DBS Home Loan Refinancing

If you’re thinking of refinancing your current home loan, DBS Home Loan Refinancing packages could be what you’re looking for. As the largest bank in Singapore, DBS has a selection of mortgages for you to choose from whether you’re an existing HDB, Executive Condominium (EC) or private property homeowner.

Their competitive housing loan refinancing rates are pegged to their own fixed deposit interest (FHR6) rate or the Singapore Overnight Rate Average (SORA) rate.

And if you have a DBS Multiplier account, you can enjoy up to 3% savings on your home loan instalment transactions and other spending.

Note that all of DBS mortgage refinance loans are now linked to their FHR6 rate and the SORA rate, due to the recent nationwide interest rate benchmark reform that will result in the SOR and SIBOR rates to be gradually phased out in the next 3 or 4 years starting from 2021. If you’d like to understand more about the SORA vs SIBOR vs SOR rates, you can read about it on our comparison page.

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Why Choose to Refinance with DBS Home Loans?

Refinancing with DBS will give you more than just competitive interest rates that let you enjoy greater savings. You can look forward to a plethora of benefits that will complement your refinancing experience.


50 years of credibility

DBS has earned a respectable reputation with over five decades of track record as a renowned bank offering affordable mortgage loans in Singapore. With the "AA-" and "Aa1 '' credit ratings, which are among the highest in the world, it has been recognised as one of the safest banks in Asia by many trusted financial authorities including Global Finance.


Bonus interest on DBS Multiplier account

If you have a DBS Multiplier Account, your DBS housing loan will count towards your bonus interest calculation. The interest you’ll get depends on how much salary you credit into your DBS Multiplier Account, your monthly home loan instalments, as well as other spending.


Fixed deposit-linked interest rate

DBS offers housing loans pegged to FHR6, which is the prevailing 6 months Singapore Dollar fixed deposit interest rate of DBS Bank for amounts within S$1,000 to S$9,999 or such other sum. It’s an alternative to other interest rate benchmarks like Singapore Interbank Offered Rate (SIBOR) or Singapore Overnight Rate Average (SORA).


Refinancing tools

DBS’ housing loan calculators The refinancing home loan calculators on their DBS’ website are free for you to take advantage of as you work out your plan to estimate the costs for either fixed or floating-rate housing loans, or you can choose to use our Refinancing Calculator to help you out.

DBS Private Property/Executive Condominium Refinance Loans

With the recent interest rate benchmark reform in Singapore, DBS has switched from Swap Offer Rate (SOR) and Singapore Interbank Offered Rate (SIBOR) over to the new benchmark, Singapore Overnight Rate Average (SORA), to comply with Monetary Authority of Singapore (MAS) regulations. 


DBS now offers refinancing packages for executive condominiums and private properties which are based on the 3-month Compounded SORA rate, DBS Board (FHR6) rate and fixed rate.


Here’s an example to help you visualise things better:

Disclaimer: These computations are for illustration purposes only. Actual interest rates may vary. 

Let's say that you plan to get a condominium costing $1,000,000 while taking up a DBS SORA-pegged home loan of $750,000 with a tenure of 25 years. 


The first thing to note is the DBS’ Loan-to-Value (LTV) limit when you switch over from your previous home loan with another bank. LTV is the amount that you are allowed to borrow from DBS based on DBS’ assessment on your total monthly income and other ongoing loans or financial liabilities you may have.


In the situation when you’re switching over and you’ve not repaid at least 25% of your property’s purchase price, you may need to top-up extra cash or CPF to bring it in line with the LTV. If you’ve paid at least 25% of your property’s price or more, you’ll be able to move your entire loan balance (75% or less) to this new DBS home loan and refinance it. If not, you’ll only be allowed to loan up to 75% from the bank, which means the outstanding amount will still have to be paid by your CPF or in cash.


Let’s assume that you’ve only paid 15% of your downpayment (and you’re left with 5% to be paid in cash and the other 5% by CPF), so the estimated math will be as follows.


