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DBS Home Loan Review: Fixed vs Floating, SORA, BUC Packages and More (2022)

·8-min read
DBS Home Loan Review: Fixed vs Floating, SORA, BUC Packages and More (2022)     
DBS Home Loan Review: Fixed vs Floating, SORA, BUC Packages and More (2022)

Founded in 1968 by the Government of Singapore to initially finance the industrial activities of the Economic Development Board, today, DBS is one of the largest banks in Southeast Asia.

As the largest bank in Singapore, DBS has one of the highest deposit accounts and a strong presence in the local home loan market. In this guide, we take a look at the home loan packages offered by DBS for both HDB flat and private property owners.

On 16 June 2022, the US Fed made the largest rate hike since 1994, raising interest rates by 75 basis points. Another “75-basis point hike, or a 50-basis point move” will probably occur at the following meeting of policymakers. What can you do to combat rising interest rates? One thing you can do is shop around for loan packages and refinance an existing home loan.

For those thinking of taking up a loan with DBS or are already an existing customer, do note that the Fixed Deposit Home Rates (FHR) increased on 8 June 2022. Subsequently, the revised FHR applies from 8 July 2022. And as of 28 June 2022, DBS raised the interest rates on all of the bank’s home loan packages and removed its five-year fixed-rate package (at 2.05%) for HDB flat owners. Find out more in our article.

Disclaimer: The packages mentioned in this article are correct at the time of writing [1 July 2022] and are meant as a guide only. The interest rates are subject to change, and you should compare the latest home loan rates and packages on PropertyGuru Finance before applying for a new home loan.

DBS Home Loan Summary

DBS home loan summary

Type of home loan

BUC Home Loans

Floating Rate Home Loans

DBS 2-Year (FHR6 and 3M SORA) and No Lock Floating Rate

Fixed Rate Home Loans

DBS 2- and 3-Year Fixed Rate

Here’s an in-depth look at the different available under all three categories: fixed rate loans, floating rate loans and BUC loans.

DBS Fixed Rate Home Loans

Under its fixed rate packages, it offers a:

  • DBS 2-Year Fixed Rate Package

  • DBS 3-Year Fixed Rate Package

Current fixed rates for DBS (as of 1 July 2022):


DBS 2-Year Fixed Rate

DBS 3-Year Fixed Rate

Year 1



Year 2



Year 3

3M SORA + 1.5%


Year 4

3M SORA + 1.5%

3M SORA + 1.5%


3M SORA + 1.5%

3M SORA + 1.5%

The 2- and 3-year fixed rate packages have an interest rate of 2.75% per annum and a lock-in period for the specified number of years, respectively. Previously, DBS had a 5-year fixed rate home loan pegged to the Fixed Deposit Home Rate 6 (FHR6), which is the prevailing six-month Singapore Dollar fixed deposit rate of DBS for amounts of $1,000 to $9,999 (or any other sums stated in the letter of offer). The 5-year fixed rate home loan package has since been scrapped.

Meanwhile, the 2-year and 3-year packages are pegged to the 3M SORA after the lock-in period, which is the Singapore Overnight Rate Average, defined by the Monetary Authority of Singapore as the “volume-weighted average rate of borrowing transactions in the unsecured overnight interbank SGD cash market in Singapore between 8am and 6.15pm”.

Previously, the rates were pegged to SIBOR. Now that SIBOR is gradually being phased out, SORA is a popular reference rate for floating rate home loans. You can read more about it in this article: SIBOR vs SOR vs SORA: What Do These Rates Mean for Your Home Loans? For the latest DBS fixed deposit rates, click here instead.

DBS Increasing DBS Singapore Dollar Fixed Deposit (S$FD) Board Interest Rates from 8 June 2022

DBS is increasing its board interest rates from 8 June 2022; the FHR is increasing accordingly. Existing customers who have a home loan pegged to FHR will be affected and receive a letter informing you of the revised amount you will be paying. Due to the revised rates, you will observe your monthly instalments increasing from September 2022.

Consequently, the revised FHR applies from 8 July 2022:


Current FHR (Before 8 July 2022)

Revised FHR (From 8 July 2022 onwards)













Learn more about the latest revision of the DBS FHR here.

If You Have an Existing DBS Loan, What Can You Do to Mitigate the FHR6 Increase?

