rate and the rest at a variable rate. This has also been removed from its website, based on verification by CNA Friday noon.
The bank continues to offer variable rate home loans – indexed to either the benchmark Singapore Overnight Average Rate (SORA) or the bank’s six-month average fixed deposit rate – with margins of loan unchanged since its last review in June.
Other local banks appear to have left their bids untouched Friday midday.
OCBC continues to offer a two-year fixed-rate package at 2.98% per annum, as well as SORA-indexed variable-rate packages consisting of one month or three months, plus an annual lending margin of 0 .98%.
“We regularly review our mortgage rates and ensure that our packages remain competitive. As interest rates are now trending higher, we advise consumers to review their affordability before committing to home purchases,” said the bank’s head of consumer secured loans, Phang Lah. Hwa.
The UOB website displayed a SORA-linked variable rate promotional package consisting of three months with a margin of 0.7% per annum.
Information about its flat-rate packages is available upon request, according to its website. Based on earlier reports from June, UOB was offering two- and three-year fixed-rate packages at 2.98% and 3.08% per annum, respectively.