Your remaining downpayment:

$50,000 by CPF + $50,000 in Cash = $100,000

(at least 5% of the property price to be paid in cash and 5% to be paid in CPF)


Your estimated interest to pay for the first month:

DBS’ spread = 0.80%

3-month Compounded SORA = 0.1332%

0.1332% (3M Compounded SORA) + 0.80% (bank’s spread) = approx. 0.94%

0.94% x $750,000 = $7,050

$7,050 ÷ 12 months = $587

(based on the 3-month Compounded SORA rate which will fluctuate over time)


Your estimated monthly instalment:

$2,806

(based on the above prevailing 3-month Compounded SORA rate)


Estimated total payment over 25 years:

$750,000 (principal amount) + $91,866 (in interest) = $841,866 


*All above calculations are estimated using MoneySmart’s Refinancing Calculator.

DBS HDB Refinance Loans

As a HDB homeowner, you may want to consider refinancing your existing home loan with a package that has the lowest interest rate offered by DBS.


But if you’re looking at a fixed-rate option, DBS’ 5-Year Fixed Rate package that’s designed exclusively for HDB homeowners may be for you, as it gives you the additional benefit of repricing your home loan at no cost after 60 months from the date of your first disbursement.


Unlike the HDB concessionary loan offered by CPF, DBS’ floating and fixed-rate home loan rates are much lower i.e. ranging from 1.00% p.a. to 1.40% p.a., as compared to the HDB loan interest of 2.6% p.a.


Note that when you take up a home loan with any bank, you can only borrow a maximum of 75% of the property value. The HDB loan, on the other hand, lets you finance up to 90%. So if you’re switching from the HDB loan, you’ll need to top up any shortfall.


Let’s use an example to illustrate.

Disclaimer: These computations are for illustration purposes only. Actual interest rates may vary. 

We’ll assume that you and your partner are more risk-averse and are keen on taking up the 5-Year Fixed Rate package with DBS instead of a floating-rate package. So the two of you have decided to switch from the HDB concession loan to a $300,000 loan with a tenure of 20 years for your resale HDB flat.


DBS’ Loan-to-Value (LTV) limit will apply when you switch over from your HDB concessionary loan, which is pretty much the same as what was highlighted in the above example of refinancing an executive condominium.


In this example, we’ll just assume that you’ve paid at least 25% of your property’s price and you’re eligible to move your entire loan balance (75% or less) to this new DBS home loan and refinance it. So, the breakdown of the calculation would be as follows.


Your estimated interest to pay for the first month:

1.40% x $300,000 = $4,200 

$4,200 ÷ 12 months = $350

(based on DBS’ prevailing fixed interest rate of 1.40% for this package)


Your estimated monthly instalment multiply by 20 years:

$1434 x 20 x 12 months = $344,131 (so this amount should equate to the total payment over 20 years)


In the subsequent months, your interest charges are based on the outstanding balance of the loan at any given time, and the balance decreases as more principal is repaid.


Estimated total payment over 20 years:

$300,000 (principal amount) + $44,131 (in interest) = $344,131


As compared to the HDB concessionary loan with a 2.60% p.a. that results in a monthly instalment of $1,604, you and your partner will save $171 per month by switching to this DBS 5-year fixed-rate package.


Previous monthly instalment vs. DBS monthly instalment:

2.60% p.a. vs 1.40% p.a.

$1,604 - $1,434 = $171


Estimated savings in the first 5 years of refinancing with DBS:

$171 x 12 months x 5 years = $10,260


*All above calculations are estimated using MoneySmart’s Refinancing Calculator.


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Repricing vs Refinancing With DBS: What’s the Difference?

If you’re financing your current home with another bank, and you’re considering switching to one of DBS’ home loan packages, that’s refinancing. 


But apart from refinancing your mortgage with another provider, there’s another alternative known as repricing. 


Repricing will be when you, as an existing DBS customer who’s paying off a home loan offered by DBS, switch to another package that’s on DBS’ home loans menu.You’ll be with the same bank, but simply just changing to a different home loan package.


How To Apply For Your DBS Home Loan Refinancing

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DBS Home Loan Refinancing Application Process

Here are 5 steps to the DBS Home Loan Refinancing application process

Step 1

Submit your documents through us

To get started, prepare the necessary documents for refinancing and check if your existing mortgage has passed the lock-in period. Start comparing through us when you’re nearing the end of your current loan’s lock-in period, so you can familiarise yourself with the different options available.

