DBS Easy Switch Loan for new launches

DBS Easy Switch Loan

Exclusively for Building Under Construction (BUC) properties only

Love what you saw at the showflat and ready to secure a unit? We know finding the right home loan is a crucial first step towards achieving your dreams, especially in today’s high inflation and fluctuating interest rate environment.

With DBS Easy Switch Loan, you don’t just start with our FHR6 package – you also get the advantage of locking in a 3M SORA rate upfront.This means having the flexibility to switch to your pre-determined 3M SORA rate any time before Temporary Occupation Permit (TOP) issuance should market conditions change.

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Why choose DBS Easy Switch Loan?

More flexibility with 2 free conversions

First conversion: to a pre-determined 3M SORA package before TOP issuance.

Second conversion: to a prevailing package of your choice after TOP issuance

Scenario: Taking advantage of favourable rates with DBS Easy Switch Loan
John is planning to purchase a new condominium unit. He speaks to our Home Advice Specialist and takes up the DBS Easy Switch Loan for his new property.

John enjoys the best of both worlds - transparent fixed deposit rates and the flexibility of a free conversion to a pre-determined 3M SORA package before TOP.

Before TOP

John monitors interest rate movements and notices that the 3M SORA rate has fallen more than the 6-month SGD fixed deposit rate, which his loan is currently pegged to. To enjoy a lower rate, he approaches the Bank to exercise his free conversion to the pre-determined 3M SORA package.

After TOP

John moved into his new home and leverages on his second free conversion to replace his loan to pricing packages specially curated for completed property loans.

FHR6 vs 3M SORA – What’s the difference?

FHR6

3M SORA

What is it?

FHR6 or Fixed Deposit Home Rate is a loan package that’s pegged to our bank’s 6-month Fixed Deposit interest rate.

3M SORA or Singapore Overnight Rate Average is the volume-weighted average rate of actual borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore, published in the last 3 months.

Type of interest rate

Floating; rate changes are based on the discretion of the bank, in response to market conditions.

Floating; based on overnight interbank borrowing rates and fluctuations are in response to changes to central bank policies and economic factors.

When and where is it published?

S$ Fixed Deposit rates are published on our website here.

SORA rates are published daily on the (MAS) website at 9am.

How does FHR6 and 3M SORA compare? Even though FHR is determined by the bank, history shows that it is relatively more stable compared to the 3M SORA rate. Rate changes are not drastic, and they tend to rise slower.

For reference on FHR6 and 3M SORA trend, please refer to the link here.

Make your dream home a reality with us Apply for DBS Easy Switch Loan today. Apply now

Need some assistance? Our Treasures Home Advice Specialists are here to advise you or answer any queries you have. Leave us your contact details and we will get back to you within 3 working days. Let us help

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