Is DBS Home Loan the Best Deal For Your First Home?

Do you want to know if DBS Home Loan is the best for your first house? Then, read and understand as we tackle the details about it.

Looking for your first home gives you a sense of adulthood. But, choosing the right home loan gives you the sense of being financially responsible.

There are two ways that a home loan can affect your life. For one, you will use it to get your home finally. It is one of the most important achievements in your adulthood. Also, a home loan can bring a critical blow to your finances. Being careless in choosing the right one results in this. 

Banks can see how we rave to get our homes as soon as possible. So now, they offer many options, including DBS home loans.

DBS has four housing loan products for various purposes. Can a DBS home loan give the best deal for your first home?

Credit: https://www.dbs.com.sg/personal/loans/homeloans/manage-mortgage

DBS Home Loan Eligibility

DBS offers home loans to Singaporeans and Permanent Residents. It is available for legal age but not older than 65 years old upon the loan’s maturity. Also, the loan is not only for first-time homeowners only.

Borrowers may be HDB owners with existing home loans from other banks/financial institutions or Housing Development Board. In addition, it is for owners of new HDB homes with finished flats to apply.

DBS Home Loan Documents Required

Just like the other banks, DBS is strict with the required paperwork. It may be tedious, but this gives the bank the ability to know your creditworthiness.

You will need to present a photocopy of your NRIC (front and bank) and your computerised payslips for the past three months for employed borrowers. Also, you may need your Notice of assessment and your CPF statements for the past three months.

If you are self-employed, you will need to present a clear photocopy of your NRIC and the last two years’ Notice of assessment. In addition, you may present your last 15 months’ CPF statement. It proves that your business is indeed thriving.

In case you are a foreigner, you’ll need your passport, valid Employment Pass, and your computerised salary slips for the past 3 months.

DBS Private Property Home Loan

Take note that there are three types of interest rates in DBS Private Property Home Loan.

The Floating Rate Package (FHR9) pertains to the prevailing 9 month Singapore dollar fixed deposit interest rate. It is for amounts from $1,000 to $9,999.

On the other hand, the Fixed Rate Package is a fixed rate for a number of years. However, after a certain period, the interest rate will increase by 1.55% p.a.

So how does it work?

DBS Home Loan Private Property Checklist for Resale Properties

1. Find a home you want to buy. Contact a DBS Home Advice Specialist and check your loan eligibility. Then, pay the Option Fee with the seller. It could be 1% of the purchase price. Or it could be up to $1000 in cash. Secure an Option to Purchase (OTP).
2. Then, apply for a loan. Receive Loans Factsheet accompanied with instructions via email. Also, choose your ideal home loan package first. Afterwards, send the required documents to your DBS Home Advice Specialist or Relationship Manager.
3. Accept the approved loan. In addition, sign the Letter of Offer and other related documents.
4. After getting your loan approved, you finally need to meet with the bank’s lawyer to sign the OTP. Then, pay the relevant Stamp Duty in cash. Also, settle the remaining 15% down payment which the DBS Home Loan does not cover.
5. Sign the mortgage documents at a lawyer’s office. If there is any remaining balance for the downpayment, this is the time to settle it. Also, you may use your CPF savings if applicable. However, take note that you will have to pay the legal fees.
6. Collect the keys from the seller. Plus, receive a bank letter on loan disbursement and monthly instalment amount.
7. Finally, you can now move in. Ensure that you diligently pay your monthly instalments. This way, you prevent any financial problems.

Refinancing Private Property

There are times when you might realise that you have bitten more than you can chew. Or simply can’t handle your current home loan in another financial institution.

DBS home loan offers to refinance private properties. First, you must check that the home loan’s lock-in period has already expired. This way, you can apply for refinancing. Furthermore, DBS will take the time and review your needs and current financial status before recommending a loan.

A Home Loan Specialist will help with your loan approval. Plus, a DBS lawyer will start the process. Take note that you might be required to pay the legal fees involved. In addition, if your refinancing home loan gets approved, you need to repay the monthly instalments diligently.

Buying HDB Flat

You can use a DBS home loan to buy HDB Resale Flats and BTO (Build-To-Order) Flats. It means that you can acquire it with this type of loan, whether the flat is preowned or not. While this loan boasts a lower interest rate than the HDB Concessionary Loan, it only covers up to 80% of the property’s market value. HDB Concessionary Loan covers 90% of the property value.

Furthermore, HDB Concessionary Loan does not require any cash downpayment. Therefore, it is different from DBS, which requires at least 5% cash payment and 15% CPF.

DBS Renovation Loan

Renovation loan has specific purposes. It is strictly only for the home’s renovations. Examples include structural alterations, flooring and tiling, painting and redecorating, basic bathroom fittings, and electrical and wiring works.

The maximum amount you can borrow is $30,000. But it is payable for up to five years. The applicant must be the property owner or the immediate family member

Take note:

• The Handling Fee is 1% of the approved loan amount
• Insurance Premium is 1% of the approved loan amount.
• There is a cancellation fee of 1% of the approved amount should you change your mind.
• Pre-payment fee is 1% of the outstanding loan amount.

As a first time home buyer, you must realise that there is more to consider. It’s not just about the interest rate on home loans. Also, you need to read the terms and conditions and the fees and charges.

If you need urgent funds for your home, take out a loan from licensed moneylenders in Singapore. Cash Mart approves a personal loan for whichever reason you need it.