The documents required for application include:

  • DBS application form
  • NRIC
  • Proof of income (CPF contribution history up to the last 12 months, latest Income Tax Notice of Assessment, latest computerised payslip
  • Latest available statement for all existing credit facilities
  • HDB flat information and financial information value confirmed by HDB / Private property information

Step 2

Pick your preferred refinancing package

After you’ve submitted your documents, we’ll dig deeper and find out the best housing loan refinancing package for you.

We’ll then advise you and liaise on your behalf once you’ve chosen your new home loan package.

Step 3

Start your refinance process with a lawyer

Our mortgage specialist team and a DBS-appointed lawyer will inform you to pay the remaining downpayment in cash or CPF if you have not done so.

DBS will also check with you if you’ve paid at least 25% of your property’s price or more. If you have, you’ll be able to move your entire loan balance (75% or less) to this new DBS home loan and refinance it. If not, you’ll only be allowed to loan up to 75% from DBS.

Thereafter, we’ll help you process your home loan refinancing application process, and your home loan refinancing approval will be done at this stage.

Step 4

Fees and charges

The engagement of a law firm and valuation company is required during your refinancing process. Some banks like DBS have their own panel of lawyers and valuers while others give you the flexibility to hire a lawyer from an external law firm.

Once this is done, you’ll need to pay legal and valuation fees, which usually cost above $2,000. Then, an agreed time and date needs to be set for you to visit the law firm to sign any necessary documents and also for the valuers to conduct a visit to your home.

Step 5

Complete your home loan refinance application

Finally, receive an email notification and confirmation from DBS on your new loan disbursement and monthly instalment amount.

Why Refinance Your Home Loan Through Us?

Simple, fast, convenient

Leave your home loan research to us and we’ll break it down for you in simple terms. Our Mortgage Specialist will contact you directly so you can save time for other important things in life.

Get better deals

Feeling so spoilt for choice you can't decide? Settling for the first option is like being forced to marry the first person you come across on a dating app. Don’t feel pressured. We compare across all banks in Singapore to ensure that you get the best DBS home loan refinancing rates.

It's free!

Our service to you is free. But, of course we’re not doing this for charity! All banks pay us a standard referral fee for our services and our awesome job done. We don’t take sides or give biased advice.

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Compare The Best Refinancing Rates Here!

Learn More

DBS Home Loan Singapore Review 2019 — Which Mortgage to Choose?

Best Home Loans in Singapore (2020) — How to Pick the Best Mortgage for Your Property

How to Refinance Your Home Loan in Singapore & Save Money on Your Mortgage

Frequently Asked Questions

How do I calculate monthly repayment?

Refinancing allows you to save money on your monthly mortgage. Use our Refinancing Calculator to find out how much you can save per month.

How many times can I refinance my home loan?

You can refinance your mortgage as many times as you like as long as the interest rates work to your advantage.

When should you refinance your home loan?

You should refinance your housing loan once you’ve ended your current lock-in period. If you switch within the lock-in period, you’ll be subject to a penalty fee.

How is refinancing different from repricing?

Refinancing means financing your current home with another bank instead of the current bank you’re with. On the other hand, repricing refers to switching to a new home loan package offered by the same bank that you’re currently financing your home with.

Is the DBS Board (FHR6) rate packages better than fixed-rate packages?

FHR6 is DBS’s board rate that is pegged to DBS’s Fixed Deposit interest rate. This may be lower, but it can change at any point since it is within DBS’ control. If you’re more risk-averse, fixed-rate packages will be better suited for you due to the stability of fixed rates. If interest rates rise all of a sudden, you’ll still be paying the same amount regardless of any fluctuations in interest rates.

How do I get a valuation done for my refinancing process?

DBS will appoint a valuer to assess the market value of your property. To arrange for a valuation done, you can reach out to DBS via email to [email protected] or SMS "HomeNameNRIC" to 76060. You can also do so via their Home Loans hotline at 6333 0033 (Mon to Fri, 9am to 5pm / Sat 9am to 12.30pm).

Should I increase or decrease my loan tenure when refinancing?

This depends on how much you can afford to pay off every month in your instalments. Shortening your loan tenure lets you clear off your loan faster, usually with lower interest rates and similar monthly instalments, while a longer tenure helps lower the monthly repayment, which eases your cash-flow. However, lengthening the loan tenure may lead to an increase in the total amount that you pay.