SINGAPORE: Singapore’s largest lender DBS Bank has temporarily removed fixed rate home loans from its website as of Friday (Sep 23).
CNA understands that the local bank is currently reviewing its rates.
The US Federal Reserve announced a 75-basis-point increase in its benchmark federal-funds rate on Wednesday, mirroring similarly hefty increases in June and July.
Lenders have been making revisions to their home loan rates this year, as global central banks embark on a rate-hike race to tame inflation.
Fixed rate packages have seen bigger adjustments. Some foreign banks suspended fixed rate options earlier in the year due to the rising cost of funds.
DBS was previously offering two-year and three-year mortgage loans that carried 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 in fixed rates and the remainder under a floating rate package. This was removed from its website as well, based on a check by CNA on Friday noon.
The bank continues to offer floating rate home loans – pegged to either the benchmark Singapore Overnight Rate Average (SORA) or the bank’s six-month average fixed deposit rate – with the lending margins unchanged since its last revision in June.
Other local banks seem to have left their offerings untouched as of Friday noon.
OCBC continues to offer a two-year fixed rate package at 2.98 per cent per annum, alongside floating rate packages pegged to the one-month or three-month compounded SORA plus a per-annum lending margin of 0.98 per cent.
“We review our mortgage pricing regularly and ensure that our pricing packages remain competitive. As interest rates are now on the increasing trend, we advise consumers to review their affordability before committing to their home purchase,” said the bank’s head of consumer secured lending Phang Lah Hwa.
UOB’s website showed a promotional floating rate package linked to the three-month compounded SORA at a margin of 0.7 per cent per annum.
Information about its fixed rate packages is available upon request, according to its website. Based on earlier reports in June, UOB offered two-year and three-year fixed rate packages at 2.98 per cent and 3.08 per cent per annum, respectively.