If you have an existing DBS home loan, you may be wondering what you can do to mitigate the FHR6 increase. According to Paul Wee, Vice President, PropertyGuru Finance, PropertyGuru Group, here are some tips:

  • Reach out to the bank to see repricing options

  • Explore refinancing options with other financial institutions

  • Explore increasing loan period/tenure to reduce monthly instalment amount to improve cash flow

  • Explore taking out an equity loan to obtain additional funds to cover exigencies

  • Increase CPF amount used to service loans

PGF interest rate hike smartrefi refinancing banner
PGF interest rate hike smartrefi refinancing banner

Want to save more on your existing mortgage? Compare the best home loan rates in town or check out PropertyGuru Finance for more personalised advice and recommendations:

DBS Floating Rate Home Loans

For completed properties, let’s start with the DBS floating rate home loans available. There are a few floating rate packages currently, tied to the FHR6 or 3M SORA.

Current floating rates for DBS (as of 1 July 2022):


DBS 2-Year Floating Rate FHR6 + 1.30%

DBS 2-Year Floating Rate 3M SORA + 1.0%

DBS No Lock Floating Rate

Year 1

FHR6 + 1.30%

3M SORA + 1.0%

FHR6 + 1.75%

Year 2

FHR6 + 1.30%

3M SORA + 1.0%

FHR6 + 1.75%

Year 3

FHR6 + 1.30%

3M SORA + 1.0%

FHR6 + 1.75%


FHR6 + 1.30%

3M SORA + 1.0%

FHR6 + 1.75% 

The DBS Floating Rate packages come with the option of a 2-year or no lock-in period. There are two 2-year floating rate packages you can choose from: the first with an FHR6 + 1.30% interest rate, and the second with a 3M SORA + 1.0% interest rate. Both have a commitment period of two years and a minimum loan amount of $100,000.

The floating loan with no lock-in period also has a minimum loan amount of $100,000. Right now, the interest rate is FHR6 + 1.75% from year one to five, and remains the same from year six and thereafter.

DBS also offers a Two-In-One home loan package, which is usually lower than a fixed-rate loan package. This hybrid home loan package allows borrowers to have up to half of their loan amount under a fixed rate package, while the rest of their loan is under a floating rate package, subject to special rates.

DBS BUC Home Loans (For Residential Properties under Construction)

Previously, DBS offered two types of home loan packages for private properties under construction. Back then, the DBS BUC loan came with an FHR6 + 0.95% interest rate, with no lock-in period.

However, DBS currently does not currently offer BUC loans. Looking for a BUC loan? Compare the best BUC loans on PropertyGuru.

DBS Home Loan Review: Should You Consider It?

There are many home loan packages out there, but what makes DBS home loan packages worth your consideration? Here are a few reasons why you could consider taking a DBS home loan package.

More Competitive than HDB Interest Rates

Compared to HDB concessionary rates of 2.6%, DBS’ rates are still more competitive. So, if you’re an HDB flat buyer or owner, it’s definitely worth considering. This translates to sizeable savings in the monthly instalments over the home loan lock-in period of two to three years.

Flexible Terms and Conditions

For the 2-year floating rate packages, there is a “Waiver Due to Sales”. This means you do not incur additional fees when you sell your property (and hence, prematurely cut short your loan).

The 2-year floating package pegged to the FHR6 also comes with a free conversion after six months from the date of the first disbursement. This gives the borrower the flexibility to reprice and switch to another lower interest loan package.  

Extra Savings with DBS Multiplier Account

The final reason to take up a DBS home loan is to take advantage of the Multiplier Account – a savings account that many Singaporeans have. Taking up a home loan package from DBS fulfils one of the categories for the Multiplier Account, which allows a DBS depositor to earn a higher interest rate on their savings.

From time to time, there may also be promotional rates offered by DBS and other banks. This can make a seemingly less superior package become more suitable and cheaper for you. To help you find the best home loan packages, you can use the PropertyGuru Finance home loan calculator or speak to one of our Mortgage Experts.

PropertyGuru Finance home loan bottom banner
PropertyGuru Finance home loan bottom banner

Thinking of getting a bank home loan? Compare the best mortgage rates on PropertyGuru Finance, or contact us for more personalised advice and recommendations:

Disclaimer: Information provided on this website is general in nature and does not constitute financial advice.

PropertyGuru will endeavour to update the website as needed. However, information can change without notice and we do not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time. Whilst every effort has been made to ensure that the information provided is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner or your bank to take into account your particular financial situation and individual needs. PropertyGuru does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, PropertyGuru, its employees do not accept any liability for any error or omission on this website or for any resulting loss or damage suffered by the recipient or any other person.

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