Free Advice/Discussion on Bank Mortgage loan

[Panerex]

DBS offer reprice package:

2 years fixed at 2.68%
after which, 3 months SORA+1%

amount: $550K

Reasonable ?

 

[Property_Broker]

Hello! Would like to seek clarification on some of my doubts!

For context, my partner and I are waiting for our BTO which is due for completion in Q4 2027. We have applied for the HFE and have been given the grant and HDB loan. Come 2027, we might need to pivot from HDB loan to bank loan due to HDB loan amount being insufficient (HFE doesn’t allow reassessment of loan before key collection). Was wondering how the process would be like when we apply for bank loan in early 2027.

I did a little bit of research and this is what I have found out:

The bank loan amount will based on the 3M SORA which is the floating rate and also the combined income at that point of time - I have reached out to a couple of mortgage brokers and some of them mentioned 3M SORA and 3M SORA + 0.5% as the floating rate. I’m not sure which is which and was wondering what is the difference?

TIA!

Hi @bobmah

As you will be taking bank loan before the property TOP(Key collection), the bank will offer you only floating rate package.

Typically the floating rate package will be either SORA package or bank board rate(DBS using FHR6 for now).

Example for BUC package 500k


Yr1-4: 3M SORA + 0.35%
TA: 3M SORA + 0.60%
No lock in period
Free conversion after TOP

Do take note the bank spread (+ 0.35%), this is bank profit margin on the loan.

 

[Property_Broker]

DBS offer reprice package:

2 years fixed at 2.68%
after which, 3 months SORA+1%

amount: $550K

Reasonable ?

Other banks are offering 2.5%~2.55% fixed for 2 years currently.

Are you within the lock in period?

 

[bobmah]

Hi @bobmah

As you will be taking bank loan before the property TOP(Key collection), the bank will offer you only floating rate package.

Typically the floating rate package will be either SORA package or bank board rate(DBS using FHR6 for now).

Example for BUC package 500k


Yr1-4: 3M SORA + 0.35%
TA: 3M SORA + 0.60%
No lock in period
Free conversion after TOP

Do take note the bank spread (+ 0.35%), this is bank profit margin on the loan.

Hi Mr Property Broker! Thank you so much for the information! So typically the + (whatever percentage it is) is the bank profit margin for the home loan? In that case, when calculating the bank loan amount, would they just use the 3M SORA or would they use the 3M SORA + the bank spread to calculate?


For a 450k loan with current 3M SORA, roughly how much combined income do we then need?

Thank you and sorry for the many questions! Super new to this

 

[Panerex]

Other banks are offering 2.5%~2.55% fixed for 2 years currently.

Are you within the lock in period?

hi, will be locked out soon. Hence, evaluating my options now.

Already re-priced with DBS 1-time before. Am asking them for better rates meanwhile.

 

[Property_Broker]

Hi Mr Property Broker! Thank you so much for the information! So typically the + (whatever percentage it is) is the bank profit margin for the home loan? In that case, when calculating the bank loan amount, would they just use the 3M SORA or would they use the 3M SORA + the bank spread to calculate?


For a 450k loan with current 3M SORA, roughly how much combined income do we then need?

Thank you and sorry for the many questions! Super new to this

Hi @bobmah

Nope. The bank will determine your loan amount based on your income and STRESS TEST.

Every bank will have different stress test for the different type of property type.

Typically DBS is using 4% for BUC property.

It is not USING 3M SORA + XX% for the stress test computation.

 

[Property_Broker]

hi, will be locked out soon. Hence, evaluating my options now.

Already re-priced with DBS 1-time before. Am asking them for better rates meanwhile.

oh~ then i will say that it is not very competitive~
Other banks can easily give you 2.55% + some better features (Waiver of penalty.. Free conversion after 1 years etc etc)

You can PM me if you need some quote.

 

[jason_teo]

Am at 3.1% DBS, now got 2.73% (free 1 year repricing). Didn't realise gotta sign again and lock in two years.

Is the general advice that I should wait for at least 2.6% before repricing?

TBH as I get closer to end of year, anyway it will be the full repricing with better rates I think

 

[aamaterasu]

My current loan is 3.65. There is 1 time free repricing within lockin and the rate offered is 2.75, about 700k loan. If wait until current contract finishes, it should be about July 2025. Should I opt for 2.75 or wait till July for a better rate? Thanks

 

[yorokob]

Got update that probably will be collecting keys for my ec towards the end of the year.

Since im under the dps, ill only need to start paying when i collec the keys.

Some qns: Should I start applying for loan now? And is it better to engage bank directly or through a mortgage broker?
Thanks!

 

[saikangwarrior]

My current loan is 3.65. There is 1 time free repricing within lockin and the rate offered is 2.75, about 700k loan. If wait until current contract finishes, it should be about July 2025. Should I opt for 2.75 or wait till July for a better rate? Thanks

It is hard to ascertain. But to make it worth it, you’ll have to get ~2.45%-2.5% at refinancing.

and also you got to do it fast, the clock is ticking. Every week delay, will make the offer less and less enticing.

Imo, just take it. And reply to them today

 

[Property_Broker]

Am at 3.1% DBS, now got 2.73% (free 1 year repricing). Didn't realise gotta sign again and lock in two years.

Is the general advice that I should wait for at least 2.6% before repricing?

TBH as I get closer to end of year, anyway it will be the full repricing with better rates I think

Hi @jason_teo

You might want to look at the last few pages on this thread. There are a lot of questions on this.

Let me summarize for you.

1) You will need to see if the repricing package is competitive anot? Comparing other bank rate vs your current rate 2.73%?

E.g. if other banks are offering 2.65% and your rate is 2.73%, it will say it is less than 0.1% margin. Which is competitive as we are taking into consideration that you still have 1 more year lock in period to go.

2) What is your view on the interest rate for the next 1 years? if you feel that fixed rate will go much much lower, you should remain at the current package at 3.1% then wait for interest rate to drop further. So you can explore reprice/refinancing 3 months before your lock in period end.

Yes. Usually bank will give much more competitive repricing once you are out of the lock in period.

 

[Property_Broker]

My current loan is 3.65. There is 1 time free repricing within lockin and the rate offered is 2.75, about 700k loan. If wait until current contract finishes, it should be about July 2025. Should I opt for 2.75 or wait till July for a better rate? Thanks

Hi @aamaterasu


You can look at the reply above to @jason_teo as well.

But if i am in your positon, I will go with 2.75% fixed for 2 years(But i will try luck to bargain lower a bit and get them commence asap)

Based on 700k loan amount, the fixed rate is around 2.5~2.55% fixed for 2 years.
So the repricing is not very competitive though.

HOWEVER, your current rate is too high @ 3.65%.

3.65% - 2.75% = 0.9%

Your opportunity cost of not repricing is = 700k x 0.9% /12 months = $525 per month.

 

[Property_Broker]

Got update that probably will be collecting keys for my ec towards the end of the year.

Since im under the dps, ill only need to start paying when i collec the keys.

Some qns: Should I start applying for loan now? And is it better to engage bank directly or through a mortgage broker?
Thanks!

Your law firm should ask you to apply for the loan 2-3 months before the property's TOP so they have sufficient time to process it.

Should I start applying for loan now?

Answer: If 3m SORA keep dropping for the next 6-12 months, the bank BUC package should get higher. It is around 3m sora + 0.3% currently.

It might increase to 3m Sora + 0.4%~0.5% by year end. Bank might increase their profit margin.

So I will recommend that you can apply it now.

The major reason is that in the event if you wish to apply the loan last min but the bank are unable to grant the loan amount. You will get caught. So might as well apply now to have a piece of mind.

And is it better to engage bank directly or through a mortgage broker?

I am a mortgage broker. So don't want to give biased answer to it. But there are few people ask this qn in this thread. You can look through~

Cheers.

 

[yorokob]

Your law firm should ask you to apply for the loan 2-3 months before the property's TOP so they have sufficient time to process it.

Should I start applying for loan now?

Answer: If 3m SORA keep dropping for the next 6-12 months, the bank BUC package should get higher. It is around 3m sora + 0.3% currently.

It might increase to 3m Sora + 0.4%~0.5% by year end. Bank might increase their profit margin.

So I will recommend that you can apply it now.

The major reason is that in the event if you wish to apply the loan last min but the bank are unable to grant the loan amount. You will get caught. So might as well apply now to have a piece of mind.

And is it better to engage bank directly or through a mortgage broker?

I am a mortgage broker. So don't want to give biased answer to it. But there are few people ask this qn in this thread. You can look through~

Cheers.

Thanks for the advice! Can you pm me? I would like to know somemore details, but not sure why I can't pm you

 

[Property_Broker]

Thanks for the advice! Can you pm me? I would like to know somemore details, but not sure why I can't pm you

Pmed. Cheers~

 

[rizhal]

Yeah !

FHR6 drops to 2.15% (from 2.9%)

Effective Date: 9/1/2025

https://www.dbs.com.sg/personal/rates-online/fixed-deposit-rate-singapore-dollar.page

 

[limck]

Just to share, I got a call from DBS today on revised repricing offer.

After Dec 24 FOMC the rate was at 2.68%. Today's offer is at 2.6%.

2 years lock in. 3M SORA + 1% thereafter

Loan amount > 1M

 

[Property_Broker]

Just to share, I got a call from DBS today on revised repricing offer.

After Dec 24 FOMC the rate was at 2.68%. Today's offer is at 2.6%.

2 years lock in. 3M SORA + 1% thereafter

Loan amount > 1M

Are you still within lock in period(1 year) or will be out of lock in period soon?

Thanks for sharing.

 

[ThinkCarefully]

DBS offer reprice package:

2 years fixed at 2.68%
after which, 3 months SORA+1%

amount: $550K

Reasonable ?

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given todays competitive market rates, I will try not to use Detrimentally Bad Service bank


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